Well, maybe they just had computer problems .... Oh yeah, I forgot, we
already covered that several years ago.



"5-BG" 5-bghatesspam @ fake.com wrote in message
...
lets get real clear on what was actually reported to the members of SSA by
the chair of the board.
1. Gross and material misrepresentations of the financial condition of the
society were made by two cfo's, endorsed by current and past ceo and
recieved by the current and past chairpersons. These false and misleading
financials were submitted while the society had a relationship with a
professional accounting firm.

2. Required non profit reports to the government were not filed since
2002.

3. required deposits and reports to federal and state governments of amounts
withheld from employee checks and matching contributions were not made
beginning 2003.

4. the actual amount not paid is estimated at $300,000 and with penalities
and interest was estimated at $600,000. Annual dues at $65 for 16,000
members is about 1 million just as a point in reference.

5. The chair is looking into "borrowing " money from "unrestricted " funds
within the foundation. It would not surprise me to hear in a future note to
members that these funds have already been looted and that false financial
statements have been submitted.

A situation of this magnitude that persists since 2002 and survives
multiple managers and boards is simply not the work of an isolated
individual. It is inconceivable to me that a professional accounting firm,
post enron, does not understand that its primary legal obligation is to the
ASSOCIATION and that it has a duty to bring such malfeasance to the
attention of the chairman OR TO RESIGN.

We have been told that an outside attorney has been retained to determine
the scope of the problem. It is inconceivable to me that that attorney would
continue to use the services of the old accounting firm. In any event, NO
ESTIMATE WAS GIVEN as to the projected cost of the attorney investigation
nor of the cost of redoing all financial statements and preparing back
reports. You can bet it will BE PLENTY. Full and complete audits are
expensive.

In my opinion, this is a systemic problem that i find difficult to imagine
was confined to one individual. Am I to believe that no notices of
deliquency were ever sent to SSA? and if sent that they were seen by only
the "one individual"? Am I to believe that this one individual cooked the
books before he was even hired? or that his assistant was totally in the
dark. Or that the current and past ceo was so out of touch with a very small
office that they had no idea of what was going on?? In corporate America,
the CEO SIGNS THE RETURNS and is responsible. I would assume the same
applies to a non profit.

The real problem that longtime members such as myself face is that of
group insurance coverage. I do NOT BELIEVE that SSA will survive this
ordeal. I just got a quote for lesser coverage with a $1,000 deductable (
current deductable is zero) policy for my glider. It was $400 more than the
grpoup coverage through ssa. AND if I wish to add a pilot to my policy it
costs an extra $100. Clearly, I have remained a dues paying member of ssa
for the past several years, not because the organization addressed my needs
as a pilot, BUT FOR THE INSURANCE.
Perhaps Costello could and should get ahead of this issue and begin putting
together an ex SSA group policy.

I am seriously disgusted with this whole mess and am not at all optomistic
that all of the monetary problems have been fully disclosed. It is going to
be very interesting to see what, if anything, remains in the RESTRICTED as
well as UNRESTRICTED fund bank accounts. I am also going to be VERY ****ED
OFF if the insurance issue is used to "encourage" members to pay a special
assessment to cover back payments, and the cost of figuring out the mess.

Make available a group insurance policy under a different umbrella
organization and i believe that a significant part of the membership will
vote with their feet. I barely glance at the magazine that is geared towards
the el;ite contest pilots and their exploits. As for the four staff
committments cited in my recent letter of renewal, i would add enriching
themselves as a fifth.