Letter from the President – 2018 Mid-Summer Update

Letter from the President - 2018 Mid-Summer Update

Dear Waugh Chapel Swim Club Members,

As we enter the last month of the 2018 pool season, I wanted to take the opportunity to update you on the Club’s overall financial condition, including the introduction of the control measures we discussed with the membership at the open Board meeting held in April, as well as go over the process for applying for the standing Audit Committee.

At the outset, I want to tell you that in June, the Swim Club received an insurance payment in excess of $40,000 for the losses attributable to one of the former Directors. Thanks to the hard work the Board of Directors and the Audit Committee, consisting of WCSC Vice President Paul Walker, Treasurer Shelli Stanley and myself, the claim was paid out just over a month after it was filed. The insurance company’s forensic accountant took less than two weeks to review and verify the Audit Committee reports that were prepared by the Treasurer.

Although he is no longer on the BOD, I would like to acknowledge former WCSC Vice President Phelps Prescott for his contributions and assistance to the audit committee in working with the insurance company on the reimbursement for the pool. 

Additionally, we have also implemented substantial process improvements in cash handling and reimbursements to ensure complete, auditable documentation exists for each and every financial transaction. These process improvements are driven by, and in some cases additional to, the By-Laws changes discussed at the open Board meeting and approved by the Board of Directors.

To summarize, those changes:

  • Reinstituted a two-person signature requirement on all checks
  • Required presentation of auditable documentation of expenses prior to reimbursement for the use of personal funds for pool expenses
  • Permitted on-line payments for certain categories of recurring expenses, but required more than one Board Member to have visibility into those accounts
  • Placed controls on the use of credit/debit cards for pool expenses, including placing limits on funds available for use by that means
  • Established a standing Audit Committee

We are currently taking applications for the pool member positions on the standing Audit Committee. I will appoint the Chair for a two-year term and the Vice-President, Paul Walker, will appoint the other pool member for an initial one-year term. The stated requirement in the By-Laws for service on the Audit Committee is “experience in financial matters” (for example, accounting or investigations). I encourage anyone with the requisite experience and interest in serving the pool to apply by sending a statement of interest and a resume to me at fvarrone@verizon.net with a copy to Paul at paul.walker@1987.usna.com. If you are interested in one position or the other, please indicate that preference in the statement of interest, otherwise all submissions will be considered for both positions. As a reminder, due to the amount of time Audit Committee service is expected to take between January and April each year, Audit Committee members will have one-half of their yearly maintenance fee waived. Paul and I look forward to reviewing the applications of all willing to serve on this most important committee!

The summer is winding down, but as August heats up, so will the events at the pool!

Upcoming we have the Thirsty Thursday Wine Tasting, the Crab Feast, Calypso Night, the Hawaiian Luau and Labor Day festivities, not to mention the recurring events such as Craft Days (Wednesdays), Water Workouts (Tuesdays and Thursdays), and Hump Day Hoops and Teen Team Tuesdays (basketball). Finally, the Annual Membership Dinner and Elections will be held Saturday, August 25, 2018, from 4:00-7:00 pm (voting from 4:00-6:00 pm).

See you at the pool!

Frank Varrone
WCSC President