Net Proceeds from CFC Office Unit Sale?

[Bob Armstrong]

As I understand it, the office unit sold for $ 142,000. Out of this must be paid the sale commission, and the two loans to the CFC from the Chess Foundation, totalling $48,500, I believe it was.

CFC, I expect, will also now have to use some of those proceeds to operate the CFC through to the fiscal year end, April 30, given the deficit CFC will be running this year 2008-9.

Is there a projection as to the net proceeds that will be left as of May 1 to put into a savings fund of some kind, to invest, and gain interest?

Hopefully, a balanced 20009-10 budget will mean the CFC will not have to draw on those funds in the upcoming year, and they will continue to earn interest for the CFC.

Thanks.

Bob

[Lawrence Day]

What is the point of earning interest if there is no plan to spend anyway?

[Paul Leblanc]

I have made a suggestion to the President that the executive consider putting any excess capital into the Chess Foundation in order to reduce the temptation to spend it immediately. Investments in the Foundation earn a decent rate of return compared to a savings account.

[Garland Best]

Gee Lawrence, you must be the anti-Tom O'Donnell.

[Lawrence Day]

I have made a suggestion to the President that the executive consider putting any excess capital into the Chess Foundation in order to reduce the temptation to spend it immediately. Investments in the Foundation earn a decent rate of return compared to a savings account.

By "spend it immediately" do you mean FIDE re-registrations for GMs Kovalyov and Sambuev?

[Paul Leblanc]

No Lawrence. I don't know anything about those guys except that they seem to be very good chess players.
I meant that, notwithstanding the excellent executive we have at the moment, the CFC has historically not been very good with money and needs to learn to live on the cash flow that is available to it year by year, not subsidize operations by whittling down the capital from the sale of the building. The Foundation came to the rescue of the CFC last year and it was appropriate to do so. Putting a share of the capital surplus into the Foundation will bring up the Foundation's annual contribution to the CFC a bit and make the Foundation stronger for the next emergency.

[Bob Armstrong]

Hi Paul:

If you have any influence with the CFC, could you see if you could get someone in the know to answer the question in the original post - how much will be left to invest as of the start of the next fiscal year, May 1, 2009? Thanks.

Bob

[Paul Leblanc]

Good morning to you too Bob. I think Chris Mallon is still Treasurer, perhaps he can help. I've been following your analysis and in the absence of any other information regarding the FY 2008/2009 situation, I'll buy into your forecast 24,600 loss. After re-paying the Foundation, paying the real estate fees on the sale of the building and sustaining that loss, there should be about $59,000 in the bank assuming they started with a zero balance just before selling the building (a fair estimate I think). Don't you think a $50,000 contibution to the Foundation would instill some urgency to balance the budget in 09/10?

[Bob Armstrong]

Hi Paul:

I was hoping the deficit problem for this year would not drop the net proceeds quite as low as your estimated $ 59,000.

I agree that the money should be invested for a rainy day, not used as operating expenses. The Chess Foundation seems a reasonable option. And they do have to try to come to a balanced 2009-10 budget - not sure how easy that still is, despite all the important and necessary restructuring the CFC has admirably carried out this year 2008-9.

Could Chris ( or Bob or David ) confirm whether this figure is in the ballpark for the amount left as of May 1, 2009?

Bob

(1. I'm surprised one of them hasn't responded sooner - the question was posted 4 days ago- shouldn't be a difficult calculation I would think - they only have to estimate for the final 3 months of this fiscal year [ Feb.-April 30 ] . Is it a problem to discuss it?
2. My deficit projection of $ 24,700 was done before the CFC did the cuts on Jan. 15 to salary ( eliminating the office administrator position ) and office expenses ( having all 3 part-time employees work from " home " ).

[Bob Gillanders]

Hi Paul:

I was hoping the deficit problem for this year would not drop the net proceeds quite as low as your estimated $ 59,000.

I agree that the money should be invested for a rainy day, not used as operating expenses. The Chess Foundation seems a reasonable option. And they do have to try to come to a balanced 2009-10 budget - not sure how easy that still is, despite all the important and necessary restructuring the CFC has admirably carried out this year 2008-9.

Could Chris ( or Bob or David ) confirm whether this figure is in the ballpark for the amount left as of May 1, 2009?

Bob

(1. I'm surprised one of them hasn't responded sooner - the question was posted 4 days ago- shouldn't be a difficult calculation I would think - they only have to estimate for the final 3 months of this fiscal year [ Feb.-April 30 ] . Is it a problem to discuss it?
2. My deficit projection of $ 24,700 was done before the CFC did the cuts on Jan. 15 to salary ( eliminating the office administrator position ) and office expenses ( having all 3 part-time employees work from " home " ).

Bob, I learned a long time ago not to make any financial projections, budgets, etc, etc, without doing your homework first. Because no matter how many times you warn people that "this is a forecast", "this is only a guessimate", "not all the facts are in yet", "these are preliminary numbers", etc.etc.etc., you get the idea..........once you quote a specific number, you are stuck with it, no matter what......and even if it's out by a tiny bit.....you get roasted!!!

So you're expectation of "get me the number right now" is not reasonable. We need to do our homework first!!!

So after saying all that.......I will go out on a limb and say that Paul's estimate of $ 59,000 is low!