“FOR GOD AND COUNTRY”
Veterans Serving America
Since 1919
Paul Stewart Irwin Post 136 Monthly Newsletter –March 2007
http://www.al136.com/American Legion Family:
The Feb. general meeting was long and full of information; however, there was not the usual variety of subjects covered. One thing discussed was the upcoming Post elections that will take place at the next general meeting on April 3. If you are considering a leadership position, a condensed description of duties for each position follows. These are from the Post By-laws. The American Legion Officers manual has more detail for each position.
Commander-Presides at all meetings of the post and have general supervision over the business affairs and shall act as the chief executive officer of the post. Shall approve all orders directing the disbursement of funds and shall perform other duties as directed by the post.
1st Vice Commander-In addition to membership being primary concern, should become familiar with all matters of post operation and shall assume duties of Commander in the absence or disability of Commander or when called upon by the Commander.
2nd Vice Commander-Shall be charged with the social and recreational aspects of the post. Should concern his/her self with veteran’s affairs.
Adjutant-Shall be in charge and keep a full record of all proceedings of meetings, keep records as Dept. and National require, render reports of membership when required and under direction of Commander, handle all correspondence.
Finance Officer-Have charge of all post finances and see they are deposited, and shall report monthly to Executive board and membership.
Chaplain-Is charged with the spiritual welfare of the post and will serve at dedication, funerals, public functions, etc.
Sgt At Arms-Shall preserve order at all meetings, ensure post is in order for said meetings, and perform duties as assigned by Executive Board. Has a critical role on holiday and post ceremonies.
Service Officer-This position is the vital link in the nationwide network of American Legion services to our veterans. Should have knowledge of programs, scholarships, and VA benefits available to veterans.
Historian-Is charged with the individual records and incidents of the post and post members.
Two ‘at large’ Executive Board members-In addition to all of the post officers, there are two ‘at large’ elected members to serve on the board. They will be fully engaged with the operations and setting the agenda for the remaining of the year.
Membership has no better opportunity to steer the direction of the post than when selecting its officers. Just like our national elections, if you don’t vote, don’t complain.
Nominations, elections, and induction will all take place at the April 2 meeting.
A resolution calling for a change in the method of replacing the National Executive Committeeman was read and approved. It will now be forwarded for approval at the District level in April.
5th District Star Party will be held at Post 401, 101 E. 31st S, Wichita, on March 24 at 6:00. Cost for the dinner is $10. Recipients of a Star award eat free. If you plan on attending, please RSVP Anita Rose at 316-267-1908, by March 20.
Board of Governors nomination and elections were held to replace the two recent openings. Five members stepped up: Tom Knight, Doug Lehman, Chuck Barshney, Ron Herndon and Mike Shock. Congratulations to Doug Lehman and Chuck Barshney for winning the elections. We now have a full and functioning BOG, and look forward to working with them for the continued betterment of the post.
Canteen/Financial Issues – Following is a condensed version (and its still long) of what was discussed concerning the canteen and our finances. We want as many informed members as possible. It is what it is.
History:
3-4 months ago. General meeting questions on the canteen reports including totals, format, why general fund is supporting as much as it is.
NOTE 1: Accounting format not new, but reports were not totaled and detail was lacking.
NOTE 2: BOG was asked if they had any issues with us trying to improve the data. Did not want any one to feel we were playing in their sandbox. Approval was given to proceed.
Believed issues were in the reporting and totals; not in the data itself. Attempted to get spreadsheet on computer to total and organize data. Was slow to develop due to deployment but finally completed. Were notified it did not work even after training.
Report totals did not make sense. Needed higher level of detail.
Began work in Jan. on new spread sheet to detail and total DAR, (daily activity report) steak night, breakfast, and room rentals with associated expenses.
Needed cash register to be re-programmed. Still has not been completed.
Had partial numbers from Jan canteen report for Feb meeting. More questions were raised than answered from general membership. It became obvious, the data format was only part of the problem, and the data itself was questionable.
2/6/08-Alice Foster, with minor degree in accounting and had operated own restaurant, offered her services to input the numbers from the DAR and meals, and help analyze our accounting practices, until we were comfortable with the data.
Findings:
Began by looking at all numbers from DAR and canteen reports to try and find historical trends.
Unable to explain figures or account for money. Needed to find a baseline to start and to dig deeper.
Began by looking at Friday night $s after meal on 2/9/07. Found 6 tickets missing, mistakes on pricing and register tape not matching drawer. This was due to labor being paid in cash with no record. Instituted carbon ticket books to track lost inventory and tickets. In two weeks of tracking, we found approximately $70 was lost due to ticket mistakes. Average meal was $9.57 and with tickets missing, this is a potential of over to $100 loss/week. One week in Jan. had 15 missing tickets.
· At the same time, accountant’s reports were reviewed, and again, historical data was examined. RED FLAG was noted when year-end reports showed big losses in the food sales.
Special BOG Meeting
Held Feb 14. Had 2 purposes: 1) Drinking while on duty, and 2) Financial concerns and preliminary findings.
Revenue and Expenditures statement was presented to BOG showing Revenues against COGS for 2006.
It was decided NO drinking when on duty.
Total Food sales Revenue for 2006, came to $35,940.41. The cost of goods sold for the same period, was $52,466.05. This was the red flag that told us we had serious issues and we had to pursue them.
After discussion of these findings, the BOG made the decision (APPROVED BY ALL FIVE MEMBERS) that it is necessary to follow the financial advice, and give Alice control of the finances and processes for a 3 month period, so accounting and inventory controls can be put in place. Officers and BOG were involved and informed. She was given her authority by your elected board.
Other Issues:
Money has been lost at different points of the year, with consecutive losses in Oct, Nov and Dec., driving down our net income.
Sales tax issues were noted and are being addressed. Info will be forthcoming.
For 2006, our cost of goods sold (COGS), ran at an average of 67%. Whether we had a big Friday crowd or small, the cost of food was always comparable. However, no inventory spikes were tracked. OF NOTE: In the last half of Feb, COG dropped to 37%!
Over $600 in bad checks were written to the post (up through Sept). Some were repeats and were written on closed accounts. There are no procedures to collect, other than a call, and no bad check listing to prevent repeat offenders. Some money was recovered, but the money was placed in drawer without notation and cannot be accounted for.
Personal items were purchased on Legion SAMS card. Fast review of receipts total over $100. Cash in the drawer is how reimbursement was reportedly done. No record of the transactions was recorded.
Not uncommon to have 20-30 no sales per night. Register 2, which had no reason for ‘no sales’ recorded 22 on Jan 19, 10 on Dec 15, and 19 on Dec 22. Consistently, there were 5-10 recorded in Jan. On Bar Register, during a three day period of Dec 29, 30, 31, there were 119 no sales rung up. Since there is no recording of what took place, and since long cash was never documented, we had no record of money.
Historical data could not be tracked and money could not be totally accounted for, because it was the practice to destroy register tapes and meal tickets. Could not go back before Nov.
There is no easy to use checkbook register and reconciliation with bank statements had never been done. Through Sept., we know of approximately $900 discrepancy between the register and what is actually in the bank.
The only funds deposited are what is on the register tape. All cash that goes in the drawer and not on tape, has no record. This includes Sunday breakfast, party room rentals, etc. Overages are kept in house but cannot be accounted for.
Payment for all labor (except Mgr) is done as cash out of drawer with no supporting documentation.
Any money put in drawer should cause for long money at end of day. No record of these transactions are available.
30% of canteen income goes to payroll ($60K+/year).
Pre tax liquor sales have been reported as income giving a false impression as to amount of income. This was not the intent, but is the result of a poor accounting practice.
Over $6k from general fund has gone to pay canteen debt.
Inconsistencies that have no explanation.
New Years Eve bar revenue was only $1,101.67
Dedication Sunday, Aug. 13, had a bar revenue of only $625.82
Multiple room rentals, parties etc with no spike in revenue. This money has been put in the drawer as cash and not properly documented. Revenue spikes during these months are not evident. Breakfast sales are also recorded this way. (as cash in drawer and not included on DAR)
Employees:
Everything was looked into including wages ($5000/month was very high since we are operating at a loss.
Reducing pay to some was considered but was not adopted. Dishwasher was going to be let go and we would use volunteer help.
Canteen Mgr was removed and was offered to stay on as bartender. This was due to performance issues that will not be discussed.
Two members of BOG resigned.
Dan, Shirley and Cindi resigned without notice on Feb. 26. No one was terminated by the post.
Some of the actions have been outlined in a previous e-mail and will not be repeated here. A lot of details were given at the meeting that are not here so if you have questions, please get a hold of the BOG or one of the post officers.
From the start, when a procedure was put in place, it was often taken as a personal assault on integrity. This hindered any smooth transition to a new format and began the rumors. No business runs without proper accounting of the finances. Asking for proper documentation when taking $ from register, using carbon copy receipt books, having money charged to correct accounts, avoiding unnecessary no sale, accounting for all cash, etc., are not personal attacks. Please keep in mind; this is not a bar that just happens to have an American Legion Post attached to it. This is an American Legion Post that supplies its membership the benefit of a canteen and meals.
Summary: During the meeting, membership had the chance to ask as many questions as needed. All were addressed and it was open to Veteran Legion members, Auxiliary, and SAL members. A full membership vote was taken. We had a choice to continue down the path we have chosen, or to stop and return to the process that has been in place. The answer was overwhelming. The direction has been given to your post leadership and all actions taken, and all actions to be taken in the future, will be directed at the financial well being of the post. I will keep membership informed each step of the way. BOG meetings, and E-board meetings are posted and open. If you feel strongly on an issue, please join a meeting and be heard. Bar gossip will not be the deciding factor in our decisions.
There are a lot of on-going changes being made. The tax issues are being addressed and we will do what is right and necessary to be in full compliance. All canteen manager candidates will be interviewed and bar and wait staff will be finalized as quickly as possible.
We have gone back to being closed on Monday. It was not particularly profitable after paying staff and will be used for doing books, inventory, etc.
Finally, nothing has been done without the best interest of the American Legion and our Post in mind. If anyone feels these issues are not being handled correctly, please address it to the BOG or E-board. If it cannot be resolved to your satisfaction, remember, the membership has the final say. Please do not spread rumors, and drive a wedge between the membership. It only hurts your fellow vets.
ALR News:
There will be a corned beef and cabbage dinner sponsored by the ALR on St. Patrick’s’ day, March 17. Dinner will be at 6:00pm and it will be followed by a live auction. Since it is on Saturday, there will be $1 draws and green beer.
Patriot Guard:
Unfortunately, the Patriot Guard had a busy two week period. They were called upon to escort three fallen soldiers from the airport, and to also attend the funerals. If you have never been on one of the Patriot Guard missions, I would ask you make every effort to attend. The families, friends and all involved with the soldiers have come to depend on the Patriot Guard for strength and support. This is best accomplished by our numbers. This is not an ALR exclusive. Many have joined that are not ALR or even riders. It is an experience you will never forget.
Auxiliary News
A bake sale will be held Easter weekend (April 6 and April 8). The bake sale and any arts and crafts that can be donated will take place Friday evening and at Sunday breakfast.
Also note, the Auxiliary completed 18 hours of community service and 51 hours at the VA.
50/50 was won by Bob Kierzek. His half of the pot came to $64.00
NEXT MEETING: April 2
Rick Babinger
Commander
