I was the Board Treasure for SCV for 6 years

[Slingerland]

39 minutes ago, craiga said:

The Mandarins can apparently afford tour (even coming to the east coast in 2023) but SCV cannot.   Wow.

 

Mandarins are a model of economic discipline, and have been for a long time. 

[Jeff Ream]

12 minutes ago, IllianaLancerContra said:

I suspect that there is more info to come out (which some associated w/ SCV don't want coming out).  OP has done a great service giving us real info to work with, and this begs further answers from SCV.

Numbers seem to suggest that something isn't adding up - even when you include the cost of the 2022 tour (or what the DCP members think tour should have cost).  

Follow the money.

From Mark Felts lips to Bob Woodwards ears

[Richard Lesher]

10 hours ago, Jeff Ream said:

wow. a full forensic audit by non invested parties needs to be completed with full transparency

So now you are getting into juicy stuff here. 

See, the problem with that is SCV's current CFO discloses she was a forensic accountant in her LinkedIn profile. 

Worse yet, prior to her taking the position of CFO of SCV she was SCV's Board President for two years. 

Prior to her becoming the Board President she was the SCV Board Treasurer for 4 years, and the year prior to that she was an at large Director. 

All these can be validated by looking at the 990 of organization officers and duties. 

Now prior the CFO prior to her was also a Board member since 2013 (he came on to the Board as I left), and he spend 2 years as Treasurer prior to becoming CFO. 

Further what really pisses me off is when I was Board Treasurer all SCV had was an outsourced bookkeeper, an operations manager, and myself looking over the finances. After I left they took on a Finance Manager, and after he left they then made the position a Chief Financial Officer position. 

See where I am going with this, as the financial positions elevated in so called competency that was inversely correlated with financial performance.

Drum Corps is not a financial derivatives trading desk. We all just need a competent bookkeeper to track expenses and revenues in a manner that allows leadership to forecast where business is going. 

The most complicated financial analysis one has to do for a Drum Corps is decide how to set up it's operational borrowing. 

One year we tried to do a fuel futures contract hedge, but those contracts even on a single basis are so large that it dwarfs our fuel needs. So it needs to be executed in coordination with other corps to buy in on the contract. So now we were herding cats trying to get everyone who has no money to submit funds to buy the contract. It never happened, we never got enough buy in quick enough to make the hedge work. 

 

 

 

 

 

[IllianaLancerContra]

14 minutes ago, Richard Lesher said:

So now you are getting into juicy stuff here. 

See, the problem with that is SCV's current CFO discloses she was a forensic accountant in her LinkedIn profile. 

Worse yet, prior to her taking the position of CFO of SCV she was SCV's Board President for two years. 

Prior to her becoming the Board President she was the SCV Board Treasurer for 4 years, and the year prior to that she was an at large Director. 

All these can be validated by looking at the 990 of organization officers and duties. 

Now prior the CFO prior to her was also a Board member since 2013 (he came on to the Board as I left), and he spend 2 years as Treasurer prior to becoming CFO. 

Further what really pisses me off is when I was Board Treasurer all SCV had was an outsourced bookkeeper, an operations manager, and myself looking over the finances. After I left they took on a Finance Manager, and after he left they then made the position a Chief Financial Officer position. 

See where I am going with this, as the financial positions elevated in so called competency that was inversely correlated with financial performance.

Drum Corps is not a financial derivatives trading desk. We all just need a competent bookkeeper to track expenses and revenues in a manner that allows leadership to forecast where business is going. 

The most complicated financial analysis one has to do for a Drum Corps is decide how to set up it's operational borrowing. 

One year we tried to do a fuel futures contract hedge, but those contracts even on a single basis are so large that it dwarfs our fuel needs. So it needs to be executed in coordination with other corps to buy in on the contract. So now we were herding cats trying to get everyone who has no money to submit funds to buy the contract. It never happened, we never got enough buy in quick enough to make the hedge work. 

Keep doing what you are doing - this is important stuff you are posting.

PS - you are the early favorite for 'DCP Best New Poster for 2023'

[JimF-LowBari]

39 minutes ago, Richard Lesher said:

So now you are getting into juicy stuff here. 

See, the problem with that is SCV's current CFO discloses she was a forensic accountant in her LinkedIn profile. 

Worse yet, prior to her taking the position of CFO of SCV she was SCV's Board President for two years. 

Prior to her becoming the Board President she was the SCV Board Treasurer for 4 years, and the year prior to that she was an at large Director. 

All these can be validated by looking at the 990 of organization officers and duties. 

Now prior the CFO prior to her was also a Board member since 2013 (he came on to the Board as I left), and he spend 2 years as Treasurer prior to becoming CFO. 

I’m reading the financial areas (including verifying all is above board) is done in house and by same group of people?

In a non-dc group like that. Bylaws state board positions can be held for one term only. But they kept rotating people thru the chairs. Got so nobody outside that group wanted to run for office. They were scared what mess financials were really in and if they were elected would they be the fall guy if crap hit the fan.

Same group were experts in non-profit status legalities. We lost non-profit for years because “we always did it like this”. When we lost NP response was to fight the state instead of admitting they screwed up and fix their mess

Edited January 17, 2023 by JimF-LowBari

[Tim K]

15 hours ago, Daave said:

Are non profits allowed to engage in investing, if it is reported/reflected in the 990's?

Yes. More often it is the case that stocks will be donated to an organization or a targeted donation  will be made to purchase stocks. Since they take so long to mature, it is not recommended to buy municipal bonds, especially if the organization does not have to pay property tax. Many non profits purchase real estate as an investment. Rental income can be a steady source of income. 

[Richard Lesher]

1 hour ago, JimF-LowBari said:

.....In a non-dc group like that. Bylaws state board positions can be held for one term only. But they kept rotating people thru the chairs. Got so nobody outside that group wanted to run for office......

I've been on other boards of non profits and community entities. Basically, it's a job no one wants to do, and to do it correctly sucks the life out of you. Board members quickly default to auto pilot and entrusting organization employees at their word, and do not verify. As long as the bills are paid, and the organization's mission continues that's as far as the Board Members will take it. 

There are two overwhelming things I have observed that are astronomical risks to Youth Based Non Profits (like Drum Corps). 

1) Sexual Predators

2) Financial Stability  

I feel the most important message I can get across to the Drum Corp community of leaders and board members is the above. SCV is not alone. They aren't. You all know this. They are the most visible at the moment and I'm providing additional entertainment. 

In regard to #1, this realization hit me like a freight train at the end of my Army Reserve Command assignment. See, I became a reserve soldier late in life so when I look at young soldiers I see myself in my marching years with SCV. 

When my command time ended a pair of young female soldiers came into my office (mind you, this is exactly why my office door remains open, and exactly why soldiers can only interact with their leaders with others present as well) and were gushing with gratitude from my leadership/mentorship and were wishing me well in my next assignment. It was all perfectly professional. 

But that's what it hit me. They would have felt that way toward just about anyone. I didn't do anything special. I only executed my duty in accordance with regulations and expectations. They were simply young and impressionable. I don't remember their names, but they will always remember mine. 

Someone in that position of leadership and trust is in a very powerful position to abuse, and non profits do not have the checks and balances in place the Military does (and the military is pretty bad at it based on media reports). 

In regard to #2. This is more straight forward, and in my experience and observation holds true in every scenario. It is a hobby of mine to follow collapsed companies, and then after the fact line up all their press releases with known financial transgressions and line them up together on a time line. Then the lies can be followed with what was actually happening at the time. 

So when Vanguard announced in September the cessation of the Vanguard Cadet corps in the same meeting they announced the retirement of the previous CFO the first thing I thought was "Ok crap, here we go..........."

To my point of item #2. 

Wherever opportunity exists it will be taken advantage of. 

Now let me be clear. I am not saying that is happening here with SCV. As far as I know, controls are in place to make sure spending limits cannot drain bank accounts fast enough, nor can any funds be moved out of the investment accounts without the Board of Directors approval. 

I do get the impression there is no Board validation, I do not understand (I have a theory I will share in another post, and really stir things up) the Board's willingness to continue with it's current executive management team when two of the most critical measurements of competence have completely collapsed. 

1) Financial stability 

2) The mission of providing youth based performing arts programs. 

For example, it has recently been disclosed to the SCV Alumni at large that the SCV management team will present a Business Plan come April 1st for the promised result of getting the A Corps (at least) back on the competition field for 2024. 

Excuse me.............. but that means such a business plan only has 5 months to execute sufficient financial turn around from where they are now (which is actually unknown to the outside world, and even unknown to me) to be in a position to start coordinating a staff team, and start the audition process again. 

Remember, these are the same folks that in September stopped the SCV Cadet Corps, then continued to take audition money from kids for the A Corps several days before announcing the cessation of the A Corps as well. 

At the very least, this conveys to me there is no single leader with enough visibility over SCV's operations to see the entire picture let alone project a pathway toward recovery when they couldn't see the coming cliff. 

**********

To my main point I'm trying to get across to Drum Corps leaders and Board Members. 

You cannot take your eye off the ball, ever. 

It is imperative to your financial stability and the safety of our youth. 

Word of mouth trust is worthless. Employees need to prove it. 

Edited January 17, 2023 by Richard Lesher

[JimF-LowBari]

Hell of a job described above and hard to get people willing to do it.

And to hell with anyone who betrays that job and the trust that goes with it. Makes it even harder to find people willing to do it. 
 

My only taste of it was 6 years of being a member of council (VP for a while 🙄) on a church that was going down the crapper. <rant going on in my mind but not putting it here 🥵> Impossible to find new members as they knew how much crap they would be getting when giving bad news.

Edited January 17, 2023 by JimF-LowBari

[littlejaw]

It is probably best to realize that assuredly SCV isn’t the only corps with issues. This is just the one where someone with a lot of insight has come forward.

[Daave]

55 minutes ago, Tim K said:

Yes. More often it is the case that stocks will be donated to an organization or a targeted donation  will be made to purchase stocks. Since they take so long to mature, it is not recommended to buy municipal bonds, especially if the organization does not have to pay property tax. Many non profits purchase real estate as an investment. Rental income can be a steady source of income. 

Thank you.  Initially, I was asking rhetorically and then had a Duck search confirm this.  I will defer to the OP on how this may or may not apply to SCV, as others have said to follow the money.  I was just wondering if poor investments (lost) may be something here?  I dunno.... seems just about this same time frame, some guy named Sam and his company lost a chunk of change.  Lots of people lost because of Sam and his company, it's said.  

Just trying to follow the money while channeling my very best Glenn Beck😂