Finance Front: 1st Quarter Report

Every organization faces moments of reckoning at some point in its journey. For us, that moment came with the pledge of transparency as this board collected and shared data and the realization of our true financial trajectory. As we navigate these challenges, we aim to provide a transparent account of our comprehensive review, the findings, and the steps we're taking to ensure a sustainable future for our Post.

The Stark Reality:

Upon installing the new administration, we confronted a daunting fact: based on our burn rate, the Post had less than a year of funds remaining. This fact wasn't merely a financial challenge but a clarion call to action to ensure our Post's survival and continued service to our veterans and community.

Diving Deep into the Financials:

Of the significant monthly net operating loss of nearly $50,000:

Chief Projectionist Compensation: Approximately a quarter of this gap was attributed to the Chief Projectionist's compensation. With our theater's limited operational days, this commitment was untenable.

Hollywood Legion Theater Management: Another quarter was tied to the mid-level and top-level management of the Hollywood Legion Theater, prompting us to critically assess our dependency on the theater-centric operational model.

Bar Operations Review: We reviewed our bar prices and inventory control practices comprehensively. We recognized the need for more efficient inventory management and a pricing model that balanced member affordability with fiscal responsibility. Working with the staff, we developed a model that offers affordable options while ensuring we meet basic hard costs.

Strategic Actions for a Sustainable Path:

Armed with these insights, we embarked on a rigorous restructuring journey. We decided to pivot away from an operational model predominantly vested in the Hollywood Legion Theater. This shift, while challenging, was vital to arrest our continued rapid financial decline. It led to organizational restructuring, which sadly resulted in some resignations and one layoff. These changes are stemming some of our significant monthly losses and helping to set us on a more sustainable path.

We understand the weight of these revelations and the concerns they might elicit. However, every decision, every recalibration, is made with the broader goal of ensuring the Post's financial health and longevity. Our commitment is to transparency, fiscal responsibility, and ensuring that our Post remains a cornerstone of support for our community.

Thank you for your trust, understanding, and unwavering commitment to our shared mission. Together, we will transition from a challenge to a promising and sustainable future.