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Re: Time Line for USCF Memberships and Revenues
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samsloan
Apr 6, 2012, 2:44:29 PM4/6/12
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[quote="SysAdmin"]According to note 3 on page 10 of the audited
financial statements as of 5/31/99, there was $1,591,130 in cash and
securities in the Life Membership Asset account at the time.
The New Windsor building and property were listed at $206,740 on the
financial statement, though they were appraised at $585,000 in 1998.
By the 5/31/2004 financial statements, there was just $10 left in the
cash and securities balance, but we still owned the building in New
Windsor, which was being carried on the books (less depreciation) at
$132,800 but with an unaudited estimated appraised value of $600,000.
So, it wasn't really $2 million that was taken out of life member
assets during that time period.[/quote]
Excellent. Thank you very, very much for looking this up.
Now the question is: What happened to the missing $1,591,120 in cash
and securities?
Sam Sloan
financial statements as of 5/31/99, there was $1,591,130 in cash and
securities in the Life Membership Asset account at the time.
The New Windsor building and property were listed at $206,740 on the
financial statement, though they were appraised at $585,000 in 1998.
By the 5/31/2004 financial statements, there was just $10 left in the
cash and securities balance, but we still owned the building in New
Windsor, which was being carried on the books (less depreciation) at
$132,800 but with an unaudited estimated appraised value of $600,000.
So, it wasn't really $2 million that was taken out of life member
assets during that time period.[/quote]
Excellent. Thank you very, very much for looking this up.
Now the question is: What happened to the missing $1,591,120 in cash
and securities?
Sam Sloan
samsloan
Apr 6, 2012, 3:44:13 PM4/6/12
to
[quote="SysAdmin"]Much of it was 'loaned' to operations to cover
operational deficits in that time period, a practice that had started
by 1998 (possibly earlier) to meet the requirement that the bank line
of credit be paid down once a year.
They'd pay off the credit line, then borrow it back after the end of
the month and repay the loan from LMA. Eventually those loans, which
don't show up on the financial statements since they are intra-company
transactions, were made permanent, because operations was losing money
and had no way to repay it. They used to show up on the trial
balance, and may still be there. Don't you have a copy of that from
around 2006?
There were also market losses in the portfolio, in part because some
investments had to be liquidated below cost after the market peaked in
March of 2000 in order to keep loaning money to operations, but those
losses aren't easily determined from the audited financials.[/quote]
Thank you for this explanation.
My point is that if you take each of the certified financial
statements from 1998 through 2004, you will see a small loss for every
year. However, when you add up all these losses, it comes to less than
$200,000.
Yet, $1,591,120 in cash and securities disappeared.
What happened to all the money?
Sam Sloan
operational deficits in that time period, a practice that had started
by 1998 (possibly earlier) to meet the requirement that the bank line
of credit be paid down once a year.
They'd pay off the credit line, then borrow it back after the end of
the month and repay the loan from LMA. Eventually those loans, which
don't show up on the financial statements since they are intra-company
transactions, were made permanent, because operations was losing money
and had no way to repay it. They used to show up on the trial
balance, and may still be there. Don't you have a copy of that from
around 2006?
There were also market losses in the portfolio, in part because some
investments had to be liquidated below cost after the market peaked in
March of 2000 in order to keep loaning money to operations, but those
losses aren't easily determined from the audited financials.[/quote]
Thank you for this explanation.
My point is that if you take each of the certified financial
statements from 1998 through 2004, you will see a small loss for every
year. However, when you add up all these losses, it comes to less than
$200,000.
Yet, $1,591,120 in cash and securities disappeared.
What happened to all the money?
Sam Sloan
BettorO...@aol.com
Apr 7, 2012, 7:17:40 AM4/7/12
to
> Yet, $1,591,120 in cash and securities disappeared.
>
> What happened to all the money?
A good forensic accountant should have been able to reconstruct some
>
> What happened to all the money?
type of a paper trail. The banks have records of any checks or
withdrawals from either account, etc., one could contact vendors,
etc.
Between the lower value of the building, portfolio losses, and
operating losses, a fair amount of that money seems to have been
accounted for. Banks usually have to keep records for a very long
time, so I bet one could still possibly figure this out.
Ray Gordon, Author
The Fine Art Of The Miniature: Win Your Chessgames In Twenty-Five
Moves Or Less
http://www.amazon.com/The-Fine-Art-Miniature-ebook/dp/B004T33NZS
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