X-Message-Number: 1307 From: Subject: CRYONICS Re: Alcor Business Minutes Date: Wed, 14 Oct 92 18:38:28 PDT A response to the Alcor Business Minutes: " Michael Riskin read aloud his account of why he offered to audit the Alcor Endowment Fund, a task he completed in September." I finally got a copy of his statement and have some comments that I think the board should think about: Obviously, Michael Riskin is correct that after the infusion of cash from the Dick Jones' estate we are back to where we started. I have no disagreement with this fact. Hey, I even passed around a Carlos memo stating this fact at my last meeting attended and did not disagree with Carlos about that at that meeting. Unfortunately, Michael has missed the big points which I was trying to draw attention to: Point One: If Alcor was really running a surplus as was promised the infusion of cash would give us a total of 500,000 in our Endowment Fund, not 400,000. This 100,000 that we missed out on will prove to be sorely missed in the near future as Alcor wishes that it had the interest on 100,000 to work with. Point Two: Since Alcor is only back to where it started after getting the 100,000, this means that Alcor is running a substantial deficit. This deficit is large enough to be a major concern to Alcor. I predict that thanks to the smaller Endowment Fund than expected, Alcor will have a hard time maintaining a balanced budget in the near future. Point Three: There is no question that monies were taken from the Endowment Fund before the Dick Jones money was decided by the board to be part of the Endowment Fund. By violating Alcor's word that only the Endowment's fund interest would be spent, Alcor has misled its members. Particularly the ones who donated money to that fund. Like me. Point Four: By not treating the Endowment Fund as an Endowment Fund, and spending the principal as well as interest, Alcor has strongly discouraged members from donating to that fund. These four points are very important. Michael Riskin's findings mainly showed that the controls over the Endowment Fund were poor, including a check being written out to cash. While the controls are important, the overall picture is even more important. In conclusion, I accused Alcor of doing everything wrong to its Endowment Fund but embezzling it. I believe that my accusations have proven to be correct. I hope the current board does all it can to correct these problems. Eric Klien Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=1307