1998 Delegates Meeting
Return to Governance Area | Return to US Chess Federation Homepage
TREASURER'S REPORT
The first year of the Schultz Board was a tough one, by any standard. The Executive Director who guided us for eight years resigned after the election, followed by departures of other top staff. Excessively optimistic budget assumptions and separation payments to top officials left us with the second-largest deficit in USCF history. In the midst of this turmoil, we succeeded in finding impressive new leadership in Executive Director Mike Cavallo, and his spirited recovery efforts minimized losses that threatened to spin out of control.
This year, 1997-8, showed significant improvement in almost every category — including dramatic reductions in such areas as PB spending — and long overdue improvements to infrastructure with a new phone system and memory upgrades for Chess Life. Long-term debt has been significantly reduced. Professional fees retreated from all-time highs to normal levels. Cavallo's management efficiencies and aggressive cost containment have restored our confidence in our current well-being. Adoption of a new governance system, in Orlando, in 1997, promises a revival in our political processes on the effective date of September 10, 1998.
Our most ambitious, expensive, and challenging infrastructure modernization project ever, installation of a completely new integrated computer system for the business office, is nearing critical mass. When completed, every USCF member will benefit from improvements in speed and efficiency of service.
With our financial house in order, with our 21st century governance structure in place, with an exceptional professional manager in control of the office, and with historic improvements in customer service pending, it may seem that everything can be put on auto-pilot. Unfortunately, complacency could undo all of our gains.
Significant solutions to short-term problems afford us the opportunity to seek durable solutions to long-term problems. And it is only when we succeed in addressing those intractable problems that bridge administrations can we truly hope to achieve the lofty goals of our mission statement.
First among the long-term problems is flat or declining regular membership. Regular members are the bedrock of the federation's profitability; without progress in this crucial category, we cannot confidently budget for revenue gains in any category.
We need to solve the scholastic riddle once and for all. Do we lose money on every kid that joins, or is scholastics our key to future growth? A new study by the Finance and Scholastic committees has been commissioned to once and for all answer this key planning question.
We have to find long-term leadership. Cavallo is brilliant, but he still maintains his home in Boston. He has made it clear that he does not intend to continue indefinitely as our Executive Director, and nobody in the office is qualified to take over if/when he leaves. Cavallo has committed to stay until he has found and trained his successor, but there is no date certain. He has a very good relationship with Schultz; will he be as comfortable with Schultz's successor?
We also have to come to grips with the brave new world of the information superhighway,the Internet. Is it the future of chess, or is it the CB craze of the '90s? Will growth in on-line play translate to growth in over-the-board play, or will the present pool of players be divided between the old and the new media? Does the USCF have a role as a player in this technological revolution, or will we just be kibitzers?
The USCF has adopted a historic new governance system, after years of study and consideration. The challenge to our leadership is to see that these changes are implemented, and the benefits distributed, to all of our members.
These issues are very difficult ones, but Cavallo's leadership has given us the luxury, and the opportunity, to address long-term problems. It is an opportunity that we must not squander; we cannot know when or if this opportunity will again present itself, and a failure to act will almost certainly lead to decline.
Much has been accomplished, but our chess federation remains a work in progress. Only through modernization and growth can we maintain viability in a world that is changing more rapidly than ever before; we will not be the dominant chess organization of the 21st century by default Our dominant place in American chess can only be assured if we adapt to our market and take the bold steps that lead to progress. Only then will we fulfill our mission statement to make chess a "significant element of culture in America."
Thomas Dorsch
U.S. Chess Federation Treasurer
Return to Governance Area | Return to US Chess Federation Homepage
