All Scientology org staff are dependent to some degree.  When I was
a staff member at the Austin Org in the early 70s, my first ever pay
for the week was $7.00.  That'll get you rice and beans for a week.
Maybe even some oatmeal and a bit of skim milk and toast.

Per LRH (and "church") policy, an org's FP allocation is subject to
cutbacks when the "GI" (gross income) is down.  This is especially
true for the payroll sum.

"The blunt threat of punishment alone and unmistakable can get stats up."
--L. Ron Hubbard, in a Flag Order

I've been following this thread for a couple of days and thought this
would be a good time to post my thoughts, as well as a few applicable
policies.  There certainly are other policy letters pertaining to this
subject.  Additionally, there are Flag Orders (FOs), which are policy
for Sea Org organizations, on the specific subject of serving meals of
rice and beans when an org's stats are down.

HCO Policy Letter 13 February 1971 "Finance Series 2 - Financial Planning
Tips" is a key policy letter governing Scientology organization financial
planning and the allocation of money (often called "beans" by Hubbard, in
the context of finance).  I am very familiar with this policy letter for
a couple of reasons. Number one, when I was the Financial Planning Chairman
for ASHO Day, I had to apply this policy with regards to deciding how the
org's financial allocation (called the FP sum) would be spent.  Number two,
I studied this policy as part of my training for no less than six different
courses I did -- Director of Disbursements Full Hat, Treasury Secretary
Full Hat, Staff Status III (in my case the OEC Volume III, Treasury Division
Volume), Advisory Council Member Hat, Financial Planning Chairman Hat and
Finance Specialist Course.)

It is a basic policy of Scientology, based upon Hubbard's writings to
"reward up statistics and punish [also called penalize] down statistics".
When a Scientology organization's stats are down [and not just the "GI"
(gross income)], the org is punished in the form of a decreased financial
allocation.  It's a matter of simple mathematics.  Here's how it works
(I'll use realistic estimates based upon my experience at ASHO Day).

Let's say ASHO Day has a "GI" of $50,000 (which it often did) for the
week.  Included in the $50,000 GI are gross book sales of $10,000 (which
is a very realistic figure). Here's where the money goes:

  $50,000 - Gross Income (GI) - all GI rec'd is deposited to the FBO #1 Acct
-  10,000 - Gross Book Sales (GBS) - transferred to Org HCO Book Account
-   7,000 - FSMCs Paid (FSMCs Pd) - transferred to Org FSM Account
-   1,000 - Bounced checks (B Ck) counted on previous week's income
-   3,500 - Service Completion Awards Pd. (SCA Pd) - transferred to Org SCA
Acct.
-   1,000 - Memberships (Memb) - transferred to Org HCO Book Acct.
-   2,000 - Refunds/Repayments (Ref/RAP) - transferred to Org CVB Account
-     800 - Sales Tax on GBS - transferred to Org Main Acct.
---------
  $24,700 - Corrected Gross Income (CGI)
-   4,940 - 20% to Sea Org Reserves (SOR)*
-   1,235 -  5% to Trustee Account (GOWW)*
-   1,235 -  5% to Org GO Account (GO Main Acct.)*
-   1,235 -  5% to Guardian Office Reserves (GO Defense Acct.)*
-   2,470 - 10% to Org Reserves and/or Backbills (Org. Reserve Acct.)*
-     500 -  transferred to FBO #2 Acct. for Flag expenses incurred locally [@]
---------
  $13,085 - Financial Planning Sum (FP Sum)
-   4,940 - for promotion (minimum 20% of CGI)*
-   5,434 - for basic expenses (as per FP#1 - not fixed, usually around 22%)
-   2,211 - for staff welfare (more about this below)
---------
      500 - balance retained in FBO #1 Acct. for Bounced Check cushion [#]

* = These percentages are fixed by policy and are _not_ subject to cuts
by local org management. The policy is Board Policy Letter of 3 December
1972 Issue IIRC Revised 17 April 1976 "Financial Management Standardiza-
tion Series 3R - FBO & Treasury Financial Reports - Attachment Form
AC-1 - FBO Weekly Report"

# = A bounced check reserve (cushion) is to be built up gradually until
a reserve equal to one week's average gross income is achieved. The policy
is Board Policy Letter of 3 December 1972 Issue IIRC Revised 17 April 1976
"Financial Management Standardization Series 3R - FBO & Treasury Financial
Reports - Attachment Form AC-1 - FBO Weekly Report"

@ = This amount must be enough to cover any local Flag expenses authorized.
An example would be Flag missionaires in the org to handle an insolvent org.
The governing policy is Board Policy Letter 3 November 1972RB - "Finance
Series 14RB - Payment of Flag Bills Incurred Locally".

Note that fixed percentages of the org's income are taken away by various
management orgs.  What is left is what the org gets to spend on its own
expenses.  Per a policy written by L. Ron Hubbard (HCO PL "PES Account"),
Sea Org organizations (of which ASHO Day is one) are required to spend a
_minimum_ of 20% of the corrected gross income on promotion.  Promotion
(all that junk mail that the cult sends out every week) is a mandatory
action.  No weekly Financial Planning Executive Directive ("FP ED") would
ever be approved by the Executive Council or Flag Banking Officer without
the required 20% of the CGI for promo being allocated by the Financial
Planning Committee.

After promotion has been allocated for, the org's "basic expenses" are
the next priority. (More about this below.)  "Basic expenses" include
such things as rent or mortgage, utilities, liability and theft insurance,
worker's compensation insurance, property taxes, administrative supplies
(such as paper, photocopy expenses, clay, pencils, pens, clipboards, etc.),
long distance telephone call expenses, tours expenses (airfare, food,
lodging, etc.) gasoline (usually for HCO Dir. of Communications), and so
forth.

If there is anything left over after management has taken its fixed per-
centages of income, and the necessary funds have been transferred to the
HCO Book Account, the Claims Verification Board Account, the Service Com-
pletion Award Account, and the org's promotion has been covered financially,
and the required 10% to Org Reserve Account and/or back bills has been
allocated, and the organizational basic expenses are covered (financially
planned for as well as funds being allocated), _if_ there is anything
left over, this is what is allocated for "crew welfare".

"Crew welfare" includes such things as pay (sometimes called a Sea Org
member's "allowance", or "stipend"), bonuses, food, child care expenses,
medical and dental expenses (ha ha ha), uniforms, etc.  (These are the
most common types of things considered.)

Hubbard said that pay, bonuses, food and uniforms are subject to cutbacks.
And it was often the case that these things were cut, often completely.

In a week (as the example above) where the staff welfare amount was only
$2211, here's how it would have been spent:

$1511 - for non-SO contracted tech staff pay
  700 - for the week's food allocation for approx. 100 staff
-----
$2211 - total "staff welfare" amount spent

You see, ASHO Day had generally 5-10 or so staff who were _not_ Sea Org
members.  These were all tech division staff hired to ensure delivery of
the "tech". (ASHO Day always had a hard time getting and keeping _Sea Org_
"tech trained" staff in sufficient quantity, so we hired "public" members
to help with the delivery of auditing and C/Sing).  Since _non-SO_ staff
do not live in Sea Org facilities, nor do they eat in the Sea Org galley
(cafeteria), they are responsible for their own living quarters, food,
transportation, and everything else.  So they almost always received at
least _some_ pay.  Many times, the non-SO staff would threaten to quit
when their pay was cut.  True fact.  As Payroll Officer, I always was
the first one to hear about it when a staff member was upset over a cut
in their pay.  Many times, the non-SO staff received 1/2 of their promised
pay.  Try to imagine a non-Sea Org staff member who had worked all week,
had "upstats", and was expecting to receive his/her pay of $400-$500
for the week.  But when you go to get your pay on Friday evening, you
are told, "Sorry... Pay was cut by FP."  And then instead of getting
what you were promised, you get half pay -- $200-$250!  Needless to say
this didn't go over very well with the non-SO staff.  (Ladayla, feel
free to comment.)  :)  

As you may have noticed, the $2211 for staff welfare was allocated to:
food for 100 staff -  $700
and non-SO payroll - $1511.

The $700. for food doesn't buy much.  And generally speaking, ASHO Day
had right around 100 Sea Org staff members when I was there between
1975 and 1983.  How much food, or better yet, what quality of food can
a staff of 100 expect to receive when they must be fed with only $700
for the whole week???

I'll tell you.  We got oatmeal (maybe some toast) and skim milk for
breakfast, and rice and beans for lunch and dinner. Sometimes this was
our diet for weeks on end.  I am not exaggerating.

Now maybe you noticed there was nothing allocated for Sea Org members'
pay.  That's because pay is not a necessity according to L. Ron Hubbard.
And back in 1981, there were more weeks that year that the Sea Org staff
received _no_ pay at all, than there were weeks we received _some_ pay.
And when we did get some "pay", it was usually around $6.00.

With $6.00 Sea Org members had to buy their own bath soap, toilet paper,
tampons, razors, deodorant, laundry soap, cigarettes, etc.

Here's the "more about that below" part I mentioned:

From L. Ron Hubbard's HCO Policy Letter 13 February 1971 "Finance Series
2 - Financial Planning Tips":

"Look over what your products should be, particularly your Valuable
 Final Products, and then begin to get those products somehow anyhow.
 This and only this is the shining reason why you can have a decent
 allocation."

"SEPARATE OUT DIFFERENT TYPES OF EXPENDITURE. [...] Wages, food, uniforms,
 fuel are subject to cutbacks where an activity is not able to demonstrate
 production."

"The Finance people want to get cash to reserves and they resent justly
 a freeloader activity that has subsidize or unwise think. They want to
 give an activity X beans (money) and get back X beans plus."

"NEGLECTING NECESSITIES. When an FP [Financial Planning] body is not aware
 of the necessities of its operation and neglects to FP for them Finance
 people (Bureau Three Treasury and FBOs) have to do it for them. [...]
 An FP body should have a list of vital necessities by division and FP
 for those first before it begins to wonder. Strangely [!], pay, food,
 uniforms are not considered necessities. They do not directly influence
 an activity's income. A 'necessity' is what it takes to make products
 and valuable final products. In a cap-in-hand activity food is qualified
 as 'some food, oatmeal maybe'. Pay becomes 'maybe but no bonuses ever'.
 Uniforms become 'none'. Recruiting posters YES. Fuel becomes 'economical
 amounts carefully used'. Training materials becomes YES. So what's a
 necessity?  A necessity is what it takes to make the valuable final
 product, not individual survival but group survival."

"The essence of getting money is making money in the first place. FP is
 the second step of what do we do with the money we make. It will never
 solve neglecting to make it. You always have trouble with money if you
 don't make any."

---

From L. Ron Hubbard's HCO Policy Letter of 9 March 1972 Issue I "Finance
Series 11 - Income Flows and Pools - Principles of Money Management":

"GOVERNING POLICY

 The governing policy of Finance is to:

 A. MAKE MONEY.

 B. Buy more money made with allocations for expense (bean theory).

 C. Do not commit expense beyond future ability to pay.

 D. Don't ever borrow.

 E. Know different types of orgs and what they do.

 F. Understand money flow lines not only in an org but org to org
    as customers [customers - that's the word he used] flow upward.

 G. Understand EXCHANGE of valuables or service for money (P/L Exec
    Series 3 and 4).

 H. Know the correct money pools for any given activity.

 I. Police all lines constantly.

 J. MAKE MONEY.

 K. MAKE MORE MONEY.

 L. MAKE OTHER PEOPLE PRODUCE SO AS TO MAKE MONEY."

---

"The blunt threat of punishment alone and unmistakable can get stats up."
--L. Ron Hubbard, in a Flag Order

Warrior - Sunshine disinfects
See http://warrior.offlines.org/