Popular Post Richard Lesher Posted January 16, 2023 Popular Post Share Posted January 16, 2023 My name is Richard Lesher, and I was on the board of directors for SCV from 2006 through 2012, and was Treasurer for all but my first year. By profession, I hold the Chartered Financial Analyst (CFA) designation, and my financial career spans more than 20 years in banking, corporate finance, and institutional investment management. As well, I possess an MBA with a concentration in finance. At the beginning of 2016 I was asked to come back to SCV in a consultative capacity after Jeff Fiedler left, and help with business operations of SCV and give the Board of Directors a business report of SCV so they could understand what was going on. So effectively, I have intimate operational knowledge of SCV's business model that goes back to the late 90's (looking at data during my Board time), and through the first two months of 2016, plus what I am able to hash together from 990's thereafter. My tenure included being at the tip of the spear that called out the bingo thefts, and creating an era of financial transparency and unincumbered financial growth as we saw revenues nearly double from just under $2,000,000 to just under $4,000,000, and they continued to rise after I left, and 2019 ended to an all-time financial record for SCV with reported revenues of $5,959,825 per IRS Form 990. I made a career change at the end of my tenure on the SCV Board of Directors, joined the US Army Reserves, and I am now a Logistical Officer in the USAR, and commanded a Quartermaster Company whose military mission is to drive around with dozens of trucks and provide the capability to cook for half of a combat Division (any idea where that might come in handy for Drum Corps?). You can find me on LinkedIn. I also marched SCV between both the A Corps and the Cadet Corps from 1988-1992. I am here because SCV management has literally censored and banned topics of discussion critical, yet factual of their management and leadership. So, if I cannot speak to the Alumni of SCV more intimately I will share our dirty laundry here. Unfortunately, for the readers here, I literally will not point out anything not already illuded to in the 100+ page thread about SCV's 2023 season. I’m not the only one among Drum Corps Fans that can read a 990. I am however, the guy that signed the checks for 6 years, a 20+ year financial professional with the credentials to back my opinions. OK, here we go: ***** Make no mistake, SCV’s fortunes are not a function of COVID. Per SCV’s own disclosure you can find their latest 990 ending Fiscal Year 31-October-2021 https://www.scvanguard.org/policies-and-financials/ Scroll all the way down to the bottom on the above link. I can’t find any 990’s for anyone else that recent. The IRS hasn’t posted them. Yet SCV has posted them as I presume when they filed with the IRS. My point is, this latest 990 is the one that shows SCV’s financial position at the beginning of what became the 2022 competitive season. I will focus on economic means. 990 ending Fiscal Year 31-October-2021 Part X Balance Sheet Line 1 – Cash $929,172 Line 2 – Savings and Temporary Cash Investments $379,259 Line 11 – Investments – publicly traded securities $1,817,806 Total Financial Liquidity $3,126,237 At the beginning of what was the 2022 season SCV could have moved some money around and wrote a check for over $3,000,000. But there are liabilities as well, so I’ll be responsible about my assessment. Line 26 – Total Liabilities $1,221,103 If we true up all liabilities and start 2022 with a clean slate, SCV can still write a check for $1,905,134. There is absolutely no other DCI member organization with that much economic strength at the beginning of 2022. I took great pride in being part of the foundation that created that stability. Before the season even starts SCV has nearly $2,000,000 in liquid financial means (not just total assets) net of liabilities. Now let’s consider what they would have probably earned during the course of the operating year of 2022. Part I line 9 is typically $1,200,000 which is comprised mostly of member fees, auditions, and all other revenue that is not Bingo Gaming Revenue. Part VIII line 9c - Bingo Gaming Net Income prior to the 2022 season was $2,353,335 for year end 2021. It was disclosed in conversation by the SCV executive management that in 2022 Bingo was the worst it has ever been. So, let’s call Net Bingo Income in 2022 $1,000,000. SCV, at worst had over $4,000,000 available to them over the course of 2022 before taking on any additional debt. At the conclusion of 2022 it is disclosed partially by executive management that SCV is carrying operating debt from the competitive season (which is going to be due immediately) they can’t pay, and now both the A Corps and the Cadet Corps are being mothballed. What happened? I’m beside myself. 1 12 Link to comment Share on other sites More sharing options...
keystone3ply Posted January 17, 2023 Share Posted January 17, 2023 (edited) OK, I'll bite. What really happened? I thought the statement from the Executive Director was a bunch of "shenanigans & malarkey". 😁 Question: why did they turn off the comments under the video stamens on Facebook? Edited January 17, 2023 by keystone3ply cx Link to comment Share on other sites More sharing options...
Terri Schehr Posted January 17, 2023 Share Posted January 17, 2023 (edited) 6 hours ago, Richard Lesher said: My name is Richard Lesher, and I was on the board of directors for SCV from 2006 through 2012, and was Treasurer for all but my first year. By profession, I hold the Chartered Financial Analyst (CFA) designation, and my financial career spans more than 20 years in banking, corporate finance, and institutional investment management. As well, I possess an MBA with a concentration in finance. At the beginning of 2016 I was asked to come back to SCV in a consultative capacity after Jeff Fiedler left, and help with business operations of SCV and give the Board of Directors a business report of SCV so they could understand what was going on. So effectively, I have intimate operational knowledge of SCV's business model that goes back to the late 90's (looking at data during my Board time), and through the first two months of 2016, plus what I am able to hash together from 990's thereafter. My tenure included being at the tip of the spear that called out the bingo thefts, and creating an era of financial transparency and unincumbered financial growth as we saw revenues nearly double from just under $2,000,000 to just under $4,000,000, and they continued to rise after I left, and 2019 ended to an all-time financial record for SCV with reported revenues of $5,959,825 per IRS Form 990. I made a career change at the end of my tenure on the SCV Board of Directors, joined the US Army Reserves, and I am now a Logistical Officer in the USAR, and commanded a Quartermaster Company whose military mission is to drive around with dozens of trucks and provide the capability to cook for half of a combat Division (any idea where that might come in handy for Drum Corps?). You can find me on LinkedIn. I also marched SCV between both the A Corps and the Cadet Corps from 1988-1992. I am here because SCV management has literally censored and banned topics of discussion critical, yet factual of their management and leadership. So, if I cannot speak to the Alumni of SCV more intimately I will share our dirty laundry here. Unfortunately, for the readers here, I literally will not point out anything not already illuded to in the 100+ page thread about SCV's 2023 season. I’m not the only one among Drum Corps Fans that can read a 990. I am however, the guy that signed the checks for 6 years, a 20+ year financial professional with the credentials to back my opinions. OK, here we go: ***** Make no mistake, SCV’s fortunes are not a function of COVID. Per SCV’s own disclosure you can find their latest 990 ending Fiscal Year 31-October-2021 https://www.scvanguard.org/policies-and-financials/ Scroll all the way down to the bottom on the above link. I can’t find any 990’s for anyone else that recent. The IRS hasn’t posted them. Yet SCV has posted them as I presume when they filed with the IRS. My point is, this latest 990 is the one that shows SCV’s financial position at the beginning of what became the 2022 competitive season. I will focus on economic means. 990 ending Fiscal Year 31-October-2021 Part X Balance Sheet Line 1 – Cash $929,172 Line 2 – Savings and Temporary Cash Investments $379,259 Line 11 – Investments – publicly traded securities $1,817,806 Total Financial Liquidity $3,126,237 At the beginning of what was the 2022 season SCV could have moved some money around and wrote a check for over $3,000,000. But there are liabilities as well, so I’ll be responsible about my assessment. Line 26 – Total Liabilities $1,221,103 If we true up all liabilities and start 2022 with a clean slate, SCV can still write a check for $1,905,134. There is absolutely no other DCI member organization with that much economic strength at the beginning of 2022. I took great pride in being part of the foundation that created that stability. Before the season even starts SCV has nearly $2,000,000 in liquid financial means (not just total assets) net of liabilities. Now let’s consider what they would have probably earned during the course of the operating year of 2022. Part I line 9 is typically $1,200,000 which is comprised mostly of member fees, auditions, and all other revenue that is not Bingo Gaming Revenue. Part VIII line 9c - Bingo Gaming Net Income prior to the 2022 season was $2,353,335 for year end 2021. It was disclosed in conversation by the SCV executive management that in 2022 Bingo was the worst it has ever been. So, let’s call Net Bingo Income in 2022 $1,000,000. SCV, at worst had over $4,000,000 available to them over the course of 2022 before taking on any additional debt. At the conclusion of 2022 it is disclosed partially by executive management that SCV is carrying operating debt from the competitive season (which is going to be due immediately) they can’t pay, and now both the A Corps and the Cadet Corps are being mothballed. What happened? I’m beside myself. . Edited January 17, 2023 by Terri Schehr 1 Link to comment Share on other sites More sharing options...
Slingerland Posted January 17, 2023 Share Posted January 17, 2023 (edited) For the organization's own sake, they should be inviting in responsible outside eyes to review the transaction history over the last few years. I would be very hesitant to jump to assuming that intentional harm was behind this debacle, so if we go with the idea that it was a combination of bad luck, bad advice, and exuberance where none was warranted (overspending on staff, for example), that info would be needed before any new Board could right the ship. A new Board, however, is pretty much a given, unless it comes out that they were being lied to, the way Hopkins lied to the YEA BOD about finances for years. Edited January 17, 2023 by Slingerland Link to comment Share on other sites More sharing options...
craiga Posted January 17, 2023 Share Posted January 17, 2023 Did the OP mention "bingo thefts"? Did I read that right? 4 Link to comment Share on other sites More sharing options...
JimF-LowBari Posted January 17, 2023 Share Posted January 17, 2023 1 minute ago, craiga said: Did the OP mention "bingo thefts"? Did I read that right? I missed that, thanks. And next line has “creating an era of financial transparency”. Sounds like that wasn’t there before which is 🤔. Having worked bingo for a corps and seen the issues I fixate on that. I read bingo income dropped over 50% post COVID. But… boards response is have another bingo 🤦♂️ Link to comment Share on other sites More sharing options...
IllianaLancerContra Posted January 17, 2023 Share Posted January 17, 2023 1 hour ago, keystone3ply said: OK, I'll bite. What really happened? I thought the statement from the Executive Director was a bunch of "shenanigans & malarkey". 😁 Question: why did they turn off the comments under the video stamens on Facebook? 1 Link to comment Share on other sites More sharing options...
IllianaLancerContra Posted January 17, 2023 Share Posted January 17, 2023 1 minute ago, JimF-LowBari said: I missed that, thanks. And next line has “creating an era of financial transparency”. Sounds like that wasn’t there before which is 🤔. Having worked bingo for a corps and seen the issues I fixate on that. I read bingo income dropped over 50% post COVID. But… boards response is have another bingo 🤦♂️ I suspect that the is more that is going to come out as the numbers aren’t adding up. Thanks to OP for posting this 1 Link to comment Share on other sites More sharing options...
Terri Schehr Posted January 17, 2023 Share Posted January 17, 2023 16 minutes ago, craiga said: Did the OP mention "bingo thefts"? Did I read that right? I actually heard that from a volunteer when they made the announcement. 3 1 Link to comment Share on other sites More sharing options...
IllianaLancerContra Posted January 17, 2023 Share Posted January 17, 2023 26 minutes ago, craiga said: Did the OP mention "bingo thefts"? Did I read that right? Does anyone know anything about this? What are the circumstances of this alleged theft? Did law enforcement get involved? Link to comment Share on other sites More sharing options...
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