In nor particular order;
ANTHONY ROWLEY, YOSHISUKE IINUMA

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ANTHONY ROWLEY

Nominated and seconded by:
Pio D'Emilia; Haruko Watanabe

Election statement from Anthony Rowley for the position of Treasurer

To clarify my position as a candidate for the position of FCCJ Treasurer at the upcoming FCCJ Board elections, I had intended running as Director at Large rather than a key office such as Treasurer, because of my demanding work schedule.

However, I permitted those who were prepared to nominate me as a Director at Large some flexibility and this led to my being nominated as a candidate for the office of Treasurer. This was fully my responsibility and I accept it as such.

While I shall not be campaigning actively, I am prepared to
shoulder the responsibilities of the Treasurer's office should sufficient members decide to vote for me.

It is necessary in my view to restore transparency as well as
decency and humanity in the way that the FCCJ is governed. I have no quibble with the technicalities of how FCCJ finances have been handled under recent Boards but I do feel strongly that transparency has been lacking in the way that Club funds have been managed.

There has not been sufficient monitoring of expenditures and
accountability to the membership. These are issues that I would wish to address if elected.

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YOSHISUKE IINUMA
Nominated and seconded by:
Steve McClure; Bob Neff

Our club finances are in serious difficulties but are still manageable. Last year, the net deficit was ¥23 million. Even adjusting for the ¥15 million reservation for future capital expenditures (which is fully kept on the balance sheet as cash), the ¥8 million net deficit was the worst in the past six years. The basic reason is that the Club has been hit hard by the economic storm. 2008 Food & Beverage sales (measured by volume) dropped by nearly 5 percent. Although the average 5 percent menu price hike barely kept the total nominal sales almost flat from last year, the price hike has started to erode competitiveness at some F&B operations, especially the Pen and Quill dining room. The number of resigning member has been increasing. Initiation fee revenues are declining. The payroll burden is still heavy, amounting to 57.1 percent of total operating revenues last year, second only to 2007’s 57.3 percent during the most recent six-year period. A significant amount of legal fees to defend Club interests added another burden. Some new expenses for policy purposes, such as the outsourcing of maintenance, GM- staff communications and enhancing Club amenities also added to the deficit.

The good news is we still have free cash, member deposits are fully preserved in cash and we don’t have any debt at all. By cautious implementation of capital expenditures, we have tried to minimize the damage to the Club balance sheet.

However, our financial cushion is not as thick as prudent management dictates. Much stricter belt-tightening is definitely needed at this time. By all means, we have to save our Club from being wrecked in this storm.

Last November, the Finance Committee and Treasurer gave a warning about our deteriorating finances and urged emergency measures. I regret that this proposal was not fully acted on. However, in the past couple of months the Board stepped up austerity measures. It mandated cutting some non-urgent expenses. I pledge to push such measures much further. Our options include a significant reduction of maintenance costs, freezing of all non-urgent capital expenditures, and cost-cutting in every other possible area. Our beautiful dream of major renovations must be shelved for years. In the cost-cutting effort, there should be no sacred cows. We need the understanding and cooperation of our members.

The 2009 budget includes a significant reduction in personnel costs. How can we get our staff to understand and accept this? First of all, the reality of the personnel-cost structure should undergo thorough examination. Everything should start with austerity on the part of all committee activities as well as top management. Only by doing this can the Board and management send a strong message to our staff, who I believe are sensible enough to go with us through this process.

Particularly after the recent unfortunate incident between the General Manager and the staff, it is indispensable to create much closer and more honest communication among the Board, GM and staff. I hope my past experience in a top management position at Toyo Keizai, a Japanese publisher, can be helpful in this effort.

In the past two years we have been pushing toward upgrading the Club’s accounting system. Due to the complexity of our current accounting methods, as well as haphazard legacy systems of the past, this has taken time. Finally, in June, the transfer from the current system to a new streamlined process began. The new system is more transparent, with much better documentation. But this is only the first step. Continued upgrading is necessary.

Another task that the Club must tackle is adaptation to the new Shadan Hojin Ho (Act on Authorization of Public Interest Incorporate Associations). Under this law, the Club must obtain new authorization within four-and-a-half years. To qualify for the new authorization, the Club must redefine both the public-interest aspect and business aspect of Club activities. If we fail to meet this challenge, we will lose our tax-exempt status. We have to start our preparations, using the aid of outside experts.