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Whether the actual admin costs outweighed the admin fees is debatable. Otherwise, as you said, it was strictly a cash-flow problem and not one of general financ
by maweki 11y ago
Whether the actual admin costs outweighed the admin fees is debatable. Otherwise, as you said, it was strictly a cash-flow problem and not one of general financial mismanagement. I think this issue should have been spotted by the board of directors but it didn't because it was common practice to do it this way (pay upfront, cash in later) and then the amount of outreach participants increased significantly without anybody in control thinking about all the implications that would have on the Foundation's cash-flow.
And nobody really believed that increasing the amount of paid-for outreach-positions is a bad thing.
- humanrebar 11y ago> ...it was strictly a cash-flow problem and not one of general financial mismanagement. I have no opinion on this particular case, but why doesn't a cash-flow problem count as a financial mismanagement problem?
- hga 11y agoAbsolutely, and in all the minimally smart organizations I've worked for it's something the financial people always keep foremost in their minds. Screw it up, and you have to lay off the people who are doing the work that'll pay for the next increment of the org's operations (or tell them "if thus and so happens we'll pay you, until then you're welcome to continue working, we're storing your paychecks in the safe", as happened with Lisp Machines Inc. a couple of months before TI started investing in us).