Amici:
The October issue of SPORTSCAR includes a copy of the SCCA Financial
Statements for Fiscal Years ending March 31st, 2001 and 2002.
WOW!
On paper SCCA lost 37.8% of its Unrestricted Net Assets (i.e., Net Worth) in
the twelve months ending March 31st, 2002. While about 21.6% of the loss
involved the value of investments, Treasurer Tom Campbell says that this
'tough year' was due to cash flow and income problems. He also points out
that 'Generally Accepted Accounting Principles' (a term heard often in the
Business Pages these days) require SCCA to reflect moving expenses they will
spend this year, but will not allow them to reflect 'grants and forgivable
loans' they are expecting from the state of Kansas until they receive them.
These items were not quantified, so perhaps there will be a significant
bounce back this fiscal year. But until then, clearly the SCCA did not have
a good year last year.
There is this old business saying, "You can only liquidate assets for so
long." And when you do it at 38% percent per year...well you can't do it
long at all. In SCCA's defense...these are trying times within the hobby.
One notable expense was Public Relations and Marketing, which nearly doubled
to $636,661.00. SCCA is six months into fiscal 2003. It will be interesting
to see if that significant increase in effort has provided any definitive
results.
I am an SCCA member since the mid-1980s. I am not really throwing rotten
eggs and vegetables. These comments are meant to be descriptive, and to show
my concern.
Bill Dentinger
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