Subject: An Appeal against the IFCSS President Mr. Lin Changsheng and HQ over not Implementing the Council Resolution

From: Hongguang Zhou <[email-masked]>
Date: Tue, 11 Jan 1994 23:05:32 -0500 (EST)

An Appeal against the IFCSS President Mr. Lin Changsheng and HQ 
over not Implementing the Council Resolution

Date: 	January 11, 1994

From: 		5th IFCSS Council Finance Committee
		Zhou Hongguang(signed for FC)

TO:		IFCSS Supervisory Committee
		
CC:		IFCSS Council
		IFCSS HQ 
		(a copy of this Letter is sent to HQ via Fax at 202-347-
		0018)
            
Attention: 	Luo Li-shi, Coordinator of  IFCSS SVC
		(A copy of this Letter will be sent to you via US mail)

Sub: 		An Appeal against the IFCSS President Mr. Lin 
Changsheng and HQ over not Implementing the Council Resolution

Dear IFCSS SVC:

This is an appeal by the 5th IFCSS Council Finance Committee (FC) 
against the IFCSS President Mr. Lin Changsheng and the HQ over not 
Implementing the Council Resolution. On August 15, 1993, the 
Council adopted the Resolution CP5020 to authorize the FC to audit 
the Financial records of the IFCSS HQ. For your reference, a copy of 
the Resolution is attached. 

FC then organized an Inspection Team, of which Zhou Hongguang was 
the Coordinator, consisting of Qi Bing, Liu Chen, Ban Yan and Zhou 
Hongguang and conducted first on-site examination during November 
6-7, 1993. Because of the HQ blockage of Mr. Bai Yan's participation 
and the inadequate preparation of the financial records by the HQ, 
the IT was not able to review all the financial records. On November 24, 
1993, Zhou Hongguang gave a progress report about the auditing to 
the Council.  IT informed the HQ on December 19, 1993 of the follow-
up inspection during December 28-31, 1993. Please refer to the 
memo in Appendix 2. 

On December 22, HQ issued a statement refusing to receive the IT 
(see Appendix 3). Given the Resolution CP5020 is valid and has been 
implemented partly by both the FC and the HQ, this act of refusing by HQ in 
fact constitutes the violation of the IFCSS By-law Chapter IV Article
20.2: 

     " The responsibilities of the President (of IFCSS) include: ... to 
implement the resolutions adopted by the Congress or the Council."  

As the actual enforcement unit of the Council Resolution, FC
deem that, in order to uphold the principles of IFCSS
Constitution and to maintain the seriouness of the IFCSS By-law, 
this appeal have to be filed to SVC against by Mr. Lin Changsheng 
and HQ in connection of the violation of the IFCSS By-law. FC requests

1. action taken by Mr. Lin Changsheng and HQ to refuse execute the Council
Resoulution be declared illegal;

2. the implementation of the Council Resolution CP5020 be continued and be
completed.

=============================================================
Appendix 1
-------------
Resolution on Examination of the Financial and Asset Situation of 
IFCSS HQ
(CP5020)	Sponsored by Finance Committee

I. Background
    During the each transition of the HQ, there has been always 
discrepancy occurred in the financial records of HQ. This year is again 
sees no exception. The financial report by the 4th term is incomplete 
and even after the 5th term budget request has been was submitted 
to the Council's Finance Committee and the repeated request by the 
Finance Committee of furnishing update information, the report by 
the HQ is still full with estimated figures.

II. Objectives
Financial records;
To compose fixed asset list;
Workload evaluation;
To gather Information for financial package regarding the operation 
of HQ.

III. Efficiency analysis
Benefits that may resulted from such a site examination
Costs involved: travel and lodge expenses by the Finance Committee
Expected date of report to the Council

    Whereas since the IFCSS HQ does not have a equipment list 
therefore the council can not examine the corresponding items in the 
HQ budget.

    Whereas the members of the council financial committee hold the
responsibility to the members of the council and IFCSS and have the 
right to know the finance of the IFCSS.
  
    Be it resolved:

    The members of financial committee will go to HQ and give a clear
report for last term and a list of IFCSS equipment.

[Note: CP5020 was adopted as CR5011 
       with 9 Yeah, 4 Abstain, 0 Nay, 3 absent.]

------------------------------------------------------------------------
Appendix 2

                    An Announcement 
on Follow-up Site Inspection of IFCSS HQ Financial Situation
     by IFCSS Council Financial Inspection Team

Date: 	December 19, 1993

From: 	Council Financial Inspection Team (thereafter refer as IT)
		Zhou Hongguang(signed), Coordinator

TO:		IFCSS Council
		IFCSS HQ
CC:		IFCSS SVC
            
Attention: 	Mr. Lin Changsheng, President
	   	Ms. Jiang Zuihong, Treasurer

Sub: Follow-up Site Inspection of IFCSS HQ Financial Situation

1. Objectives:

1.1	To continue implementing the Council Resolution C5020 by 
completing the review of the financial records of 4th IFCSS HQ and 
the 
up to date records of the 5th term, including fixed asset list; 

1.2	To further gather information needed for putting forwarding  
amendments to the financial regulations governing the operation of 
IFCSS 
(to amend the existing Financial Regulations is one of the major goal 
of 
the 5th IFCSS Council Finance Committee's work);

1.3	To provide a basis for further certified public auditing by a 
CPA.

2. Parties involved:
	
2.1	IFCSS Council Financial Inspection Team: Qi Bing, Liu Cheng, Bai 
Yan, Zhou Hongguang 

2.2	HQ: 	President and Treasurer of the 4th term
		President and Treasurer of the 5th term

3. Time and Place

3.1	Time is essence. Because all members of the IT are full-time 
students and the only time they are available before summer is 
winter break, the days between the Christmas and News Years' holidays 
would be the only best slot accommodating the schedule of semester closing 
and beginning of the IT members. Though this period of time is a family-
union time, IT thinks it has to carry out its responsibility. 

3.2 	Time: 12/28-12/31/93, and after the New Year's Day if 
necessary

3.3	Place: IFCSS HQ Office, Washington, D.C.

4. Responsibility of the HQ

4.1	The HQ are urged to follow the memo sent to Ms. Jiang Zuihong 
on December 18, 1993 by the Council Financial Committee (Appendix 1) 
to prepare material that required;

4.2	The HQ should follow the Financial Regulations to provide full 
assistance, access to the site and all possible conveniences to IT as to 
the reviewing the financial and fixed assets situations at the  HQ;

4.3	The HQ should inform Mr. Geng Xiao of his presence at the HQ 
at aforesaid dates.

5. Support for and cooperation in the site examination

5.1	Financial inspection is one of the major checking-and-balancing 
mechanism IFCSS possesses. Support for and cooperation in the 
inspection work from the Council, HQ and general public is essential for 
smoothly conducting such business.

6. Others

6.1	In case that the situations arise that is not anticipated in the 
above, the parties involved should consult with each other and solve 
the differences according to the IFCSS Constitution and Bylaws and 
resolutions.

6.2	Questions: please contact Zhou Hongguang, Coordinator of IT.

Thank you for your kind attention.

-----------------------------------------
Appendix 1

To:   Jiang Zuihong, the Treasurer, IFCSS ([email-masked])
Cc:   IFCSS Council ([email-masked])
From: The Finance Committee, IFCSS (signed by: Zhou Hongguang)
Subj:   Quick Provision of Financial Information
Date: December 18, 1993
 
It has been 6 weeks since the Inspection Team issued a memo to you 
on November 7, 1993 with respect to the provision of necessary 
financial information. Apparently you have chosen to ignore its 
attempts of good will to secure information from you, and you have 
failed to meet your commitments regarding that memo. Please bear 
in mind that the memo dated November 7, 1993 required you to 
provide information, rather than asked you to merely indicate 
whether you had information or not.
 
The information the Inspection Team wants for this time still derives 
from the memo, which is listed as follows. Again, we suggest you to 
act at once. Please remember that requests for further information 
will be made from time to time, and any information obtained will be 
used for the objectives of the IFCSS's financial improvement.
 
The following information should be sent to Mr. Zhou Hongguang, the 
coordinator of the Finance Committee no later than December 31, 
1993, Friday.
 
1. Copies of each Form 990, including the one for the last fiscal year.
 If any "unrelated business" is involved, copies of Form 990 (T) 
must be provided. If the current Form 990 misses the due date for 
IRS, information on the amount of penalty of late charge is needed.
 
2. Copies of all registration documents pertaining to tax-exempt 
status and not-for-profit activities, including 501 (c) (3).
 
3. A statement of IFCSS's total value, including current and 
noncurrent assets.
 
4. Copies of all original invoices and receipts for CSPA and 5th 
Congress.
-----------------------------------------------------------------------
Appendix 3

---------- Forwarded message ----------
Date: Wed, 22 Dec 1993 18:10:43 -0500
From: IFCSS HQ <[email-masked]>
To: [email-masked]
Cc: [email-masked]
Subject: Reply to the Memo by the Council Inspection Team

Date:     December 22, 1993
From:     The IFCSS HQ
To:       The IFCSS Council
Subject:  Memo of Council Inspection Team dated 12/19/93

In the Memo dated December 19, 1993 signed by Zhou Hongguang, it
is indicated that another site inspection by Zhou Hongguang, Qi
Bing, Liu Chen, and Bai Yan will occur during 12/28-12/31/93 at
the HQ. The HQ considers the move inappropriate and therefore
will not receive the team at the HQ. The HQ would also like to
bring the following to your attention:

1.   There are disputes over the proper accounting formats and
procedures regarding standards in the CPA community. The previous
lack of professional perspective has given rise to many 
misunderstandings and disagreements, which remain unresolved. 
The HQ is taking steps to professionalize the IFCSS accounting system
by inviting external CPA to look into, recompile and reform the
IFCSS accounting system. The HQ thinks the current inspection by
the team would not help the professionalization.

2.   There are disputes over the authorization issue involved
with some member of the Team which is under review by the
Supervisory Committee. Until the issue is resolved, the HQ will
not accept further inspection by the Team.

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