Herbert W Armstrong

   Even though the current income is about equal to last year's at this time, we have experienced a serious cash flow problem due to the receivership and complete loss of lines of credit with our banks (all of which has been discussed in the Pastor's Report, the Worldwide News and Mr. Armstrong's letters). So we've been forced to operate on a cash-on-hand basis — on income coming in — and all this at a traditionally low income period when we normally borrow money to smooth out the valleys between the peaks of normal cash flow.

   Mr. LaRavia mentioned that we are still hoping to sell the Big Sandy campus. We are also looking into refinancing some of our assets, but that takes time. In the meantime we need immediate relief for our financial situation. He explained that although we have just undergone budget adjustments (cuts), the realization of many of these economies are still downstream due to previous financial commitments which experience a natural lag time in finally being paid. (Mr. Armstrong is writing a letter to the membership regarding the current income/outgo situation and the reimposition of the receivership.)

   Since the legal battle we have been thrust into as a result of the original court appointed receiver has created financial repercussions within the Work, Mr. LaRavia said that Mr. Armstrong had authorized an appeal to the employees for their help. It concerns an interim program to be conducted on a voluntary basis among the employees. Although it is only in the initial thinking stage (additional information in the form of a letter will be given to each employee soon), he was asked to introduce the idea at the meeting.

   Mr. LaRavia stressed that Mr. Armstrong is only asking that each person ask themselves if there is a way that they could help. That is all he is asking and that is certainly all that God would ask of us. The goal is reduced expenses, especially in the area of payroll, as much as we are able during this rather rough period.