Dear Sir,

There are big problems at the Lake Chapala Society (LCS), according to the remarks at the membership meeting on October 15, but there were some very misleading facts given.

The apparently calamitous drop from over one million pesos to less than 350,000 pesos cash on hand in two years is largely due to the normal yearly cycle, in which LCS receives most of its income from September to February, and then runs at a net monthly loss for the next six months.  Picking a high-income month and comparing it to a low-income month can give a misleading impression. For example, in 2008, LCS had 849, 845 pesos cash on hand in March and by September was down to less than 350,000 pesos. Some of the drop was due to expenditures exceeding income but nowhere near what was implied. Either the statement that LCS went from over a million to under 350,00 pesos cash on hand in two years is intentionally misleading or reflects a woeful lack of knowledge by the LCS representative presenting this data. As for the statement that there were piles of cash all over the place, I have been in the LCS office frequently for over six years and never saw these piles of cash. We did have a problem with the money waiting to be deposited in the bank but that was fixed over a year ago, and no money ever went missing, even before the fix.

Eliminating discretionary spending would have been a good idea, as claimed by the LCS managers, but it doesn’t seem to have been done. For example, 46,000 pesos were spent on laptop computers for LCS financial aid students, with the logic that these computers would eventually pay for themselves by avoiding internet café expenses. Sure, but you don’t buy an energy-saving refrigerator that will pay for itself in five years when your daughter’s college tuition is due next month.

This all diverts attention from the real problem, which is that the board knew there was a serious – not calamitous – problem back in April but didn’t do anything until October.  And the membership drive didn’t start until October, and membership fees provide over one-half of LCS’s total income. The membership drive is still not seriously under way: no signs on the LCS grounds, no articles in newspapers and magazines about why joining LCS is a great buy, no e-mailings, no promotions of any type.

There are now three problems where before there was one.  First, the financial problem. Second, the problem of volunteer morale – many volunteers are fed up and thinking of resigning.   Third, the loss of confidence by the membership in the current board.  Not only was no action taken in response to an incipient financial crisis, but the information about LCS’s financial situation was not posted. For the last several years, the monthly financial summaries and the yearly budget were posted outside the office, but not any more. As of today (October 21) the only posting was the March 2008 one-page summary. The members were not invited to participate in the decision to raise dues. 

And the Board continues to try to put the blame on others while continuing its secretive decision-making. Don’t ask about what budget they are currently using; if there is one it isn’t posted.

The sad thing is that all these problems are solvable, if the Board would be open in its decisions and problem solving, post financial information, work with the volunteers and knowledgeable members, admit their mistakes and show more respect and true appreciation for the volunteers.

Good luck, LCS – you’ll need it.

Charlie Smith