Update from Executive Committee
The 25th SSA Executive Committee meeting (conference call) since the crisis hit in early August took place on December 5th, with another planned for tomorrow, December 12th. Excomm is essentially meeting weekly. Here is where things stand:
We are just beginning to truly understand SSA finances, since all financial statements for the past 3 years, to a large degree, appear to have been fabricated by Gleason (who is now free on bail, awaiting trial). It has proven to be a monumental task to unravel our finances, but we are nearing the point where we can present a six month cash flow projection to the Board. The insurance claim, under our coverage of $125,000, was submitted this Monday. It has been a huge task to properly document each and every loss, something the company requires. Losses that appear to have been due to theft are at least $170,000.
Gleason’s last criminal court appearance about two weeks ago resulted in a trial continuance. We are told this is a typical stalling defense tactic. We have plenty of patience, and none of our potential recovery of funds is dependent upon a criminal conviction. Our separate civil suit against him is also pending.
The SSA Future Reorganization Task force, entrusted with completely evaluating the SSA and making recommendations to the Board to revamp the Society by Jan, 2008 has been chosen. The chairman, David Pixton, will be announcing his plans and the composition of the group shortly.
Excomm, Secretary Dean Carswell and Region 5 Director Al Tyler (as the Emergency Business Plan Task Force) will continue to run the SSA for the next year, and there has not yet even been any discussion of hiring a new Executive Director. Our new Accounts Manager, Judy Blalack, is doing an excellent job unraveling Gleason's mess. Denise Layton has done exceptional work as Office Administrator, as has our staff of Rhonda Copeland, Kathy Purvis, Gaynell Temple, Donna Head and Susan Dew. We’ve never seen only seven people get so much done.
While we are holding our own financially, as you know, we have a $263,000 loan (which may increase if we are charged for interest and penalties) to repay to the SSA Foundation in just over 8 years. If we take that entire time to do so, interest alone exceeds $90,000. From a cash flow standpoint, the amortized quarterly payments are ~$12,000. Obviously, the quicker we repay the loan, the better.
In that regard, response to the Eagle Fund has thus far been excellent. $47,000 has already been donated, which is within $3,000 of what was donated in all of 2005. The general solicitation letter to members was mailed less than two weeks ago. The response has been overwhelming, and heartening.
Jim Skydell, First Vice Chair