Important message for SSA members

On Sat, 2 Sep 2006 07:21:41 UTC, 588 wrote:

: Ian Johnston wrote:
: On Fri, 1 Sep 2006 20:41:08 UTC, Jack wrote:
:
: : Probably because it is SSA business, and this is a public, not an SSA,
: : site.
:
: Yet the announcement was posted here...

: Ian, you've apparently missed some of the discussion. Notice (of the
: message to members) was posted here so that members would find the
: message in the members-only section of the SSA website.

Sorry, I was unclear. That's what I meant by "the announcement".

: The message itself was posted here, seemingly within seconds, due only
: to the insensitivity of an individual. I can not imagine such
: impropriety coming out of Germany (perhaps the UK). Not that it would
: ever have been kept a secret, nor escaped being a topic of energetic
: discussion for weeks here on r.a.s. in any event.

If SSA want to use ras as a private messageboard for some things, they
can't be terribly surprised if it's used for others as well.

On the whole I think it's probably much better that the whole thing
was posted here, as it will have saved much speculation and rumour
mongering.

Ian


--

Jeremy Zawodny wrote:

[ Why it's not posted here is beyond me. Text below. ]

It was a test, Jeremy. I hear SSA is adding a new award category this
year: "Most Undeserving Member of the Year." And you just made it into
the finals along with Alan Gleason.

Next time you feel something is "beyond me," take some time (2-3
minutes?) to think it through. Perhaps there is a good reason.

I agree, this was bound to make it out into the public domain fairly
quickly. But this must set some kind of record.

Thanks to the SSA Board for timely disclosure to the members as well as
prompt and decisive action. It's a distressing story that raises some
difficult and embarrassing questions. But the approach taken this time
around offers more promise that this crisis will be professionally
managed and we members will get answers to those questions.

Chip Bearden
ASW 24 "JB"

Let's not shoot the messenger. I happen to think this is an excellent
forum for airing the SSA's dirty laundry.

Let's not shoot the messenger.

I agree. But I'm referring not to the individual who chose to post the
SSA's message to its members, but to the real messenger: the SSA
Executive Committee.

I suspect they're wrestling with the typical real-world issues that
cause most situations like this to be anything but black or white:
i.e., balancing a natural desire to dismiss the employee who apparently
breached the trust placed in him against considerations such as:

- determining the extent of any losses (did the SSA simply not pay
its bills or are funds missing?) and who may have been involved;
- recovering assets
- collecting the information necessary to file delinquent tax
returns and determine the amount of unpaid withholding taxes
- gaining cooperation that may be critical in the foregoing efforts;

- obtaining and preserving legally admissible evidence;
- evaluating civil and criminal options, including what recourse the
SSA may have against individuals and organizations;
- avoiding any steps that might leave the SSA open to accusations of
libel or wrongful termination (in this country, anything is possible);
careful readers of the letter will note that it is limited to
statements of fact and to Alan Gleason's own admissions--it avoids
other allegations.
- ensuring the damage is contained by implementing better controls;
- dealing with accountants and advisors who may have some explaining
to do;
- retaining and working with legal counsel;
- negotiating with federal and state tax authorities to mitigate
interest and penalties
- communicating with the board, the officers, and the members, etc.

As a 40+ year SSA member, I would be understating it to say I'm angry
and frustrated and depressed at this latest news. But the fact remains
that this time, unlike another unhappy situation in the past, the SSA
Executive Committee made what appears to be timely and extensive
disclosure, remarkably so (given our legal environment) regarding Alan
Gleason's admissions.

Let's confirm the wisdom of their decision by behaving responsibly.
We're free to raise questions, in particular of our elected directors.
But rather than second-guessing, speculating, offering ill-informed
advice, spreading rumors, or accusing anyone, I suggest that we all
stay tuned to www.ssa.org...and to the nearly instantaneous repostings
to this newsgroup by "helpful" members.

Chip Bearden
ASW 24 "JB"

OK how is the SSA going to come back from this one.

Does the CEO of the corporation not have to sign and or approve
expenditure even as mundane as a simple tax bill/return?

Why is Gleason on paid administrative leave and not terminated for
failure to perform?

Why isn't Dennis Wright on paid administrative leave after this
debacle pending investigation?

Why did the auditors not pick this up?

Does the CEO and CFO not have to sign and approve any annual tax
filings?

Why was the ex-com not informed until now as this has been going on
since 2003?

How on earth did this go for this long unnoticed?

Is this the end of the SSA as an effective representative body?

Are SSA members not liable for a portion of the tax unpaid and
penalties?

Lot of questions but man after the Sanderson issue it cannot get much
worse.

Al


wrote:
Let's not shoot the messenger.

I agree. But I'm referring not to the individual who chose to post the
SSA's message to its members, but to the real messenger: the SSA
Executive Committee.

I suspect they're wrestling with the typical real-world issues that
cause most situations like this to be anything but black or white:
i.e., balancing a natural desire to dismiss the employee who apparently
breached the trust placed in him against considerations such as:

- determining the extent of any losses (did the SSA simply not pay
its bills or are funds missing?) and who may have been involved;
- recovering assets
- collecting the information necessary to file delinquent tax
returns and determine the amount of unpaid withholding taxes
- gaining cooperation that may be critical in the foregoing efforts;

- obtaining and preserving legally admissible evidence;
- evaluating civil and criminal options, including what recourse the
SSA may have against individuals and organizations;
- avoiding any steps that might leave the SSA open to accusations of
libel or wrongful termination (in this country, anything is possible);
careful readers of the letter will note that it is limited to
statements of fact and to Alan Gleason's own admissions--it avoids
other allegations.
- ensuring the damage is contained by implementing better controls;
- dealing with accountants and advisors who may have some explaining
to do;
- retaining and working with legal counsel;
- negotiating with federal and state tax authorities to mitigate
interest and penalties
- communicating with the board, the officers, and the members, etc.

As a 40+ year SSA member, I would be understating it to say I'm angry
and frustrated and depressed at this latest news. But the fact remains
that this time, unlike another unhappy situation in the past, the SSA
Executive Committee made what appears to be timely and extensive
disclosure, remarkably so (given our legal environment) regarding Alan
Gleason's admissions.

Let's confirm the wisdom of their decision by behaving responsibly.
We're free to raise questions, in particular of our elected directors.
But rather than second-guessing, speculating, offering ill-informed
advice, spreading rumors, or accusing anyone, I suggest that we all
stay tuned to www.ssa.org...and to the nearly instantaneous repostings
to this newsgroup by "helpful" members.

Chip Bearden
ASW 24 "JB"

Jeremy,



You just won the Bill Engvall award too..



"Here's your sign!"





Larry Goddard

"01" Zero One USA

Jeremy Zawodny wrote:
C. Dianne Black-Nixon wrote:
SSA Members,

Please visit the SSA homepage at www.ssa.org for an important message
regarding the Society.

[ Why it's not posted here is beyond me. Text below. ]

Not to get pedantic, but one of the primary purposes of hyperlinks is
avoiding version control problems. So, in fact, it's quite appropriate
for the SSA to direct us to the website for the official story.

Erik Mann
LS8-18 P3

Anyone that would be stupid enough to post this message on rec.aviation
should be blackballed and thrown out of SSA as an abuser of his membership
privilidges. Mr. Zawodny, you sir, are a jerk!


"Jeremy Zawodny" wrote in message
...
C. Dianne Black-Nixon wrote:
SSA Members,

Please visit the SSA homepage at www.ssa.org for an important message
regarding the Society.

[ Why it's not posted here is beyond me. Text below. ]

Message from the SSA Chairman

September 1, 2006

Dear SSA Member:

As Chairman of the SSA Board of Directors, I am committed to keeping
members fully informed regarding all issues relating to our Society, and
must now report some serious societal financial problems, and actions the
Executive Committee has taken to deal with them.

On August 5 th 2006, I notified the Board of Directors that the Executive
Committee had been informed by the SSA Executive Director, Dennis Wright,
that the Society had not filed federal tax-exempt information returns with
the Internal Revenue Service since 2002. In the past, Johnson, Miller &
Co. PC, CPA, our outside accounting firm, prepared SSA’s returns. Both
Dennis Wright and James Francis, a principal of Johnson, Miller & Co.,
reported to the Executive Committee that this omission was due to our
Chief Financial and Administrative Officer, Alan Gleason, not providing
sufficient financial data required by Johnson, Miller & Co. to prepare the
returns. The Executive Committee immediately asked Johnson, Miller & Co.
to come to the SSA’s office and obtain all the requisite data to enable
them to do so.

On August 17, 2006, Mr. Wright reported to the Executive Committee that
during the gathering of information to prepare the delinquent returns, Mr.
Francis had discovered that the SSA had not submitted federal payroll
withholding, social security or Medicare, as well as New Mexico state
withholding taxes for at least five quarters beginning in 2003. Although
payments were made for other quarters, SSA did not file appropriate
returns for at least twelve quarters. Additionally, the financial
statements, specifically the balance sheets presented to the Board and the
membership, did not reflect the unpaid taxes as liabilities of the
Society. At this time, it is not known whether anything else is inaccurate
in the balance sheets, however, further investigation is ongoing.

The Executive Committee immediately retained an outside attorney and
investigated the situation. On August 23, 2006 Mr. Gleason claimed that a
lack of available cash on hand caused him to decide to not pay the taxes
when due. When questioned, he admitted not to have made anyone else,
including the Board, aware of such decisions. The Executive Committee
placed Mr. Gleason on paid administrative leave until such time as all
information required to submit the state and federal tax returns is
ascertained and it is determined exactly what federal and state taxes are
due. Once those issues are resolved, appropriate further action regarding
Mr. Gleason will be considered. Measures to protect SSA funds and other
assets have already been put in place, as has an interim system to control
SSA financial matters.

While accurate figures have not yet been derived, it appears that the
actual tax liability could be between $200,000 and $300,000 which with the
addition of interest and, to the extent not mitigated, penalties, could
total as much as $600,000.

This obviously signals a potentially catastrophic situation. The Executive
Committee intends to have a thorough and independent financial
investigation conducted to ascertain, among other things, the reasons for
the apparent cash shortfall.

To the best of its ability, the SSA will pay all applicable taxes,
penalties and interest imposed by state and federal governments. Doing so
will strain Society finances to the limit, however the SSA can borrow from
certain unrestricted funds within the SSA Foundation. To place our Society
on a sound financial footing going forward, significant reductions in
services must occur. A task force of present and former SSA Board members
has already been established to assist the Board in this regard.

The situation I have described above is clearly the single most serious
challenge the Society has faced in its 75 year history. Please understand
that SSA leadership is totally committed to reaching a successful
resolution to this problem, but doing so will require significant
continued support by the membership. SSA members have a long history of
aiding the Society when most needed. I hope I can rely on you personally
to support your SSA leaders during this extremely difficult time, as we
strive to bring these matters to a successful resolution. Our goals are to
meet our financial obligations to state and federal governments and to
transform what has always been a struggling organization operating “on a
knife-edge” into one that is financially strong, and that meets your needs
as a member.

To save costs, all subsequent communications from me regarding these
important issues will be posted on the members-only section of the SSA
website and in SSA e-News. You may contact your Regional Director, other
members of the Executive Committee, or me directly should you have further
questions.

Sincerely yours,

C. Dianne Black-Nixon
Chairman of the Board of the Soaring Society of America

Knowing Jeremy, I have no doubt it wasn't in purpose. I also initially
thought it was publically available on ssa.org (which would then show
up on search engines etc...) since using cookies we are automatically
logged on. Only once you logoff you realize you need to sign on to see
the message.
I'de call it an oops.

Ramy

Brian Glick wrote:
Anyone that would be stupid enough to post this message on rec.aviation
should be blackballed and thrown out of SSA as an abuser of his membership
privilidges. Mr. Zawodny, you sir, are a jerk!


"Jeremy Zawodny" wrote in message
...
C. Dianne Black-Nixon wrote:
SSA Members,

Please visit the SSA homepage at www.ssa.org for an important message
regarding the Society.

[ Why it's not posted here is beyond me. Text below. ]

Message from the SSA Chairman

September 1, 2006

Dear SSA Member:

As Chairman of the SSA Board of Directors, I am committed to keeping
members fully informed regarding all issues relating to our Society, and
must now report some serious societal financial problems, and actions the
Executive Committee has taken to deal with them.

On August 5 th 2006, I notified the Board of Directors that the Executive
Committee had been informed by the SSA Executive Director, Dennis Wright,
that the Society had not filed federal tax-exempt information returns with
the Internal Revenue Service since 2002. In the past, Johnson, Miller &
Co. PC, CPA, our outside accounting firm, prepared SSA's returns. Both
Dennis Wright and James Francis, a principal of Johnson, Miller & Co.,
reported to the Executive Committee that this omission was due to our
Chief Financial and Administrative Officer, Alan Gleason, not providing
sufficient financial data required by Johnson, Miller & Co. to prepare the
returns. The Executive Committee immediately asked Johnson, Miller & Co.
to come to the SSA's office and obtain all the requisite data to enable
them to do so.

On August 17, 2006, Mr. Wright reported to the Executive Committee that
during the gathering of information to prepare the delinquent returns, Mr.
Francis had discovered that the SSA had not submitted federal payroll
withholding, social security or Medicare, as well as New Mexico state
withholding taxes for at least five quarters beginning in 2003. Although
payments were made for other quarters, SSA did not file appropriate
returns for at least twelve quarters. Additionally, the financial
statements, specifically the balance sheets presented to the Board and the
membership, did not reflect the unpaid taxes as liabilities of the
Society. At this time, it is not known whether anything else is inaccurate
in the balance sheets, however, further investigation is ongoing.

The Executive Committee immediately retained an outside attorney and
investigated the situation. On August 23, 2006 Mr. Gleason claimed that a
lack of available cash on hand caused him to decide to not pay the taxes
when due. When questioned, he admitted not to have made anyone else,
including the Board, aware of such decisions. The Executive Committee
placed Mr. Gleason on paid administrative leave until such time as all
information required to submit the state and federal tax returns is
ascertained and it is determined exactly what federal and state taxes are
due. Once those issues are resolved, appropriate further action regarding
Mr. Gleason will be considered. Measures to protect SSA funds and other
assets have already been put in place, as has an interim system to control
SSA financial matters.

While accurate figures have not yet been derived, it appears that the
actual tax liability could be between $200,000 and $300,000 which with the
addition of interest and, to the extent not mitigated, penalties, could
total as much as $600,000.

This obviously signals a potentially catastrophic situation. The Executive
Committee intends to have a thorough and independent financial
investigation conducted to ascertain, among other things, the reasons for
the apparent cash shortfall.

To the best of its ability, the SSA will pay all applicable taxes,
penalties and interest imposed by state and federal governments. Doing so
will strain Society finances to the limit, however the SSA can borrow from
certain unrestricted funds within the SSA Foundation. To place our Society
on a sound financial footing going forward, significant reductions in
services must occur. A task force of present and former SSA Board members
has already been established to assist the Board in this regard.

The situation I have described above is clearly the single most serious
challenge the Society has faced in its 75 year history. Please understand
that SSA leadership is totally committed to reaching a successful
resolution to this problem, but doing so will require significant
continued support by the membership. SSA members have a long history of
aiding the Society when most needed. I hope I can rely on you personally
to support your SSA leaders during this extremely difficult time, as we
strive to bring these matters to a successful resolution. Our goals are to
meet our financial obligations to state and federal governments and to
transform what has always been a struggling organization operating "on a
knife-edge" into one that is financially strong, and that meets your needs
as a member.

To save costs, all subsequent communications from me regarding these
important issues will be posted on the members-only section of the SSA
website and in SSA e-News. You may contact your Regional Director, other
members of the Executive Committee, or me directly should you have further
questions.

Sincerely yours,

C. Dianne Black-Nixon
Chairman of the Board of the Soaring Society of America

Brian Glick wrote:
Anyone that would be stupid enough to post this message on rec.aviation
should be blackballed and thrown out of SSA as an abuser of his membership
privilidges. Mr. Zawodny, you sir, are a jerk!


Kicked out out of the what? The who? The $250,000 computer scandal a
few years ago was bad enough. Do you really thinkt that the SSA will
survive this in its current incarnation?
I'm disgusted.

Shawn