"Where Does All of the Money Go?!" By NM Leland Fuerstman Last year, as editor of the CCC website, I authored a few articles which addressed the 2009 NC Scholastic Championship and exposed various aspects of the finances of that event. What most members don't know is that for many years a national outcry concerning scholastic chess improprieties has produced articles like "Scholastics and the Soul of Chess" by author Tom Braunlich. And, the NCCA is certainly not immune to the ongoing debate which prevails. There have been many complaints by parents and coaches who are concerned that the "Entry Fees" and hotel expenses are already way too high. More disconcerting is the fact that the scholastic organizations don't seem to be profiting at all from these events? So, where does all the money go? The annual NC Scholastic Championship has become the richest tournament in North Carolina grossing almost $25,000 this year! Therefore, to some, it has become the "most important." Yet, it is difficult to determine who is actually responsible for the event? It is my understanding that 3 years ago, in 2008, the CMSCA conducted the event in Charlotte. And, according to the CMSCA President, because "none of her people were interested in doing it," she decided to "allow" Randy Wheeless to run the event in 2009. At first, because he was no longer the President of the NCCA, Wheeless stated to me in a phone conversation that he was "running the tournament for himself!" (Conversely, it was later reported by the NCCA Legal Adviser that he conducted the tournament for the NCCA? hmm) Curiously enough, the scholastic organization did not receive one penny of the revenues from that event. Many parents had protested that the entry fees were already too high. Furthermore, a complete lack of proper accounting of the 2009 event left many folks scratching their heads... (A proper accounting of the event should have been made available for all to see a few days after the event, not 9 months later when virtually none of the original numbers matched up?!). So, this year, based on a "verbal" promise by self-removed President Victor Beaman, like his predecessor, Bill DeArmey decided to run the tournament for "himself."  In effect, he cut a deal with current President Gary Newsom to take all the risk, pay the NCCA $9 per entry, and keep all profits!? Well, when you subtract the $4,100 which goes to the NCCA, that leaves approximately $20,000 before expenses. Now, (I know that we have been down this road before, but in my 40 years of experience), hotels allow parties to use all of the banquet areas for FREE if a certain number of "room nights" are occupied. In a phone conversation prior to the event, organizer Bill DeArmey stated to me that he "guaranteed 300 room nights, but in addition he had to pay $10,000??!" (Doesn't sound like a very good deal to me, but who am I to disagree; thank goodness he didn't have to pay out any cash prizes?!) That still leaves $10,000 from which various other expenses would be subtracted in order to allow him a profit. How much, who knows? (...Since no certified public accounting has ever been done on any of these events?) So far, to my knowledge, an "official" balance sheet of receipts and expenses of that event has NOT been made available for anyone to see. Furthermore, the "Entry Fee" had increased to $50 but only allowed every seventh child to win a $10 plastic trophy?! And, again, no scholastic chess organization received one cent of the revenue? Also disappointing, was the sketchy report authored by the NCCA President and posted on the NCCA website which touted 2010 Champion Will Campbell, but neglected any mention of the many champions of other sections and only included 2 photos!? (Some have complained that a concise and timely report celebrating the accomplishments of all section Champions should have already been posted - not many weeks later...) Finally, here they are again planning for the 2011 event to be held in the Raleigh area by little know organizer Bill Clausen. Again, it is my understanding that a "verbal" promise by ex-President Beaman sealed the deal?! What ever happened to legal "relationship agreements" or "contracts" whereby all of the responsibilities are spelled out for each party and all terms are agreed to in writing..? furthermore, how many  "verbal agreements have other past presidents made that no one knows about which may directly affect the future of the organization? Because, in order to assure accountability, shouldn't major $25,000 decisions such as this be discussed by the members and voted upon by the entire board? It seems to many that a democratically conducted non-profit organization would require that...) The following is the only paragraph which pertains to the NCCA Bylaws concerning a Scholastic Championship: (D). Scholastic Championship – The Scholastic Tournament shall take place annually before the first weekend in May, unless the Second Vice-President/ Scholastic Coordinator, with the support of the Board of Directors, shall have due reason to alter the date. The winner of the K-12 section shall represent the state at Denker Tournament of High School Champions. The Board, in its discretion, may financially assist the Denker representative, which is strongly urged to in order support a primary mission of the Corporation. As one can easily observe, the guidelines are sketchy, at best. There is absolutely no mention of the $1,500 scholarship, nor any provision which forbids paying the winner immediately. It is my understanding that other winners had to show proof that they were already enrolled in college before the money was actually paid? Must current champion Will Campbell wait 7 years to collect?! (How ridiculous! If his family, or anyone else's family were to spend it right now on their house payment, that's their business. They are still the ones who will be paying for his college education when the time comes! So, pay the man his money, now!) In addition, the nebulous language used to encourage officers to "financially assist" may actually result in the Denker representative receiving no monetary assistance at all for an expensive trip to Florida. Those stipulations need to be more clearly explained in the bylaws. Though I did notice a link to the NCCA "Bidding Process" (that someone went to great lengths to compose and requires a significant amount of detailed information and feedback), it indicates that the 2011 event has "already been awarded?" Considering the circumstances upon which Beaman left office, coupled with the obvious inexperience of the organizer, many believe that the verbal agreement should not be honored. Everyone, including Mr. Clausen should have ample time to submit his/her application accordingly by using the "new" bidding process. This would allow the "committee" to make an educated choice in a more democratic fashion. (...instead of arbitrarily awarding it to some crony by verbal agreement with no strings attached?!) Furthermore, why was it necessary to "farm" the event out to someone else in the first place? The NCCA has plenty of Senior and Local Directors within their own ranks and upwards of $20,000 in the bank! If not for sheer laziness, why don't they just carry out their responsibilities as spelled out in their bylaws?! (Instead of giving total control to one individual who may profit greatly?!) The Current NCCA Articles of Incorporation leave a lot to be desired. Most members are not familiar with the arcane policies which seem to be passed along from President to President by word of mouth rather than written description or bylaw amendment!? And, their stubborn refusal to allow the books to be reviewed by concerned members or a CPA continues to cast a dark shadow on their administration. In closing, though no one is absolutely certain whether the volunteers who spent many hours and much energy helping out at the 2010 Scholastic Championship were paid for their work (as they certainly should have been), they should all be personally thanked for being there and getting the job done. Hopefully, next year, the Entry Fee and hotel fees will be more reasonable and a thorough accounting of the event will be made available promptly. Have a nice day, NM Leland Fuerstman