The Willow Glen Resident

Letters

Pay attention to business aspect of beer distribution

Here is my response to an article called "BPA board failed to report missing money" in the Nov. 5 issue of the Willow Glen Resident:

As a Willow Glen resident and event manager for corporate events, I can understand how missing funds could easily be confused with irresponsibility on the event management's part.

Anytime beer is sold at an outdoor event, the person responsible for tracking vendor/employee sales, should consider a realistic formula for measuring an estimated $25,000 in beverage profits at the Founders Day event:

* 2 percent of all beer is given away to family and friends, or cute girls at the beer stands;

* 3 percent of all beer is left in kegs it thought to be empty;

* 3 percent of all beer is spilled from the tap--and it gets worse by the end of the day;

* 1 percent of all beer is dropped by workers, and a free beer is given away if it's spilled on the customer;

* 3 percent of all beer is topped off from after too much is poured into a cup;

* 2 percent of beer is not paid for through miscalculation or confusion with the customer;

* 1 percent of all beer is not sold and mistakenly left in the back of a truck;

* 7 percent of the distributor's estimated profits are not realistic; and

* 9 percent of the loss is due to built-in ignorance on the Willow Glen Business and Professional Association's part for not balancing the books right after the event in case of abuse and for not tracking the kegs on the day of the event, considering that beer sales are a critical factor in making a profit.

That leaves us with a 31 percent grand total. Now subtract that from the $25,000, and you get $17,250--close enough to the original deposit for the Founders Day beverage sales. The moral of this response is if making a reasonable profit to sustain business is so important, then treat it that way, and pay attention to the business aspect of realistic beer-distribution methods. This could have been prevented if it was managed better.

Dean Villegas
Lancelot Lane

Business association instates new methods of handling money

The Willow Glen Business and Professional Association 1997-1998 board would like to take this opportunity to respond to your paper's article of Nov. 5 regarding Founders Day 1996. First of all, we firmly believe that the allegation of missing funds is mere speculation.

In February, a final report was requested by the Office of Cultural Affairs (OCA), as one was not previously filed as required. This final accounting is required by all city grant recipients. Due to the transition of business managers and limited records available, this report was compiled and submitted with the assistance of the previous business manager. It is clear that the $25,000 listed on the OCA report was a projection. It is obvious an error was made in reporting $25,000 in beverage sales when, in fact, $17,212.98 was the actual beverage sales figure. The difference between the projected sales figures and the actual figures resulted in the $8,000 alleged loss.

In April this year, as a result of a new board and new business manager, Demetri Rizos, strict policies and procedures were implemented to ensure accurate reporting and projections. This includes a separate bank account for events and timely review and reporting of all finances. It also requires the business manager and treasurer to submit a final accounting immediately following each event.

A direct result of these new accounting requirements was the evaluation of Dancing on the Avenue 1997 and the forecasts for Founders Day 1997. This information enabled the board to recognize that a two-day event would have resulted in a substantial loss. All business office records are public and available for review.

It is evident that a new positive energy is present on the Avenue. In order to achieve success, we need to move ahead with the continued support and trust of our many dedicated volunteers. We look forward to future successful events through the participation of our membership and community.

Willow Glen Business and Professional Association Board

Editor's note: The Resident based its findings on beer, wine and soda invoices.

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