SSA and IRS

All,
Does anybody know if IRS got their money on time?
I seem to remember that October 11th was the deadline.
Cheers!

--
Pete Reinhart
Austin, Texas

Yes, all in tonight's SSA eNews.

Frank Whiteley
Greeley, Colorado

Pete Reinhart wrote:
All,
Does anybody know if IRS got their money on time?
I seem to remember that October 11th was the deadline.
Cheers!

--
Pete Reinhart
Austin, Texas

From the e-news:

"On 10/11/06, using funds loaned from the SSA Foundation, SSA paid
delinquent federal payroll withholding taxes of approximately $208,000,
and state withholding taxes of approximately $56,000. Our outside
accountants are completing the remaining delinquent federal and state
income tax returns (upon which no taxes will be due) for 2004 and 2005.
Once submitted, SSA will be up to date in all respects with state and
federal tax authorities. It is likely the IRS will require the SSA to
pay interest on the overdue taxes, but we are working to mitigate all
penalties. State tax payments will most likely not incur interest or
penalties.

The SSA was unable to secure a commercial loan on terms it could meet,
to pay its delinquent taxes. Had the SSA Foundation not financially
assisted the SSA with this loan, tax authorities could have seized SSA
funds held by the Foundation in a single investment account. The choice
before the Trustees of the Foundation was to either provide a loan to
the SSA with the expectation of repayment (with 8.25% interest - higher
than that presently generated by the Foundation's investment account
as a whole), or risk seizure of assets to cover what the Society owed.
If seizure was required, the amount taken from the Foundation could
total nearly $600,000, since no mitigation of penalties would likely be
possible in this situation, and the funds would be gone forever.

Addendum: Late-Breaking Information Not Appearing in the Printed Letter
to Members:
On 10/9/06, SSA Ex-CFAO Alan Gleason was served with a civil lawsuit
brought by the SSA. On 10/11/06, at the direction of the New Mexico
District Attorney, he was arrested by the Hobbs Police Department."


Frank Whiteley wrote:
Yes, all in tonight's SSA eNews.

Frank Whiteley
Greeley, Colorado

Pete Reinhart wrote:
All,
Does anybody know if IRS got their money on time?
I seem to remember that October 11th was the deadline.
Cheers!

--
Pete Reinhart
Austin, Texas

wrote in message
oups.com...
From the e-news:

"On 10/11/06, using funds loaned from the SSA Foundation, SSA paid
delinquent federal payroll withholding taxes of approximately $208,000,
and state withholding taxes of approximately $56,000. Our outside
accountants are completing the remaining delinquent federal and state
income tax returns (upon which no taxes will be due) for 2004 and 2005.
Once submitted, SSA will be up to date in all respects with state and
federal tax authorities. It is likely the IRS will require the SSA to
pay interest on the overdue taxes, but we are working to mitigate all
penalties. State tax payments will most likely not incur interest or
penalties.

The SSA was unable to secure a commercial loan on terms it could meet,
to pay its delinquent taxes. Had the SSA Foundation not financially
assisted the SSA with this loan, tax authorities could have seized SSA
funds held by the Foundation in a single investment account. The choice
before the Trustees of the Foundation was to either provide a loan to
the SSA with the expectation of repayment (with 8.25% interest - higher
than that presently generated by the Foundation's investment account
as a whole), or risk seizure of assets to cover what the Society owed.
If seizure was required, the amount taken from the Foundation could
total nearly $600,000, since no mitigation of penalties would likely be
possible in this situation, and the funds would be gone forever.

Addendum: Late-Breaking Information Not Appearing in the Printed Letter
to Members:
On 10/9/06, SSA Ex-CFAO Alan Gleason was served with a civil lawsuit
brought by the SSA. On 10/11/06, at the direction of the New Mexico
District Attorney, he was arrested by the Hobbs Police Department."


Frank Whiteley wrote:
Yes, all in tonight's SSA eNews.

Frank Whiteley
Greeley, Colorado

Pete Reinhart wrote:
All,
Does anybody know if IRS got their money on time?
I seem to remember that October 11th was the deadline.
Cheers!

--
Pete Reinhart
Austin, Texas

I just read the whole thing!
WOW!!!
Things look like they're really moving in the right direction for a change.
Ya done good, Board.
Cheers!
..

A read of the letter to members is interesting.
1. the total amount due on taxes BEFORE interest was 208,000 to feds and 56,000 to state.
2. 84,000 was received as a gift and deposited into ssa operating accounts. of that only 27,000 was transferred to the foundation. The difference is therefore 57,000.
3. At this time the board is saying that it appears as if 150,000 was misappropriated by the cfo and he has been sued and arrested.

Put all this together and the SSA has been living beyond its means for the past several years to the tune of about 171,000 dollars.
the letter goes on to say that the magazine will continue to be published and member services maintained.

Outside of the alleged misappropriation of 150,000 the ssa was evidently running a deficit of somewhere between 43,000 and 57,000 per year ( depending upon the number of years).

now we have a capital debt plus interest plus interest to feds and state to pay off in addition to this annual shortfall.

It is obvious that some substantial services need to be cut back or eliminated.. Even without the misdeeds, it wasn't working.

I suggest going to an all electronic magazine... THE NEWSLETTER FORMAT ALREADY EXISTS. There is about 1/2 mil per year here..

I have been looking for the minutes of the excom and full board meetings. recent ones have not been posted . I assume that there is a reason that this is not being done .

The last posted excom minutes stated that the full board was going to face the recommendation by the excom to change the bylaws to drop the necessity of an annual audit. I certainly hope that the full board rejected this "penny wise and pound foolish" cost savings measure in light of recent happenings.

there is a big difference between a "review" and an audit.
A review of financials simply accepts information prepared by staff. An auditor is required to independently check the information against original records and by other means.

An Audit also normally produces a cash flow statement and includes an analysis and opinion of the financial viability of an organization. Not only would an audit have nipped the alleged misappropriation in the bud, but it would have also required the auditor to give a formal opinion to the board and members regarding the issue of cash shortfall.

Bottom line from my read, this situation developed over time by the ssa living beyond its means and robbing peter ( uncle sam) to pay paul.. AND was complicated by bad conduct.

now is not the time to save 15 grand a year by forgoing future audits. 15 grand a year will NOT solve the problem of repayment and will only set the stage for the next fiasco.



5bg


wrote in message oups.com...
From the e-news:

"On 10/11/06, using funds loaned from the SSA Foundation, SSA paid
delinquent federal payroll withholding taxes of approximately $208,000,
and state withholding taxes of approximately $56,000. Our outside
accountants are completing the remaining delinquent federal and state
income tax returns (upon which no taxes will be due) for 2004 and 2005.
Once submitted, SSA will be up to date in all respects with state and
federal tax authorities. It is likely the IRS will require the SSA to
pay interest on the overdue taxes, but we are working to mitigate all
penalties. State tax payments will most likely not incur interest or
penalties.

The SSA was unable to secure a commercial loan on terms it could meet,
to pay its delinquent taxes. Had the SSA Foundation not financially
assisted the SSA with this loan, tax authorities could have seized SSA
funds held by the Foundation in a single investment account. The choice
before the Trustees of the Foundation was to either provide a loan to
the SSA with the expectation of repayment (with 8.25% interest - higher
than that presently generated by the Foundation's investment account
as a whole), or risk seizure of assets to cover what the Society owed.
If seizure was required, the amount taken from the Foundation could
total nearly $600,000, since no mitigation of penalties would likely be
possible in this situation, and the funds would be gone forever.

Addendum: Late-Breaking Information Not Appearing in the Printed Letter
to Members:
On 10/9/06, SSA Ex-CFAO Alan Gleason was served with a civil lawsuit
brought by the SSA. On 10/11/06, at the direction of the New Mexico
District Attorney, he was arrested by the Hobbs Police Department."


Frank Whiteley wrote:
Yes, all in tonight's SSA eNews.

Frank Whiteley
Greeley, Colorado

Pete Reinhart wrote:
All,
Does anybody know if IRS got their money on time?
I seem to remember that October 11th was the deadline.
Cheers!

--
Pete Reinhart
Austin, Texas

5-BG:

" I suggest going to an all electronic magazine... THE NEWSLETTER
FORMAT ALREADY EXISTS. There is about 1/2 mil per year here.."

I think that the SSA would lose a lot of members without the magazine
since it is one of the only tangible benefits the SSA offers to a large
proportion of its members. At $64/year, the SSA costs more than the
AOPA or EAA. If you don't own a glider then you can't even get the
insurance coverage "discount". Since most of the SSA members don't
compete in soaring competitions, this aspect of the SSA organization is
of no utility either.

What the SSA cannot afford to do is lose a substantial number of
members. Losing the magazine would be like a failing restaurant
cutting back on its food quality to save money.....

Lindy

5-BG wrote:
A read of the letter to members is interesting.
1. the total amount due on taxes BEFORE interest was 208,000 to feds and 56,000 to state.
2. 84,000 was received as a gift and deposited into ssa operating accounts. of that only 27,000 was transferred to the foundation. The difference is therefore 57,000.
3. At this time the board is saying that it appears as if 150,000 was misappropriated by the cfo and he has been sued and arrested.

Put all this together and the SSA has been living beyond its means for the past several years to the tune of about 171,000 dollars.
the letter goes on to say that the magazine will continue to be published and member services maintained.

Outside of the alleged misappropriation of 150,000 the ssa was evidently running a deficit of somewhere between 43,000 and 57,000 per year ( depending upon the number of years).

now we have a capital debt plus interest plus interest to feds and state to pay off in addition to this annual shortfall.

It is obvious that some substantial services need to be cut back or eliminated.. Even without the misdeeds, it wasn't working.

I suggest going to an all electronic magazine... THE NEWSLETTER FORMAT ALREADY EXISTS. There is about 1/2 mil per year here..

I have been looking for the minutes of the excom and full board meetings. recent ones have not been posted . I assume that there is a reason that this is not being done .

The last posted excom minutes stated that the full board was going to face the recommendation by the excom to change the bylaws to drop the necessity of an annual audit. I certainly hope that the full board rejected this "penny wise and pound foolish" cost savings measure in light of recent happenings.

there is a big difference between a "review" and an audit.
A review of financials simply accepts information prepared by staff. An auditor is required to independently check the information against original records and by other means.

An Audit also normally produces a cash flow statement and includes an analysis and opinion of the financial viability of an organization. Not only would an audit have nipped the alleged misappropriation in the bud, but it would have also required the auditor to give a formal opinion to the board and members regarding the issue of cash shortfall.

Bottom line from my read, this situation developed over time by the ssa living beyond its means and robbing peter ( uncle sam) to pay paul.. AND was complicated by bad conduct.

now is not the time to save 15 grand a year by forgoing future audits. 15 grand a year will NOT solve the problem of repayment and will only set the stage for the next fiasco.



5bg


wrote in message oups.com...
From the e-news:

"On 10/11/06, using funds loaned from the SSA Foundation, SSA paid
delinquent federal payroll withholding taxes of approximately $208,000,
and state withholding taxes of approximately $56,000. Our outside
accountants are completing the remaining delinquent federal and state
income tax returns (upon which no taxes will be due) for 2004 and 2005.
Once submitted, SSA will be up to date in all respects with state and
federal tax authorities. It is likely the IRS will require the SSA to
pay interest on the overdue taxes, but we are working to mitigate all
penalties. State tax payments will most likely not incur interest or
penalties.

The SSA was unable to secure a commercial loan on terms it could meet,
to pay its delinquent taxes. Had the SSA Foundation not financially
assisted the SSA with this loan, tax authorities could have seized SSA
funds held by the Foundation in a single investment account. The choice
before the Trustees of the Foundation was to either provide a loan to
the SSA with the expectation of repayment (with 8.25% interest - higher
than that presently generated by the Foundation's investment account
as a whole), or risk seizure of assets to cover what the Society owed.
If seizure was required, the amount taken from the Foundation could
total nearly $600,000, since no mitigation of penalties would likely be
possible in this situation, and the funds would be gone forever.

Addendum: Late-Breaking Information Not Appearing in the Printed Letter
to Members:
On 10/9/06, SSA Ex-CFAO Alan Gleason was served with a civil lawsuit
brought by the SSA. On 10/11/06, at the direction of the New Mexico
District Attorney, he was arrested by the Hobbs Police Department."


Frank Whiteley wrote:
Yes, all in tonight's SSA eNews.

Frank Whiteley
Greeley, Colorado

Pete Reinhart wrote:
All,
Does anybody know if IRS got their money on time?
I seem to remember that October 11th was the deadline.
Cheers!

--
Pete Reinhart
Austin, Texas

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DIVFONT face=ArialA read of the letter to members is interesting.
/FONT/DIV
DIVFONT face=Arial1. the total amount due on taxes BEFORE interest was
208,000 to feds and 56,000 to state./FONT/DIV
DIVFONT face=Arial2. 84,000 was received as a gift and deposited into 
ssa operating accounts. of that only 27,000 was transferred to the foundation.
The difference is therefore 57,000./FONT/DIV
DIVFONT face=Arial3. At this time the board is saying that it appears as if
150,000  was misappropriated by the cfo and he has been sued and
arrested./FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial  Put all this together and the SSA has been living
beyond its means for the past several years to the tune of about 171,000
dollars./FONT/DIV
DIVFONT face=Arial  the letter goes on to say that the magazine will
continue to be published and member services maintained./FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial    Outside of the alleged
misappropriation of 150,000 the ssa was evidently  running a deficit of
somewhere between 43,000 and 57,000 per year ( depending upon the number of
years)./FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial  now we have a capital  debt plus interest plus
interest to feds and state to pay off in addition to this  annual
shortfall./FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial  It is obvious that some substantial services need
to be cut back or eliminated.. Even without the misdeeds, it wasn't
working./FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial  I suggest going to an all electronic magazine...
THE NEWSLETTER FORMAT ALREADY EXISTS.  There is about 1/2 mil per year
here../FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial  I have been looking for the minutes of the 
excom and full board meetings. recent ones  have not been posted . I assume
that there is a reason that this  is not being done ./FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial The last posted excom minutes stated that the full
board was going to face the recommendation by the excom to change the bylaws to
drop the necessity of an annual audit. I certainly hope that the full board
rejected this "penny wise and pound foolish" cost savings  measure in light
of recent happenings./FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial  there is a big difference between a "review" and an
audit.  /FONT/DIV
DIVFONT face=Arial A review of financials  simply accepts
information prepared by  staff.  An auditor is  required to
independently check the information against original records and by other means.
/FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial  An Audit also normally produces a cash flow
statement and includes an analysis and opinion of the financial viability of an
organization. Not only would an audit have nipped the alleged misappropriation
in the bud, but it would have also required the auditor to give a formal opinion
to the board and members  regarding the issue of cash
shortfall./FONT/DIV
DIVFONT face=Arial  /FONT/DIV
DIVFONT face=ArialBottom line from my read, this situation developed over
time by the ssa living beyond its means and robbing peter ( uncle sam) to pay
paul.. AND was complicated by bad conduct. /FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial now is not the time to save 15 grand a year by
forgoing future audits. 15 grand a year will NOT solve the problem of repayment
and will only set the stage for the next fiasco.  /FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial5bg/FONT/DIV
DIVFONT face=Arial/FONT /DIV
DIVFONT face=Arial/FONT /DIV
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DIV<A "lonebeagle1@ya hoo.com/A>
wrote in message A
oglegroups.com"news:1160628246.735229.209750@h48g 2000cwc.googlegroups.com/A.../DIV>From
the e-news:BRBR"On 10/11/06, using funds loaned from the SSA Foundation,
SSA paidBRdelinquent federal payroll withholding taxes of approximately
$208,000,BRand state withholding taxes of approximately $56,000. Our
outsideBRaccountants are completing the remaining delinquent federal and
stateBRincome tax returns (upon which no taxes will be due) for 2004 and
2005.BROnce submitted, SSA will be up to date in all respects with state
andBRfederal tax authorities. It is likely the IRS will require the SSA
toBRpay interest on the overdue taxes, but we are working to mitigate
allBRpenalties.  State tax payments will most likely not incur interest
orBRpenalties.BRBRThe SSA was unable to secure a commercial loan on
terms it could meet,BRto pay its delinquent taxes. Had the SSA Foundation
not financiallyBRassisted the SSA with this loan, tax authorities could have
seized SSABRfunds held by the Foundation in a single investment account. The
choiceBRbefore the Trustees of the Foundation was to either provide a loan
toBRthe SSA with the expectation of repayment (with 8.25% interest -
higherBRthan that presently generated by the Foundation's investment
accountBRas a whole), or risk seizure of assets to cover what the Society
owed.BRIf seizure was required, the amount taken from the Foundation
couldBRtotal nearly $600,000, since no mitigation of penalties would likely
beBRpossible in this situation, and the funds would be gone
forever.BRBRAddendum: Late-Breaking Information Not Appearing in the
Printed LetterBRto Members:BROn 10/9/06, SSA Ex-CFAO Alan Gleason was
served with a civil lawsuitBRbrought by the SSA. On 10/11/06, at the
direction of the New MexicoBRDistrict Attorney, he was arrested by the Hobbs
Police Department."BRBRBRFrank Whiteley wrote:BR> Yes, all in
tonight's SSA eNews.BR>BR> Frank WhiteleyBR> Greeley,
ColoradoBR>BR> Pete Reinhart wrote:BR> > All,BR> >
Does anybody know if IRS got their money on time?BR> > I seem to
remember that October 11th was the deadline.BR> > Cheers!BR> >
BR> > -- BR> > Pete ReinhartBR> > Austin,
TexasBR/BLOCKQUOTE/BODY/HTML

------=_NextPart_000_0011_01C6ED73.1E32DE70--

wrote in message
oups.com...
I think that the SSA would lose a lot of members without the magazine
since it is one of the only tangible benefits the SSA offers to a large
proportion of its members. At $64/year, the SSA costs more than the
AOPA or EAA. If you don't own a glider then you can't even get the
insurance coverage "discount". Since most of the SSA members don't
compete in soaring competitions, this aspect of the SSA organization is
of no utility either.

What the SSA cannot afford to do is lose a substantial number of
members. Losing the magazine would be like a failing restaurant
cutting back on its food quality to save money.....

Lindy

Lindy_--
Look closer- do you belong to a glider club that owns gliders or a towplane?
Then you, too, benefit from the insurance deal. have you tried to insure a
towplane without the SSA-Costello connection?
Not a competitor---how about badges?
I like the "hard copy" of the mag, as I can thumb through back issues from
time to time.

"Losing the magazine would be like a failing restaurant
cutting back on its food quality to save money....."

Well said--sums it up nicely!

Hartley Falbaum

HL Falbaum wrote:
wrote in message
oups.com...
I think that the SSA would lose a lot of members without the magazine
since it is one of the only tangible benefits the SSA offers to a large
proportion of its members. At $64/year, the SSA costs more than the
AOPA or EAA. If you don't own a glider then you can't even get the
insurance coverage "discount". Since most of the SSA members don't
compete in soaring competitions, this aspect of the SSA organization is
of no utility either.

What the SSA cannot afford to do is lose a substantial number of
members. Losing the magazine would be like a failing restaurant
cutting back on its food quality to save money.....

Lindy

Lindy_--
Look closer- do you belong to a glider club that owns gliders or a towplane?
Then you, too, benefit from the insurance deal. have you tried to insure a
towplane without the SSA-Costello connection?
Not a competitor---how about badges?
I like the "hard copy" of the mag, as I can thumb through back issues from
time to time.

"Losing the magazine would be like a failing restaurant
cutting back on its food quality to save money....."

Well said--sums it up nicely!

Hartley Falbaum




An all electronic version of SOARING Magazine (in PDF format) would be
a cost-saver, but I suspect some members do not have access to a
computer, or know how to load the correct software (Adobe Acrobat
Reader and others....) to read and print the files. I work in the
printing industry and you would be amazed how many folks are not "up to
speed" in this technology driven environment. Most people equate
"installing software" on the same level as a "prostate exam."

Lloyd Smith
Odessa, Texas

News:

http://www.kobtv.com/index.cfm?viewe...NMTOPSTO RIES