Why Eastman is Being Redefined

The sole purpose behind Ken Ryder’s re-engineering Eastman's financial reports has been to redefine the community as a Golf Resort. It is no longer a Community. That is the elephant in the “community” living room that we ECA owners do not want to see.

Mr. Ryder and Mr. Goldman's endgame is and has been to integrate all capital costs in one lump set of capital costs in the Annual Audit Report called “depreciation”. Ken implemented this (deceptive) financial change in FY 2008.

Similarly all operating expenses have been integrated as simply different expense line items in one lump sum labeled: “operating expenses” so that members are unable to clearly understand where monies are being spent and for what (Maintenance, South Cove, The Center, Recreation, Golf and G&A). Ken implemented these financial operating Audit Report changes in FY2013 and FY2014. These accounting report deceits as well as how the steadily increasing Membership Fee income is frittered away on Maynard's and Ken's favorite capital categories remain governance secrets.

A complete explanation of the detail secret re-crafting and re-statement of Eastman financials is contained in the Is Eastman Another Enron? See 9/3/14 Post http://eastmanblog.blogspot.com/2014/09/is-eastman-another-enron.html

Throwing the Eastman Sewer Company off ECA books removed the Eastman Golf Resort of any further financial liability or responsibility for that entity providing Maynard and Ken total focus on the Golf Resort’s crown jewels: The Center, The Course, The Golf vehicles, an “appropriate” garage for said vehicles and an appropriate band of paid officials to complement Ryder’s empire.

Under Ken's masterful deceit of financial Operating Report re-structuring, one sees in the FY2014, Schedule 1 of the Audit Report a line item labeled “ADP Total Source”: $1,754,627.

You read the number right-- it's more than 40% of the ECA Operating Budget and that's all that your audit tells you (our massive ECA payroll).  Clearly Mr. Ryder is practicing what Jeffrey Skilling practiced so well at the Enron Corporation: deceiving the owners and employees as to the value of Enron. ECA owners are being kept in the dark as where and why we are spending so much money.

It took two years for Ken to implement this masterful operating expense deception: FY 2013 and FY 2014 . This is a reason why his financials didn’t pass GAAP.  I suspect the former Auditors (Seelye and Schultz) decided they had risked their ethical image a bit more than is appropriate for their business continuation.

Accompanying this destructive financial restructuring has been false propaganda claiming that Eastman was always a Four Season golf resort. This claim is false!  The Ryder, Goldman propaganda is promulgated religiously at “New Owner Welcome” sessions formerly hosted by the third governance Troika member Bob Parker who’s false spiel will probably be assumed by Mr. Niles. Their attempts to eradicate Eastman history parallel those of the white man eradicating Indian history. Greed and power are the components of both movements.

The Eastman Sewer Company and the Golf/Center were acquired under exactly the same conditions: once acquired each was to operate to be revenue neutral to the community. In fact until the Board destroys Board Policy #6.3, it reflects that fact. Mr. Ryder and Mr. Goldman ignore the financial requirement of Board Policy #6.3 Eastman Direct Vote, a Golf Member Right (see blog post http://eastmanblog.blogspot.com/2014/06/eastman-direct-vote-golf-member-right.html ) while secretively implementing the rest of it.

Eastman’s leadership group with megalo inclinations, lead by a dictator who does what he wants aided by others who receive pay increases, comfortable benefits and a massive unaccountable bureaucracy of people and vehicles. So what if you have pushed almost a hundred members toward foreclosure? (remember: no accountability). So what if you squeeze the spendable income of those on fixed or limited income?

Elitist drinking, recreational and power needs must be met above all other matters and that frankly is the bottom line of Ryder and Goldman.

Submitted by Robert Logan who is the CEO of a consulting practice since 1993 which provides expertise on improved business, financial and operational performance as well as leadership.