Subject: An Open Letter to IFCSS Council and CSS

From: [email-masked] (IFCSS Council Chair)
Date: Sat, 8 Jan 94 18:46:56 CST

An Open Letter to Council Members of IFCSS
	  and Chinese Students & Scholars (CSS) in the Community

From: 5th IFCSS Council Finance Committee
To:   5th IFCSS Copucil
      CSS Community
Date: Janurary 8, 1994

Dear IFCSS Council Members & CSS:

	The   Finance  Committee of  IFCSS would  like   to bring your
attention to the IFCSS's financial situation and  invite all of you to
work with this Committee in searching answers to some missing funds in
the IFCSS's accounting records.

	As  a result of  auditing the Financial Statements prepared by
Jiang Zuihong, the treasurer of IFCSS, the Inspection Team (IT) of the
Finance   Committee has noticed  some   alarming irregularities in the
Financial Statements of Fiscal Year   1992-93 and Fiscal Year  1993-94
(1st Quarter).  This includes, but  not limited to,   a huge amount of
money left  by the 4th  IFCSS, which is  simply nowhere to be found in
the accounting  documents  released  to the  Inspection   Team to this
date. The IT, having  been asking Jiang  Zuihong about the whereabouts
of the money for  a number of times, has  not received any direct  and
satisfactory  reply. According   to   Jiang Zuihong,   these  monetary
differences stem from an unusual accounting format she had been using.
However, three months have passed, IT and this Committee have not seen
any willingness  on the part  of the  IFCSS HQ to  straighten up these
differences, either with   the old format  or any  other format.  More
important,  no matter what format is  used,  revenues and expenditures
must be balanced and matched. But this seems not the case of the IFCSS
accounting books.

	To ensure the IFCSS's financial assets to be  kept in the best
interest of the organization and the community of the Chinese students
and  scholars,   the Finance  Committee   is  fulfilling its  duty  of
accountability  to appeal to  public concern   and present the  matter
under  public scrutiny. We hope  all  of you  read  and think over the
following questions, and we look forward to your positive cooperation.

1. Where is $5,030.00?
	
	The   surplus  of  the   last  term (4th) of  IFCSS  indicates
$74,530. This  amount   of money as  remaining fund   from Fiscal Year
1992-93  should be    carried  over to   this  term  (5th)   with   no
alteration. But, in the  Annual  Budget for  Fiscal Year 1993-94,  the
remaining fund from last term was  changed to $69,500.  The difference
is $5,030.00. Now where is this $5,030.00? Please be adviced that this
$69,500 is not  even mentioned at  all in the Financial  Statement for
Fiscal Year 1993-94 (1st Quarter). It means that all remaining fund is
taken away. But, where? By whom?

2. Where is the profit of CSPA--$144,439.88

	It  is well known that $50.00  processing  fee was charged for
obtaining   the information related to  CSPA  implementation and forms
such as I-845. But, do you  know that total  amount of of $207,798 was
submitted by the  CSPA benificiaries? Deducting all DIRECT operational
expenses of  CSPA  Information Center, which  is,  according  to Jiang
Zuihong, $63,278.12 (Note: the Finance Committee has not yet found the
invoices & receipts for these expenses), IFCSS of last term made a net
revenue of $144,439.88.

	Where is this amount of  $144,439.88,  at least part of  which
could   be used permenat  foundation by  IFCSS for   servicing the CSS
community in USA in the years to come? Jiang Zuihong claimed that this
amount  was  transfered to the    general fund and spent  for  routine
operation  in the same  year. As you may  recall, CSPA revenue did not
realize until May &   June, and the  5th IFCSS  was not elected  until
July, 1993. Can you believe $144,439.88 was all  spent in such a short
time period between June and July? If all spent,  what were they spent
for? Please remember there is no reporting in the Financial Statements
about whether they were  spent or not? If  not  spent then, were  they
carried over to the present IFCSS? No, not a single penny is reflected
in the Financial Statements. Again, where is $144,439.88?

3. Where is $80,000.01? 

	A  huge  difference in   the   Income Statement lies   between
revenues of $472,289 as Beginning Fund Balance  of Fiscal Year 1992-93
and Excess  Revenue  of $74,530  as  End Fund Balance. This  means the
total expenditure was  $397,759.    Did IFCSS really   spend  $397,759
within one year? Again,  if so, what for? With  this question in mind,
the Inspection Team counted all the acutal expenses (not with invoives
yet) and found out that the number of $397,759  is not factual, and is
created  by adding some expenses never  incurred. The  correct one for
actual expenses is $317,758, after our careful counting.

	Now the difference  is $80,000.01. Where is $80,000.01? Please
note this  amount   of $80,000.01 may    be  overlapped in  part  with
$144,439.88 as afore-mentioned. Therefore, the answer to this question
depends on how the  second one  is  responded to. However, this  third
question still remains.

	The Finance Committee and  IT deem that  they have being  done
their best to   implement the IFCSS Council   Resolution to audit  the
IFCSS HQ financial  records and it is the  time to let all the Council
members and  CSS community know the problems   and questions they have
discovered and encountered. We hope that with the attention of all the
Council  Members  and  general  CSS we  would   improve the  financial
operation of IFCSS and thus consolidate the credibility and foundation
of IFCSS for its real name

	Thanks you for your time and attention.

Sincerely,

IFCSS Council
Finance Committee