Jim Pechac
Beachwood
(216) 595-1486
Fellow USCF Voters:
I am pleased to report to you on my 2-year term as USCF Vice-President of Finance. I have declared my candidacy to finish what I have started, the improvement of the financial health of the USCF – accomplished by installing procedures that improve management control as well as provide more accurate and timely financial and operating information. I appreciate the opportunity to review with you my board service as well as significant policy matters related to
the upcoming Delegates Meeting in
USCF accounts for financial results by means of two separate business units. The Operations unit, located at the headquarters facility in New Windsor, New York, is comprised of departments for Memberships, Book and Equipment Sales, Ratings, Scholastics, Publications such as Chess Life, and other administrative and financial areas. The Executive Board (EB) oversees Operations. The Life Member Asset (LMA) unit is comprised of investments held by broker(s) and ownership of the USCF headquarters building, both managed by a committee appointed by the USCF Delegates.
USCF Operations reported financial performance through
Stock market performance of late has provided the LMA with somewhat of a recovery. However, the substantial mid-2000 market decline will result in a terrible year overall for LMA investments, more than offsetting the gain in Operations.
It is unfortunate that a
membership benefit that a short time ago was considered an important, no, critical
strategic objective by many in the Federation has been turned around by some to
give the appearance of a white elephant. Almost two years ago, the Board
decided to offer an additional benefit to members: free online play. The Federation had recognized the need to
participate in on-line play for many years; this Board was able to reach an
agreement with Games Parlor that made USChessLive a reality. USCF had previously contracted with the
To date the decision by the Board has been vindicated as over 13,000 active USCF members have already enrolled in USCL, with the number expected to increase at a faster rate due to the introduction of on-line registration. It was recently learned that over half of ICC’s active membership are also USCF members.
While I fully agree that spyware is an ongoing management concern, I would prefer to see that area managed using the judgement and evaluation of systems professionals, and not by ad-hoc chess activists who may or may not be technically competent in this area. Repeated statements by computer professionals, not self-styled “international chess journalists,” have made it clear that participation in USCL carries no more risk than visiting other sites that have advertising.
Several letter writers have criticized the New Windsor office for what they feel is a noticeable decline in customer service. The most noted issues involved book and equipment order processing, book and equipment backorders, and shortcomings in the phone system and website.
While the office may have reasonable explanations for customer dissatisfaction, it is unquestionably in USCF’s best interest to formally address customer complaints and institute a forward-thinking corrective action policy. It is my understanding that management has both an upgraded phone system and a live receptionist under consideration for fiscal 2002. Customer service issues in the book and equipment sales area have had impact on policy, and both the Office and the Board are sensitive to the need to improve customer service.
Even under the best of
circumstances, a strong, independent complaint process is an important service
evaluation tool. I have asked for the
development of an enhanced website complaint form. This will ensure that customer feedback
reaches upper management in a format that maximizes this impact.
There has been frequent discussion as to the adequacy of the communications between the Office, the EB, and the membership. Of noteworthy comment is the complaint that the Office and the Board have occasionally taken action with little or no input from the various USCF committees.
I think it is important first to note that strategic decisions as to course of action are the responsibility of the Office and the Executive Board. It is my understanding that all actions taken over the past year were in compliance with our bylaws. The actions by the Office were, in almost every instance, consistent with the strategy that the EB endorsed when it took office in late 1999. That core strategy was, and still is, intended to keep USCF operating and solvent, a BIG challenge, especially in light of the large operating losses of the past three years, and the associated outstanding debt.
Also, the most frequent complaints, relating to TLA fees and inventory realignment, arose in areas where a USCF committee did not exist. For example, when the TLA pricing matter was raised (October 2000) there was no Affiliate Committee that the Office or the Board could confer with.
A term emphasized in the last EB election was the need to “run the USCF like a business.” USCF’s operating methodology has traditionally encouraged committee participation in decisions. This philosophy is not consistent with, and will continue to clash with our business-like “action-oriented” philosophy, which the current Board majority adopted in response to the financial crisis and the competitive environment we are now in. I believe this is the basic reason for segmentation on the EB.
All businesses take risk. The Board made a decision to take a course of action based on the need to address competition. The success or failure of the ‘business” approach will show in the operational performance for this and future fiscal years.
This EB has continued the practice of providing the membership with a full transcript of all actions at EB meetings. We have further taken the lead to expand the New Windsor Operations reporting systems to include operational metrics and quarterly financials, and to provide delegates and voting members with printed copies of quarterly staff reports. This feedback process is a dramatic improvement over past administrations.
If elected, I will continue to represent the membership, in general, and make decisions and take actions for the best interest of all concerned. Committee input will be welcome, even encouraged. However, I will not base my actions solely on committee support, nor will I have others make decisions for me.
Very few people like or enjoy change, especially when it seems to encroach on what in their mind was a fundamental right. Control by committees rarely produces a sterling product, and when it does it is due not to the committee per se but to one or perhaps two influential and outstanding committee members. Considering USCF’s market position and the number of decisions still left to be made I do not feel we can afford the risk of having major decisions made by individuals that have not been elected by the membership.
Conclusion
I would like to build on the successes of the past year by continuing to serve the Federation on the EB. If you would like the USCF to progress along the path to financial health, and if you approve of the positive financial results made during the last year, I ask for your vote.
Jim Pechac
JIM PECHAC
Over 30 years experience in financial and operational auditing of accounting and operating systems in medium and large scale business organizations. Member of the Institute of Internal Auditors (1975) and the Information Systems Audit and Control Association (1983). BBA Accounting 1971 Cleveland State University.
· USCF Life Member: (1973) with a lifelong devotion to the game. Rating 1800.
· USCF Executive Board: 1999-2001 – Vice President of Finance
Ž Development of Formal Quarterly financial Reporting to Delegates 2000-2001.
Ž Development of MBO Reporting Process and Quarterly Status Reporting by Departmental Managers 2000-2001.
Ž Y2K/Internet Task Force to Evaluate Office Computer System November 1999.
Ž Board Subcommittee for On-Line Play 1999-2000.
· USCF Finance: Committee member 1994-96. Finance Committee Chair 1996-99. Comprehensive background of New Windsor Operations. Upgraded financial controls by introducing CFO position to USCF organizational structure in 2000. Have since been instrumental in establishing financial and operational reporting controls. Previous staff projects while Committee chair included:
Ž Developing comprehensive presentation of internal accounting control reports for the period 1990-95.
Ž Performing financial audit of office in 1995 and 1997.
Ž Designing present Operations/LMA financial statement presentation.
Ž Assisted management and Executive Board in numerous financial projects and decision support tools.
· USCF LMA Management: Committee positions, 1996 – 01. Provided USCF with technical assistance in 1996 in the design and development of LMA funding policies and accounting and financial reporting routines.
· State & Local: Ohio Chess Association Trustee (1983), providing various financial advisory services, including direct responsibilities such as Treasurer and Membership Chairperson. USCF State Delegate (OH) since 1992. Senior Financial Advisor to The Cleveland Chess Association Board (1989 – 1999)
· Attended USCF Annual meetings 1992 –2001 (Ex Hawaii) and actively participated in Finance Workshops and at Delelgates Meetings.
· USCF Volunteer of the Month, July, 1997 Chess Life.
· USCF Special Services Award, August, 1997.
· USCF Finance Committee awarded ‘Committee of the Year’ August, 1997.