The $50,000 cap is a cap on the so-called "imaginary" money that the
USCF is supposed to receive but does not actually get. Back when the
LMA or "Life Management Assets" had two million dollars in it, every
year the LMA would transfer about $100,000 to operations to service
the Life Members by sending them Chess Life magazine.

However, during the period 1999-2003, the entire $2 million was
"borrowed" and spent. Thus, that LMA does not exist any more.

Nevertheless, ever since, operations has made a bookkeeping entry
showing the receipt of the $100,000 which is offset by a reduction of
the "debt" owed by Operations to the LMA.

Thus, last year, when the office reported a $3,000 surplus, in real
money there was a loss of $97,000, because the revenues included this
$100,000 that was not actually received.

At the 2007 delegates meeting in Cherry Hill, the delegates voted to
place a $50,000 cap on the imaginary money. I vote against this
because I believe that the imaginary money should be deleted entirely.

What Grant Perks is saying above is that GAAP requires that the full
$100,000 in "imaginary money" be included, so that in this year's
financial statements we will once again reporting $100,000 more money
as revenues than we have actually received.

Sam Sloan