dcifanforlife Posted January 20 Share Posted January 20 2 hours ago, Richard Lesher said: The question/accusation is often posed to me why I do not like the leadership of SCV? Why do I keep at it? Over the last year it has been a discovery process of the truth. The truth that has been withheld and guarded from stakeholders (and I presume some board members as well) of what has actually been going on. What it comes down to is millions is unaccounted for as a function of fiduciary irresponsibility among those professionally trained, professionally experienced, and entrusted with the responsibility. Those people and their friends (likely unwittingly) through their actions have overtly and continue to prevent the discovery process from happening. That’s what it comes down to. I had to endure a year of knowing the obvious and wait out the inventible for those in denial. Remember…………. The truth of the audit is two years old. That is the truth that was behind the words in September 2022. Had the audits been done on time then fiscal year 2021 would have been identified as a problem at Sept-2022 at that time, and a whole year of bingo irregularities could have been avoided (do folks think 2023 was any better than 2022?). What has held true of all things like this I analyze is the truth is worse than I think it is. I can only articulate an opinion on data that I have on hand, and I will always have incomplete data, and that goes for the 2005 Bingo theft. I only calculated $800K over three years, but once the Bingo Manager and General manager were out of the way total revenue improved $1.3M a year. So, if I look back at all my warnings as to how bad things are as we know it now, I now see that things are actually worse than I thought last year this time, and I have a new level of worry. I never said SCV was missing fixed assets and equipment. The CPA audit said that. They can’t account for it. I never said SCV was missing cash or can’t account for its money. The CPA audit said that. I hadn’t really dig unto the Bingo concerns. I only had a single data point (draft of 2021), but now that is a persistent trend and it correlates to the changes in Bingo Operations, the Bingo Manager, and his work situation from Hawaii. Holy mother of god, Bingo is totally sideways and I can quantify that in the millions. Now I can say Federal loans and grants were needed to cover the losses in bingo. That’s going to cause a problem with Federal Authorities. That’s a $675K. Those funds were procured while delinquent without audits and are less than the straight accounting loss of -$808K in Bingo payouts. Even if Bingo was operating at a break even 0% profit SCV would have $808K more, and those federal loans and grants would not have been needed. Now, I am saying things are WAY WORSE than we thought they were. The above is my new baseline, and things are worse because there is still all of 2023 that is now behind us that we have no verifiable data for. Are folks going to believe the core of SCV leadership that oversaw 2021 and 2022 as audited, and still in place in 2023 acted in an appropriate manner the entirety of 2023? They didn’t even get audited financial data for 2021 and 2022 until last week (two years after the fact). What financial information do you think they were working with in 2023????? Are folks saying that while the auditors don’t call out proof and it is not verifiable that there is a possibility there is a room filled with millions of dollars of undeposited Bingo cash that SCV will just stumble upon (oh look, we found it all)? No………. SCV leadership, the leadership at the core of letting things get to this point have continuously prayed on the Alumni’s limited information, limited financial education, and their love of SCV in order to manipulate their oversight of SCV for their own personal gain to continue unchecked. Net Assets decreased over $3,000,000 in 2022. The Vanguard Cadets will never return with Bingo performing as it currently is. Vanguard is not technically a member of DCI Vanguard’s own auditors cannot verify anything of material significance for the last two years audited, and 2020 will not get audited as a function of reporting income less than $2M. Total Bingo is netting millions less while reporting millions more in Gross Revenue. Pull Tab sales are covering losses in traditional bingo game. What is the measure of competence and success folks are using? What justification is being rationalized to overlook all this nonsense? What should the new CEO and board be doing that they are not doing? Offering solutions to the problems is the best way to go in the future. SCV has addressed every concern that you and the entire DCI Community has raised. They are well positioned for a successful 2014 season. 1 Link to comment Share on other sites More sharing options...
Sutasaurus Posted January 20 Share Posted January 20 (edited) 49 minutes ago, dcifanforlife said: 49 minutes ago, dcifanforlife said: What should the new CEO and board be doing that they are not doing? Offering solutions to the problems is the best way to go in the future. SCV has addressed every concern that you and the entire DCI Community has raised. They are well positioned for a successful 2014 season. Not so sure. A clean accounting of their bingo operation would work wonders. The major gaps in financial accounting for their bingo operation will haunt them until they “get a better handle” on the suspicious activity/lack of accountability/transparency that has been at the forefront of this entire discussion. Edited January 20 by Sutasaurus 1 Link to comment Share on other sites More sharing options...
Richard Lesher Posted January 20 Author Share Posted January 20 (edited) 2 hours ago, dcifanforlife said: What should the new CEO and board be doing that they are not doing? Offering solutions to the problems is the best way to go in the future. SCV has addressed every concern that you and the entire DCI Community has raised. They are well positioned for a successful 2014 season. They have addressed what is required by law. They have not addressed the concerns, that is unless you mean they have pretty much clarified my concerns are validated. My concerns are addressed, they are validated. That is not a measure of everything is good now. At some point rationalizing things are on a corrective path needs to be replaced with finding the causes of the issues addressed in the Auditor's Report. The problem with finding the causes and validating them is there are consequences. When those who face consequences can block the road to validation and the subsequent consequences there is motivation to prevent the validation. ********** The new CEO basically pushed through the audit process under threat of nonprofit status revocation and snuck under the deadline by 4 days (after being 4 years late). The result of that audit (merely checking the box) showed SCV's financials are erroneous, and anything material in the balance sheet or income statement (basically everything) cannot be used for making a financial assessment of the organization. Now that the audit is complete, and now that the results of that audit are public now is the time to review and scrutinize the numbers in junction with the CPA audit. I have an upper hand in that because for the last year I have been pouring over these numbers. Now I can focus my complaints on areas addressed by the CPA. Yes I might have other areas of concern, but leveraging the CPA opinion would be a better use of my time and effort making a convincing argument. ********** Where I was last year, verses this year at this time is a world of difference. I made public in April 2023 they were delinquent with audits, and what the Audit Statement implies is during those 9 months they didn't put forth the resources of accounting analysis to rebuild those financials. They had 9 months to get to the result of an unqualified opinion and they didn't even come close. The audit could not have presented a worse scenario. I fixed the bookkeeping before. I personally did it myself when Vanguard had bingo thefts in 2005, and it only took me a few months. However, we only got to that state when I had unincumbered access to all the invoices, bank statements, access to all the equipment, and bingo reports that go to the city. *********** Edited January 20 by Richard Lesher 2 Link to comment Share on other sites More sharing options...
Richard Lesher Posted January 20 Author Share Posted January 20 (edited) 2 hours ago, dcifanforlife said: They are well positioned for a successful 2014 season. With the advent of a Time Machine yes, they are positioned well for 2014, but I presume you mean 2024. According to the CPAs Audit Report how they are positioned, how much money they have, how much debt they owe, and the state of their fleet equipment cannot be verified. Edited January 20 by Richard Lesher 2 1 Link to comment Share on other sites More sharing options...
Bruckner8 Posted January 20 Share Posted January 20 1 hour ago, Richard Lesher said: According to the CPAs Audit Report how they are positioned, how much money they have, how much debt they owe, and the state of their fleet equipment cannot be verified. Debtors never forget. This number should be the easiest to verify! Link to comment Share on other sites More sharing options...
Jurassic Lancer Posted January 20 Share Posted January 20 46 minutes ago, Bruckner8 said: Debtors never forget. This number should be the easiest to verify! Actually, cash is. And AP isn’t verified. Sorry to disappoint the yay we’re back crowd but this is literally a SCV existential crisis. 2 2 Link to comment Share on other sites More sharing options...
Richard Lesher Posted January 20 Author Share Posted January 20 17 minutes ago, Jurassic Lancer said: Actually, cash is. And AP isn’t verified. Sorry to disappoint the yay we’re back crowd but this is literally a SCV existential crisis. I think they can fumble through the execution of a season. However, the last time they did they blew through over $1,000,000 in reserve funds. That doesn't exist anymore. What they say they have isn't verifiable. The Board of Directors is literally going into 2024 blind. 2023 financials are due in March (two months) and they just spent all their financial/accounting analysis skills and resources over the last 9 months since I made the delinquency public to a disastrous outcome. Bingo is unverifiable, and when people are syphoning off from it they are he ones that decide how much money they take. So bingo revenue isn't a cash flow they can accurately depend on. The excuses we were given in the fall of 2022 about the expense estimates and actuals of the tour were claimed by the CPA to be unverifiable. So the historic data they should be planning with is erroneous, and the last data they had that was probably accurate is 2019 (which didn't work out as a planning aid in 2022 anyway). 2 Link to comment Share on other sites More sharing options...
Richard Lesher Posted January 20 Author Share Posted January 20 (edited) At the end of fiscal year 2022 we were told the cause of the problems was the unexpected tour expenses. Now that we have 2022 990 in hand I compare them against 2019 (the last known set of good numbers for an operating and touring year). 70% of the financial explanation of the variance comes from Net Bingo revenues being $1.5M less than 2019. Corps related revenue (mostly tour fees) is negative because that is a good variance. It all adds to 100% of the variance explanation. What I see is that 70% of the cause of the financial problems is a result of Bingo Operations. Additionally.............. I add as a foot note, that Bingo Revenue (above the line) increased $6.2M while earning $1.5M less. The Auditor's opinion cannot verify Bingo revenue nor corresponding expenses. The Bingo Manager lives in Hawaii. Edited January 20 by Richard Lesher Link to comment Share on other sites More sharing options...
Richard Lesher Posted January 20 Author Share Posted January 20 Further Bingo detail pulled from IRS 990 Schedule 9 history shows the below. Person A worked as the manager for 13 years, and was the previous treasurer that literally found the proof of the fraud in 2005. She went onto take over Bingo Operations. As you can all see there was a transition period where she worked with Person B, and then the year Person A finally retired management (and Person B left as well) changed to person C and D, and then the following year person C was left in charge of Bingo alone. Person C lives in Hawaii The negative years in question for 2021 and 2022 cannot be verified by the CPA Auditors. Link to comment Share on other sites More sharing options...
IllianaLancerContra Posted January 20 Share Posted January 20 OK - 2022 & years prior is unverifiable. That won’t change. We’ll see what consequences develop. What I think should happen is (1) - Make sure the 2023 filing, due in a few months is on time & as accurate as possible. & (2) - Become laser focused on the bingo operation, keeping track of every penny. 2 Link to comment Share on other sites More sharing options...
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