Radio Free Registry

[Trevor]

Hi everyone,

I've been meaning to post but have been busy with work. I went to the members meeting and a number of events throughout the weekend. I got a hall pass from my wife, so she watched the kids and I did everything that I possibly could in SoCal for the Porsche weekend: Steve Hogue's, Willhoit's, LitMeet, Registry members meeting, European Collectibles, Jim Liberty's shop and finally the swapmeet on Sunday. I'm still a bit on overload from seeing all the cars, hanging out with friends and making new ones. I will try to put my thoughts together on all things Registry related over the next few days to contribute to this thread.

Regarding 356 Registry communication, I did see Felix taking very diligent notes and have no doubt that the minutes will be posted.

[Steve Heinrichs]

All,

Very astute comments here over the last couple of days. It is clear that those who post here care both about this site and the Registry and, of course, Porsches.

I have been asked to weigh in just a bit regarding what is being discussed.

Please note that the three lawsuits continue and important deveoplments are unfolding. That said, if there is significant additional news to report, I will do so on the other thread.

As to the Registry oriented focus here, let me just say that we ( that is, I and many, many others) remain focused on causing the Registry to be open to suggestions for improvement, respectful of members, understanding that the club is the members' club not the Trustees' club, transparent and willing to answer questions forthrightly and not ignore members' questions.

A few facts to clarify some of the answers raised at the meeting on Saturday---

First, while it may be true that one one person has, according to the Trustees, been thrown out, I personally know of three people--former members--who have been denied renewal. There may be more.

Second, as to the company's position regarding the litigation, it/they have all been gentlemen as to all of this. They have been neutral, have applied no undue pressure and have been quite fair in their actions. Of course, they want this all to go away. But they recognize that there are serious issues here and they want to be associated with clubs/vendors/entities/suppliers/etc. that uphold the values we all share.

Guys---the facts will out. The Registry will survive and will evolve as to all aspects---just like any similar organization.

Now, as usual, I'm ready to answer (to the extent appropriate) any question---on this site or privately.

Steve Heinrichs

[356JAGER]

Steve,
Thank you for your informative post. In itself it reveals the
polar opposite of the devious dodging, ducking, and general
disregard the 'trustees' show to their fellow club members, the
one's that they represent. Just wondering how they represent those
they don't want to communicate with ? Sounds more like 'we decide,
you comply', a real open and brotherly relationship.

[Bill Sampson]

I know today is only Wednesday, but I didn't fail to notice that the only comments about the members meeting on last Saturday were in response to my query.

There is obviously no sense of urgency on anything when it comes to informing the members about Registry activities and events pertaining to the operations of the club. I think the leadership must actually not want the Registry forum to be too successful or timely as it must be viewed as competition to the magazine.

I also wonder why the magazine can't be almost self supporting with advertising revenue--it appears to me that the Registry mag is not charging adequate rates for advertisements to be self sufficient without dues support.

Cogent thoughts Pat. I have no real data on supporting publications with advertising, only anecdotes, the antonym of data. But I can offer these anecdotes. The two monthly car club magazines for which I have had some of the responsibility either as president of the club or as a director of the club both would have ceased to exist on what we could charge for advertising. They both required and require substantial dues support and, as with the R, were and are the biggest club expense. Both of those organizations are real clubs, one a PCA region and the other the National Woodie Club, which has 17 formally affiliated local chapters.

NWC remains print only although we certainly ponder our future doing so - everyone does. I'm no longer in PCA, but the Santa Barbara region did and does put the monthly magazine on the web as soon as it goes to press. Some of the other Southern California PCA regions either put out magazines that were almost all ads, or, ceased sending print editions as of a few years ago, going all digital. www.pcasb.org is the web site for the PCA chapter with which I was involved.

Naturally, NWC is working diligently, we hope, on rebuilding our web site. Sigh. All it takes is time and money. We send a monthly 32 page full color magazine to just under 3000 members and run the whole club - everything - on an annual budget of around $130,000. [I'm not revealing confidences here, we're a non-profit with public tax returns.] Membership/printing/postage/editorial services/etc probably take about $100,000 of that but I didn't look it up. We plan for the near future to maintain the magazine as print only with selected items from the magazine placed on line.

Advertisers, as you may have observed in your daily newspaper, are fleeing to the internet. Remember when the Sunday classifieds weighted a couple pounds (maybe only the LA Times)? I wish we could run all the clubs I'm in on the advertisers' money but at least in these two instances we could not.

Thanks for the inpiration though. Best wishes.

[356JAGER]

Bill,
356 CAR, the Northern California 356 Club, that both you and I belong
to, offers both paper and digital publications. I don't know what
the current ratio of use is, but I do know that I can access the digital version just as readily as paper, and if it's for reading
while you're 'passing' the time, take your laptop and save a tree.
Wall Calendars, posters and coffee table books may survive, but
magazines, books and newspapers are done, much to the benefit of the environment.

[Bill Sampson]

Thanks Joel. Yup, I just joined 356 CAR and chose the digital version. The dues were somewhat less.

Rosemary and I, now that she is retired, hope to combine some parent/daughter visits to Watsonville with some car club fun with our NorCal friends.

[S.J.Szabo]

[neilbardsley]

Steve,

This is where I get confused. I've unfortunately never met you but I think that your questions are perfectly reasonable to ask. We in the UK aren't quite as fond of ligitation as you Americans are but that said I think I agree with what you are trying to do.

Now I've only ever spoken to one member of the Registry Committee Bob Campbell, who I bought my 356 from, I also found him to be honest and straight forward. I only know the some of the other committee members via their postings on forum but Vic, for example, seems like someone I would also be happy to do business with and he has a passion for these cars.

So I wonder how with reasonable people on both sides it has come to this?

[bbspdstr]

"So I wonder how with reasonable people on both sides it has come to this?"

Dear Neil, perhaps the saying "The King is dead, long live the King!" would be appropriate for you?

The 356 'club' called the Registry seems stuck with an old monarchy, but waiting for 7 kings to pass on is unrealistic for the business model used now vs legal and common sense changes being suggested or requested, but denied.

When the doorbell is rung and one is not invited in for tea and a pleasant conversation.....a Monty Python-esque 'argument' tends to develop.

Asking or suggesting they step down but not away is one thing I have mentioned. 'Abdication,' if you will, would allow transition which I believe would allow old friends to return to being that again....but "it takes two to Tango." Right now, we have a Whiskey Tango Foxtrot with no concessions, no negotiations and no sign that the powers-that-be have any feelings of culpability, no interest in finding common ground with their challengers.

Bottom line for me is that all those you mentioned and most all of those in the group are fine to get along with individually, but this toxic situation involving power and money, raising questions, has polarized small factions against each other that the majority may not understand even if they care to know. I feel that trustees have a 'shelf life' and are well beyond that in most instances by now.

What we see from the outside is two 'gangs' facing off. One gang wants to stay the 'bad boys.' The other say...'Yeah, well I'm not afraid of you! I can call some bigger friends"

Thus, the prevalent attitude seems to be..."F--- me?.....NO, F--- YOU!!!" And the townspeople either scatter or are still sound asleep in their comfy beds. Bottles and rocks (and a lot of money) have been thrown, but delay after delay...posturing and gesturing... means no end is in sight. Even though the police have been called, no arrests have been made.

No one but those few on the two 'sides' wants to get involved. A 'sticky wicket, eh?

That said, the Registry will become better for this. Things will change, things will mellow when the sun finally shines in. Everyone just needs to remember that "everything works out......one way or another."

Meanwhile, let's all work to make Justin's site here better and better! It's sad but true that it's somewhat 'fun' writing about the angst going on in just another...what?....'car club'?

-Bruce

[neilbardsley]

C: I'll tell you what's wrong with it, my lad. 'E's dead, that's what's wrong with it!

O: No, no, 'e's uh,...he's resting.

http://en.wikipedia.org/wiki/Dead_Parrot

[Steve Heinrichs]

Hi Neil,

Just a short response as a busy day here and late where you are. I'm getting ready to go to Stuttgart Saturday.

Anyway----yes, despite our (U.S. colonies) having had a small disagreement a few years ago with all that tea stuff---you folks are blessed with less litigation. And, we Americans are always impressed
with the typical British accent to which we assign at least 20 additional IQ points.

Of much importance and maybe finally to get to your question----you have a great Porsche Club in the UK. I have been a proud member for (I think) 20 years or more. so, here's the thing---notice the financial reporting twice a year, actual books and records, budgets, minutes and openness.

Now we have the Registry where a member is vilified for asking a very simple set of financial questions---some of which were even earlier disclosed. The Trustees responded by absolute defamation. Othe3rs, who tried earlier to get info just gave up.

As for me, however, this kind of attitude is something up with which I do not put (forgive me).

So, it is not complicated: They picked the wrong member to screw with. And, it just so happens that there actually are laws that the Registry must comply with.

I gotta run but--here's a little thing to watch: A fellow on the R Forum asked for the minutes. The moderator said he would check. See what happens. They have refused to provide minutes with regard to the lawsuit, lost at the highest Court in Ohio and now are back asking for a "protective order".

Could you possibly imagine our UK club doing the equivalent of that?

Best,

Steve Heinrichs

[356JAGER]

OK, aside from the obvious violations of the Ohio laws governing non
profit clubs, for today's entertainment see how many violations you
can find in this synopsis of IRS regulations governing non profit
clubs in the US.

http://us.yhs4.search.yahoo.com/yhs/search;_ylt=AtVHgX6ajBh4N2iXXFRtdz1.lVM6?p=venable +avoiding+risk+for+non+profit+clubs&type=2button&fr=ush-mailn&hspart=att&hsimp=yhs-att_001&type=yahoo_header_mail

Click on the WWW.Venable.com link at the top of the page to download
the Power Point presentation. Interesting reading for anyone interested in the reasons for Mr. Heinrich's suit and the trustees
dogged resistance.

[Steve Heinrichs]

A brief update---the latest minutes are said to be posted on the "News" section of the R site.

Where are minutes for the last three years?

Oh, and that audit report...the un-asked for cash basis audit is basically the tax return typed on A4 paper. But----one thing is found way below in a footnote---the very number I asked for at the beginning.

Let me explain---if the books were kept on an accrual basis, there would be a liability for magazine subscriptions paid for in advance. In order that the membership not get too excited about all the money in the bank, the prior Treasurer noted in the Registry magazine that published the tax return data this obligation. This was the first question I asked and to date have not received an answer. But----in the cash basis footnotes---the 'cost of going out of business' (clever) was noted as about $300K (as I recall).

So, back to today and the meeting of last Saturday: I heard that the Trustees said $380K was either in CDs or in the bank. That, less perhaps $300K = $80K. This would be a WAG as to current actual net worth.

A member asked how much the un-asked-for and much ballyhooed cash basis audit cost. He asked because a Trustee complained that it cost a great deal and took a great deal of time.

He was completely ignored.

It is now into the 7th month of the current fiscal year. To answer with just the "we have $380K" is absurd. "How are we doing" deserves a real answer.

Steve Heinrichs

[Steve Heinrichs]

All,

A little more since the minutes have now been posted on the super secret part of the R web site. My guess is that they will make it here or some of the readers here will read them there.

Anyway---you gotta laugh:

1) As to the "certified audit" that proved "no wrong doing"----what is funny is that a cash basis audit does virtually nothing. Itis just as noted earlier. Still, giving credit where credit is due, the Trustee note taker Felix sets up a strawman ("wrongdoing") and then knocks it down. Great work---except"wrongdoing" was never alleged and, well, the cash basis audit does nothing of the kind.

2) And, the vaunted precious member records: This red herring was long, long ago debunked here and there but these guys have the same old record player and records which they play again as new members join.
I'll not repeat why it was/is a red herring.

The bigger point is that: I offered to drop ALL the discovery request as to member stuff if they would comply with the appeals court order and cough up the rest of the discovery and not go to the Ohio Supreme Court. That was rejected. So, now, it is fair game because of their specific action.

Don't cry for me Argentina.

The question of the day is: Who is Snidley Whiplash?

Steve Heinrichs

ps--I am grateful to know from the minutes how the judge will rule when our response is yet to be filed. It is amazing how Feliz knows this stuff. I guess he has been to Ohio recently.

[S.J.Szabo]

Lotspeich & Collins, P.C.
Certified Public Accountants

ACCOUNTANTS COMPILATION REPORT
February 7,2014

We have compiled the accompanying statement of assets, liabilities and net assets, modified cash basis, of 356 Registry, Inc. (a nonprofit organization) as of August 31, 2013 and 2012, and the related statement of receipts, disbursements and changes in net assets, modified cash basis, for the years then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America.

Right off the bat, the CPAs hammer home that fact that they are dancing correctly to the tune the Trustees have chosen, and you can sense already that they are not happy about it.

Then, the Accountants point out, once again, that no actual auditing happened here, that the CPAs were provided the numbers that were compiled, God knows how, by the client (the Registry), and they (the CPAs) take no responsibility for the quality or truth of said numbers.

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.



Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements.

Their responsibility, they note, is only to add (or subtract) the numbers given them, no questions asked, in the proper order and with mathematical precision.

Management has elected to omit substantially all of the disclosures required by accounting principles generally accepted in the United States of America. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Organization's financial position, changes in net assets, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

The Club is Making it All Up as They Go Along

any