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TO THE READER:
Scientology is a religious philosophy containing pastoral counseling
procedures intended to assist an individual to gain greater knowledge of
self. The Mission of the Church of Scientology is a simple one-to help the
individual acheive greater self-confidence and personal integrity, thereby
enabling him to really trust and respect himself and his fellow man. The
attainment of the benefits and goals of Scientology requires each
individual's positive participation, as only through his own efforts can he
achieve these.
This is part of the religious literature and works of the Founder of
Scientology, L. Ron Hubbard. It is presented to the reader as part of the
record of his personal research into Life, and should be construed only as
a written report of such research and not as a statement of claims made by
the Church or the author.
Scientology and its sub-study, Dianetics, as practiced by the Church,
address only the spiritual side of Man. Although the Church, as are all
churches, is free to engage in spiritual healing, it does not, as its
primary goal is increased knowledge and personal integrity for all. For
this reason, the Church does not wish to accept individuals who desire
treatment of physical illness or insanity, but refers these to qualified
specialists in other organizations who deal in these matters.
The Hubbard Electrometer is a religious artifact used in the Church
confessional. It, in itself, does nothing, and is used by Ministers only,
to assist parishioners in locating areas of spiritual distress or travail.
We hope the reading of this book is only the first stage of a personal
voyage of discovery into the positive and effective religion of
Scientology.
THE BOARD OF DIRECTORS
.Church of Scientology
This book belongs to
Date
Organization Executive
Course
AN ENCYCLOPEDIA OF SCIENTOLOGY POLICY
by
L. Ron Hubbard
FOUNDER OF DIANETICS AND SCIENTOLOGY
TREASURY
DIVISION
3
PUBLICATIONS ORGANIZATION
Published by
the
CHURCH OF SCIENTOLOGY OF CALIFORNIA
PUBLICATIONS ORGANIZATION
2723 West Temple Street
Los Angeles
California90026
U.S.A.
The Church of Scientology is a Non-Profit Organization
Dianetics@ and Scientology@ are Registered Names.
Copyright@ 1970, 1971, 1972, 1973, 1974
1950,1951,1952,1953,1954,1955,19S6,1957,1958,1959
1960,1961,1962,1963,1964,1965,1966,1967,1968,1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Scientology is an Applied Religious Philosophy
No part of this book may be reproduced
without permission of the copyright owner.
First U.S. Printing 1974
Second U.S. Printing 1976
Complete Set ISBN 0-88404-033-X
Volume 3 ISBN 0--88404-028-3
The F-Meter is not intended or effective for the diagnosis,
treatment or prevention of any disease.
Dianctics and Scientology are the trademarks of L. Ron Hubbard
in respect of his published works.
Printed in the United States of America by Kingsport Press, Inc.
CONTENTS
TREASURY DIVISION 3
1965 Treasury Division 3 Org Board Outline 1
26 Aug. 1959 Promotional Functions of Dept of Accts 2
27 Nov. 1959 Dept of Accounts (excerpt) 2
20 Nov, 1965 The Promotional Actions of an Organization
(excerpt: Treasury Division 3) 3
30 Sept. 1965 Statistics for Divisions (excerpt: Org Division 3) 3
30 Sept. 1970 Credit Collections Defined 4
5 Feb. 1971 Org Gross Divisional Statistics Revised
(excerpt: Treasury Division 3) 4
12 Mar. 1971 Treasury Divisions GDSes-All Orgs 5
9 Nov. 1956 Accounting & Financial (HCOB) 6
11 Mar. 1957 Income Reports (Financial Procedure Letter) 7
27 Nov, 1958 Basic Financial Policy-HCO 6
6 Feb. 1959 HCO Accounts Worldwide 7
5 June 1959 Income Report Required 8
27 Jan, 1960 Accounts Policies 9
14 Feb. 1961 The Pattern of a Central Organization (excerpt: Dept
of Material,
Dept of Accounts, Admin Report Forms) 11
23 Nov. 1961 Accounts 13
10 Apr. 1964 Balancing Income-Outgo-Paper, Postage and Printing Vol. 2-
98
6 May 1964 Accounts Policies 17
15 May 1964 Accounts Policies (Addenda to 6 May 1964) 20
29 Mar. 1965 Staff Member Loans Vol 0- 53, Vol. 1-587
23 Jan. 1966 Accounting Policies of Scientology Companies 21
30 Jan. 1966 Accounts Procedures 23
2 Aug. 1966 Graph Change-Ad Council Statistic 25
16 Oct. 1969 Finance Course-Vital Action 25
FINANCIAL MANAGEMENT - FINANCIAL PLANNING
"Financial Planning is an acti vity that is shared in by
the head of each Division" - LRH, January 197 1.
I May 1959 Financial Management (reissued IS May 1970) 26
2 June 1959 A Comment on Finance 27
3 June 1959 Financial Management 29
19 July 1959 Accounts Inspection 31
24 Feb. 1964 Org Programming-Solve it with Scientology 26
18 Jan. 1965 Financial Management-Building Fund Account 32
19 Jan. 1965 Finance-Org Accounts-Building Fund Account 37
20 Jan. 1965 Currency Regulations and 10%s 164
28 Jan. 1965 How to Maintain Credit Standing & Solvency 39
2 Mar. 1965 Purchase Order Filing 43
4 Mar. 1965 Reserved Payment Account 44
28 Mar. 1965 Emergencies and Account Personnel 46
26 Apr. 1965 Cancellation of 19 Jan. 1965 47
26 Nov. 1965 Financial Planning 48
21 Dec. 1965 LRH Financial Relationships to Orgs 5t
4 Jan. 1966 LRH Relationships to Orgs 53
15 Jan. 1966 Office of the Treasurer 59
15 Dec. 1966 Financial Planning 61
25 June 1967 Scientology Orgs Tax and Balance Sheets 63
22 May 1968 Hiring Personnel-Line for (14 Jan. 1966 revised & reissued)
57
20 Apr. 1969 AO-SH Financial Control 67
16 June 1969 AO-SH Finance Control (amends 20 April 1969) 69
I I Nov. 1969 Accounts and PRO 71
4 Nov. 1970 Estimated Purchase Orders 73
13 Feb. 1971 Financial Planning Tips 79
27 Feb. 1971 First Financial Policy 81
V
PRICES, ESTABLISHMENT OF
I May 1958 Financial Management (The cost of an item) 26
16 Apr. 1959 Books, Cost of 82
14 May 1959 How to Establish Price of Books and Tapes 83
10 Feb. 1961 Professional Charges 84
14 June 1962 Professional Charges (amends & amplifies 10 Feb. 196 1)
84
23 Sept. 1964 Policies: Dissemination and Programmes
(excerpt: Cost of Service) 85
10 Feb. 1965 Ad & Book Policies (excerpt: Book Pricing Formula) 83
9 May 1965 Auditing Fees-Preferential Treatment of Preclears
Scale of Preference 86
12 Oct. 1967 Charges 88
27 Sept. 1970 Cutative Prices 89
31 Jan. 1971 FSM Contest Awards (modifies 27 Sept. 1970) 90
PRICE ENGRAM
27 Apr. 1965 Price Engram 91
18 Apr. 1965 Prices Lowered Because of New Organization Streamline
93
19 Oct. 1964 Pricing Formulas 95
30 Oct. 1964 Mailing Lists for Franchise Holders 102
31 Oct. 1964 Current Policies Orgs & Franchise 106
3 Dec. 1964 Pricing Meetings Final Policy 109
23 Dec. 1964 Field and Public Programming 117
15 Mar. 1965 Only Accounts Talks Money 120
22 Mar. 1965 Saint Hill Services, Prices and Discounts 127
22 Mar. 1965 Current Promotion and Org Programme Summary 128
15 Mar. 1968 Student & Staff Pr6gram 135
27 Sept. 1970 Cancellation (of 15 Mar. 1968) 136
27 Sept. 1970 Cutative Prices 89
ALLOCATIONS
Banking - Funds Handling - Percents to WW
19 Apr. 1957 Proportionate Pay Plan 29,5
27 Apr. 1959 Why New Books are Few 137
21 May 1959 HCO Monies and Book Stocks 139
28 May 1959 Promotional Writing Fund 140
9 June 1959 HCO Special Fund 141
24 June 1959 Status of HCO Offices and HCO Secs
and HCO Volunteer Secs in US 142
22 July 1959 Monies intended for Scientology Research & Investigation
Fund 143
25 July 1959 Membership Monies 143
10 Aug. 1959 Franchise 1 0%s to WW 144
24 Aug. 1959 HCO Financial Arrangements Altered 145
3 Sept. 1959 HCO Book Account 147
14 Oct. 1959 Division of HCO Percentage Revised 148
23 Oct. 1959 Recording of Taped Lectures at 1 st Melbourne ACC
and Pre-ACC Congress Vol. 2-217
29 Oct. 1959 International Membership 150
18 Nov. 1959 HCO Central Org Financial Modifications 151
30 Dec. 1960 Revision of HCO Percentages (cancels 14 Oct. 1959) 152
6 Apr. 1961 Remittance of HCO Monies to HCO WW 152
9 Aug. 1961 Book Sales 259
17 July 1962 Accounts: Bank Charges on Remittances 153
19 Sept. 1962 HCO WW Form AC 1 154
26 Sept. 4962 HCO WW Form AC 1 154
AC 1 Form 155
26 Sept. 1962 ACCs and Special Events Courses 156
26 Sept. 1962 Memberships 157
26 Sept. 1962 Hubbard Scientology Research Foundation 157
1 Feb. 1963 HCO Area S%s 158
AC I Form 159
13 Feb. 1963 HCO 107os Due to WW 160
16 Apr. 1963 Revision of Congress Payments to HCO WW 160
14 Jan. 1964 Continental and Area HCO Finance Policies 161
30 Nov. 1964 HCO Book Account 162
19 Jan. 1965 Finance-Org Accounts-Building Fund Account 37
20 Jan. 1965 Currency Regulations and 10%s 164
4 Mar. 1965 Reserved Payment Account 44
26 Apr. 1965 Cancellation of 19 Jan. 1965 47
11 May 1965 HCO Book Account Policy 165
9 Dec. 1965 HCO Income-Memberships-Congresses-Tape Plays 168
21 Dec. 1965 LRH Financial Relationships to Orgs 51
4 Jan. 1966 LRH Relationships to Orgs 53
26 Apr. 1966 South Africa I 00/os 168
3 May 1966 Reserve Fund 169
6 Oct. 1966 Addition to HCO Div Account Policy (amplifies 11 May 1965)
170
IS Feb. 1967 Allocation of Income 172
15 May 1968 Reserve Fund (reissue & amendment to 3 May 1966) 175
28 May 1968 Books 176
17 June 1968 HCO Book Account 176
SAINT HILL
Treasury policies originally issued for the Saint Hill Organization
24 July 1959 Handling of Monies 177
25 Aug. 1959 Purchase Order System (reissued 20 June 196 1) 178
13 Oct. 1959 Invoicing, Accounts, Project 12 179
21 Mar. 1960 Economy Wave 181
31 Mar. 1960 Accounts Lines 181
28 July 1960 Losses 182
3 Aug. 1960 Purchasing 182
6 July 1961 Accounts 183
11 July 1961 Purchase Orders 186
4 Aug. 1961 Private Mail and Telephone Calls 186
13 Sept. 1961 General Office Orders 357
16 Oct. 1961 Income Records 187
20 Sept. 1962 Part-Time Staff and Over-Time 190
4 Oct. 1962 Signing POs and Cheques, 191
6 Oct. 1962 Accounts Irregularities 191
7 Jan. 1964 Payment of Monies for Overtime and/or Materiel 192
2 Mar. 1964 Contracts and Services 192
8 May 1964 Transport 193
13 May 1964 Transport (adds to 8 May 1964) 193
26 June 1964 Staff Bonuses 194
15 Nov. 1964 Transport Arrangements Vol. 1-293
17 Nov. 1964 Bonus 198
12 Nov. 1965 Transfers from SHSBC to Solo Audit Course 199
6 Jan. 1966 Credit and Discounts 200
7 Jan. 1966 Credit (modifies 6 Jan. 1966) 201
3 Feb., 1966 Legal, Tax, Accountant & Solicitor, Mail and Legal Officer
202
10 Feb. 1966 Bonuses for Service Delivery 204
9 May 1966 Bonuses Adjusted (correction to 10 Feb. 1966) 206
14 July 1966 Dismissal of Staff 207
22 Aug. 1966 Bonuses Adjusted (amendment & addition to 9 May 1966)
207
11 Oct. 1966 Legal, Tax, Accountant & Solicitor
Mail Incoming & Out-going (amends 3 Feb. 1966) 203
13 Oct. 1966 Invoice Routing (cancels 12 San. 1966) 209
17 Oct. 1966 Bonuses 209
21 Nov, 1966 Addendum to HCO Pol Ltr of 17 October 1966 "Bonuses"
211
18 Nov. 1967 Blue and Green Accounts Invoices (amends 13 Oct. 1966)
212
27 Nov. 1967 Bonuses Adjusted (addition to 17 Oct. 1966,
cancels 22 Aug. 1966) 211
21 Jan. 1968 Chartered Accountants 353
VU
PESACCOUNT
12 Nov. 1969 PES Account versus HCO Book Account 213
10 Dec. 1969 PES WW Account 215
24 Dec. 1969 PES Account Amended 216
19 Apr. 1970 PES WW Account (cancels 10 Dec. 1969) 217
29 Apr. 1970 PES Account Revised (cancels 12 Nov. 1969) 218
12 June 1970 PES Account (cancels 12 Nov. 1969 & 29 Apr. 1970) 221
DEPARTMENT SEVEN
DEPARTMENT OF INCOME
18 Apr. 1969 Org Division-Income Dept 222
23 Nov. 1961 Accounts-Income Division 13
6 May 1964 Accounts Policies-The Income Section 17
15 May 1964 Accounts Policies (Addenda to 6 May 1964) 20
21 June 1965 Orgs are SH FSMs Vol 2-325, Vol 6-325
15 Sept. 1965 Only Accounts Talks Money Vol 0-27,5
7 Nov. 1965 Reception Log-In-the-Org List Vol ]- 73
5 Aug. 1966 Registered Mail Vol. 1-178
CASHIER-1
TRAINING AND PROCESSING CHARGES
10 Apr. 1958 Re: 5th London ACC (Administrative Directive) 223
22 Sept. 1958 ACC Accounts and Payments 224
19 Jan. 1959 Extra Weeks on HPA Course 225
11 May 1959 HPA/BScn "Retreads" 225
27 Oct. 1959 Processing of Children on the HGC 226
29 Mar. 1960 HGC and Academy Prices for Minors
(cancels& replaces 27 Oct. 195 9) 226
20 May 1960 Extension Course Prices see-227
24 May 1960 Extension Course Prices (corrects 20 May 1960) 227
2 Nov. 1%0 HPA/HCA Course 227
27 Feb. 1961 Free Courses 228
13 Mar. 1961 Free Courses (revises 27 Feb. 196 1 228
7 Dec. 1961 Inter-Org Exchange of Students 229
19 Dec. 1961 Saint Hill Retreads see-230
14 Feb. 1962 Saint Hill Retreads (amends 19 Dec. 1961) 230
24 July 1962 Academy Extra Weeks 230
23 Nov. 1962 Saint Hill Retread Fee 231
10 May 1963 Student Rates for HGC Auditing in SA Orgs 231
23 July 1963 Retreads on Saint Hill Special Briefing Course 232
8 Oct. 1963 New Saint Hill Certificates and Course Changes 233
6 July 1965 Releases 234
1 Sept. 1965 Saint Hill Services and Prices 235
30 Dec. 1965 PTS Auditing and Routing (S & D price) Vol. 1-439, Vol. 4-
578
3 Apr. 1966 Dianetic Auditors Course Vol. 2-120, Vol. 4-228
18 Jan. 1969 Advanced Org Awards 236
19 May 1969 Hubbard Standard Dianetics Course Policy Vol. 2-286, Vol. 4-
241
3 June 1969 Dianetic Course Pricing 236
10 July 1969 Org Personnel Recruitment Vol. 1- 88
2 Sept. 1969 Old ACC Students 237
3 Sept. 1969 Former HDAs, HPAs 238
3 Sept. 1969 Successful Class VIlls 23?
15 Nov. 1969 Class VIII Retread 239
28 Nov. 1969 Class VIII Retread (corrects 15 Nov. 1969) 239
6 Dec. 1969 Inter-Org Exchange of Students (clarifies 7 Dec. 196 1)
240
10 Dec. 1969 Student Rescue Intensive Pricing 240
14 Dec. 1969 Org Protection 241
11 Jan. 1970 Pricing-Rescue Intensive (cancels 10 Dec. 1969)
241
13 Jan. 1970 Org Personnel Recruitment (Revised) Vol. 93
20 Jan. 1970 Class VIII Retread (corrects 28 Nov. 1969 & IS Nov. 1969)
242
15 July 1970 Retreads 242
20 July 1970 Internships and Case Supervisors 243
Vffi
CASHIER-2
MEMBERSHIPS
25 July 1959 Membership Monies 143
23 Oct. 1959 Attention Registrars and Book Administrators 258
26 Oct. 1959 Memberships 245
29 Oct. 1959 International Membership 150
18 Nov. 1959 HCO Central Org Financial Modifications 1,51
28 Dec. 1959 Membership Discounts 246
3 May 1960 Keeping Memberships in Force 246
6 July 1960 LT Membership Privileges 247
13 July 1960 LT Membership Privileges (amends 6 July 1960) 247
28 July 1960 International Membership Privileges 248
25 Oct. 1960 Membership Restrictions 249
22 Nov. 1960 There will be no professional rates (SA only)
249
29 Dec. 1960 Membership Change 250
27 Oct. 1961 Professional Rates Restored 250
29 May 1962 Professional Rates (adds to 27 Oct. 196 1) 251
5 June 1962 Permanent Staff Privilege 2SI
26 Sept. 1962 Memberships 157
11 Apr. 1963 Memberships (cancels 26 Sept. 1962) 252
31 Oct. 1964 Current Policies Orgs & Franchise 106
21 Apr. 1965 Membership-Attestations 252
11 May 1965 HCO Book Account Policy
Receipt and Use of Membership Monies 165
1 Sept. 1965 Current Policy-Franchise 253
1 Sept. 1965 Membership Policies 254
INVOICING
I Apr. 1957 Always Register and Invoice 255
21 Apr. 1957 Income 255
16 May 1957 Invoicing Items 255
23 May 1957 Ordering People to Processing or Training 255
27 Nov. 1958 Basic Financial Policy-HCO 6
4 June, 1959 Invoicing and Collection of Money 256
27 June 1959 Invoicing 257
23 Oct. 1959 Attention Registrars and Book Administrators 2~8
1960 Book Orders (LRH Despatch) 258
27 Jan. 1960 Accounts Policies-Invoicing 9
9 Aug. 1961 Book Sales '259
31 Oct. 1963 Reception Hat (excerpt: Invoicing) 260
24 Sept. 1965 Free Release Check 263
4 Jan. 1966 LRH Relationships to Orgs .53
30 Jan. 1966 Accounts Procedures-Minus Invoices 23
11 Feb. 1966 Shipping Charges 263
16 Feb. 1966 Invoice Routing 264
1 Aug. 1966 Sign Ups and Discounts VoL 2-280, Vol. 5-198
23 Dec. 1966 Accounts Invoices-Narnes on Invoices 265
20 Feb. 1967 Security of Invoices 266
11 Mar. 1971 Registrar Invoicing Line 268
MAIL OPENING AND INVOICING
3 Aug. 1956 Mail Line (HCOB) 271
15 May 1957 Method of Opening & Invoicing Mail, Modified
(HCO Procedure Letter) 272
3 Sept. 1957 Method of Opening & Invoicing Mail Vol. 1-173
31 Aug. 1965 Mail Opening 274
ix
COLLECTIONS
1957 What Your Money has Bought
(Letter issued by HASI Accounts, London) 275
9 Dec. 1958 Regarding Accounts Receivable (HASI Finance Policy
Letter) 276
26 Dec. 1958 Collection of Accounts (HCO Secretarial Letter)
277
27 Jan. 1960 Accounts Policies-Statements Files 9
16 Aug. 1965 Collection from SPs and PTSs 279
7 Nov. 1965 Reception Log (Use of In-the-Org List) Vol. 1- 73
26 Nov. 1965 Financial Planning-Income Note Collections Summary
48
13 Feb. 1968 Collections Letters 280
9 Oct. 1969 Publications Depts and Orgs-How to Straighten Out
Vol. 2-210
DEPARTMENT EIGHT
DEPARTMENT OF DISBURSEMENTS
PURCHASING
Jan. 1957 Mass Purchases and Work Contracts 281
17 June 1957 Authorization Required for all Expenditures
(Association Secretary Directive) 281
1 June 1958 Purchase Orders (HASI London Administrative
Directive)
(reissued 15 May 1970) 282
2 June 1959 Purchasing Liability of Staff Members 283
27 Jan. 1960 Accounts Policies 9
2 Mar. 1965 Purchase Order Filing 43
4 Mar. 1965 Reserved Payment Account 44
28 Mar. 1965 Emergencies and Account Personnel 46
M Nov. 1965 Financial Planning 48
20 Dec. 1969 Trading Prohibited 283
4 Nov. 1970 Estimated Purchase Orders 73
BILLS HANDLING AND DISBURSEMENT
27 Nov. 1958 Basic Financial Policy-HCO 6
5 June 1959 Handling of Bills 284
27 Jan. 1960 Accounts Policies 9
12 Sept. 1961 Payment for Materials 284
23 Nov. 1961 Accounts- Disbursement Division 15
21 Apr. 1964 Org Payments for Tape-Recorded Lectures 285
6 May 1964 Accounts Policies-The Disbursement Section 17
11 June 1964 Central Organization & City Office Tape Service 285
28 Jan. 1965 How to Maintain Credit Standing & Solvency
How You Pay Your Bills-Paying by Dateline 40
2 Mar. 1965 Purchase Order Filing 43
4 Mar. 1965 Reserved Payment Account 44
28 Mar. 1965 Emergencies and Account Personnel 46
21 Oct. 1965 Bills Payments 286
26 Nov. 1965 Financial Planning-Disbursement Section & Action 48
21 Dec. 1965 LRH Financial Relationships to Orgs 51
30 Jan. 1966 Accounts Procedures 23
CHEQUE SIGNING
27 Nov. 1958 Basic Financial Policy-HCO 6
21 Oct. 1965 Bills Payments 286
21 Nov. 1965 Cheque Signing 287
26 Nov. 1965 Financial Planning-Cheque Signing 50
30 Jan. 1966 Cheque Signing Procedure 288
30 Jan. 1966 Accounts Procedures 23
6 Feb. 1971 Transferring Funds 289
ORG SHSBC STUDENTS
31 July 1962 Org Payments for St Hill Students 290
14 Feb. 1963 Saint Hill Special Briefing Course Reimbursement
Arrangements 291
5 May 1963 Staff Member Enrolments 292
14 Dec. 1969 Org Protection 241
PAYROLL
Apr. 1957 Proportionate Pay Plan Proposal 293
17 Apr. 1957 Advisory Committee Endorsement 297
18 Apr. 1957 Minutes of Staff Meeting 296
19 Apr. 1957 Proportionate Pay Plan 295
19 Apr. 1957 Trustee Endorsement of 18 April 1957 Staff Meeting
Minutes 297
19 Apr. 1957 Note on source of income 297
14 May 1957 Hat Turnover 298
10 Jan. 1958 Inspection of Hat Folders 298
26 Mar. 1958 Salary and Unit Pay 299
9 July 1958 All clears on staff . . 300
27 Nov. 1958 Pay List 299
9 Dec. 1958 Staff List-Notification to Payroll (HASI Finance Policy Letter)
299
27 Jan. 1960 Accounts Policies-Disbursement Vouchers 10
28 Apr. 1960 Yearly Salary Increments 300
13 July 1960 Sick Leave 300
3 Oct. 1960 Holiday Pay and Sick Leave 301
19 Feb. 1961 Accounts: How to do a Payroll 302
24 Mar. 1961 Units for Assn See and HCO See 306
28 Mar. 1961 Personnel Policies-Staff Post Qualifications
Permanent Executives to be Approved 307
22 July 1961 Executives' Pay 310
23 Oct. 1961 Pay of Executives (modifies 22 July 196 1) 310
23 Nov. 1961 AccoLints-Disbursement Division 15
5 Apr. 1963 Audit of Organizational Books 311
4 Nov. 1963 Pay Card 312
29 Apr. 1965 Bonuses 313
14 Sept. 1965 Units and Bonuses for Org Exec Sees and HCO Exec Sees
(revises 24 Mar. 196 1) 315
12 Oct. 1965 Advisory Committees 317
14 Jan. 1966 Hiring Personnel-Line for (amended 22 May 1968) 57
21 July 1966 Proportional Pay Plan 1966 318
15 Sept. 1967 Examiner Bonuses 322
1 San. 1968 Hat Write-Ups and Foldeis-Inspection of Hat Folders Vol. 0-
68
10 Dec. 1968 LRH ED 64 INT (concerns HCO P/L 10 Dec. 1968) 323
10 Dec. 1968 Percentage Adjustments and Fixed Salaries 324
31 Jan. 1969 Percentage Adjustments and Fixed Salaries
(Guardian Finance Order 12) 326
FSMs
9 May 1965 Field Auditors Become Staff (revised & reissued 14 Jan. 1968,
cancels 26 March 1965 & 30 March 1965) 328
21 June 1965 Orgs are SH FSMs Vol. 2-325
15 Oct. 1965 Field Staff Member Selection Papers and Commissions
334
30 Aug. 1966 Selection Regulations (addition to 26 Mar. 1965) 333
10 Nov. 1966 Field Staff Member (corrects 26 Mar. 1965) 336
9 Jan. 1967 FSM System Administration in Organizations
(modifies 9 May 1965 & 15 Oct. 1965) 337
14 Jan. 1968 Field Auditors Become Staff (9 May 1965 revised &
reissued) 328
17 Feb. 1968 Field Staff Member Commissions 342
5 June 1968 FSM Commissions 342
Xi
REFUND
4 June 1961 Refund of Fee Policy see-343
12 Oct. 1961 Refund of Fee Policy Revised
(revises& replaces 4 June 196 1) see-343
27 Feb. 1962 Refund of Fee Policy Revised (revises & replaces 12 Oct.
196 1) 343
23 Oct. 1963 Refund Policy (cancels 12 Oct. 1961 & 27 Feb. 1962)
344
23 May 1965 Rebates 346
30 Jan. 1966 Accounts Procedures-Minus Invoices 23
31 July 1966 Refund Notice 347
1 Aug. 1966 Refund Addition (adds to 31 July 1966) 347
3 Feb. 1969 Legal Standard Waiver Vol. 1-582
23 May 1969 Dianetic Contract Vol. 2-287, Vol. 4-247
5 Feb, 1970 Scientology Refunds-Writ of Expulsion and Waiver Vol. 1-583
DEPARTMENT NINE
DEPARTMENT OF RECORDS, ASSETS AND MATERIEL
BANKING - SIGNATORIES ON BANK ACCOUNTS
27 Nov. 1958 Basic Financial Policy-HCO 6
3 Sept. 1959 HCO Book Account 147
27 Jan. 1960, Accounts Policies-Banking 10
30 Nov. 1964 HCO Book Account 162
18 Jan. 1965 Financial Management-Building Fund Account 32
19 Jan. 1965 Finance-Org Accounts-Building Fund Account 37
20 Jan. 1965 Currency Regulations and I 0%s 164
4 Mar. 1965 Reserved Payment Account 44
26 Apr. 1965 Cancellation of 19 Jan. 1965 47
26 Nov. 1965 Financial Planning-Bank Reconciliation Section 49
3 May 1966 Reserve Fund 169
13 June 1966 Signatories on Bank Accounts see-348
3 Aug. 1966 Correction to HCO Policy Letter of 13 June 1966 see-348
2 Apr. 1968 Signatories on Bank Accounts (cancels 13 June 1966) 348
15 May 1968 Reserve Fund (reissue & amendment to 3 May 1966) 175
20 June 1968 Commodore and Founder as Signatory on Every Bank Account
(modifies I Sept. 1966 & 2 Apr. 1968) 348
RECORDS AND AUDITS
23 Apr. 1959 Jack Parkhouse Writes from South Africa 349
25 Sept. 1959 Accounting Records and Bills 350
27 Jan. 1960 Accounts Policies 9
13 June 1960 Accounts Procedure 351
23 Nov. 1961 Accounts-Bank Statements 1.5
19 Jan. 1965 Finance-Org Accounts-Building Fund Account 37
20 Jan. 1965 Currency Regulations and 10Yos 164
2 Mar. 1965 Purchase Order Filing 43
26 Apr. 1965 Cancellation of 19 Jan. 1965 47
21 Dec. 1965 LRH Financial Relationships to Orgs 51
9 Jan. 1966 Accounts, Invalidating 352
13 Jan. 1966 Records of Bank Deposits 353
30 Jan. 1966 Accounts Procedures 23
25 June 1967 S~ientology Orgs Tax and Balance Sheets 63
21 Jan. 1968 Chartered Accountants 353
Xii
SUPPLIES, KEYS, EQUIPMENT
I I Aug. 1959 Cost of Supplies (HCOB) 354
7 Jan. 1960 HCO Inventories 355
3 Feb. 1960 HCO Keys 356
12 Mar. 1961 Supplies of Central Organization Forms 356
13 Sept. 1961 General Office Orders -Supplies 357
15 Feb. 1964 The Equipment of Organizations 358
2 Apr. 1965 Heed Heavy Traffic Warnings Vol. 0-111
20 Aug. 1965 Scientology Org Uniforms Saint Hill 360
8 Sept. 1965 Supply Officer 362
22 Sept. 1965 Keys 363
3 Nov. 1965 Equipment 363
15 Nov. 1965 Reporting of Theft and Action to be Taken 364
7 Jan. 1966 Leaving Post-Writing Your Hat Yol. 0- 70
18 Nov. 1969 Disposal of Org Assets 365
Note., The materials in this volume are listed mainly in order of
appearance. Additionally, some policies are listed in more than one section
(with page numbers in italics), as they deal with more than one area of
operation.
Relevant policies from other OEC volumes are also listed, with volume and
page numbers in italics.
A complete date order index appears in the back of the book, starting on
page 366.
xbi
YOUR POST
A post in a Scientology Organization isn't a job. It's a trust and a
crusade.
We're free men and women-probably the last free men and women on Earth.
Remember, we'll have to come back to Earth some day no matter what
"happens" to us.
If we don't do a good job now we may never get another chance.
Yes, I'm sure that's the way it is.
So we have an organization, we have a field we must support, we have a
chance.
That's more than we had last time night's curtain began to fall on
freedom.
So we're using that chance.
An organization such as ours is our best chance to get the most done. So
we're doing it!
L. RON HUBBARD
xiv
ORG
ORG EXEC SEC
I
3SEM(NATION DIVISION 2 TREASURY I DIVISION 3 TFACIINICAL
DIVISION
;SEMINATION SECRETARY TREASURY tECRETARY
TECIINICAL'SECIMTAI
ISSEMINATION SEC. SEC. TREASURY SEC SEC. TECHNICAL
SEC. M
I I . I
UNDERSTANDING ENLIGHTENMENT ENERGY ADJUSTMENT BODY PREDICTION
ACTIVITY
Department 5 Department 6 Department 7 Department 9
Department 9 Department 10 Department 11
I
DEPARTMENT OF DEPARTMENT OF DEPAIZTWNT OF DEPARTMENT OF DEPARTMENT OF
DEPARTMENT OF DEPARTWIENT OF
PUBLICATIONS REGISTRATION INCOME DISBURSEMENTS RECORDS, ASSETS
TECIINICAL TRAINING
& MATERIEL SERVICES
Director of Director or Director of Director of
Director of Director of Director of
Publications Registiation Income Disb.rsements Rccords,
Awcls Technial Training
& Materiel scuices
Copy,ight Q 1965, 1969 by L. Hubbard ALL RIGHTS RESERVED
I
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 AUGUST AD9
[Excerpt]
CenOCon
PROMOTIONAL FUNCTIONS OF DEPT OF ACCTS
Accounts is commonly so snowed under with Bookkeeping and Prop Income
that it doesn't think of itself as a promotional unit. But it is. Snappy
and accurate accounting, quick and accurate and even tough rendering of
statements is all promotion of a sort. We are accustomed to thinking of an
Accts Dept as being figure-figure non-reach sort of department but this is
far from true. (That's figurefigure.) Accounts is promotional just by
rendering bills properly and on schedule. And they're promotional by making
sure the public contributes to the organization in money; by thoroughly
backing up the PrR, Accounts does a lot of promotion. Further, there is
another thing that an Accounts Dept can do in the promotion line. We are
usually undermanned in the Accounts Dept and seldom realize that lack of
people in it is one of the most foolish economies we can make. It's lack of
people in the Accounts Dept rather than lack of willingness that keeps our
Accounts in a turmoil. There should be one person on Statements, one person
on Current Bills book and one person on Prop Income breakdown even if one
or two of these people are part-time. If there are three-and there should
be-part of the work of each would be promotion as follows: Statements-
noticing that credit is good on some person in the Statements book, should
write and tell the person so and give a list of such people to the Dir of
PrR. Current Bills, who should handle purchasing and filing too, probably,
has a public relations function in handling the merchants with whom we deal
and getting them interested in what we are doing rather than allowing a
purely trade relationship to exist. Prop Income, who also usually does the
invoicing, has a promotion function in making sure that the receipts get
back to the payee along with some kind of pat on the back for helping
Scientology along. MONEY is the attention unit of this society. A lot of
Scientologists say 'how mercenary' when I start talking about money. They
don't believe in it to the degree that they don't want to attract any
attention personally. And that's the crude truth. We've got to get over
that attitude. The commonest sense tells us that if we had enough money we
could advertise and build and hire our way straight up the line ten times
as fast as we are doing. Well one of the ways we fail is to fail to use
money as a promotion Nctor and to fail to fully utilize commercial
transactions and monetary exchanges as promotional avenues. Think that over
and buy the Dir of Materiel the new building he wants and see how they
start crowding in. The Dept of Accounts is our most neglected promotional
sphere and this we must overcome.
L. RON HUBBARD
LRH: brb.rd
Copyright@ 1959 [Excerpted from HCO P/L 26 August AD9, Promotional
by L. Ron Hubbard Functions of Various Dept&. A complete copy is in
Volume 7,
ALL RIGHTS RESERVED page 135.1
PURPOSE
DEPT OF ACCOUNTS
(From HCO Policy Letter of 27 November 1959,
Key to the Organizational Chart of the Founding
Church of Scientology of Washington DC1
To keep the business affairs of the organization in good order, to
maintain the good business repute of the organization and to see to it that
the business activities of Scientology are up to date in an excellent
condition. To make sure that income
exceeds outgo.
L. RON HUBBARD
LRH:js.rd
Copyright Q 1959
by L. Ron Hubbard [A complete copy of this Policy Letter is in
ALL RIGHTS RESERVED Volume 7, page 138.1
2
THE PROMOTIONAL ACTIONS OF
TREASURY DIVISION 3
(From HCO PL 20 November 1965, The Promotional Actions of an Organization.
These are given complete for all divisions in Basic Staff Volume 0,
starting on page 84.)
41. ORGANIZATION SECRETARY - Co-ordinates and gets done the pxomo
tional functions of Division 3.
42. DEPARTMENT 7 (Dept of Income) - Persuades payment of cash or increase
in purchase whenever possible.
43 a, Collects outstanding notes by monthly statements.
43 b. Collects outstanding notes through Field Staff Members via Dept 17.
44. Gets all mail orders invoiced and/or collected so they can be shipped
at once.
45. DEPARTMENT 8 (Dept of Disbursement) - Keeps bills paid in such a way
that the org is in excellent credit repute. (Promotes with good
credit rating.)
46. Gets salaries accurately and punctually paid to keep staff happy.
47. DEPARTMENT 9 (Dept of Records, Assets and Materiel) - Gets proper
quarters to make the org look good, whether for momentary or
permanent use
for all divisions.
48. Keeps materiel of org bright.
49. Acquires reserves to give a reputation of stability to org.
50. Keeps staff clothing issued and in good order (in those orgs
providing
uniforms).
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 SEPTEMBER 1965
STATISTICS FOR DIVISIONS
[Excerptl
Org Division 3 -
Credit collections vs Bills paid.
It will be seen that gross income is established by many in the Org but
collections as a special income is purely the Org Division's. Bills paid
require gross money in, so reflects the gross-no money in, no bills paid.
This is a dual statistic which shows the industry of the Division in
general. It even touches materiel as no bills paid equals no supplies.
Monies paid into Reserve Payment do not count as Bills Paid.
L. RON HUBBARD
LRH:rnl.rd
Copyright@ 1965
by L. Ron Hubbard [Note: A complete copy of this Policy Letter can be
found in
ALL RIGHTS RESERVED Volume 1, page 328.1
3
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 SEPTEMBER 1970
Issue 11
Remimeo
Treas Sees
Dir Income
SO & Scn CREDIT COLLECTIONS DEFINED
CREDIT COLLECTION includes
I Monies collected for services given on credit.
2. Monies collected on bounced checks.
3. Freeloader collections.
4. Collection on any amount OWED to the org for service or items
sold. (Not advance payments.)
Industrious collection action by Div III is all it represents. Any Treas
See reporting a CREDIT COLLECTION stat differently than as above must take
this definition and advise CS-3 at once of the date and any graph change
resulting, with
carbons to Cont and WW OIC.
Lt. Vicki Polimeni
LRH:VP:sb.ka.rd CS-3
Copyright (Z) 1970 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 FEBRUARY 1971
Issue V
ORG GROSS DIVISIONAL STATISTICS
REVISED
[Excerpt]
TREASURY DIVISION 3
1 Credit Collected
2. Bills Paid.
Credit Collected is defined in HCO Policy Letter 30 September 1970,
Issue IlCredit Collections Defined.
Bills Paid includes all org bills, including materiel. Monies paid into
Reserves do not count as Bills Paid.
LRH:HE:mes.rd HCO Aide
Copyright@ 1971 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
[Note: A complete copy of this Policy Letter can be found in the 1971 Year
Book.
4
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Rernimeo HCO POLICY LETTER OF 12 MARCH 1971
So & Scn Orgs Issue 11
Treas Secs
Starrate on all Div 3 Staffs
oic
TREASURY DIVISIONS GDSes
ALL ORGS
(AMENDS: HCO Pl, 30 Sept '65, "Statistics for
Divisions", HCO PL 5 February 1971-Issue I, "All
Orgs, OIC Cable Change", HCO PL 5 February 1971
Issue V, "Org Gross Divisional Statistics Revised",
and HCO Pl, 8 February 1971, "Handling of Bounced
Checks and Refunde', page 2, para 2. CANCELS:
HCO Pl, 30 Sept '70, "Credit Collections Defined".)
Effective for ALL ORGS, SO and Scn, FEBC orgs and others, the Division 3
Gross Divisional Statistics are revised as follows:
1. TOTAL ADVANCE PAYMENTS AND TOTAL CREDIT COLLECTED FOR THE WEEK.
2. TOTAL BILLS PAID FOR THE WEEK.
3. TOTAL ORG MATERIAL AND LIQUID ASSETS.
ADVANCE PAYMENTS is defined as a payment well in advance of readiness or
arrival for service.
CREDIT COLLECTED includes collection for Qual Services and any other
services given on credit, Freeloader collections, and any monies OWED to
the org for services or sales.
Credit collections and Advance payments are plotted separately on the
same graph.
BILLS PAID include all field creditor bills, and staff salaries paid,
but does NOT include PSM Commissions paid, as these are reported separately
as a Public Div stat.
ORG MATERIAL AND LIQUID ASSETS include all org reconciled balances, any
cash on hand, value of properly inventoried assets, properties and
material, and value of bookstocks and inventoried supplies.
The asset value of any item is evaluated against its purchase price, its
present state and condition, and annual depreciation.
FOUNDATION ORGS
A Foundation oig, where one is operating alongside a Day org, will only
report its TOTAL ADVANCE PAYMENT AND CREDIT COLLECTED stat on its OIC
cable, as the two other GDSes are shared with the day org and need not be
reported.
OIC CABLE REPORTS
Effective for the week beginning 8 April 1400 and ending 15 April 1400
1971 for the first report, and effective thereafter, the new Div 3 GDSes
are to be reported in the OIC cable as follows: (Per the HCO PL 5 Feb 71
"All Orgs-OIC Cable Change").
After the Gross Income figure:
Gross Income / NEW Advance Payments / Credit Collected / Bills Paid /
NEW Org Assets / . . . . . (Following order of the cable unchanged.)
On the fourth week following date of change and thereafter, the OIC
Cable is reported as above, without the prefixes "NEW".
HCO Aide and
LRH:LQ:HE:nt.rd Treasury Aide
Copyright @ 1971 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
HASI SOUTH AFRICA
HCO BULLETIN OF 9 NOVEMBER 1956
ACCOUNTING & FINANCIAL
Accounting Department. To take care of:
I . Maintenance of adequate ledgers for the corporations. 2. Filing of
tax returns.
3. Preparation of Profit and Loss and Credit statements.
4. Supervision and preparation of bills, of collections on notes
owed to the organizations, and submission of a monthly statement.
5. Preparation of weekly pay checks for signature by Treasurer. 6.
Custody of notes and paid bills for the organizations.
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
27 November 1958
BASIC FINANCIAL POLICY
HCO
To All HCO Secretaries:
1. All funds received from whatever source shall be scrupulously and
correctly invoiced on a triple-copy invoice machine.
2. All monies paid out shall be scrupulously and correctly invoiced on a
triple-copy invoice machine.
3. All funds received shall be banked at the main bank HCO account. No
funds may be withheld for expenses and no funds may be withdrawn from
cash for any charge or any emergency of any kind.
4. All cheques are to be signed only by signatories authorized by LRH.
No new accounts may be started except by mandate from L. Ron Hubbard.
All bills are to be paid by HASI-except Petty Cash items for HCO.
5. All financial policies to be valid must bear the signature and seal
of L. Ron Hubbard.
6. Tax Accounting is to be done entirely by a well-reputed accounting
firm. All data in the form of copy in and out invoices is to be
forwarded to them and all books are to be submitted to them quarterly
for auditing. Any action they wish to take must be reviewed by L. Ron
Hubbard before being put into effect.
7. The account system as outlined by LRH above must be installed and
followed meticulously. This is the HCO account system. Please follow it
exactly.
8. The two invoice machines used by HCO shall contain complete records
of all funds which have entered and exited from the office. These should
be transferred quarterly to a ledger, in a single IN and OUT column
system. They are to be entered under various categories for which a code
system is to be evolved. For example:
(a) 10% received from HASI (b) Rent received from HASI etc.
9. The policing of the HCO Accounts system is done by HCO Secretary, who
is to ensure the above is executed at all times and to report to L. Ron
Hubbard accordingly.
10. HCO Secretary is to ensure each Monday morning that the correct
cheque for the 10% of HASI gross income for the previous week is paid
to HCO, and recorded properly as above. Also ensure HASI rent is
regularly paid and that the cheque is promptly deposited to the HCO
bank account.
11. HCO may not loan money to any HASI or spend sums for HASI bills.
The above provisions have the status of law under US and British
corporation commissions and failure to adhere to them can bring about legal
or criminal action against an offender or confederates.
All persons connected with the finances of the HCO are required to be
alert to adherence of these policies to be accused of collusion in case of
loss of funds.
6 L. RON HUBBARD
NOT HCO POLICY LE77ER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
FOUNDING CHURCH OF SCIENTOLOGY
1812 19th Street N.W., Washington, D.C.
FINANCIAL PROCEDURE LETTER OF I I MARCH 1957
copies to:
Acct Dept
Dist Center
Maxine-invoice Academy
HGC INCOME REPORTS
Steves
HCO File
Ron
The Income (white) disbursement sheets of the Academy, the Hubbard
Guidance Center, and the Founding Church for the past week (3 sheets in
all), must be on my desk by 2. 00 p.m., Monday.
Director of Training is responsible for the Academy Sheet, the Director
of Processing the Hubbard Guidance Center Sheet, and Invoice Academy the
Founding Church Sheet.
The Distribution Center Income Sheet would also be appreciated at the
same time.
The Disbursement Sheets of the Academy and Distribution Center are made
up by Accounting and should be presented by Monday afternoon to me.
LRH:rd
Copyright @ 1957 L. RON HUBBARD
by L Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 6 FEBRUARY 1959
HCO ACCOUNTS WORLDWIDE
The following will be done to handle Accounting World:
I A post will be created in the HCO Office, London, called HCO
Accounts.
2. This post will have as its function the receipt from all HASI Offices
the weekly income report sheets, the bank statements for all accounts
and a duplicate set of invoices from each office.
3. This post will. check these reports, add all invoices, check the
proportioning of funds and check the bank statements.
4. This post will report to the Director of Accounts, World, the
accuracy or inaccuracy of all reports.
5. This post will have as its duty the presentation to the Executive
Director of. all requests for sums from the Building Fund of the various
organizations.
6. This post will also receive reports from the various organizations of
HCOs concerning the receipt and expenditure of funds from all HCO
accounts. This post will check same.
7. This post will have as its Director the Director of Accounts, World,
Mary Sue Hubbard.
LRH:mp.gh.cden L RON HUBBARD
7
I
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 5 JUNE 1959
Modifies previous directions
Convert to
See ED
INCOME REPORT REQUIRED
The Association (Organization) Secretary is entitled to weekly income
reports from the following departments:
DEPARTMENT OF ACCOUNTS
Payments on notes
Payments on loans
Payments on memberships
TRAINING DEPARTMENT
All student enrolment fees
All Extension Course fees
PROCESSING DEPARTMENT
All preclear processing fees
All testing receipts
PE FOUNDATION
All HAS student fees
All Co-audit student fees
BOOK SECTION (HCO)
All mail order sales
RECEPTION
All across counter sales
These reports are made on a large sheet labelled "Income Sheet"
available from the Department of Accounts or HCO WW.
These reports are compiled by department heads after Thursday at 2.00
p.m. on the week's income ending then. They are due on the Association
(Organization) Secretary's desk by Monday, 2.00 p.m.
The sheets are compiled from yellow invoice copies by the Dept head or
his deputy.
Penalty for missing, inaccurate or incomplete sheets, week's pay of
department head held until sheet is submitted or corrected.
The Accounts department collects the sheets and places them on
Association Secretary's desk.
The Accounts department clips to these an official record of the Bank
deposits made into all accounts the preceding Friday.
The Association (Organization) Secretary initials each sheet and gives
them to the Advisory Committee on Tuesday, the next day. Advisory Committee
minutes are compiled from these sheets.
Immediately after the Tuesday Advisory Committee meeting these sheets
are returned to the Accounts department by the Director of Accounts or his
deputy and are there bound into a permanent record.
The yellow invoice slips from which these are compiled, are retained in
their respective departments and do not accompany the sheets at any time.
L RON HUBBARD
LRH:gh.cden
8
HUBBARD COMMUNICATIONS OF
Saint Hill Manor, East Grinstead, Su
HCO POLICY LETTER OF 27 JANUA
14CO Secs
Assn Secs
Dir of Accts of
Central Orgs ACCOUNTS POLICIES
(Cancels Earlier Directives)
Rules Governing Accounting
All income from whatever source is banked intact, never drawn on before
being banked.
All funds are disbursed by cheque even when disbursed again by cash.
All transactions are recorded in full, and all in-voices and
disbursements are given any history known about them on the invoice or the
voucher. There is no reason for making accounts history a matter of memory.
All financial receipts and disbursements are reported weekly (by Monday
2 p.m.) by Accounts to the Org See or Assn. See. These are also reported by
Dept heads on their income and disbursement sheets.
All purchases require purchase orders before made. If a purchase is made
with no order or no okay on an order, the staff member making it must pay
for it.
The accounts project is responsible for enforcing financial policy on
staff.
Current Bins File
Every firm or person-even staff members, has a place in our accounts
files in a separate file folder. One firm or person = one folder. All
records, bills. letters, ete relating to such are placed in this person or
company's file. Any bank or other loan has its own file.
Cancelled cheques and bank statements are kept in their own files by
account. But, where possible, a photostat of each cheque back and front is
made and filed with the firm folder to which it was issued. So are invoice
and disbursement copies also filed as they apply in these files.
A summary sheet of billing and payments to one firm is kept in the
folder of that firm.
These folders are retired to dead file each year when actually dead.
Statements Files
Each debtor of any company we are handling has his own file and all
papers related are in it.
All invoices and papers relating to such debtors are kept in this file
folder.
. statement sheet is also kept in this folder.
. copy of the contract (photostat) is kept in this file. The original is
kept in a valuable document file in the safe.
This applies to any company, firm or person who sends us money or owes
us money.
Invoicing
(Note colours may be different in different areas of the world.)
All monies received are invoiced with full data.
The white goes to the payer as a receipt.
The yellow goes to the Project Supervisor or person most interested.
The red goes to accounts for filing in folders.
The blue stays in the machine and is never detached from its consecutive
pad of paper.
Invoices are used to sort out banking, reports, statements, etc.
9
Disbursement Vouchers
All disbursements, whether by cash or cheque, are written on a
disbursement voucher.
Payroll vouchers are signed while still on the machine by the recipient.
Cheque numbers, a firm's bill number, any data applying, is written on a
voucher.
The white goes as a complementary statement to the firm, obviating
letters or other papers. It is all that goes with the cheque. (We keep all
bills).
. copy of the voucher goes to the Project Supervisor most interested.
. copy goes to Accounts for filing in the folder of the firm or person.
. copy remains in the machine and is not disconnected from its pad.
Banking
All monies are placed in the safe at once they are invoiced and are only
removed to be banked.
The Accountant is responsible for them from the moment the mail is
delivered to him until they are banked.
The Accountant should be bonded.
All money banked is recorded on deposit slips stamped by the bank. These
are filed then with bank records along with statements and cheques.
Collections done by the bank are recorded with new invoices and must be
sent to us by the bank.
Adjustments and transfers in Accounts are subject to Disbursement
Voucher recording and should be so recorded. These are done by cheque, not
letter.
Department Files
When a department head receives his invoices and vouchers, he records
these on appropriate sheets and presents them by 2 p.m. Monday, for the
week passed, to the Assoc Sec or Org Sec who then passes them to Accounts.
They are filed by Accounts in appropriate folders. Dept heads may have
access to these folders.
Accounts also presents its own report.
Paying Bills
A cheque is made out on an account and is presented with the full folder
on the firm or person to receive it.
The total of cheques is added up on separate slip.
Current bank statements are also presented.
These items are necessary to the payment of any bill.
All bills being paid by bankers order are recorded routinely in the
folders.
Bills being paid by cash require the initials of the Assii See or Org
Sec.
Income Breakdown.
Income breakdown is done weekly on appropriate sheets after separating
invoice copies into appropriate piles. A 'ape is run on each pile. A total
of all tape totals should equal cash in hand. Cash is then banked in
appropriate accounts as above. The papers and all worksheets related to
income breakdown are filed in an envelope for that week.
General
All tapes of addition and other accounting records and all rough
computations are kept by Accounts and appropriately filed.
L. RON HUBBARD LRH.Js.rLeden
Copyright ~-~ 1960 by L. Ron kubbard ALL RIGHTS RESERVED
10
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstcad, Sussex
HCO POLICY LETTER OF 14 FEBRUARY 1961
[Excerpti
Cen Orgs copy for each Staff Hat Not for Franchise
THE PATTERN OF A CENTRAL ORGANIZATION
Dept of Material
Headed by the Director of Material (Dir Mat) the Dept of Material owns
every Mest object including pieces of paper in the entire organization and
is responsible for its inventory, existence and good repair and usage.
Material sets up and clears away rooms, keeps the place clean, maintains
everything, orders and supervises construction and even procures new office
or auditing space. If it's Mest, take it up with Material. If it's service
or significance or personnel, take it up elsewhere.
Material does all purchasing for the organization.
Purchasing can be done only after a Dept Head and Assn Sec approval on a
purchase order, no matter how small the itern. The greatest single threat
to organization survival has been Purchasing by Material without proper
judgement and authorization by purchase order. Both Washington and London
have been all but crushed by this function done wrongly. Johannesburg,
purchasing with bad judgement, wound up with very little material despite
huge bills. Purchasing is a fine art and in Central Orgs a primary threat
if done too abundantly or wrong. Purchasing can be so bad that the,
Organization can go broke while acquiring nothing. Further, enough money to
pay its bills and have things is a better index for necessary income than
the unit. If the disbursement fund is kept more than adequate, the unit
will also be high. Financial management includes what is to be bought. When
it's okayed by the Assn Sec, Material can buy it. But if Material, in
liaison with Accounts, sees danger in buying Material must take it up with
the Assn Sec with more figures even if the Assn Sec has already okayed it.
The biggest potential upset next to purchasing is "job completion". An
Organization can be torn apart if each job, started, is not finished before
new jobs are begun. Unfinished jobs can upset everything. They must be
avoided.
Material should be given proper schedules of activities so that rooms
can be set up or auditoriums procured well ahead of schedule.
Cleanliness of quarters is a public point of acceptance of Scientology.
Dir Mat is a highly responsible job. It can make or break an
Organization.
Dept of Accounts
Heade , d by the Director of Accounts, the Dept of Accounts receives,
safeguards
and expends funds in the Organization. No other person can expend money,
though
others can receive it if it is promptly handed to Accounts.
Scientology Orgs had trouble with accounts until a special accounting
system for Central Orgs was developed. That system is of a vital nature to
the Accounts Dept and must be followed without additives, ponderous
ledgers, peculiar sub-systems or deletions.
A Scientology Accounts system is simple. It works. It consists of
writing an
11
invoice on a four-copy machine for everything received and a disbursement
voucher on a four copy disbursement machine for everything expended, even
petty cash, with a completed statement of what Accounts knows of the
expenditure.
The system consists of four files-one with a file for every creditor,
one with a file for every debtor, one with a complete file for every bank
account and one with a file for every weekly breakdown envelope.
A board with nails on it for pinning up invoices for every category on
the breakdown sheet and a book to put income sheets in plus an adding
machine and cabinets completes the entire system.
Then if accounts will file every piece of paper, letter, invoice,
voucher and receipt that comes in in these files properly, anybody can
summarize them and financial management becomes possible.
Monthly, on a mimeo sheet that bears the name of every creditor, all
bills are listed from the Creditor file (not from bills mailed in by firms)
added up and presented to the Assn Sec with bank statements for his
directions as to payment.
A similar mimeo sheet is made up of debtors each month and the amounts
they owe us.
Pay is paid not by cheque but in cash by the signature of the staff
member on a disbursement voucher that tells the whole tangled story. Staff
members each have a folder in the creditor file at the back in which copies
of the voucher are filed.
A chartered or certified accountant can always do a quarterly balance
sheet for the Central Org rapidly from these files if they are kept up and
are as designated.
We don't copy figures from figures into vast piles of day books,
ledgers, statements and other mysteries unknown. The files are these books.
The law demands records everywhere. These are the records we want.
When people pay on their bills, invoice it, (send them the white with
their next statement) and file it in their file folder.
Our weekly breakdown sheet, showing gross and units, amounts deposited
to salary sum, disbursement account, building fund must be displayed to the
staff each week on a staff bulletin board.
We are interested in complete, orderly files and their individual
summation. That's accounting in Scientology. If the Accounts Department is
doing something else, they're still in the 19th century when accounting was
a vast mystery and managers went broke.
We have had good accounts and an easy life for Dir Accounts everywhere
the moment this whole system went in. Even governments were satisfied.
Admin Report Forms
Only one report (and its income sheet) is permitted per department per
week-except in PrR where each of its two sections report.
We don't allow random report forms to develop in a Central Organization.
Everything anybody wants to know is on a dept's single report sheet for the
week.
HCO WW ultimately receives all except income sheets.
LRH:aecjs.rd L. RON HUBBARD
Copyright @ 1961 [Note: Excerpted from HCO Policy Letter 14 February 1961,
by L. Ron Hubbard The Pattern of a Central Organization. A complete
copy is in
ALL RIGHTS RESERVED Volume 7, page 147.1
12
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 NOVEMBER 1961
Central Orgs
Accts Depts
ACCOUNTS
(Modifies HCO Pol Ltr of July 6, 1961, Accounts
so as to make it suitable for use in Central
Orgs or City Offices)
NOTE: IT IS NOT INTENDED THAT THIS POLICY LETTER SHOULD BE PUT IN FORCE
AT ONCE IN ALL CENTRAL ORGS. BUT IF ANY CENTRAL ORG WISHES TO TRY THE
SYSTEM OUT, THE ASSOC SEC SHOULD REQUEST PERMISSION TO DO SO FROM L. RON
HUBBARD. THIS POLICY LETTER OUTLINES A SIMPLIFIED SYSTEM OF ACCOUNTS WHICH
COULD BE USED IN CENTRAL ORGS OR CITY OFFICES. IF THIS SYSTEM IS OPERATED,
A QUALIFIED OUTSIDE FIRM OF ACCOUNTANTS SHOULD BE EMPLOYED TO MAKE A
REGULAR QUARTERLY AND ANNUAL BALANCE.
Two Accounts Divisions are instituted.
Thescare: The Income Division and the Disbursement Division.
They are in separate areas and are run by different persons.
They must be kept separate.
INCOME DIVISION
The Income Division performs the following actions:
A folder is made for every organization or person who pays the Org
money. This includes HCO WW and other Scientology Orgs (if applicable), and
all these income accounts are kept in no other place nor by any other
person.
1
The Income Division sees that Statements, pre-addressed by Addresso on
proper envelopes, go out to each foldered person or organization once each
month. This statement is a Thermofax copy of the summary sheet in each
folder, stuffed in these pre-addressed envelopes. New addLesses for this
list are routinely forwarded to Addr~sso Dept to be added to the monthly
list. Old addresses withdrawn are also routinely passed to Addresso to be
deleted from the plates or stencils.
No ledgers are kept by the Income Division. No notebooks or journals are
kept. All data is retained in folders.
Each folder has a summary sheet for Thermofaxing. All accounts are
written on this sheet.
All invoicing is done by the Income Division.
Notice of all bank payments paid in, and all bank statements, go to the
Income Division.
13
When invoicing, mark each invoice for what it is-Processing, Training,
Books, etc.
White Copy (top copy) goes as receipt in the next statement mailing.
Next copy goes to department concerned, and thence to C/17. Next copy
goes to basket for Income Summary, and when summaried is filed in folders.
Final machine copy is retained as income summary, not torn but kept
consecutive.
On Monday following a week, the basket copies are sorted into boxes:
Processing, Training etc. Each box is totalled and given an adding machine
tape which is marked Processing, Training, etc. The tapes are then totalled
and marked; the cash deposited or received in the bank must equal the final
total.
These tapes are stapled together and passed to the Registrar, Assoc Sec
(Org Sec) and HCO Sec, as income information. When returned to Income
Division they are stapled to the machine copies. These are put in an
envelope, dated for the week and filed. This is total accounting record.
The basket copies are now filed in the folders and each figure is
entered on the statements sheet in the folder. The filing is done all at
once. Once a month the Statements Sheets are brought to date from these
invoice slips. When a slip is put on the Statements Sheet an X is put on
the invoice slip to show it is entered.
It does not matter if all statements are up to date when Thermofaxed for
mailing. Bring them routinely to date as a continuing activity, not in a
monthly rush. Folder Statements Sheets not up to date one month as to debit
and credit will be up to date the next.
The folder Statements Sheets are mimeoed in general and lettered in
particulari.e. they can be mimeoed in quantity in a generalized form, but
they must be filled in in detail. Make sure that the mimeo ink and the ink
or type used is capable of being copied on the Therinofax machine, as this
machine will not copy waterbased inks.
On invoicing books (if this is done by Income Division), this is the
first operation of the day. The invoices go at once by hand to Shipping so
books may be mailed same day. This is a rush invoice item.
Folders are filed alphabetically by class, which is to say other Orgs
form a group, individuals form a group, bookstores form a group, etc.
It is the responsibility of the Income Division to know what the Org is
owed and to see that it is collected.
If Disbursement Vouchers, bank slips, etc are sent by debtors, they are
never entered on the Statements Sheets. They are kept in the folders, for
information only. Only money received in the bank is entered.
The income report from the Income section also includes the amount shown
on the last statement for each bank account. There is no further attempt to
balance cash deposited but not shown on statement, or cheques issued but
not cashed in by the person or firm who received them. This weekly report
is the Money on Hand report. It goes to the Assoc See and the HCO Sec. It
is then filed with the week's income report. It is compiled and despatched
when all statements for the week are in. It is not attached to the Income
report but is separate. In practice, if convenient, it could be so
attached.
The Income Division retains and has all invoicing machines but no
Disbursement machine.
The Income Division makes all deposits of cash and cheques into the
bank.
14
DISBURSEMENT DIVISION
The Disbursement Division has the responsibility of correctly disbursing
the money of the Org, such as bills, wages, mortgage payments, etc.
Each creditor, including staff members, has a red folder. Each folder
has a statements sheet in it.
Whenever a cheque is disbursed or a wage or cash is paid out, a
Disbursement Voucher must be written giving all particulars.
The white Voucher (top copy) is sent or given to the creditor, the next
copy is filed in the statements folders. The next copy goes to Central
Files (if applicable). The machine copy is retained unseparated and filed
in an envelope dated as of the week disbursed, in a block.
The copy of the Disbursement Voucher for filing is placed in a basket
for filing and then is filed without entering it at that time on the
Statements Sheet in the folder of the firm or person disbursed to.
All incoming bills are placed in a basket along with the Disbursement
Vouchers. They are all filed at once at the same time as the Disbursement
Vouchers. They are not entered on the Statements Sheet at that time.
Once each month minimum, or every two months maximum, the folders'
Statements Sheets are brought up to date. This is a routine and continuing
action. All debits and credits are entered on the Statements Sheet. These
sheets are kept in the folder.
When a Disbursement Voucher or a company's bill is entered on the
Statements Sheet a large X is drawn on it. It is returned to the folder.
These folders when brought up to date are brought up on the not-X'ed
bills and vouchers.
The Purchase Orders are filed in these folders and bills are checked
against them.
Disbursement is from 30 to 60 days on bills.
Wages are preferably paid by cheque. Each cheque issued for wages or
bills must be written on a Disbursement Voucher. Persons receiving wages do
not have to initial or sign the voucher. They receive the white copy (top
copy). The Folder copy is filed in their folder. Their pay books, etc are
kept in their folders, not in any separate file. The Government has a
folder of its own, one for each department of the Government to which we
pay out. Other pay papers than in the folder are kept in the Government
folder for pay. This folder is filed adjacent to the pay folders of staff.
There must be no loose tables, folders or booklets kept anywhere but in
folders.
BANK STATEMENTS are filed in folders provided for the banks. There is
one folder for each bank account. The cheque books are in the same file
drawer but not in the folder.
Cancelled cheques are filed loose in the bank's folder for each account
until a cheque book is empty. Then each cheque is scotch taped, not
stapled, to its counterfoil.
Counterfoils are kept only in date, and no other data (not even amount),
as Disbursement Vouchers are used for record, not counterfoils.
Cheques may not be taped into cheque books in use, neither voided nor
cancelled cheques.
15
There is only one report, and that is monthly. Mimeographed sheets
carrying the name of each company to whom we disburse are marked with the
last debit figure on the statements sheet and how long the amount is owing.
It is expected that all such statements will be brought up to date before
the monthly report is made. This report totals all bills owing. When
executive directions are given on them, cheques are issued as directed
against this monthly report.
There are no other reports except when requested for some firm.
SUMMARY
The Disbursement Division makes no income reports on reconciliation of
bank statements. The Income Division makes no reports on Disbursement.
Every quarter an Accountant audits the books and submits a quarterly
report in summation form. He does not make books. The law requires records
to be kept. We keep records. Actually we keep books as above, but their
pages are folders.
HISTORY: The bugbear of accounting is the failure to record all one
knows about each transaction. An executive is later expected to remember it
all and spend two or three weeks going over tangled accounts with each
audit. This is circumvented by writing all you know about the transaction
on the Disbursement Voucher or on the Invoice. We are at this writing being
a lot too brief on our History. If you know something about the transaction
related to what it's for and why, or what's odd about it, put it on the
Invoice or Disbursement machine, not in a dispatch or in memory. Example:
Joyce Bibbin orders f 2 worth of books but sends E3. 10.0. She wants us to
retain ~CI.10.0 for a future purchase. Make out one invoice for L2.0.0 and
one for fl.10.Obutsayoneachwhat and why andthatit cameoutof 0.10.0.
Also, if you know a purchase was for some particular purpose or
department of the Organization, put it on the Disbursement Voucher when the
bill is paid. This way we'll not be racking our brains, and can have an
audit without the place being torn down.
The person doing the audit should do it on the spot, on our premises. Do
not part with folders and records.
All correspondence relating to a firm or person and all data on that
person is kept in the same folder. There are no 'Business Files'.
L. RON HUBBARD
LRH:esc.cden Copyright 0 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
16
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 MAY 1964
sthil
Cen 4 copies to each Org
ACCOUNTS POLICIES
There are two sections to the Accounts Department. One is the Income
Section. The other is the Disbursement Section.
THE INCOME SECTION
The Income Section invoices all monies received on the appropriate
machines and designates what each amount is for. Sums received in one
cheque for two or more services are made into two or more invoices.
A copy goes to the appropriate service unit in the Organization
delivering the service being paid for. Another copy goes to the customer's
folder in Central Files. Another is retained by accounts for the weekly
summary. The original goes to the customer as a receipt. Invoices must be
very legible and complete.
The money goes to the bank each week. The bank receipts, a copy of every
invoice for the week and appropriate addition tapes for each type of
purchase, are all packaged together and submitted weekly to the Treasurer,
Mrs Hubbard, for review, or in other Orgs to the financial manager.
The accounts week closes at 2.00 p.m. Thursday, at which time a new
accounts week begins.
The Income Section also posts all receipts in ledgers starting January
1, 1964, one for each company concerned.
The Income Section also furnishes breakdowns of income of various types
when required.
The Income Section keeps a firm record of every debtor and a file on
each debtor. These files are kept up to date and contain the full picture
of what we are owed by everyone in detail. All related correspondence is
filed in the Income Files.
The Income Section sends out monthly formal statements to each debtor.
On those who are consistently delinquent the Income Section originates
collection letters and also reports the full details to the Treasurer, Mrs
Hubbard, or in other Organizations to the financial manager, for review and
additional action. It is the purpose of the Income Section to permit no
past due accounts.
Any sums owing in any other department such as the Book Department is
the business of the Income Section and comes under its recording and
collection function.
Any legal action for collection is undertaken by the Income Section.
ALL receipts are banked. No cash may be used before being banked.
Prompt invoicing to facilitate shipment within the working day, accurate
receipt and recording of all sums owing, safe banking and safeguarding sums
until banked, rapid and urgent collection and accurate and prompt reporting
to the Treasurer, or in other orgs to the financial manager, summate the
main functions of the Income Section.
THE DISBURSEMENT SECTION
The Disbursement Section is responsible for the payment and recording of
all sums owed.
Every creditor whether paid in cash or cheque, whether submitting a bill
or not is given a folder in the Disbursement Files and all correspondence
of a business nature
17
with that creditor, whether concerned with money or not comes to the
Disbursement Files. There must be no separate "Business files", only the
Disbursement Files. The only exception is debtor correspondence about money
owed us in the Income Files. It is mandatory that no other "business file"
exists in the Organization.
Disbursement never pays from a received bill alone. All bills received
are first filed in the Disbursement Files. Then the file is reviewed as a
whole when the time comes to pay bills. It is forbidden to short circuit
this line and pay bills just as they drop into the In basket. They are
filed. Then all files are reviewed once a month, summated and the result
entered in a statement sheet in the file folder and on a Bills Summary
Sheet. This Bills Summary Sheet is prepared on the 10th of each month and
submitted with or without folders (as requested) to the Executive Director
or Treasurer along with a Summary of the amounts in each bank account. When
thereafter requested to do so, the Disbursement Section makes out the
cheques as indicated or readies the cash. These cheques are then given to
the Treasurer or in other Orgs to the financial manager, to sign and when
signed are mailed or given to the creditors.
The weekly payroll cheque is drawn for signature and given to the
Treasurer, or the financial manager, on Wednesday of each week and the cash
received from the bank on Thursday. The payroll is made up and paid on
Friday noon, not before. Any bonuses are given at this time. The only
exception is a Friday holiday.
All disbursements whether by cash or cheque or petty cash are vouchered
on the Disbursement machine of the debtor company. No payment of any kind
may be made without voucher. The voucher must clearly state what the
payment was for.
Purchase Orders must accompany every order to Purchasing before the fact
and must come to Disbursement before a bill can be paid.
Purchases made for a company without prior purchase order render the
employee ordering to payment of the account from his own salary.
All contracts drawn must priorly be validated by a Purchase Order signed
by the Treasurer, or in other Orgs to the financial manager. This applies
to Service Contracts, contractors and all such. Utilities escape Purchase
Orders by necessity but fuel oil, etc, do not. Domestic expenses (minor
charge accounts such as gas) are by quota, not purchase order and are
exempt so long as they remain in quota. Such quotas are set by the
Executive Director or the Treasurer, or in other Orgs by the financial
manager.
The Disbursement Section posts all vouchers in ledgers for the companies
concerned with an appropriate breakdown of the amounts for each activity to
assist in financial management. Posting is done in separate ledgers for
different companies. Posting is done in periods of one week ending 2.00
p.m. Thursday to agree with the Income period. To facilitate this
Disbursement voucher copies are filed as made in trays of the separate
divisions of posting.
Disbursement vouchers are handled as follows:
The original to the person or firm being paid. a copy to that person or
company's folder, a copy to the posting trays and copy to the weekly Income
Report Envelope, the last copies being carefully kept in numerical
sequence.
The gross amount of money in each bank account, without any adjustments
for cheques outstanding. is made up from the bank statements weekly and
enclosed in the Income Envelope roughly for the week in question.
All bank statements are kept by and all statement-cheque reconciliations
done by the Disbursement Section.
The Disbursement Section in England and Commonwealth countries may not
overdraw a bank account without specific permission. Where the permission
is given, let us say to �700 overdraft, the Disbursement Section may then
not exceed that figure without new permission. In the United States no
overdrafts are permitted.
The good credit of the companies involved or the person for whom
disbursement is being made is the full responsibility of the Disbursement
Section. Bills should not be carelessly left outstanding. Such bills must
be called to the Treasurer's, or in other Orgs
18
to the financial manager's attention and note made on the Bills Summary
Sheet of how long it is overdue when it is not in the same month that the
Bills Summary Sheet is for. Bank Accounts may not be overdrafted
antagonizing bank managers and causing endless correspondence. The moment
things appear critical and margins small, the matter must promptly be
brought to the attention of the Treasurer, or in other Orgs to the
attention of the financial manager. Under the heading of good credit comes
remarks or comments on company affairs that threaten its credit reputation.
All such observations should be made to the Treasurer in good time.
When money is advanced to anyone above their wage the matter of its
collection out of wage remains the concern of the Disbursement Section. If
money is advanced to anyone or any firm, Disbursement passes the matter to
the Income Division for its collection activities when the matter falls
due.
SUMMARY
Procuring money is the main function of the Income Section, not merely
recording it.
Safeguarding credit and solvency is the main function of the
Disbursement Section, not merely spending it.
Both the Income and Disbursement Sections must keep the Treasurer and
the Executive Director fully informed of the facts of procurement of money
and the credit and solvency of the companies. Financial emergencies occur
only when both sections have failed to do their jobs in keeping management
advised, for management can always promote income or adjust expenditures
easily if given enough warning. It takes about half a year for competent
management to recover from a bad imbalance of income and outgo. It takes as
long as a year and a half for competent management to recover from a real
financial emergency.
Solvency is only that condition where Income exceeds Outgo. Insolvency
is only that condition where Outgo exceeds Income.
With the Income Section making sure the income is coming in and the
Disbursement Section making sure that it isn't going out faster than it is
coming in, and with both sections keeping management advised of
fluctuations, solvency becomes possible. And jobs for people exist only
where solvency is maintained.
(Note: The Treasurer or the Executive Director may, as in London which
is near to hand, direct that all an organization's cheques be signed only
by the Treasurer at Saint Hill. Especially in cases where insolvency seems
chronic and not mending, regardless of distance or inconvenience
envisioned, the Treasurer may direct that no cheques may be signed except
by the Treasurer and all other cheque signatories dropped from the account.
In such cases all the above actions are still undertaken and the nominated
financial manager in the organization receives all the reports and forwards
only those portions required to the Treasurer with the cheques ready for
signature in ample time to be airmailed in return. This action has
uniformly resulted in ,returned solvency for the organization. Such an
action changes none of the above except as noted here. LRH)
(Note: In small organizations both Income and Disbursement sections are
handled by one person, but if so each section has its complete files and
functiolisjust as above. I-RH)
L. RON HUBBARD
LRH:dr.cden Copyright (g) 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
19
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, Fast Grinstead, Sussex
HCO POLICY LETTER OF 15 MAY 1964
sthil CenO 4 copies to each Org
ACCOUNTS POLICIES
(Addenda to HCO Policy Letter of May 6, 1964)
At end of first paragraph in the INCOME SECTION, add: TOTALS ON ALL
Invoices are to be shown in STERLING.
At line 5 (under INCOME SECTION) add: OR TO Business Files if the
Invoice shows a debit or credit.
Between second and third paragraphs (under INCOME SECTION) add: If a
student has a debit or credit at St Hill, his or her Me must be in the
Business Files, NOT in CF, and CF must be informed of the fact. In such
cases, where a file would normally be expected to be in CF, the fact that
the folder is in Business Files must be signalled in CF by a dummy folder
(Le., a BLANK PINK CARD, the same size as a file-folder, bearing only the
person's name and address) being placed in the correct position in Central
Files.
On page 2, third paragraph, delete "noon, not before".
At end of twelfth paragraph page 2, add: But bank statements are to be
available to INCOME SECTION as necessary.
Issued by: HCO WW Area Secretary
for
L. RON HUBBARD
LRH--.jw.cden Copyright @ 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
20
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 JANUARY 1966
U R G E N T
Rernitneo
Exec Sec Hats
Org Division Hats ACCOUNTING POLICIES OF
SCIENTOLOGY COMPANIES
(Scientology organizations long have had exact firm rules regarding
accounting procedure. They are repeated here. These MUST be in use from 1
Jan 1966 forward in all organizations. If they are not, put them right back
to 1 Jan 1966 so we can get a proper and swift audit in 1967.)
The Accounting policies of a Scientology Company are:
1. ALL AUDITS MUST BE DONE FROM ORIGINAL RECORDS. (No secondary books,
journals or ledgers may be consulted in doing an audit and are illegal in a
Scientology Company anyway.)
2. ALL SUMS RECEIVED FROM ANY SOURCE MUST BE LEGIBLY INVOICED AND
BANKED. (They may not be spent before banking, not even a penny no matter
the emergency.)
3. ALL SUMS DISBURSED MUST BE DISBURSED BY CHEQUE. (Even petty cash
and salary sums must be drawn by cheque before being disbursed.)
4. ALL SUMS DISBURSED MUST ALSO BE DISBURSED BY LEGIBLE VOUCHER GIVING
FULL DETAILS AS WELL AS CHEQUE GIVING FULL DATA. (Wages for each person
must have a disbursement voucher for that person and signed by that person.
E-very cheque also has a voucher. A voucher is Rke an invoice, same
machine.)
5. WEEKLY INCOME INVOICE MACHINE COPIES WITH A CARBON COPY OF THE BANK
DEPOSIT SLIP FOR THAT WEEK AND A TAPE OF THE INVOICES ADDING THEM MUST BE
PLACED IN AN ENVELOPE AND DATED AND CAREFULLY FILED. (This gives a complete
record of bankings for the year by week.)
6. ALL BILLS MUST BE FILED WHEN RECEIVED IN A FOLDER FOR EACH COMPANY
AND THE FOLDER SUMMARIZED BEFORE THE BILL IS PAID. (Bills may not be paid
merely by reason of receipt in mail or before filing.)
7. EVERY MONTH ALL BILLS OWING ARE LISTED ON A MIMEO FORM AND PRESENTED
TO THE SIGNING EXECUTIVES WITH A LIST OF MONIES IN THE BANK AND PLANNED FOR
PAYMENT BEFORE ANY CHEQUES MAY BE WRITTEN OR SIGNED,
8. EVERY PERSON OWING ORG MONEY HAS A COLLECTION FOLDER INTO WHICH
COPIES OF INVOICES OF ALL PAYMENTS MADE ARE FILED, THE FOLDER TO INCLUDE
COPIES OF ALL CONTRACTS AND NOTES.
9. COLLECTION FOLDERS ARE SUMMARIZED MONTHLY AND STATEMENTS ARE SENT OUT
MONTHLY TO DEBTORS. (Any bill written off for tax is still billed to the
debtor monthly.)
10. ALL PERSONS OWNING MEMBERSHIPS FREE OR PAID ARE RECORDED IN ACCOUNTS
AND BILLED 30 DAYS BEFORE MEMBERSHIP, FREE OR PAID, EXPIRES.
21
11. ACCOUNTS ORIGINAL RECORDS AS ABOVE MUST BE SENT TO WORLDWIDE EVERY
QUARTER FOR AUDIT AND PREPARATION OF BALANCE SHEETS AND TAX RETURNS.
12. BANK STATEMENTS MUST BE RECONCILED (COMPARED TO DEPOSITS AND
VOUCHERS) WHEN RECEIVED. (TO KEEP THE BANK FROM MAKING ERRORS.)
13. CHEQUES WHEN CLEARED AND BACK FROM BANK MUST BE TAPED IN TO
ORIGINAL CHEQUE BOOK ONTO THEIR STUBS (COUNTERFOILS).
14. EVERY PERSON TO WHOM A SALARY IS PAID HAS A FILE FOLDER INTO WHICH
ALL HIS PAPERS, CONTRACT, DEBTS TO ORG AND VOUCHER SHOWING EACH AMOUNT
RECEIVED ARE FILED WEEKLY.
There is a peg board system of separating the weekly invoices and
vouchers into categories of income and expense. This refinement is
described in earlier policy.
If you have any other accounting system in operation, it is contrary to
company policy which is based on the above only.
As Executive Director 1 will not sign any balance sheet or return not
taken from the original records. Balance sheets or statements of affairs
based on secondary ledgers and journals or double entry systems or punched
card computer systems or any "books~'. The law requires that accurate
records be kept. This does not mean ledgers and double entry and such are
not required by law anywhere in the world.
Accounting is no mystery. When it becomes so by complex systems
executives cannot manage their companies and they go broke.
The introduction of complex accounting contrary to policy is a
suppressive act on laymen.
Scientologists with little or no accounting experience can run the
above system and interpret it easily.
The decline of more than one Scientology organization can be traced to
violations of the above accounting policies. Executives could not manage
the company when intimidated by mysterious complex accounting. Accounting
cost more than the company could afford. The field ARC Broke on being
billed erroneously. Accounts collections were neglected and staggering sums
went uncollected because they weren't billed or poorly billed due to
violations of the above.
This system is a very simple one and a good one, designed for
Scientology orgs and successful.
L. RON HUBBARD
LRH:ml.cden Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
22
HUBBARD COMMUNICATIONS OF
Saint Hill Manor, East Grinstead, Su
HCO POLICY LETTER OF 30 JANUA
Issue III
Remimeo
Exec See Hat
Org See Hat
All Org Div Hats Org Div
ACCOUNTSPROCEDURFS
Minus Invoices and Vouchers
In invoicing income and in writing disbursement vouchers, all
corrections are done on additional invoices or vouchers.
This makes it unnecessary to search wildly for the machine copies to
correct them. The original invoices or vouchers are often already
distributed when a need of correction arises.
Invoices
Instead of correcting the original write a MINUS INVOICE giving what
transaction was being corrected as fully as possible.
In case of a REFUND from cash just received or a CORRECTION of amounts
just received or in case of a BAD CHEQUE informed from the bank, write a
MINUS INVOICE and clearly mark it so and for how much and to whom and why.
In adding the week's income these show up easily.
When separating out invoices into classes of income for an audit these
MINUS INVOICES show up clearly and are subtracted from the type of income.
Mark the invoice
MINUS
in big capital letters so nobody can miss it.
Disbursement Vouchers
Minus disbursement vouchers are made every time a cheque is VOIDED or
when a payment comes back unaccepted or when for any reason something
already Disbursed is found not to be disbursed after all and must be added
back.
Mark the voucher
MINUS
in Capital letters so nobody can miss it and give FULL DETAILS.
When sorting out classes of disbursement for an audit these Minus
vouchers are dealt into the class of expenditure but when it is totalled,
they are subtracted.
Cheque Book Assembly
Always tape your cheques coming back from the bank into the original
cheque book, onto their counterfoils.
23
Never let these cheques drift loose.
When a cheque book is refilled with cancelled cheques mark on its cover:
19.... Date to Date
CoTp name and place
Packet Invoices
Be sure to packet the week's machine copies of the invoices unseparated
in an envelope clearly marked for what week and year and what org.
Put the addition tape of the invoices with it.
Put a copy of the bank deposit slip with it.
Put another complete set of invoice copies in with it so they can be
dealt into boxes for classes of income received.
That is a complete weekly packet.
File carefully.
From this a quarterly audit or a yearly audit can easily be done.
Packet Disbursement Vouchers
Packet the monthly machine copies of disbursement vouchers unseparated
and a set of loose copies in an envelope.
Mark the envelope with the year, the month and the corporation and
place.
File carefully.
Tallied with the taped cheque book and bank statements, this gives the
material for quarterly and annual audits.
It is not hard to do if done on schedule and not all at the end of a
year-heaven forbid!
Summary
If you ever had to audit originalxecords it would make you very careful
to label everything with full details at the time you know them.
And if you ever try to audit a careless accounts personnel's work, with
bits missing, hell bath no fury.
Keep your records safe, complete and accurate or somebody will
inevitably get into trouble which could easily have been avoided.
It's very important.
L. RON HUBBARD
LRH-.ml.oden Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
24
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 AUGUST 1966
Rernirneo
Applies to
Exec Sees,
Secs, GRAPH CHANGE
Treasury Div
and 01C
AD COUNCIL STATISTIC
OIC will graph bills owing as a total accumulation of statements and
purchases. This makes a true picture of what is currently owed.
Cash in Hand will be from reconciled bank statements.
AD COUNCIL STATISTIC
A new graph will be added to the Ad Council's statistics that shows
total debt of the org including all HP, mortgages, any bonds, notes or
other indebtedness whether due or not, plus the bills owing.
This graph will have a second line showing a current estimation of the
org's assets and property.
LRH:lb-r.rd L. RON HUBBARD
Copyright @ 1966
by L. Ron Hubbard [See also HCO PIL I July 1972 "Cash/Bills and Org
Reserves", for
ALL RIGHTS RESERVED expanded definitions of "Cash/Bills" and data on Org
Reserves.]
HUBBARD COMMUNICATIONS
Saint Hill Manor, East Grinstead
HCO POLICY LETTER OF 16 OCT
Rernimeo
HCO ES Hat
OES Hat FINANCE COURSE
E/O Hat
VITAL ACTION
As of 1 Dee 1969 it shall thereafter be a Comm Ev offense for an OES or
a Treasury See or a Deputy Guardian for Finance or any Div 3 member to be
on post or take post without having done the Finance Course Pack starrate.
The financial survival of orgs and for all of Scientology has been
threatened too many times for staff to be on Finance lines without having
had this short course.
It costs orgs a fortune to have this one factor out,
SO Missionaires are alert to this.
LRH-.rs.ei.kd L. RON HUBBARD
Copyright @ 1969 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
25
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 MAY 1970
Issue 11
Remimeo
(Reissue of HASI Policy Letter of 1 May 1958
Financial Management)
FINANCIAL MANAGEMENT
Purpose: Makes certain the org makes money and continues in good credit.
Hat Worn By: The Assoc Sec and by his deputization, the Dir Admin. Policy
comes from Assoc Sec. Execution comes from Dir Admin.
Financial Management guarantees solvency. It does not concern itself
with accuracy of bills, payments or collection. This is the job of the
Treasurer and by deputization, the Disbursement Clerk. For example: The
order to pay "it" comes from Assoc Sec. The correctness of "it" is the task
of the Treasurer and Accounting. Accounting receives the order from Assoc
Sec to pay, passes the bill to Treasurer for
correctness, and then Accounting pays. Assoc Sec passes an order to collect
"it" to Accounting. Accounting checks with Treas as to correctness and then
collects it. The cost of an item must be less than selling price. All
pertinent items to cost no matter how remote are part of the cost. Using
this rule, financial management prices items. He adds to cost all profit
that can be made and still make the item sell. He publishes, then, an
item's "price". That the price of an item is collected is the business of
the Treasurer who issues proper orders concerning it.
Financial Management must now establish cost and price of all items
sold. And must adjust, for organization credit, what bills must be paid in
concert with how much
money there is to pay them.
LRH:sb.aap
Copyright(~) 1958, 1970 L. RON HUBBARD
by L. Ron Hubbard Founder
ALL RIGHTS RESERVED
SOLVE IT WITH SCIENTOLOGY
[Excerpt from HCO Policy Letter of 24 February 1964
Urgen t-Org Programming I
If the Org slumps: Don't engage in "fund raising" or "selling postcards"
or borrowing money.
Just make more income with Scientology.
It's a sign of very poor management to seek extraordinary solutions for
finance outside Scientology. It has always failed.
For Orgs as for pcs "Solve It With Scientology".
Every time I myself have sought to solve finance or personnel in other
ways than Scientology I have lost out. So I can tell you from experience
that Org solvency lies in More Scientology, not patented conibs, or fund
raising Barbecues.
L. RON HUBBARD
LRH:dr.rd
Copyright @ 1964
by L. Ron Hubbard (A complete copy of this Policy Letter appears in
ALL RIGHTS RESERVED Volume 4, page 367.)
26
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 2 JUNE 1959
Sec ED
A COMMENT ON FINANCE
The history of finance in Dianetics and Scientology Organizations is an
interesting one.
But a recent repetition of early financial history in Washington and
London must bear comment.
In 1950 and 1951 1 did not have financial control of Dianetics and
Scientology organizations. I was, administratively, a figurehead.
In less than one year from start the early HDRFs were crowded into
financial difficulties and went broke. In early 1952 1 started the first
organizations I controlled, the "Office of L. Ron Hubbard" and the HAS.
Impeded badly by the HDRF credit history, I nevertheless was able to build
the HAS and its successor the HASI into a 61/2 million dollar organization,
fully solvent.
Now in the past few months I gave check signing and financial concerns
over to others in Washington for the FCDC and for the past two years to
London for the HASI London.
In these few months FCDC went S 19,000 into the red from a total pay up
as of January 1, 1959 when I gave over. To go S19,000 into the red and to
show every sign of going deeper (while business volume remained fairly
usual) took some hard work on somebody's part.
In HASI London the organization in two years of non-control went il
8,000 into the red!
I am now busy making FCDC solvent and am sending Nibs over to see to it.
I have already cut the HASI London bills payable from f 18,000 to E7,000
in the past 90 days. And this without even having an accounts department to
help. I've also made HASI London pay me back f 2,000 of the money it has
owed me personally for six years.
In other words, we don't have many people who can handle finance
smartly. That this sag was not accompanied by other slackening or
increasing activities, is quite a comment.
Beside myself, only Jack Parkhouse and Julia Lewis Salmen amongst all of
us have a proven record of good financing.
It might interest you how I do this trick: I disseminate like mad to
lots of people and get in lots of money. I don't run up bills if I don't
have money. I spend money freely only when it has been made and is in the
bank. I don't worry about wasting money if I have made the money first. I
never "plan for emergencies". I just make lots of money for the
organization. To any financial problem I answer by making money. To any
crucial organizational problem, I answer by disseminating like mad,
improving service and getting in lots of money.
I answer money problems with lots of money, not with worry or sadness or
impractical hope. I never count on any one source. I always plan to get the
total sum of all the money I need from each one of 3 or 4 ways or sources.
27
But most important, I don't run up bills if I don't have the cash in
sight to pay them.
I am not parasitic on the organization. I always make many times the
amount I may spend on hybrid horned toads with pink ribbons for the front
hall.
I do now and then throw money away when it's been mad , e and isn't
needed.
Now I've taught you many things. Let me also teach you! to make tons of
money for the organization. It's the one thing staffs do poorly-the m~aking
and spending of money. They can evidently spend it, they don't well make
it. So let me teach you this: Disseminate like mad and make tons of money.
Please?
By the way, both DC and London went completely sour in only two
functions-the buying of printing and the failure to send their magazine
once a month to everybody in CF. In other words, HCO printing hat and the
Department of Materiel hats were to blame for the sag.
No ruin faces us. I'm still here, still working hard, still
communicating.
But by golly you better learn to do this one for yourselves: disseminate
like mad and make money: don't incur a single bill until you have the cash
to pay it already in the bank.
I've put DC and London on tight budgets for current expenses and have
other ways to float their barks. If need be I'll pay the bills out of my
own pocket, which would be unjust, since I didn't incur in any way the more
serious debts and repayments to me in both cases summed only a fraction of
their total.
So get smart about money. It's only money. It's made and if you make it,
you can have some. If you don't you can't: it won't be there to be had.
L. RON HUBBARD
LRH:gh.cden
28
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF 3 JUNE 1959
CenMn
FINANCIAL MANAGEMENT
The financial management hat of Scientology Organizations has assumed a
great importance now.
Financial management is ordinarily done by the Assoc See, the Org See or
the Treasurer and possibly, in some cases, the Director of Accounts, but is
always under the direct responsibility of the Assoc See no matter who wears
the hat.
It is the purpose of the hat to ensure solvency of the organization and
its divisions.
This hat would be worn both in the service organization and HCO and/or
in some cases for both the service organization and the HCO.
The basic principle of financial management is a simple one. Income must
be greater than outgo.
Amongst the principles of financial management are these: One cannot
spend money unless he has it. Never contract bills or debts unless the
money is immediately in sight to pay for them. Calculate all predictions
necessary to security. Disseminate like mad and make money rapidly.
Every organization should be on a contract and purchase budget. A
certain amount of money is laid aside every week to pay salaries and
current operating expenses and no debts are incurred until the money is
there to pay for them or can be predicted to be there to pay for them. Any
money left over is used to pay past bills and handle special projects.
The calculation of the budget is very simple. It is done as follows:
1. Take a dozen of the lowest weeks in the past year (ignore the high
weeks), add up these 12 weekly incomes and then divide by 12. This gives
you an average low week of income. This is then obviously a fairly safe
figure on which to base a budget.
2. From this average low income week deduct 10% to HCO. From this 90%
subtract 45% of it, not of the gross. From this 45% deduct 8% of the
907o figure. This gives you the amount of money now available for
operating expenses of the organization, rents, utilities, supplies,
equipment and other expenditures including advertising.
Example:
Average low week . . . . . . . . f 200 Less
HCO 10% . . . . . . . . . . 20
90% balance . . . . . . . . . . 180
45% (Exp and Bldg F.) . . . . . . . 45
900 720
Exp and Bldg F . . . . . . . . 81 .00
Special Fund . . . . . . . . 14_.4
180 f 66 .6
.08,Spec. Fund
14.40
We can see from this that our total available budget must now cover
rents, purchases, time payments, hire-purchase, utilities, supplies,
equipment, paper, printing, the whole works.
Total available for budget: f.66.12 per week. In calculating the 10%
for HCO and
29
the 8% for the Special Fund, one takes these, of course, from the actual
gross. The figures above show the portion which comes from the budget
figure in order to establish the budget. After the budget is once
calculated it is adhered to. The f 66 above is the actual figure. It is not
recalculated. It is spent for all expenses. HCO 10%, Salary Sum, 8% for
special Fund all come out of the actual weekly income entire and are
transferred at once to proper accounts.
The way HASI London got into trouble was to have an authorized buying
and contracting at. every hand without regard to income and the way it
tried to stay out of trouble, rather laughably but serious enough in the
long run, was to only pay as many bills as they had money in the expense
sum. This, of course, was an idiotic procedure. The control point must be
on purchasing and contracting not on paying bills. As a result of this
policy when I returned to financial management overall at a board level and
put a financial management hat into the organization we had f,18,000 of
unpaid bills, which were so secret that no record was even kept of them by
the Accounts department. They were evidently waste-basketed. One of the
methods used to 'follow the comm lines' was after a purchase was made, the
goods delivered, a purchase order would be hastily made out so as to "make
the records complete". Accounts not being able to pay the bill would then
file it carefully in some mouse-hole and not advise anybody about it.
The point of entrance of financial management then is the regulation Of
purchase and contract and the severe calculation of and precise ordering of
all supplies and the careful calculation of future rents.
Here we are not fooling. We must run within our income or we won't have
any organization at all.
What happens to the money which is left after we have spent our budget?
We call do several things with it, but the best thing is to take this money
periodically and bring the organization up to snuff with equipment and
supplies to the degree that we have actual cash with which to pay for them,
and not to buy one more paper-clip than we can buy with cash. Furthermore
this money can be utilized for wide advertising programs and other things
which we so desperately need. But unless we budget ourselves within an
income and only spend money that we have and not contract for expenditures
of money that we do not have and cannot expect to have we won't survive
very long.
Therefore, the fundamental of financial management is guaranteeing the
survival of the organization within the economic framework of the society.
However, financial management must also be real. If it has a Z66.0.0 a
week budget for the expenditure of the organization on current bills,
rents, etc, it must spend it and not try to chip down on its actual budget.
It counts on high weeks to simply provide extra funds which will be needed
probably semi-annually to buy the things the organization has been out of
for a long time or to engage in special projects desperately needed for
dissemination.
Running 8-c on money is very difficult to do, I am told. I personally
have never found it so but many people have.
If the organization is only permitted to spend a certain amount of money
it has a prediction and there is no question about it. Salary sum varies.
All other sums for transfers, of course, come out of the main account but
the budget sum must cover all the expenses, rents, equipment and other
things of the organization.
It is up to a financial manager to be very, very, very tough and to
learn how to say no, no, no, no. In fact, it would be a very good thing if
he stood in front of a mirror for ten or fifteen minutes a day saying "no".
This would be an excellent drill.
It is very important to this hat to be handled at once and it would be
enforced ruthlessly, otherwise we are going to continue to run into
financial jams and never have enough money to do any broad advertising in
the London "Times" and "Saturday Evening Post" or anything else. Besides
which, we won't even be there to do it.
The budget of Washington and London have already been set by Sec ED and
is not to be changed. Other organizations should set up their own budget as
above.
LRH:mp.rd L. RON HUBBARD
4th Jun 59
30
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
CenO HCO POLICY LETTER OF 19 JULY 1959
HCO See for seeing
it gets back to HCO WW
ACCOUNTS INSPECTION
All Assn Sees and Org Sees should inspect their Aects Dept and answer
the following:
Dir of Accounts-Do you have one?
Are you confident of his or her responsibility with money?- of records?
Do you have the following:
1. Current Bills book where all bills due and all sums paid on
them are recorded?- is it up to date?
2. Statements Book where all accounts receivable are entered?-
3. Business Files where all business papers, statements, and bills
are entered?
4. Mimeographed sheets which assist breakdown into prop income?
Are you doing the following?
(a) Sending out statements to all debtors monthly? are they
accurate?
(b) Suing all delinquents?
(c) Reassuring 411 past due creditors by letter avowing their account
routinely?
Do you receive:
I (a) A report on Monday showing income of past week?
I (b) A report on Tuesday so you can OK payroll person by person in ore.
I (c) A weekly summary of bills to be paid? /
I (d) A weekly summary of notes to be collected?
NOTE: You realize of course that all monies received by an organization
must be invoiced and banked without being touched and that all
disbursements must be by cheque. Is this being done?
The most trouble the old HASI had was financial. Nearly all of it
stemmed from carelessness in the Accounts section (extravagant purchase,
bad collections, poor records). Insolvency was not the fault of PRr but of
accounts.
As we enter into a new status let us be sure we leave the old turmoil
behind us.
Please make your inspection and report. Then report again when you have
remedied any omissions or negative answers.
L. RON HUBBARD
LRH:brb.cden Copyright Q 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
31
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 18 JANUARY 1965
International
Board Members
Sthil Executives
FINANCIAL MANAGEMENT
BUILDING FUND ACCOUNT
Effective June 1, 1965, no rents, cleaning bills or any other actual
expense sum bills may be expended from the Building Fund Account.
Such sums must be paid from the Expense Sum.
The weekly proportion of income owing to the Building Fund Account must
be paid into it weekly and may not be withheld.
SIGNATORIES
The Chairman, Secretary and Treasurer are the signatories for the
Building Fund Account.
Only International Board Members may sign on the Building Fund Account.
There may be no local or national signatories.
PRIMARY PURPOSE OF BUILDING FUND
The purpose of this account is to provide a cushion by which an
organization which is becoming insolvent may be salvaged.
The following steps should be taken by the International Board in event
of the threatened insolvency of a local org:
(a) Remove its Organization or Association Secretary by transfer to
lower post or, in flagrant cases, dismissal; and
(b) Use the Building Fund Account to prevent the organization's
collapse until a new Association/Organization Secretary can be found
and the newly appointed Organization/Association Secretary can get
things going; or
(c) Pay the expense involved in sending a Board representative to
the area to investigate its activities but only when these show no
signs of being mended locally.
SECONDARY PURPOSE
The secondary purpose of the Building Fund is to purchase property, but
when this is done, the purchase must be for cash or, if any mortgage is
involved, all further payments than the initial payment must be made from
the Expense Sum.
THIRD PURPOSE
Building Fund monies, being under the control of only the International
Board, may alsobe used for other Board purposes without local consultation.
These include research projects or experimental dissemination projects in
the local area, or research on an International basis.
FOURTH PURPOSE
The repayment of loans made by the International Board to an area may be
repaid to the International Board from the Building Fund, but only on
arrangements originated by the International Board.
32
FIFTH PURPOSE
Finance of International Board projects may be obtained by the
International Board by simple withdrawal of funds from the local Building
Fund Accounts without permission or consultation with area or national
officers or their accounts units; these, however, must be informed of the
withdrawals.
CURRENCY REGULATIONS
Where the 10% of the gross income may not be paid to the International
Area weekly by reason of local currency regulations, an additional bank
account must be set up locally to receive them and the 10% must be paid
weekly into that account.
This account is to be called the HASI INTERNATIONAL ADMINISTRATIVE
ACCOUNT.
Only International Board Members may be signatories on the HASI
INTERNATIONAL ADMINISTRATIVE ACCOUNT.
Funds so deposited may be handled in any way the International Board
chooses and are in no way the property of the local area organization.
THIS POLICY ALSO APPLIES TO FRANCHISE HOLDERS. Any "inability to
transfer funds to the International Organization by reason of Currency
Restrictions" are handled in the above fashion always.
DEMANDS FOR FUNDS
As in my experience an organization always spends all it makes,
financial management on an International level consists not of carefully
balancing income above outgo in an effort to save a surplus in an
organization, but of (a) preventing an org from spending more than it makes
and (b) setting aside enough money from its income to care for salvage
operations and salvage expenses.
Part (a) is done by good financial supervision.
Part (b) is done on an International Level without any regard whatever
for the protests and "financial necessities" of the org in question. An
organization, whether Standard Oil or any other will always spend all it
makes and try to spend more. The task is on the one hand to keep it from
spending more than it makes and on the other to make some of its
expenditures recoverable in cash.
Never, on an International basis, be so fatuous as to believe an
organization will continue to have the difference between its income and
its outgo. It will never have that. It will spend it in some way.
An avalanche of reasons it must not save money, or (same thing) why it
must spend it, is routine and is to be expected. "The government will tax
it", "We can't get auditing rooms" and a thousand other reasons may be
advanced as to why the org must spend all its money.
Truth told, I could run any org we have on only 25 percent of the income
I would promote for it and pay high wages. I have done so repeatedly. But I
do it by making the org apparently spend all it makes while actually
spending the surplus in a recoverable fashion. This is the only way I have
ever achieved a surplus for an org in actual practice.
Accountants deal in figures. I deal in people. Some championship chess
players liken life to chess and yet can't make a go of it in life. In life
the pieces think. They have impulses. So chess rules, like accountants'
rules, don't apply.
Collective-think is always closer to bank-think than individual
reasoning. That's because the bank is the one constant people have in
common. And it's crazy. So almost any individual alive can plan better than
a group will execute and certainly better than a group can plan.
Scientology groups are far superior to human groups. But the rule still
applies that collective-think is always less sane than the thinking of an
individual.
33
In finance, which is pretty weird to begin with, collective-think is
always less wise than individual reason. So a group is quite certain to
behave contrary to good sense in financial matters. This factor, far more
than accounts balance sheets, must be given attention. A group, poorly
supervised as in a government, will usually try to spend more than it
makes. Heavy supervision and economy can prevent this. Only the physical
removal of money can achieve a surplus.
INCOME POTENTIAL
The income potential of any usual group is established by the demand for
income, not by any other important factor.
In financial supervision on an International basis, this is the only
factor one works with. While it is reasonable to suppose that income will
occur for other reasons and can be achieved in other ways, the actual fact
is that only demand by the group produces any income at all.
You can, for use in financial supervision, make the requirement almost
anything you like and so long as a group believes it is spending all it
makes and needs more, you will have adequate income.
For practical purposes, no other rules apply.
Scientology orgs have always spent all I would make for them. They have
adjusted their "need" to how much could be made. In supervision of their
finance it is only necessary to reverse this and they adjust their income
to their "needs".
When a surplus is made part of the "need" by disguised outgo, a surplus
occurs. Only then will it occur. It will not happen otherwise.
You can waste 15% of an organization's income to obtain a 5% surplus and
it will be a wise action. If you seek a surplus by trying to save the 15%
instead in a visible way, you will not only lose the 15% but the 5% also.
You can only attain a financial cushion in an org by removing it out of
reach so that it appears to be spent, then producing it when the org
overspends or gets in trouble.
Orgs, like children, are fantastically improvident. And a group, to
work, must believe it is spending all it makes.
Money, to begin with, is only an abstract idea. Therefore it is the
victim of all manner of thoughts and opinions.
All we want out of an org is for it to stay there and continue. To do
that we have to have financial ideas that work. Incredible as it may seem,
the above are the only practical financial ideas which have worked and
which have produced surpluses and guaranteed org continuation.
Add to these good promotion and excellent technical and you have the
reasons we are becoming strong all over the world.
Financial management is not accountancy. It's people. As head of an org,
if you can think your way around collective-think you can become solvent
and even have a surplus. Maybe it shouldn't be that way but it is.
LOCAL FINANCE
When local finance is poor, don't ever look at anything or any one but
the Association or Organization Secretary. This being can either think his
way around collective-think or he can't. If he can, he's got a solvent org.
If he can't, he'll go broke.
An org that runs only on collective-think will go broke.
The only symptoms of approaching insolvency in an org one needs to look
for are (a) demands by it for money belonging to the International Org or
myself, or (b) consistent low income.
34
In either case, the remedy is to get somebody in charge who doesn't
demand monies belonging to the International Org or myself and who gets a
higher income coming in for the org. An Assn/Org Sec who can't do this is
the effect of the collective-think in his org and is not the org leader or
the dominant planner of the org.
At Continental or International level one must never seek for the
"reason" why International or LRH monies must be used by the org or why
income is consistently low. You can get reasoned to death. If these two
facts exist, then there's so much else wrong, one would go mad tabulating
it.
The steps to take are:
1 . Remove the Assn/Org Sec.
2. Put somebody in who can handle collective-think.
3. Use any local surplus to carry the org during the upsets of
transition.
Experience has taught me that distant efforts to right local extreme
wrongs are usually disastrous. You can right small wrongs, show the way and
so on. That's only normal leadership. But when an org begins to skid
financially or get upset over "its" money being used Internationally, you
don't fool about. You just act.
The longer you put off acting, the more local people get hurt. Because
behind those facts of poor finance are some very ugly other abuses always.
1 don't want any orgs in a games condition with the International Org.
For this is only a symptom of the imminent collapse of the local org
anyway. It goes into a games condition only after its overts stretch from A
to Zed.
You don't see the overts from a distance. You do see financial
conditions and demands.
It would be impossible today for a cleanly run, on-policy, up-tech org
not to own its area totally in 10 years.
Financial insolvency? What nonsense!
So financial policy is based on good individual ability heading up each
org and is not based on either accounting or collective-think. Neither one
will build any future for Mankind.
The reasons behind the Building Fund Account have been set forth above
in full.
Good local leadership always results in good local financial credit and
strength. Weak local leadership has always resulted in financial insolvency
and trouble. Broad general supervision of orgs uses financial protests and
upsets and trouble to detect weak leadership.
Without adequate and sensible leaders, orgs would slump into collective-
think in their planning, spend more than was made and cease to exist.
We want orgs to be successful, to stay there and continue. That requires
sensible financial provisions and management.
STABLE DATA
1. An org will try to spend more than it makes.
2. Economy is aimed at preventing it from spending more than it makes.
3. A surplus is achieved only by making it part of what an org spends.
4. An org's expenditures are not regulated by what the org needs in
order to do business but by what an org thinks it has available for
expenditure.
5. Financial management can not achieve a financial surplus by economy
alone.
35
6. A surplus to be achieved must be made part of what an org thinks it
spends.
7. Income is regulated by what an org thinks it has to have to operate.
8. Income is never regulated in a usual erg by desires for a surplus.
9. To achieve a surplus it niust be masked as a "necessary expenditure".
10. Economy, to achieve a surplus, does not include saving on expenses.
It includes only adding an "expense" that becomes a surplus.
11. To achieve a surplus one must add an expense that can then thereafter
convert to a surplus. One can waste up to 50% of an org's income, to
achieve a 10% surplus. In some cases this is the only way a surplus can
be achieved. Why? See 1 and 2 above.
12. An individual is always more sensible than a group.
13. When an org is losing ground financially it is being "run" by someone
who is only the effect of the group, and cannot act as an individual in
planning or control the group.
14. The only possible Board action when an erg is not making its way
financially is to remove the Association or Organization Secretary. The
incumbent is only the effect of the group and is not planning or
controlling.
15. The earlier one detects a bad Assn/Org See and replaces him, the
better it is for the people in that area.
16. The ways to detect a bad Assn/Org See are:
(a) Their games condition by any part of the erg with the board;
(b) Their desires to be financed by the board or use the board's or
my income to run on;
(c) Generally low income;
(d) Protests against the board using "their money".
Under these or any of them will be found an org out of control and
messing people up. Therefore the quicker the board acts to replace the
Assn/Org See, the easier the situation will be to handle and the faster
the erg will recover.
17. Board efforts to "straighten up an area" without replacing the local
head have never been successful in 14 years. If let go too long under
incompetent management an org's recovery requires heroic efforts and
vast financial expenditure by the International Org.
18. Bad local publicity and trouble always follows after # 16 to the
degree that the Board did not act.
19. Financial management as contained in this policy letter, closely
followed, will prevent almost all trouble and org upsets, not just in
finance but in all other areas.
L. RON HUBBARD
LRH:jw.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
36
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 JANUARY 1965
Gen Non-Remimeo Saint Hill Executives Board Members
FINANCE - ORG ACCOUNTS
BUILDING FUND ACCOUNT
Effective June 1, 1965, no rents, cleaning bills or any other actual
expense sum bill may be expended from the Building Fund Account.
Such sums must henceforth be paid from the Expense Sum.
The weekly proportion of Income owing to the Building Fund Account must
be paid into that account weekly and may not be withheld from it for any
reason.
SIGNATORIES
International Board Members only may be signatories on any Building Fund
Account-to wit: the Chairman, the Secretary and the Treasurer at
International Headquarters. No other signatures may be designated for this
account.
One signature only as above suffices to withdraw monies.
TAX POSITION
The Building Fund monies, once deposited, cease to be the property or
concern of the local organizations and are not part of their assets.
Any tax on Building Fund sums are to be paid from the Building Fund but
only by the International Board.
These sums are to be regarded as part of the cost of International
Management. The regular paid 10% of gross income is not affected by this
arrangement and continues to be paid.
USE OF BUILDING FUND
Entirely at the discretion of the International Board, the sums may be
used as follows:
1. When an organization's income is low or the organization is in danger
of insolvency, the International Board may bridge the financial gap
between the inevitable removal of the old Association or Organization
Secretary and the appointment of his or her replacement.
2. When serious trouble develops which local officers seem unable to
handle, the International Board may use the Building Fund monies of that
or a nearby org to send a representative to handle the situation.
3. Wholly at the discretion of the International Board, Building Fund
monies may be expended by the International Board to purchase property.
If such property is bought for cash the whole of the purchase price, if
available, may be paid from the Building Fund. But in case of a down
payment and mortgage, the mortgage of a building used by a Central
Organization or City Office, must be paid off from the Expense Sum, as
it replaces rent payments which would otherwise be made.
4. Building Fund monies may be expended by the International Board or
transferred without any consultation with the local organization. Such
purposes include local dissemination or local experimental projects,
local collection of data, International Research, and any other purpose.
S. The repayment of loans made before January 1, 1965, by the
Interriational organization or its board members, may be done by the
International Board from the Building Fund. Bills owing to the
International Organization before January 1, 1965, may be collected from
the Building Fund Account by International Board action.
37
SUMMARY
Greatly increased local income makes it possible to return to the
original plan and use of the Building Fund Account.
It should be realized that this account was made available to the local
organizations some years ago to bridge the research gap now traversed. The
actual action here is simply restoring some of the status quo extant a few
years ago, signalizing the end of an emergency assistance period.
As early as 1957, orgs commonly had surpluses while paying 25% of their
income into a separate account and this money was never touched for local
activities. I permitted after this rents to be paid from the Building Fund
and some other expenses to expedite org growth and to ease the research gap
until processes stabilized.
It should also be noted that the above arrangements permit an org to
catch up on past debts for 1 0%s, books, tapes (but not Saint Hill student
enrollment or expenses) owing to the International Org.
STARTING THE ACCOUNT
Most such accounts are already started.
For a new org to start one it is only necessary to obtain the usual
papers and cards from a nearby bank and send them to Saint Hill.
The Treasurer at Saint Hill completes them and returns them direct to
the bank and also informs the org of the fact.
A cheque book must be requested of and received from the bank by Saint
Hill.
All relevant papers and the cheque book are made part of the Treasurer's
Files.
Such accounts do not become the concern of either the International Org
Sec or the Saint Hill Accounts Unit.
ACCOUNTING
Deposit slips noting deposits into the Building Fund Account of a local
org are sent to the Board Treasurer at Saint Hill directly along with
weekly reports.
These slips are not invoiced by Saint Hill Accounts as the monies are
not actually received at Saint Hill.
They are invoiced by the Treasurer on a separate machine and the white
is returned to the org by usual channels.
All bank statements on such local accounts are directed to be sent only
to the Treasurer.
The Treasurer's Files contain, then, a file book for each org with its
sections chronologically marked into which the basic papers, the bank
statements, the copies of the invoices, the cheque book and all
correspondence and activities relating to that account are carefully kept
in order and up to date.
At the org, a routine file for the white slips and deposit slip copies
is kept. Into this file the local accounts unit also places its
disbursement voucher for each deposit into the Building Fund Account. Note
that the local org makes out a disbursement, voucher for all deposits into
the Building Fund Account, treating the money as expended. A copy of this
voucher accompanies the deposit slip to Saint Hill.
All correspondence with an org relating to the Building Fund Account
goes only to the Treasurer and is not handled by the International Org
Supervisor or Saint Hill Accounts.
L. RON HUBBARD
LRH:jw.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
38
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo HCO POLICY LETTER OF 28 JANUARY 1965
Int Bel Members
Cent Dirs
HCO Cent Sees A CCO UNTS HA TS
OrglAssn Sees
HCO Secs FINANCE
Accts Units
HOW TO MAINTAIN CREDIT STANDING & SOLVENCY
(Hat cheek on Org/Assn Sees and Accts Assistants)
Credit does not entirely deal with money. It has everything to do with
confidence and reliability.
When the world saw a recently elected government act foolishly with
customs dues, etc, it had no confidence in that government and the currency
of that government went to pieces on the world market.
Money is basically a matter of confidence. So is credit.
An accounts unit that handles money poorly wrecks the org's credit
rating. Insolvency is much less often the source of poor credit than just
poor money handling.
Almost all our orgs have good credit. But where they don't it is money
handling, not the amount of money available, that wrecks credit.
An Assn/Org Sec who handles bills in a certain way has gopd erg credit.
One who doesn't has bad credit.
To try to assign credit to the amount of money available is completely
false.
You can have lots of money and horrible credit. You can have little
money and excellent credit. So saying "our income has been poor so our
credit is bad" is a lie.
The business world judges Scientology not on its scientific validity but
on its financial credit rating. If the org's credit is good, then
"Scientology is okay". If your credit is bad, "Scientology is a racket", in
business general opinion.
Melbourne's financial credit went bad before its general repute earned
it an Enquiry.
Good credit is a primary dissemination line. It breeds confidence. You
can't have bad credit and still be thought of as a valid science.
So financial management must help general disserninatAon by maintaining
good credit.
A bad credit rating comes from negligence in Accounts, not from the lack
of industry of the Registrar.
To begin with, an erg has no business spending more than it makes. To do
so shows stupidity in management and accounts, lack of a purchase order
system and a general beatnik state of organization.
Make all the money you can. Spend less than that. That's the simple ABC
of financial control.
Make sure all the income is accounted for and banked.
Make sure no unauthorized purchases can be made by executives or staff
by requiring an authority to purchase or contract from the head of the org
before any purchase can be made or contract signed. Sure that's slow. Who
wants it fast? The slower it is, the less you spend.
You want speed on the income line. The disbursement line is something
else.
So never listen to somebody saying "But it takes so long to get a
purchase order that I just bought it Yawn and say, "You bought it without
authorization. You can pay for it personally." Never let your Purchase
Order system break down. If you do you will soon be spending more than you
make. Fact. No exceptions.
39
A company to most people is something to bleed. They never realize that
a company can only spend what it makes and that what it has is made by
individuals. So if you have somebody around who is always saying "the org
will pay or should pay", point out that the org is its staff's collective
pocket book and that that pocket book has a bottom.
SOLVENCY
You sometimes hear around an org a wave of "we're broke" when spending
is restrained. This hurts credit. For it's not true. Economy is not a sign
of being broke. It's a sign of increasing prosperity. Without curtailed and
watched spending you never have prosperity.
So don't tell everybody "We can't buy it because we're broke". That's a
lazy, dull reason. A better one is, "We can't buy it because we don't need
it", and is usually the truth. "We have a P.O. system because we want to
prosper" is the real reason you have one.
Make lots of money. Spend it frugally.
So it gives a tax problem. So what? Your accountants should be capable
of avoiding tax problems. Whether you do or don't have money you will
always have a tax problem because governments are crazy. The way to solve
tax problems is to have money, not to be broke.
Taxes exist only to destroy businesses. Be impudent. Get rich and to
hell with them. Governments are just a reactive bank we have to live with
for a while. Learn to handle them. But not by refusing to make money or
have it.
But solvency depends on how you handle things, not on how much you have.
Micawber, in "David Copperfield", said that if you had twenty-one shillings
and spent a pound, you had happiness. But that if you had nineteen
shillings and spent a pound, you had misery! A pound being twenty
shillings, that's all there is to solvency.
If you have to spend a million dollars, then you better make one million
one hundred thousand first. And then make sure you don't spend one million
two hundred thousand.
The secret of solvency is:
1. Make a lot of money. The way to do that in Scientology is
covered in HCO Policy Letter of January 21, 1965 -"Promotion and
Organization".
2. Spend less than you make. That's covered by having a good P.O.
system and alert financial management.
3. Make it before you have to spend it,
4. Gather bit by bit a cushion of cash to fall back on and don't
ever fall back on it.
S. Keep your credit excellent as a second cushion.
6. Refuse to spend reserves. Make more money to meet the emergency
instead. (It's usually quicker to make it than to dig it out of old
hiding places. Never borrow to pay bills. It's less trouble just to
make the money.)
7. Realize that collective-thought regarding finance is just bank
and that bank is dead against the creation of anything good and all
for eating up everything that exists. Thus financial planning and
control is an individual job, is often contrary to group demands and
succeeds only when the individual handling it can rise superior to
the group. A tame dog financial manager, trailing along behind the
group, yessing everything, will always make the group insolvent. The
person you put in charge of financial management should be able to
say "No!" no matter how popular a silly "Yes" would be. The
financial manager is not there to buy his own popularity with org
funds.
In the early years of Scientology, my whole answer to org solvency was
just to make a lot more money than people could waste. It's a good answer,
lacking all others. When I finally attained control of orgs, I was able
also to curtail the waste while making lots of money and we've been pretty
solvent ever since. The principles I used to achieve and continue this
state of solvency are accurately and completely listed in I to 7 above.
CREDIT
When you realize FINANCIAL CREDIT is vital in dissemination, you become
very interested in what it is. As I said above, this is conflidence.
Given some degree of solvency, you still do not have a good credit
rating. That is achieved by HOW YOU PAY BILLS.
40
This is the one big point that is vital to know thoroughly in this
policy letter.
If an Association or Organization Secretary and the Accounts Assistant
does not know exactly this data, the org will have bad credit and financial
trouble, no matter how much they make.
There is an exact way to pay bills.
This is to pay the bills up to a certain date always. It is called
"Paying by dateline".
Never "pay a little bit on each bill" to save money or help cover a lean
period. That will never help. On the contrary, it advertises your lean
period and hurts your credit.
1 Instead, always, lean or fat, pay all the bills behind a certain date
and none closer to PT than that date.
That's why we have the type of disbursement system we have. So you can
do this trick. If your disbursement system and its files are not up to the
mark and are sloppy, you will always have bad credit because they can't
then do this trick of Dateline Paying.
Look to the inefficient accounts unit and the lack of this bill-paying
system if your local credit is poor. Don't go off into income-outgo. Just
demand that our general accounts system be followed and that Disbursement
Files are up to date.
If you find an accounts personnel giving financial management the razz-
ma-tazz about why it can't have good disbursement files and if this bills-
paying schedule is always being violated, assume at once that that
personnel is overtly wrecking the org's credit and get him or her away from
that post and get somebody in who will follow our system accurately and
help pay bills only by dateline.
You can have six months worth of unpaid bills in some areas of the world
and still have a good credit rating providing you do not have one bill that
is ten months unpaid.
Never "pay bills" any old way. A financial manager should always refuse
to pay bills one at a time on different days, or when accounts submits a
check.
Tell Accounts "Give me every bill we owe prior to August (three months
ago)." Add these up. Let's say the amount exceeds our cash. Cut it back one
month. Order "Write cheques for every bill.up to July L" (That's four
months back.) That we can cover fully with cash. We pay all bills up to
July 1. We demand of Accounts "Are you very very very very sure that no
bills dated prior to July 1 now exist?" If the answer is "None exist",
okay. But if we find out next week that one existed for April 1 that wasn't
included, we overhaul the unit as destructive of credit.
Business men,handle their books by bills owed month by month, not by
total sums owed. When a Check comes in paying his July 1 bill, then it's
plain you're paying your bills. If you send a small sum hopefully to "stave
them off" they can't dismiss any one statement with it and so get panicky.
It looks like you aren't paying your bills.
After you've paid all bills older than 4 months, get busy and make
money. In 30 days, request of accounts "all bills up to 15 August". Let's
say we find that we have cash to cover. We say 'Tay all bills up to August
15". Now we're only 31/2 months behind.
A month hence we pay "All bills up to Oct L" Now we're only 3 months
behind.
If you get some eager beaver into finance who doesn't use or understand
how to do this, you can suddenly look up and find that you thought you were
doing all right but you're broke. The eager beaver paid randomly anything
in the files he or she came across "in order to pay our bills". We aren't
interested in bills as bills. We're interested in "all bills earlier than a
given date".
You can go pretty smash on an eager-beaver bills-paying spree with no
regard to the age of each bill.
Only pay by this system: PAY EVERYTHING UP TO A DATE ALWAYS and no
further.
And get a new Accounts Unit if Disbursement Files aren't accurately kept
so financial management can do this.
EXCEPTIONS
Government tax bills, water bills, occasionally rent or 'phone are
sometimes accompanied by threats of vast action unless the whole bill is
paid instantly. Still try to
41
use the above system. But if you can't, pay it and retard other bills
accordingly. And thereafter, don't pay that outfit's bill on any other
terms than threatened trouble.
If a tradesman, despite the use of the above system, demands further
payment or threatens suit, caution him that if he carries on this way
you'll deal elsewhere. And carry out the threat. Never continue to use a
private business firm after they become obnoxious about bills. Trade
elsewhere. And say why.
If you're using the above dateline system and a tradesman gets upset,
then he is gypping you or he has too little finance to handle your account,
so stop trading with him. Always make that an iron-bound policy. Be very
proud and haughty about bills. Never propitiate.
So the points here that are important are:
I . Pay by dateline only and pay all up to that dateline. Put the
dateline far enough back so you can pay all up to that date.
2. Have an Accounts Unit that can do this and change one that
flunks it.
And that handles the whole of credit rating.
Simple?
OUR SYSTEM
The other day two high-geared chartered accountants were giving me a lot
of stuff about how I needed a double entry system and that the existing
system was wrong.
They said, "We can tell you 21 days after the 30th of the month where
you stood
in that past month using our double entry system." - I
I said, "The system we have to have must tell us four days after the
past week exactly where I stand. We operate in the 20th Century, not the
19th."
They said, "But your system is wrong."
I said, "In a double entry system, you need each bit we have, don't you?
Invoice all the money, bank it, reconcile the deposits with the slips and
statements, file all the bills, verify them, pay them by cheque and voucher
and keep all records."
They looked at each other and were very quiet. "Yes, that's correct,"
they said.
I said, "All right, that's our system. Now you can do anything you like
with that system from there on, so long as you don't prevent us from
knowing where we stand four days after the past week and don't bar out a
non-accountant from discovering what's what in the Accounts Unit. Now go
ahead and on our system erect any system you like. No government requires
anyone to have books. They only require records. But books, if they help,
should also be kept made up from our records." They agreed.
So if you are getting propaganda about how our system is inadequate as a
reason not to operate and have accounts, get somebody in who can make it
work. For our system is the basis of every other system and if it's in
order and done, you can have books. If it isn't in order, no books can be
kept by any system.
So we don't care what accountants do with our basic system so long as we
still at least have that. On that, any type of books can be erected or any
balance sheet made.
If you have the basic data you can add it up.
If your accounts unit can't add up whatever you need then our system is
not kept up and no system would work in that unit. Where there is Accounts
trouble there is:
I . Non-com prehension of our basic system as the basic of any accounts
system,
2. Nothing being done.
Get our system in so you know where you are with cash and bills.
Manage by paying all bills up to a specific dateline only.
Advance the dateline as you can cover all with your cash and make lots
of money so you can advance it further toward PT. Practise economy so you
can advance it even closer.
Continue to do that and you'll always have a good credit rating.
We have a lot of fine accounts units. They do a good job. They can
handle this if they understand it. It's your job now to get it understood
and done.
LRH.jw.rd
Copyright @ 1965 L. RON HUBBARD
by L. Ron Hubbard
ALL RIGHTS RESERVED
42
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 MARCH 1965
Remimeo
Int Bd Members FINANCIAL MANAGEMENT
Cont Dirs
HCO Cont Sea (ACCOUNTS HATS)
All Accts Executives (Ref: HCO Pol Ltr Jan 28, 1965)
PURCHASE ORDER FILING
All Purchase Orders must be filed in the folders of companies from whom
material is ordered regularly or in the Unpaid bills file immediately the
purchase is made.
There may be no additional "Purchase Order File" which retains original
POs.
When making up the monthly bills statement the Accounts Unit must
examine folders for POs outstanding not covered by statements and report
these on the monthly bills statement to the financial manager.
Failure to so check lays us open to error in dateline paying of bills.
An account from a company that is sloppy in sending statements can suddenly
emerge from a period earlier than the dateline set and mess up our paying
of other bills.
For instance, you confidently pay all bills up to, say, September, only
three months earlier than current. Two weeks later Accounts tells you that
you owe another Z5,000 back from summer. You have to back up the dateline
to handle them. There is nothing wrong with backing -up the dateline. But
there is everything wrong with having E5,000 more bills than you bargained
for. It's a nasty shock and oversets all financial planning and estimates
of the state of the org.
The way this can happen is that two or three companies have never
submitted statements for work done and accounts didn't see the bills were
missing. Then said companies submit bills and bang, there goes financial
management.
We care nothing for the interest the money would draw if we didn't pay
until a statement was sent. We do owe the money and it is better to pay it.
That they sent a statement five months late is no advantage to us. Actually
it's a mess up.
So keep all POs in the proper files so you can also check them for
appearance and
in lack of appearance on the statements we get. Don't be hopeful such firms
will
forget. They never do. They just jump up suddenly and scream for money
right when
you think you're going great. Their failure to send statements will get
them into a
financial mess which they then solve by frantic demands for money. I
Try not to deal with such firms as they have pretty lousy managers and
will mess us up by slow delivery and all.
But even so, look for big POs particularly that don't appear on
statements yet before you feel secure that your monthly bills summary for
financial management -is "all there is up to September". Otherwise you put
our credit at risk and wreck all efforts to estimate the condition the org;
is in.
L. RON HUBBARD
LRH:jw.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
43
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 4 MARCH 1965
Gen Non-Rernimeo
Assist Treasurers
Accts Units
Sthil ACCOUNTSHATS
RESERVED PAYMENT ACCOUNT
All organizations must start, as an additional bank account, a Reserved
Payment Account with signatories the same as other routine org accounts.
The Reserved Payment Account, as its name indicates, is money set aside
for a certain destination but not yet sent.
PURPOSE OF THE RESERVED PAYMENT ACCOUNT: To prevent a false idea of the
financial position of the org from occurring by providing a place where
money awaiting disbursement can be placed before it is actually paid out,
thus removing it from the general accounts and estimates of financial
position of an org.
QUESTIONED BILLS: Anytime a bill is in question, it is not paid to the
creditor until fully settled. However, dateline paying becomes very
disrupted by such sums and the actual financial position of the org becomes
difficult to estimate while such sums remain in its regular accounts. When
a past bill prior to the dateline is being challenged and corrected, the
full amount is deposited in the Reserved Payment Account. To pacify the
creditor who may get the idea you are just stalling, also always send him a
copy of the Reserved Payment Account Transfer Voucher, writing: "Dear Blitz
& Co: Your bill is being audited for verification or correction. Meanwhile
its payment is being held in our Reserved Payment Account. If verified or
corrected the amount owing to you will be paid to you from this account."
The transfer voucher is clearly marked "Blitz & Co, Reserved Payment
Account Transfer for March bill, being checked." Such vouchers accompany
other cheques being presented to the signatories of accounts. When the
actual sum is verified, that amount is then paid the creditor by a cheque
from the Reserved Payment Account. For any money not paid, it is eventually
returned to the regular accounts.
At times when the books are being closed for the period just past, any
excess money in the Reserved Payment Account is returned to the regular
accounts as a transfer or left as a saving for future purchases as directed
by financial management.
TAXATION: All taxation monies which are owed governments but are not yet
paid are deposited in the Reserved Payment Account and eventually paid to
the government as owed. This means that where an org must pay withholding
tax, PAYE and other such sums, TWO salary cheques are drawn each week, one
for the staff, one for the government. The government cheque is deposited
to the Reserved Payment Account. Once a month or as wise, the government is
paid off to date with a Reserved Payment Account cheque or cheques
amounting to the sum owed. In cases of org income tax payments, any sum
estimated can be placed in the Reserved Payment Account as seems prudent,
fitting the conditions of the area.
OUTSTANDING PURCHASE ORDERS: Where, on preparing a Monthly Bills Summary
for dateline paying, large Pos for which statements are not yet received,
incurred prior to the dateline must have their amounts deposited in the
Reserved Payment Account or a liberal estimate of the amount. Such large
P0s must not remain undetected and must be part of the dateline payment
system. If a large PO exists for August but the creditor has sent no
statement and the dateline being paid to is September 1, then the amount of
the large PO is deposited in the Reserved Payment
44
Account when the other bills are paid. There it remains until a statement
is submitted by the creditor.
SAVINGS: When the org desires to buy something big or expensive, it
should not use time payments, hire purchase or mortgages. It should start
putting money into its Reserved Payment Account and when the full sum is
there, buy the item for cash, using the fact to obtain a good big discount.
While the Building Fund on Building Purchases is also intended to help buy
buildings outright, there is nothing wrong with also depositing available
amounts of the Disbursement Sum in the Reserved Payment Account to help
out.
All monies transferred to the Reserved Payment Account are made the
subject of a Disbursement Voucher which clearly states why and for what the
payment is being reserved for. Of course, when any amount is paid from the
Reserved Payment Account another voucher is written, referring to the first
one regarding the original transfer. So it is necessary that when one makes
a Disbursement Voucher for transfer into the Reserved Payment Account, a
copy of that voucher is spiridled or put into a handy single file.
Otherwise one won't be able to recall why the Reserved Payment Account has
money in it and so may let it be used for something else as an apparent
overflow-much to everyone's eventual embarrassment when the X bill gets
straightened out and wants money to pay it.
The Reserved Payment Account is an easy system. People often handle
their own personal money this way-520 aside for a new jacket, 5 15 for this
week's share of the rent when it falls due. Add to this S 12.50 "for the
money Bill says 1 borrowed and he has to find the note for" and put it all
in the broken tea-pot on the top shelf and you've got the purpose and
action of the account.
You can object to it on the grounds that "it ties up capital on which we
pay interest in another accounf' etc, but frankly such small interest bits
are little to pay for the security of knowing you can meet your
obligations. To juggle with already committed funds is financial
Brinkmanship.
You see, by just an orderly scheduling of payments (as per dateline
paying) and being prudent in setting big amounts owing but not paid aside,
an org can move up to present time.
1 know no other way of getting an org's finance (or a pc) to present
time except by pulling off the things which hold him in the past.
An org is far more aware, and far saner if it's in Present Time. Just
like preclears. Hence dateline paying and the Reserved Payment Account.
L. RON HUBBARD
LRH:jw.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
45
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 MARCH 1965
Gen Non Rernimeo
Acets & Financial
Management Hats
HCO See Hats
Assn/Org Sec Hat
EMERGENCIES AND ACCOUNTS PERSONNEL
Any tendency of Accounts to use "we're poor" or "we're in an emergency"
to turn down P0s or explain to tradesmen why bills are not paid reverses
the emergency formula (1) Promote (2) Change (3) Economize and (4) Deliver.
Crying poverty is a violation of the formula, to say nothing of being a
sour postulate. All you have to do to really fail in an emergency is to use
the wrong sequence in the formula. If you use economy in the name of
"promotion", the whole org is threatened and may collapse.
When the org is doing all right and accounts personnel falsely uses an
emergency formula to turn down P0s the org can be thrown into an urgency
condition, since poverty, wrongly announced, brings poverty and frantic
promotion becomes necessary to save credit. In the Emergency Formula the
first action is Promote. This applies to the money section of the org as
well. While they don't have to write letters to new applicants they do have
to promote the org's credit standing both to staff and tradesmen.
Accounts and finance promotion in a time of emergency is to bolster
confidence in the org's credit by putting a good face on things and
encourage the staff to make more money.
For example, a politician recently destroyed his country's credit abroad
by howling "economic money crisis" instead of promoting England. Saying to
somebody, "You cannot have this Purchase Order because we're broke" is
sometimes a social falsehood, told to escape having to tell the applicant
that the Purchase Order is silly. One doesn't downgrade the org's credit to
make an extravagant staff member stop blowing our money. One says, "Maybe
if your department made more money, you could have this. Until your
department does, you can't." It's really a matter of they are broke, not
the org. If the department is doing well and still submits a wasteful
Purchase Order, just say so. Say, 'Ve aren't making money to be silly with
it. We need what we
make to expand, not to buy whatever the PO calls for. The criterion
of all P0s
is, "Is this PO for something that will increase our ability to expand or
is it just
somebody's got-to-have?" That's the judgement in signing a Purchase Order
as OK.
Some items actually retard expansion, consuming more time to us than they
save.
In the case of a tradesman demanding for a bill only slightly overdue
you will usually find they have done poor work or slow work if you're at
all solvent and paying your bills. Don't say, "We're too poor and we can
only send you a little but we will try." If you do and anybody hears of it
in the org, it may become the subject of discipline if not Committee of
Evidence. Say properly, "I don't see that your bill is much overdue. It
takes a bit of time to pay a bill you know. 1 will check over your account
and see if it is all right. And by the way, people who dun us either have
insufficient finance to handle our business or something is wrong with
their bill. 1 am setting your bill aside for audit and if you call again
about it, we will sever the account."
Be tough. They're probably a gyp outfit anyway. I've never found
otherwise.
For a bill in actual question say, "The amount of your bill is deposited
to our Reserve Payment Account and will be freed when we have finished an
audit on your statement." And tell them how they can help.
46
If the org has foolishly let itself get deep in debt and there is little
money, the surest way to make tradesmen demand full payment is to tell them
how "poor" you are. They will instantly rush to serve you with suits. Just
say, to tradesmen who dun, "Oh really? We'll send you a cheque." Never say
how much. And stay steady with dateline Paying and you'll make it. Your
casual air is itself promotion. If a personnel has money trouble of his own
he thinks everybody else must have. That is not true. Very few people have
real money problems. So don't sell money problems. That's not promotion,
that's sabotage. Sell good sense and sound finance and good credit.
Downgrading Scientology credit rating by careless or false statements
concerning its financial condition is very, very, serious. And should be
regarded as such.
We control an awful lot of money in Scientology. We are as rich as we
promote, and deliver and handle our money sensibly. To say "Scientology is
broke" is very, very much a suppressive act. Bolster credit in emergencies,
that's the promotion action for Accounts.
1 never write a letter that concerns money without promoting our credit
standing. Never. I always promote our credit. "Dear Bank Manager: Our
expansion is going so
rapidly that or "Dear Blitz and Co: Demands for Scientology are
such that our
org wishes to buy a new Blitzet, providing we don't have to wait on
delivery. We can't.
Etc." Promote the org's credit. Public confidence in Scientology depends on
our
promoting and maintaining excellent credit everywhere, and even when you're
on the
ropes in emergencies, still promote our good credit. After all, we'll be
around for the
next trillion or more. Why not have good credit standing while we work.
Credit is just
an idea. Help plant it. And then make it come true.
L. RON HUBBARD
LRH:wme.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 APRIL 1965
Issue 11
Gen Non-Remimco
Saint Hill Execs
Board Members
HCO Policy Letter of January 19, 1965 "Finance-Org Accounts" is herewith
cancelled.
L. RON HUBBARD
LRH:wmc.eh.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
47
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 NOVEMBER 1965
Gen Non-Remimeo
Ad Council Hats Executive Division
Org Div Hats Org Division
FINANCIAL PLANNING
The Financial Planning Hat is worn by the Advisory Council.
Financial Planning means-How to handle the money and assets of an org so
as to maintain outgo below income.
The actions of Financial Planning are as follows:
I . Directing the payment of bills (as designated by the Ad Council);
2. Directing any necessary delay in the payment of certain bills;
3. Handling finances in accordance with "dateline paying" as
covered in an early policy letter;
4. Setting limits on the Purchase Orders that may be signed;
5. Preventing divisions or departments in Emergency from buying any
but essential promotional supplies or postage;
6. Adjusting payrolls;
7. Setting limits on pay, overtime or bonuses and all
authorizations for pay overtime or bonuses;
8. Fixing prices;
9. Directing any transfers of funds;
10. Deciding upon any large purchases;
11. Authorizing the sale of any equipment or property;
12. Passing upon prices offered for any equipment or property.
Any matter affecting the financial health of the organization has to be
passed upon or planned by the Advisory Council.
LRH (Office of LRH, Financial Planning Authority) can set aside Advisory
Council decisions in any Financial Planning matter whether referred to him
or not.
Only large transactions or important long range decisions should be
referred to the Office of LRH and then only when the Advisory Council is
divided.
DISBURSEMENT SECTION
The Disbursement Section furnishes the data without which financial
planning is impossible.
A short summary of the data required for financial planning is as
follows:
The Disbursement Section files every bill received in the Disbursement
Files.
Those bills that are repetitive are filed in folders under the company
name. The one-time bills are filed in a loose folder for a single
month.
The Disbursement Section has made up a Mimeographed form. This is
the Monthly Bills Summary.
This form has the name of each company with which the org does bu�iness
plus adequate blanks after each alphabet letter for new companies to
be added.
This form has four columns. The first column is the company owed. The
second column is the grand total of money owed that company. The
third column is the amount that is past due. The fourth column is
the month since when the bill has been past due.
All bills are filed on arrival. They are not kept out and entered. They
are filed in the folders. This is important. No one must pay bills just
taken from the post and save up. They are promptly filed.
Then one takes the folders one by one and makes up the Monthly Bills
Summary. As each folder is taken up the bills are examined for correctness,
straightened up and entered in the Monthly Bills Summary.
48
The way the system breaks down is to make up too many folders.
Only a repeating creditor rates a folder. One the org does business with
routinely like the light company, the landlord, the paper company, etc. The
occasional bills go into the folder for the month.
Each time a Monthly Bills Summary is made up, the occasional folders for
past months containing unpaid bills are gone through again and added to the
statement.
The Statement for one month complete, then tells one the total monies
owed by the org for that month. Thus there is a statement for each month.
The Monthly Bills Summary is due in the hands of the Ad Council on the
second Tuesday of each month. BANK RECONCILIATION SECTION
The Bank Reconciliation Section of the Dept of Records, Assets and
Material makes up the latest bank records of monies on deposit concurrent
with the Monthly Bills Summary. .
This section once each month (concurrent with the Monthly Bills Summary)
reconciles all bank statements, tapes all cancelled cheques on their
counterfoils and in short makes certain there are no bank errors or
omissions.
A Monthly Accounts Summary is then prepared showing the amount in each
bank account. This too is a mimeographed form showing the names of the bank
used, cheques outstanding, etc. It also carries a total sum of monies in
the bank.
This form also carries a section devoted to loans outstanding that the
org must pay.
This form, made out, is submitted to the Ad Council on the 2nd Tuesday
of each month.
INCOME NOTE COLLECTIONS SUMMARY
THE COLLECTIONS SECTION
The Collections Section of the Department of Income submits to the Ad
Council a form called the Income Note Collections Summary.
This form carries an amount for cash collectible from notes (possible to
collect)
and a cash collectible from notes past due and the amount of notes that
are, apparently
uncollectibl * e. The total is added into grand total of Credit Advanced.
It gives the total of payments received during the month past (the lst
to the last day of the month).
It gives the number of statements mailed in the month just past.
It gives the number of persons with overdue notes who have been handed
over to the Director of Clearing and passed on to Field Staff Members.
It gives the number of notes to date given to lawyers for collection
that remain uncollected.
This Income Note Collections Summary is placed in the hands of the
Advisory Council on the 2nd Tuesday of each month.
ADVISORY COUNCIL ACTION
The first action of the Advisory Council is to prepare and get
mimeographed the three forms described herein.
The second action of the Advisory Council is to make sure the Org
Division is so organized as to be able to make out the forms provided
easily, that their files are so arranged as to do so and that personnel
exists to do them.
The third action of the Advisory Council is to make sure the persons
making up the forms know this and other pertinent policy letters.
The fourth action of the Advisory Council is to make sure that it
receives the proper forms on the second Tuesday of each month, ready for
use in Financial Planning.
The fifth and continuing action of the Advisory Council is to make sure
routinely the forms are accurate and actual and not generalized or "roughly
estimated".
The sixth and most important action each month is to plan financially on
the basis of the three reports and set limits or restraints on POs or
personnel numbers or whatever is necessary to achieve "Outgo less than
Income" and get or keep the org solvent.
49
INCOME
The Advisory Council's Actions of assigning conditions to divisions on
the basis of the gross divisional statistic and actions in straightening up
Divisions in Emergency and pushing standard Promotion as per HCO Policy
Letter 22nd November 1965, will keep income up.
It is more vital to pressure income up than to save rrioney by Financial
Planning restrictions. The emergency formula places, rightly, economy after
promotion. Promotion comes first.
But economy is also vital. It is handled in relation to income.
When income is far down the Advisory Council simply shuts off all but
promotionally vital P0s.
Where a Division is in Emergency the Ad Council shuts off all P0s except
those vital to promotion in that division. (The tendency of a Division in
emergency is sometimes to demand extravagant or unwise purchases.)
CHEQUE SIGNING
The cheque signing line contains all three of the above reports as of
the last time they were prepared and a tape of all cheques paid since.
Cheque signing policy as already released thus requires the other two
monthly reports as well as the other items specified.
To that policy, also add, that a cheque signer must, to sign a cheque,
also have before him the last issued orders of Financial Planning.
It is very easy to confuse a cheque signing line with a Financial
Planning line.
They are, however, completely different.
One signs any cheque only after Financial Planning has been done and
with the total reports of Financial Planning and decisions taken, before
one.
Cheque signing is a secondary action and is the result of Financial
Planning decisions.
One pays only what Financial Planning has okayed to be paid and how.
DISBURSEMENT ACTION
When Financial Planning indicates what to pay or not to pay,
Disbursement makes up the cheques and sends the lot to cheque signers.
Cheques signed during the period are signed as authorized by Financial
Planning each week, such as, "Franking Machine, FSM Commissions and Petty
Cash up to
may be paid in the coming month." This, part of the Financial Planning
Minutes of each meeting, is the guide by which weekly cheques are made up,
submitted to signers, signed and sent.
SUMMARY
Unless all these actions are done, an org cannot in fact prosper, has
poor credit and is generally upset,
One has to get in the Income. That is done by making divisions do their
proper promotions and keep their statistics up. The mechanism is Gross
Divisional Statistics, assignment of conditions and investigating and
putting right Divisions in Emergency by Ad Council personal inspection.
Sometimes, where a divisional emergency is continued too long, the Ad
Council has to order an E-Meter and case survey of its personnel as an SP
is surely about.
In Financial Planning one safeguards what one gets in as described
above.
Cheque signers and PO Signers are not necessarily Ad Council members but
whether they are or not, are governed entirely by the last Ad Council
Financial Planning directive.
The Financial Planning Directive of the Month is issued promptly after
the second Tuesday meeting of the month as an Exec Division Admin Letter
with the Month and Financial Planning of it in caps such as FINANCIAL
PLANNING FOR MARCH.
This is the second part of the Ad Council Assignment of conditions to
divisions.
Long range planning also appears on this directive, this long range
financial planning is not binding and is often changed in view of current
happenings. It is a guide by which other executives can tentatively plan.
I-RH:cp.ca.rd L. RON HUBBARD
Copyright (D 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED so
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
6 colnes to HCO POLICY LETTER OF 21 DECEMBER 1965
Each Org
Master Files
Org Exec See Hat
HCO Exec: See Hat
Org Sec Hat NSHIPS TO ORGS
Dir Dept 5 LRH FINANCIAL RELATIO
LRH Communicator
After a careful review of various tax situations in orgs 1 have come to
the
following conclusion:
1. That no understanding is given by tax officials when the
relationships of LRH, an individual, to organizations has been handled
on a very charitable basis by I-RH an individual;
2. That when LRH an individual does not precisely bill and demand
payment of debts by orgs to LRH an individual, the tax authorities twist
the matter to our discredit;
3, That leniency where financial relationships between LRH, ail
individual, and any
org rebounds to our discredit tax wise;
4. That when sums owing by an org to I-RH, an individual, are not fully
accounted for in the books and balance sheets of an org as due and owing
to I-RH, an individual, tax problems arise for the org and for LRH, an
individual;
5. That tax problems stem from the leniency in this relationship.
For fifteen years I have personally paid for research, have loaned and
advanced orgs money, have guaranteed their overdrafts, have given thern the
benefit of my
personal credit rating which is high. I have not sought for reimbursement;
I have not collected adequate pay or given orgs bills for what they owe me.
The 10% sent by orgs is fully consumed by administrative service (and
much more than 10%) and is routinely invoiced to the managing organization
and spent by it, or is sometimes held by I-RH as a trustee. It is not given
to LRH, an individual as records prove without exception.
All this for 15 years has been an effort on my part to help our
organizations. But
it is interpreted in other ways by tax officials, winds orgs up with what
it owes I-RH an
individual showing as a "profit" and upsets LRH, an individual's personal
tax picture.
Thus I have had to conclude that the majority of tax troubles stems
from
(a) Orgs not keeping a proper record of monies owed to I-RH an
individual.
(b) LRH an individual not regularly billing orgs for monies owed.
(c) LRH, an individual not exacting proper salary, payment and
reimbursement!
In 1966 we will begin to set this right. A recapitulation will have to
be made and
records corrected.
Although it is not easy to imagine that a benign attitude on the part of
I-RH an individual is incomprehensible to tax officials, it is easy to
realize that tax persons are unused to dealing with unselfish acts and
suspect anyone so engaging.
Therefore the following policies are laid down:
A. Every org must carefully record and keep in record all surns owing to
LRH, an
individual;
B. All sums owing to LRH, an individual, must be reflected on yearly
balance sheets;
e. Adequate salary and compensation must be allowed for LRH, an individual
by all
orgs;
D. The Office of I-RH must also keep a record;
E. The Office of LRH must bill the orgs routinely;
F. Sums so owing must be paid;
G. Every effort must be made to set the earlier records in order;
H. The current indebtedness must be carefully accounted for;
1. The LRI-I Communicator is responsible for the LRH an individual
financial sums
51
appearing in the balance sheets of the org and that routine bills are
rendered.
Note: These policies stem from US Internal Revenue actions by which the
Founding Church of Washington DC is under threat of large tax bills it does
not owe and the tiny amount reimbursed to LRH, an individual, for actual
outlays on behalf of that org are under challenge and actual sums owing to
LRH, an individual, are not properly recorded or taken into account. All
the trouble stems from the lack of A to I policies immediately above.
DEFINITIONS
LRH, AN INDIVIDUAL, means L. Ron Hubbard, a private person as distinct
from a trustee, a director or a staff member. LRH, an individual often
advances goods or sums without reimbursement, has borne the whole cost of
research of Scientology and used his own money to found organizations.
LRH, TRUSTEE. This is L. Ron Hubbard in the capacity of a trustee as
distinct from a director or individual or staff member. LRH, Trustee, holds
money for corporations or persons or holds property for them.
LRH, TRUSTEE FOR TRANSFER. For some years the Commonwealth (overseas,
not US) interests belonging to the Hubbard Association of Scientologists,
International, Incorporated, in Arizona, have been held by LRH, Trustee for
Transfer. As the overseas interests were worthless to the US Corporation in
the US (HASI, Arizona) due to currency exchange laws, and was costing it
money, the board of HASI, Arizona, appointed LRH a Trustee for Transfer for
all Commonwealth Corporation property or interests with orders to hand it
over to a UK corporation. As Arizona law forbids giving the assets to any
but a non-profit corporation, non-profit UK and Commonwealth Corporations
had to be formed. The UK tax authorities make a company operate for a year
before declaring it non-profit. So far no Commonwealth company has been
granted tax exemption for companies LRH attempted to form. HASI Ltd was
such an effort. Non Profit status was refused it. But progress is now being
made in another direction so these assets can be delivered eventually to UK
and Commonwealth companies.
LRH, A DIRECTOR, is a director on the board of directors of several
companies. No salary may be paid for this post.
LRH, A STAFF MEMBER, works on staffs as a case consultant, training
officer, lecturer, design and planning consultant, promotions adviser and a
department head of the Office of LRH and as such should receive
compensation. As a staff member his expenses are paid by orgs. The pre-
Dianetic salary level of LRH an employee was several times that given by
orgs subsequently.
10% ROYALTY, LRH an individual owns, since he paid for the original
research as well as later research and never received a salary for doing
it, all Copyrights, registered marks and trade marks and rights of
Dianetics and Scientology. Orgs send 10% to Saint Hill and this is used by
HASI to administer orgs, paying for communication costs, administration,
bulletins, etc, etc. It is invoiced to the Saint Hill Org and has never
been given to LRH, an individual, a matter of record, Some US 10%s have
been held by LRH, a trustee, and returned in legal in loans and other
official matters to orgs in the US. Therefore the 10% royalty owed for use
of name, materials and research by orgs has never in fact been paid. The
Franchise 10% is similarly used up by Saint Hill in giving service. No org
or field auditor or Franchise Holder has ever paid for its use of name,
copyrights, material, writing and research.
SALARY, LRH, an individual has received a salary from time to time
always less than that given to comparable positions in other orgs. It is
currently E25 a week, advance.
I have tried to put as little financial strain as possible on
Scientology orgs. This is not understood and we are penalized for it.
Therefore we must bring earlier arrangements up to date and keep
current.
This does not mean I want money. I spend my money on behalf of
Scientology one way or another anyway. It does mean that to stay away from
tax trouble in the future we must understand and put my relationships to
orgs on a sound current footing financially and keep scrupulous records of
it.
LRH:ml.rd L. RON HUBBARD
Copyright (B 1965
by L. Ron Hubbard 52
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 4 JANUARY 1966
Issue VI
Gen Non-Remimeo
LRH Communicator Hat
HCO Area Sec Hat
Exec Sec Hats
Org Secs Hats LRH RELATIONSHIPS TO ORGS
I have several posts and relationships to orgs which make up several
identities.
Unless these are understood many errors can occur, not the least of
which are tax errors, and not the least dangerous, power pushes and upsets.
For instance, there are two Offices of LRH at Saint Hill. And one more
for every other org. This is a familiar situation. It has happened in LA,
Phoenix, DC and London-I always specially work with the org where I am
situated as well as continue to handle all other orgs on an International
basis and remain the chief executive of each org elsewhere.
An org where I am, making more than other orgs, always bears the expense
of international activities. In this case, here at Saint Hill, the org also
shares international income and so its cost is light.
Thus I have several hats and resultant Comm lines here at Saint Hill and
at least one more in each org. These can be described as identities and
posts as follows:
I-RH, AN INDIVIDUAL
This is LRH a private person. This identity is the one who is entitled
to any royalties and leases copyrights and trademarks and technology for
use by Scientology organizations. This identity paid for and did the
research, organized the organizations. This is the identity that loans orgs
money or guarantees their bank accounts, etc, and on death is a private
trust for my family.
LRH, TRUSTEE
This identity is a trustee who holds in trust properties and money for
Scientology and since 1957 has held UK and Commonwealth corporations in
trust for the original US company until these assets can be transferred to
a UK non-profit corporation. As UK tax people will not okay such a non-
profit status until after a year of operation we have formed other
corporations in the UK and Commonwealth time and again only to have them
refused non-profit status. The laws of Arizona prevent transfer of HASI
assets abroad to any but a corporation with non-profit status. This leaves
me as a Trustee of all assets outside the US until they can be transferred.
But even after transfer 1 will still be a trustee for Scientology
corporations. All money sent to LRH an individual is received by LRH a
trustee or a corporation and is seldom' paid to LRH an individual but
turned over to companies without being given to I-RH, an individual. This
is a vital point, often missed even by accountants who then get us
involved. If the money were 1. received by I-RH, an individual and then 2.
turned over to LRH a trustee andlor 3. received and used by a company, it
would hang LRH an individual for huge tax sums for money he has never
really received or used and indeed won't ever get. Example: Mr. X sends a
S20 franchise pay to "L. Ron Hubbard". This is always invoiced by an org,
as "Franchise payment". Therefore one concludes that "LRW' in that case is
LRH, a trustee. If one erred and said it was the income of LRH, an
individual, that identity, never seeing the money, would yet owe tax on it,
which is unfair. All
53
incoming 10%s to "LRH" mean LRH, a trustee, and are used in company
expenses or are put away to be in general defense. The point of confusion
is that LRH, an individual, is actually owed those 107os as royalties to
support research, etc. But the companies receive and use the money and it
doesn't even go through the hands of LRH an individual. LRH, an individual,
has not cancelled monies owed to him. He has not received them. LRH, a
trustee, seldom gives LRH an individual any Scientology money. Tax
authorities are astounded at this (believing the worst of everyone) but
those on our accounts lines know it is so. This is LRH, a trustee.
"Trustee" is an identity and activity almost all movements, churches, and
benevolent associations have and in each case the "Trustee" does just what
LRH a trustee is doing-safeguarding property and assets of an association.
It's a very usual role.
LRH, BOARD MEMBER
This is an unpaid identity on several boards. It is entitled only to out-
of-pocket expenses and almost never puts in for any. This is a member of a
board of directors. These must be paid no salary in a non-profit
corporation, only expenses. "Chairman" comes under this. Also "President".
LRH, EXECUTIVE DIRECTOR
This is better understood as "General Manager" as it isn't as a member
of the board that it is held but as a manager. This is a paid post in any
corporation or association. There are numerous LRH Exec Dir titles and
identities; for this title repeats in each area and org and in the
International Division.
It means "highest executive of the organization", "third member of the
Advisory Council", "head of the department called the Office of LRH".
Therefore there is one of these titles for each org we have and for the
International Exec Division as well. Perth for instance has an LRH
Executive Director, Perth, LA has LRH Executive Director LA, etc. Then
there is LRH Executive Director WW.
The identity of the LRH Communicator in the org or activity gives clue
to this. Each LRH Executive Director title has an LRH Communicator.
There. are two LRH Communicators at Saint Hill, LRH Communicator WW, who
attends to each org for LRH Executive Director WW via each org's LRH
Communicator and LRH Communicator SH who handles the traffic both of LRH
Executive Director WW as sent to it from the LRH Communicator WW and for
LRH Executive Director SH.
This is only possible as the orgs are all similarly engaged. HCO Area
Secs filled this role for years and still do where there is no LRH
Communicator. HCO Area Secs still have duties for the Executive Director
regardless of the LRH Communicator as old policy letters show. "Sec Ed
issue" is one of these.
Proper routing from an org is through the LRH Comm of that org to LRH
Executive Director of that org and forwarded on to LRH Comm WW who sees
that LRH Exec Dir that org receives it in absence. LRH Exec Dir WW may
issue a blanket order concerning it but it is usually answered by LRH Exec
Dir that org.
The Advisory Council of any org operates without its third member, LRH
Exec Dir of that org but in case of disputes or errors finds LRH Exec Dir
that org taking it up.
LRH, STAFF MEMBER
In addition to all these other identities and titles there is that of
LRH, Staff Member. As such I give staff lectures in the org where I am,
assist where I can, crack cases and train students as "Co-ordinator of
Research" (meaning application of
54
research), write magazines, take pictures, act as a routing expert, listen
to problems, and do a lot of other things.
I am chiefly a staff member of the org where I am located but am also a
staff member of each org.
COMPLEXITY
Necessarily, no one person can hold all these posts and identites. But
at the same time, over the years, I have found they are the minimum number
I must give attention to.
To handle this complexity I have many persons assisting me. I expect
them to act with initiative. I expect them to carry out the purposes I have
regarding orgs and Scientology so as to keep things expanding and the lines
clean and flowing and keep me from getting so involved on just one point I
can't do the rest of my jobs.
For quite in addition to these posts, I have my research hat (our most
important hat) and an organizing hat and a promotion hat and a public
relations hat. My writing-books hat should absorb most of my time with
research complete but not wholly published.
Thus I expect people to do their jobs so I can then do my job and don't
like people to flub theirs and require special attention on it. Only this
holds us back because I then can't do my jobs which eventually breaks down
our expansion and dissemination.
OTHER ARRANGEMENTS
Many other arrangements have been tried, fewer "identities" less traffic
for me. But each time some catastrophe has occurred. This then required
more work than wearing that hat in the first place. The early Dianetic
corporative catastrophes occurred because I did not have or wear all my
Exec Director hats and had no legal control of the orgs. Since I began to
wear these and took responsibility things have been much better indeed, so
I can't shed them. So these identities are a minimum by trial and error and
by success.
SUMMARY
Anyone on high executive and Accounts lines should understand these
things thoroughly and LRH Communicators should point them out.
Only when these relationships are misunderstood do we get in trouble.
Our growth depends on our staying out of trouble, getting our lines in
and keeping corporate structure straight. And understanding these separate
identities or titles and functions and using them.
It is doubtful if this situation will change. As orgs grow, my
assistants grow also and become more competent and refer less to me and
work on delegated authority. My work is lighter the bigger we get so
eventually I will hold only titles with no actions or duties. This can be
continued easily and so there is no need to reduce identities to simplify
lines. And there wouldn't even be a need to reorganize if I wasn't there in
the flesh at all. All I need to do is work out a succession of assistants
to make the activities continue. There is no succession of myself to be
worked out in any identity regardless of what happens to me simply because
I did the original work and as it is done there is no reason to have a
succession for it as it is itself.
55
My identities are therefore woven in to the pattern so they don't have
to be altered to keep things going. LRH an individual becomes an estate.
The rest is by appointment from "LRH Executive Director" with that title
activated by the Int AdCouncil or board but still used as a title but not
of a person. The "Office of LRH" is part of org structure. And before long
even LRH "a board member" will be needless to be filled in the flesh by
delegated signature of LRH.
This is not only today then, but tomorrow as well and the above
identities are firm as identities whether I am here or not. Even today 99%
of my functions are done by delegated authority. The 1% left is heavy
enough for 20 men but it is getting lighter each year and so can be seen to
be only a post in a few years and so it can continue. Trying to fill up the
post is all that would cause "a war", so leave it activated as itself, none
assigned to it, assistance to it by established formula. We won't vanish if
I as a person vanish. And these identities never were me anyway so they can
survive. It is a part of basic org structure. My post title is used ten
thousand times a day on matters I never will hear of, so why should I hear
of any in the long run as only the delegation of authority is in action
anyway.
So whatever happens to me as a person leave these LRH identities on the
org board unfilled and all will be well. If you try to fill them
catastrophe will result. Only how authority is delegated by "LRH Executive
Director" in my absence needs to be worked out and that will be published.
Somebody some day will say "this is illegal". By then be sure the orgs
say what is legal or not.
L. RON HUBBARD
LRH:ml.rd Copyright @ 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
56
HUBBARD COMMUNICATIONS
Saint Hill Manor, East Grinstead,
HCO POLICY LETTER OF 22 M
Issue I
(Amendment of HCO Pol Letter of I
Issue II)
Gen Non-Rernimeo
HCO Exec Sec Hat
Org Exec Sec Hat
Dept 1 Hats
Financial Planning Hats
Org See Hat
Qual Sec Hat HIRING PERSONNEL
LINE FOR
This is the exact line to be followed for the hiring of personnel.
A person who comes in or calls in response to an ad is put on lines to
the Personnel Procurement Officer in Dept 1, Div 1.
The Personnel Procurement Officer finds out all the pertinent data about
the person, i.e. past experience, training, what position or type of
position they are interested in taking and only if the person mentions it,
their expected wages.
The Personnel Procurement Officer takes him to Personnel Control Officer
to be put on post immediately.
ALLOCATION BOARD
In Dept 1, an Allocation Board is to be kept which shows vacancies. This
Board is a piece of cardboard which shows all Divs and Depts of the Org
Board aligned much as the Org Board. It is kept by Personnel Control and
when a request for a staff member comes in, the Personnel Control Officer
writes on a small strip of paper the post that is vacant and who requested
the personnel on the reverse side of the paper. A pin is then stuck through
the end of the paper and it is stuck in the Dept where the vacancy is. The
same action is taken when an ED comes out in which new personnel is
authorized, and these are taken up at once, with all priority.
The Personnel Procurement Officer is never told what kind of personnel
to procure, unless a professional photographer or some such is required and
he has to put ads in the paper. Mostly his whole attention is just to be on
procuring staff, all kinds, not categories.
The Personnel Control Officer, when he receives a new Staff member from
PPO, looks over the person's qualifications, checks his allocation board
and places him in a suitable position. Or, he can be allocated to replace a
staff member who is wanting to be transferred.
At the top of each Div and Dept is the maximum Quota of personnel
authorized for that Dept or Div by the Exec Council arid the current number
of persons in the Dept concerned and the Division.
FINANCIAL PLANNING
Since Wages comes under Financial Planning and the Quota is set by Exec
Council, all this data must be presented to them, however it is sent to
them after the person is put on post, with all details about his
qualifications and where he has been placed.
57
The Personnel Procurement Officer then, when hiring a new person, sends
to Exec Council:
(a) A P.O. giving all details of the interview with the new person. (b)
The person's preference as to where to work. (c) Personnel Procurement's
recommendation as to placement. (d) The Allocation Board up to date.
Financial, Planning gives a maximum figure for the person taking into
consideration his/her training, and the type of position to be filled.
The final say in the Placement of the Personnel remains with the HCO
Exec See as one of the functions of her office.
DISMISSALS
The Org Exec See through the Org See and Qual See has the power to
dismiss personnel in accordance with Ethics and status policies.
SUMMARY
Since the hiring of Personnel and Wages play a big role in the overall
well-being of the org, planning and care has to be taken on each person or
else we will find ourselves way overboard on the admin side or paying huge
wages to clerical help and a consequent disintegrating organization turned
bureaucracy.
The way to keep this under control then is not to cut down your
procurement. This should go ahead at a tremendous rate, and meanwhile you
should be pushing your people out the top of the organization to the next
highest org or sending those eligible for training. Allow your staff to
expand and move on. Do this by procuring enough replacements as want to
leave.
L. RON HUBBARD
Founder
LRH:js.cden Copyright @ 1968 by L. Ron Hubbard ALL RIGHTS RESERVED
(Note: This issue of 14 January 1966 policy of same title puts in the line
from Personnel Procurement Officer to Personnel Control Officer for
immediate placement on post (paragraph 4), instead of Personnel Procurement
Officer ". . . tells them the data will be forwarded to the proper person
and they will be notified in the next day or two"; changes keeping of
Allocations Board from PPO to PCO; adds paragraphs 6 and 7; gives CSW to
Exec Council for Financial Planning purposes after placing new person on
post (paragraph 9); and adds final paragraph. "Ad Council" is amended to
"Exec Council" throughout.]
(This 22 May 1968 issue was later amended by HCO P/L 21 July 1972, Issue
IV, Staff Qualification Requirements for Hiring Cancelled, where the
procedure of putting new persons on post immediately was changed to
assigning new personnel to the HCO Expeditor Pool and instant hatting them
on what they are to do and putting them to work immediately under
supervision.
58
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 JANUARY 1966
Issue 11
Rernimeo
Exec Secs Hats
Org Sees Hats
All personnel Org
Division Hats
OFFICE OF THE TREASURER
The Office of the Treasurer is formed herewith at Saint Hill.
On the Org Board it belongs under the corporate name at the upper right
of the Board. Its personnel come directly under the.Treasurer but for staff
posting belong in the Org Advisory Section of the Office of the Org Exec
See Int Executive Division. There may be other personnel in that section
and also an Org Division Advisor but the section is junior to the
Treasurer.
The Office of the Treasurer has the following purpose:
TO HELP RON SAFEGUARD THE FUNDS AND ASSETS OF THE ORGANIZATION AND
THROUGHOUT THE WORLD AND TO BE RESPONSIBLE FOR THOSE FUNDS, THEIR PROPER
RECEIPT, ACCOUNTING AND DISBURSEMENT BY ALL STAFF PERSONS AND TO PREPARE
PUNCTUALLY ALL QUARTERLY AND ANNUAL ACCOUNTS FOR ANY AND ALL PURPOSES.
All Organization Secretaries and Organization Division staffs must
concur and act at once upon any orders issued by the Treasurer. Such orders
issued and signed by the Treasurer take precedence over any local orders
which may conflict or seem to conflict with them.
The duties and policies of the Treasurer are issued as HCO Policy
Letters, SEC EDs and Treasurer's Directives, the latter serving to amplify
or explain HCO Policy Letters or SEC EDs.
The "B" Routing channel of Communication is from the Treasurer to the
Org Exec See WW to the Office of LRH WW` to the LRH Communicator WW to the
LRH Communicator Area to the Org Exec See of the Area to the Org See of the
Area.
The "A" Routing is from the Treasurer WW to the Org See Area.
Any orders passed on "A" Routing must be available to the Org Exec See
WW` and the Org Exec See Area and may not be denied them.
Within ten days after the end of every quarter the standard accounts
items required for summary, as specified by the Treasurer, must be
airmailed or HCO Couriered from the area org to the Treasurer at Saint
Hill. These dates are:
April 10
July 10
October 10
January 10
The Treasurer will prepare and summarize accounts from these records and
return them by air or HCO Courier to the Org.
59
At the end of the Org's year a full accounting will be furnished
suitable for filing with Company Registrars and Tax authorities.
All orgs should shift their reporting year to the actual year Jan I to
Dec 31 as feasible.
The employment of outside accounting firms is no longer required.
Advices for tax reporting may be obtained from the Office of the
Treasurer WW.
This policy letter does not interrupt or cancel any obligation of the
org to account to governments for the year 1965. The earliest reports to be
done by the Treasurer will be 1966.
All orgs must adhere severely to the 20th Century accounting systems of
Scientology without variation and may not revert in any way to older
accounting methods as these obscure from executives of the org their true
financial position and delay knowledge of affairs.
The Office of the Treasurer is formed to make the burden of accounting
easier and to regularize the accounting activities of all organizations and
improve their position and reputation.
L. RON HUBBARD
LRH:ml.cden Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 DECEMBER 1966
Remirneo
Ad Council
Members
FINANCIAL PLANNING
A set of proportionate figures recently compiled on Financial Planning
at Saint Hill are of general interest to Ad Council members.
The period chosen was a fairly average one for income, covering the
three months (12 weeks) late August, Sept, October, 1966.
Four sums of monies actually disbursed were obtained.
These were:
1 . Total Salaries Paid.
2. Total gross of Building P0s (would constitute maintenance
expenses and rent).
3. Total gro~s org expenses.
4. Total FSM Commissions.
The total gross income of the period was added up.
10% was deducted from it for Research (adding up to Admin 10% of most
orgs).
10% of the gross was taken to operate as a reserve or to catch up errors
and overages in planning and in case income went down in the next quarter.
The remaining 80% was then proportioned amongst 1 to 4 above.
The percentage results were as follows:
1. Total salaries pd 31%
Government payroll deductions 4%
2. Total Building 17%
3. Total Org Expenses 21%
4. FSM Commissions 7%
80%
109o Admin or Research 10%
10% Leeway or Reserve 10%
100%
This gives some sort of a guide.
During this period the org was being pulled up from a high bills-low
cash ratio so the expense sum is perhaps a trifle high. And it had a
building programme going so Building P0s may be a trifle high. Its Leeway
or Reserve simply paid. off back bills.
However, the fact remains that this was a period of gain of org
financial affairs and, being at the end of summer and into autumn, not a
period of extraordinary income which occurs just before summer at Saint
Hill. So it is felt that these percentages are safe.
The way one could use this table would be to calculate the past quarter
of the year's gross income when the new quarter begins and then allocate
these percentages each month for the next quarter.
61
The percentages took a 12 weeks quarter but expenses were also for 12
weeks so they are just percentages and so are valid for a 13 week quarter.
Let us say income ]an-Feb-Mar (13 weeks) was Q dollars.
One could then divide Q by 13 and get an estimated future weekly gross
figure. We will call this W (meaning gross income for a week).
One could then divide Q by 3.12 and get an estimated future monthly
gross income average. We could call this M.
Therefore to set a ceiling on all expenses for the coming 13 weeks for
each week we would have:
. 31 X W = Weekly salaries
.04 X W = Weekly Tax pd by company or personnel .17 X W =
Building and Rent ceiling
.21 X W = Weekly org expense ceiling .07 X W = FSM Commission
estimate .10 X W = Admin or Research 10% .10 X W = Leeway or
Reserve 10%.
Then we would also have our figures as an estimate of-monthly expenses
where Financial Planning is done monthly:
.31 X M = Salaries/Month
.04 X M = Company pd salary tax .17 X M = Bldg and Rent Ceiling
.21 X M = Org Exp Ceiling
.07 X M = FSM Commission Estimate
.10 X M = Monthly Admin or Research 10% .10 X M = Leeway or
Reserve 10%.
Org Exp includes all utilities, bills, services, the lot.
By keeping to or under these figures one could then be considered to be
planning safely.
By getting departments and divisions to turn in their estimated P0s
before the beginning of the month for the next month one could plan
successfully (remembering their P0s don't include utilities and many
routine bills which must be deducted from the org expense amount before one
signs any P0s).
It is realized that where one is on a 55% of 90% proportionate pay plan,
the above indicated safe salary sum is greatly exceeded which is on (in
all) 35% of 80%. This may be why orgs tend to develop a high bills-low cash
ratio. Lack of stability (poor financial picture) and expense money may
reflect back on the gross income tending to depress it and thus really
reduce wages despite the 55% of 90% proportionate wage allocation. The
staff might make more and have more future if their pay was only 3 1 % of
80% with 4% of 80% for tax. Certainly staff at Saint Hill makes more than
staff in other orgs arid has consistently even in low income years.
Anyway there are some figures on which financial planning can be based.
L. RON HUBBARD
Founder
LRH:jp.rd Copyright (E) 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
62
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 25 JUNE 1967
All Executives of all orgs All Accountants LRH Finance Comm OT Central
Committee Guardian WW Treasurer WW
SCIFNTOLOGY ORGS
TAX AND BALANCE SHEETS
There is a confusion on the subject of tax and balance sheets as they
involve or concern monies owed on balance sheets. Extraordinary solutions
are being advanced and the matter should be reviewed.
There are certain principles involved here which vitally affect
Scientology companies as companies and indeed are basic in any business.
1 . If you acquire the profit of an asset without paying for it, all monies
received become a false profit and taxable.
2. If you invoice money as your own that is in fact owed to someone else
you wind
up with a false profit and get taxed for it.
3. There are certain pri . nciples of business having to do with income and
debts which
cannot be thrown aside even by a tax department.
4. The moment you vary from the exact truth of any transaction you involve
yourself in potential confusion that requires extraordinary solutions.
5. When you find yourself being asked for extraordinary solutions you
have
departed from the truth of the transaction.
As tax departments have never to my knowledge accepted without question
the year's return or balance sheet of any corporation, efforts to get such
departments to accept a return or balance sheet by putting in wild
solutions avail nothing. The tax people aren't going to accept anything at
all anyway ever without challenge. If you are challenged, you better have
the REAL facts right there. This doesn't mean one should tell them all the
truth in a geyser and gush. The real stable datum in handling tax people is
NEVER VOLUNTEER ANY INFORMATION. It does mean one must not tell them or
give them false data. It only means that when you give them data you can't
back up or report profit you didn't make you will get into severe trouble.
The basic errors of Scientology corporations in accounting and tax
matters lie in (1) to (5) above.
Under (1), all existing companies have acquired assets from me without
paying for them and therefore show a false profit.
They sell books they do not own the copyrights for, acquire technology
they never paid for and, in the case of Saint Hill, acquired a business
worth upwards of two million pounds and an estate worth �80,000 without
ever showing any debt. So the profits then look very large in any
Scientology company. And this involves them with tax.
Because the government accuses them of paying me (which they don't),
they think it must be a crime to pay me anything and so are pushed into a
profit situation because they have never paid for their main assets. Of
course, a tax department wants to see them with a big profit which can be
taxed and so blocks the truthful fact that the companies owe me money.
63
Recently a law in England, passed by the boilermakers playing
politician, threatened to call any company a Close Company which owed any
money to an individual and put Close Company tax at 67%. Well, the loophole
is that if they don't owe it to an individual they'd pay tax anyway at high
percent. And if they did owe it they'd have no profit. And 67% of nothing
is exactly nothing. So using the Close Company law to say 1 can't be owed
anything is just bad thinking. And it leaves SH with �2m of "profit" that
CAN be taxed which it doesn't really own as profit at all.
Under (2) above, whenever you invoice money as your own income that is
owed to somebody else you wind up with a false profit on which you will
then have to pay tax you don't owe.
Let us take an Advanced Clinical Course I have given. I paid my fare,
often the bulk of expenses and took no fee. The ACC was invoiced in as org
income. Yet it wasn't. It was my income. Yet the org not only invoiced it
in, it didn't even note on its balance sheets it owed it to me and so wound
up with a taxable profit.
Take the book "Dianetics, Modem Science of Mental Health" as a property.
I bought it back from the publishers in New York for $15,000 of my cash. I
turned it over to the DistAbution Center Inc in DC which then sold tons of
copies of it, invoiced each one as its own income and never paid me any
royalty at all. Further, it never noted on its balance sheets it owed me
for it and soon had US Tax bills against it for its "Profit". .
In addition to a that, DC, London and notably Saint Hill have taken over
bank accounts of mine, have invoiced royalties owed to me only for movies
and books, even my veteran's cheques and yet never noted in any balance
sheet or return that it owed it. So it wound up with a taxable sum.
Of course the government tax offices will say not to put down your debts
as then they have a profit to tax!
Under (3) governments can pass all the legislation they want, but
certain business actions remain themselves. One buys, one sells, one
collects, one owes. The government would like to upset all this but truth
is no government really can, not even in Russia, as they are flying in the
teeth of the fundamentals of commercial interchange.
If one acquires a S 10 dress for nothing one now has 9 10 worth more
than one had before. If one paid 8 10 out and took a S 10 dress in the
books balance. A thief must be in continual trouble in economics and with
tax agencies as he acquires without spending which leaves him heavily
asseted without debt and so taxable to the hilt.
Under (4) above, the moment you depart from the truth of records with
explanations or gimmicks, you cannot substantiate your statements. The
records no longer line up.
So you have to destroy the accounts system or muck it up so it can't be
read and promptly you are in real trouble.
You can assign new values to some data, you can honestly reassess the
meaning of your figures (such as advanced payments are not income) but note
you are going in the direction of more truth.
The truth of Scientology orgs is that I built them with my own money
(which they. didn't record) and made them affluent where they are without
pay. I gave them technology they did not finance, books on which they pay
no royalty and cash they forgot to mark down.
The result is that they show a profit which does not exist in fact as
the wherewithal by which the money was made was not ever reimbursed.
Not only were assets acquired which had not been paid for, but
additional monies were invoiced they did not have coming. The result is an
apparent profit and, of course, trouble with the tax people.
64
Under (5) when you depart from facts and basic planning you then have to
have very extraordinary solutions. And when you seem to have to have
extraordinary solutions you have departed from basics and fact.
Right now there is a lot of tax yap. And it is being set up to clobber
Scientology with huge tax bills in England and the U.S.
This isn't because people are mad at Scientology, It's because
Scientology orgs have given themselves a huge swollen profit by not keeping
good records and by not letting the real debts be debts.
Every SP on the lines is of course frantic at the thought of Ron getting
hold of any money. What will Ron do with it? More research, more orgs, more
Scn, more freedom. The record clearly states this is the case. When I draw
SIO,000 as a repayment of debt which it was, I promptly expand Scn to make
it another S 100,000. So it goes. Sometimes, in development, some money
gets "wasted". But it always comes back 10 for I in the long run.
So of course an SP tries anything or says anything to prevent my getting
hold of any more money than I have. And all sorts of weird "laws" and
opinions are dug up to show that I can't be paid.
The last phoney was that if money owed me was shown on current balance
sheets then All Past Years of All Orgs would have to be redone. Not so.
It's up to the government to demand that and in that case it would all be
corrected anyway so it's no argument and wouldn't even happen. In past
orgs, I had control. I no longer have. it. So it's natural that the
investment had to be added up and paid back.
A debt is, a debt. Newly discovered debts are common in any accounting
system.
So what does one do? Report it all as profit and get taxed out of
existence? And help it happen by telling a lie-that it owes me no money?
As for the sale of SH to C of S of Calif, the tax on any sum paid is on
me not the org. So it is not the org's business. It IS the org's business
to be sitting there with the full income of several million all invoiced as
profit. That is the road to ruin taxwise.
There are a lot of people around who "know best". This "best" usually
winds us up in the soup.
MY orders on this stand and are not open to opinion. And these orders
are:
1. Record in balance sheets as owed proper payment for any property or
business
acquired from me.
2. Record all sums invoiced into an org that were really mine as still
owed to me.
3. Carry on with standard income-outgo recordings and business procedures
regardless of "law".
4. Tell and record the exact truth of all transactions past and present.
5. Put into effect the basic solutions I have written out in full for the
handling of monies and debts.
Don't be dismayed because somebody in a "panic" says one must do
something odd to "stay within the law". They probably don't realize how
lawful our conduct of business really is.
And Scientology orgs if they record their debts owed for assets and
their incorrect invoicing of my money as their own and report what is
really owed on their balance sheets, will come out straight on tax.
The governments are in the business of falsifying other people's records
so as to collect more tax. If you report a bad debt they say it's a good
debt. If you report a debt you owe, they say it isn't a debt. They can be
counted on absolutely to assign a significance to figures to increase tax.
But even the craziest pervert in the tax office
65
CAN'T argue down actual records so your only defense is actual records.
When YOU fall for the gag that YOU must falsify your records to
"satisfy" some "law" or some cookey official you are just playing into
their hands.
Further, some accountants paint black pictures of the government to cow
their clients and ask them to falsify records by omitting actual facts or
demanding weird solutions. The thing to do is stick with the truth and the
real invoices doggedly.
Now as to TAX, why this is mainly anybody's game of what is a PROFIT.
The thing to do is to assign a significance to the figures before the
government can. The whole thing is a mess only because arithmetic figures
are symbols open to ANY significance. So I normally think of a better
significance than the government can. I always put enough errors on a
return to satisfy their bloodsucking appetite and STILL come out zero. The
game of accounting is just a game of assigning significances to figures.
The man with the most imagination wins. BUT there must be correct figures
and there must not be gross misassignment of debts as profits or the whole
thing won't hang together.
Income tax is a suppressive effort to crush individuals and businesses ,
and deprive the state of national gross product (since none can expand).
The thing which baffles any suppressive is truth. It's the only thing that
works. Significances one assigns figures are neither true nor false but
always must be reasonable and defendable. And the figures themselves must
always check out.
Income does not mean profit. One can and should make all the INCOME one
possibly can. Always. The only crime really is to be broke. But when one
makes
INCOME be sure it is accounted for as to its source and that one covers it
with
expenses and debts. Handling taxation is as simple as that. I
Scientology income is high in most orgs. But it IS high due to the
investment of time and money in earlier years. So if the balance sheets
omit all the money that was invested and show only the money that was made,
they are false balance sheets. And that is what the government wants us to
turn in-a false balance sheet that shows all income as profit, with no
repayment or retirement of debt.
Yesterday's unreported debts became invested money for expansion. The
debts of 1950 have not been lost at all where they remain unpaid, but show
up as DEVELOPED business.
When the debt was not paid, that sum was used to expand. So the debt is
still there and today's "profit" inuo small way can be traced to the orgs
not having to pay. Instead the money was used to develop the org and area.
The income from that development is still there. Thus the debt must be
there, must be shown on the balance sheets and books, or it will involve
the org eventually in tax trouble.
L. RON HUBBARD
Founder
LRH.jp.cden Copyright@ 1967 by L. Ron Hubbard ALL RIGHTS RESERVED
66
HU , BBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 APRIL 1969
RE;mimeo
AO-SH FINANCIAL CONTROL
With the current advent of Sea Org expansion and the recent
establishment of an AO-SH, firm policy is established, as below, outlining
who controls AOs and AO-SHs financially around the world.
FLA G BANKING OFFICER INTERNATIONAL
1. The post of Flag Banking Officer International is established
herewith alongside and under the EC AOs, but subject to the orders of the
EC AOs for administrative purposes only.
The purpose of this post is:
TO SAFEGUARD SEA ORG MONIES BY ENSURING MORE IS NEVER SPENT THAN
ALLOCATED AND SUBSTANTIAL RESERVES ARE BUILT UP.
2. The FBO INT receives and evaluates financial data from FBOs attached
to AOs, AO-SHs, OTLs and the Pursers of any ships and Missions in his area.
Essential data from the financial reports as required by current Flag
Orders, is then forwarded to the Staff Banking Officer as one report, so
organized that costing analysis is possible at Flag and that any non-
optimum use of funds from any area under his control can be quickly spotted
and handled by the FBO INT as a matter of course.
3. Proposals relating to tax, leases, purchase or rental of buildings,
long term financial commitments, major changes in the Sea Org financial set-
up must be approved by the FBO INT and forwarded to the 2nd Deputy Guardian
for Finance WW for final okay before such can be activated.
4. The FBO INT in addition to his normal duties has the added
responsibility of seeing Ships, Bases and Missions adhere to Sea Org
finance policy and handles their financial needs through the FBOs.
5. Responsibility for handling any urgent matters relating to
finance needs of Sea Org Missions must be delegated to the local FBO in the
area.
6. An FBO must first see a copy of the Mission Orders and ensure that
any proposed disbursements requested by the Mission are essential to the
Mission, not excessive and in line with their orders. He may disapprove any
proposed expenses on this basis.
Ships in the area will normally conduct their Missions on their usual
allocation amount, no further expense is usually required.
7. Allocation sums for AO, AO-SH, OTLs, and Sea Org Ships in the area,
etc are set by and may not be changed without first obtaining approval from
the FBO INT. Any disbursements over and above allocation requires the FBO
INT's approval also before the disbursement can be activated.
8. The FBO INT may issue of his own determinism, and when required,
Finance Base Orders applicable to one or all FBOs.
9. In the event of an FBO's failure to do his duty thereby bringing Sea
Org monies to risk, the FBO INT has the authority to remove him/her from
post. His approval is required before an FBO may be appointed to an area.
FLAG BANKING OFFICERS
1. Attached to each AO or AO-SH is an FBO who has the duty of
ensuring that
67
the AO, or AO-SH and their adjacent OTL complies with Sea Org Finance
Policy and is directly responsible in these duties to the FBO INT,
receiving orders only from the FBO INT on financial matters. The Commanding
Officer of an AO or AO-SH, may issue orders to the FBO, but only on an
administrative basis-NEVER ON MATTERS PERTAINING TO FINANCE.
2. In the case of an AO, AO-SH or OTL's gross non-compliance and failure
to adhere to Sea Org Finance Policy, the FBO has the authority to
temporarily reduce the org's allocation or allowances of the crew.
3. Financial Planning for an AO, AO-SH or OTL may not be activated
without the final approval of the FBO. The major duty of the FBO in this
regard is ensuring that promotion is adequately provided for within the
allocation and is,not reduced by wasteful expenditure on non-essentials.
4. In the event of any operational failure of a Division 3 AO or AO-SH,
such as FSM Commission Payments backlogging, the FBO steps in, issues the
orders necessary to handle the situation and obtains compliance.
5. The banking of an AO or AO-SH daily takings is handled by the FBO as
laid down in Flag Orders. Care must be taken to ensure separate Income
records are maintained for an AO-SH, as 10% of the SH's Corrected Gross
Income is forwarded to WW weekly for their defense purposes.
STAFF BANKING OFFICER
I . The Staff Banking Officer (Commodore's Staff) located at Flag, is
responsible for receiving from AOs, and AO-SHs, that portion of their
Income which is paid by them to Flag.
2. All reports formerly forwarded to the SBO, will now be received by
the FBO INT. The additional duty of the Staff Banking Officer with regard
to AOs and AO-SHs finance will be to receive monthly figures from the FBO
INT and prepare from these a monthly costing analysis and Income Summary. .
2ND DEPUTY GUARDIAN FOR FINANCE WW
I . The 2nd Deputy Guardian for Finance WW, in addition to his other
duties, is appointed as the Finance Guardian over all AOs and AO-SHs. His
primary duty in this new role is overseeing these orgs are given any help
and advice they may require in handling matters relating to finance and
tax.
2. He may not issue orders with regard to the disposal of Sea Org funds,
aside from seeing the routine financial arrangements and policies governing
the above-mentioned orgs are adhered to. His terminal on these matters is
the FBO INT. However, in the event of Sea Org monies being subjected to
grave risk, he may assume the role of a heavy hussar and take actions and
steps necessary to resolve the situation.
3. A Saint Hill which was under WW control transferred temporarily out
from WW and placed under the Sea Org, would still remain under the direct
control financially of the 2nd Deputy Guardian for Finance WW. Under this
arrangement no changes would be made regarding their financial set-up.
Administratively, the org would take their orders from the Sea Org.
Lt. Robin Roos CS-3, Material Aide for L. RON HUBBARD Founder LRH:ei.rd
Copyright (E) 1969 by L. Ron Hubbard ALL RIGHTS RESERVED
68
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 JUNE 1969
(Amends HCO P/L of 20th April 1969)
Remimeo
AO-SH FINANCE CONTROL
With the current advent of Sea Org expansion and the recent
establishment of an AO-SH, firm policy is established, as below, outlining
who controls A0s and AO-SHs financially around the world.
FLAG BANKING OFFICER INTERNATIONAL
1. The post of Flag Banking Officer International is established herewith
under the Staff Banking Officer, but subject to the orders of the 2nd
Deputy Commodore for administrative purposes only.
The purpose of this post is:
TO SAFEGUARD SEA ORG MONIES BY ENSURING MORE IS NEVER SPENT THAN
ALLOCATED AND SUBSTANTIAL RESERVES ARE BUILT UP,
2. The FBO INT receives and evaluates financial data from FB0s attached to
A0s, AO-SHs, OTLs and the Pursers of any ships and Missions in his area.
Essential data from the financial reports as required by current Flag
Orders, is then forwarded to the Staff Banking Officer as one report,
organized as a costing analysis and so that any non-optirnum use of funds
from any area under his control can be quickly spotted and handled by the
FBO INT as a matter of course.
3. Proposals relating to tax, leases, purchase or rental of buildings, long
term financial commitments, major changes in the Sea Org financial set-up
must be approved by CS-3 Material Aide for final okay before such can be
activated.
4. The FBO INT in addition to his normal duties has the added
responsibility of seeing Ships, Bases and Missions adhere to Sea Org
finance policy and handles their financial needs through the FB0s.
5. Responsibility for handling any urgent matters relating to the, finance
needs of Sea Org Missions must be delegated to the local FBO in the area.
6. An FBO must first see a copy of the Mission Orders and ensure that any
proposed disbursements requested by the Mission are essential to the
Mission, not excessive and in line with their orders. He may disapprove any
proposed expenses on this basis. Ships in the area will normally conduct
their Missions on their usual allocation amount, no further expense is
usually required.
7. Allocation sums for AO, AO-SH, OTLs and Sea Org Ships in the area, etc.
are set by and may not be changed without first obtaining approval from CS-
3. Any disbursements over and above allocation requires CS-3's approval
also before the disbursement can be activated.
8. In the event of an FBO's failure to do his duty thereby bringing Sea
Org monies
to risk, the FBO INT has the authority to remove him/her from post.
Anyone appointed to the post of FBO, must be first cleared for such by
the local Ethics Officer and the Ethics Officer International before they
can be placed on post.
69
FLAG BANKING OFFICERS
I . Attached to each AO or AO-SH is an FBO who has the duty of ensuring the
AO, or AO-SH and their adjacent OTL complies with Sea Org Finance Policy
and is directly responsible in those duties to the FBO INT, receiving
orders only from the FBO INT on financial matters. The Commanding Officer
of an AO or AO-SH may issue orders to the FBO, but only on an
administrative basis-NEVER ON MATTERS PERTAINING TO FINANCE.
2. In the case of an AO, AO-SH or OTL's gross non-compliance and failure to
adhere to Sea Org Finance Policy, the FBO has the authority to temporarily
reduce the Org's allocation or allowances of the crew.
3. Financial Planning for an AO, AO-SH or OTL may not be activated without
the final approval of the FBO. The major duty of the FBO in this regard is
ensuring that promotion is adequately provided for within the allocation
and is not reduced by wasteful expenditure on non-essentials.
4. In the event of any operational failure of a Division 3 AO or AO-SH,
such as FSM Commission Payments backlogging, the FBO steps in, issues the
orders necessary to handle the situation and obtains compliance.
5. The banking of an AO or AO-SH's daily takings is handled by the FBO as
laid down in Flag Orders. Care must be taken to ensure separate Income
Records are maintained for an AO-SH, as 10% of the SH's Gross Income is
forwarded to WW weekly for their defense purposes.
STAFF BANKING OFFICER
1. The Staff Banking Officer (Commodore's Staff under CS-3, located at
Flag) receives from the FBO INT a monthly costing breakdown and income
summary, made up from the combined reports of FBO's and subject to current
orders from SBO as to content and format.
2. The SBO acts as senior to the FBO INT to originate programmes related to
banking and reserves, and gets Finance policy and FOs complied with and to
control the AO Banking and finance lines in co-ordination with CS-3. The
SBO is responsible. that the FBO INT performs his duties.
3. The FBO INT holds all administrative duties formerly done by SBO and he
acts as senior to AO and AO-SH FBOs to accomplish the purpose of his post,
reporting fully his actions and a summary of info received from each FBO in
his daily reports to the SBO.
2ND DEPUTY GUARDIAN FOR FINANCE WW
1. The 2nd Deputy Guardian for Finance WW in addition to his other duties,
is appointed as the Finance Guardian over all AOs and AO-SHs. The purpose
of this hat is to assume the role of a heavy hussar if Sea Org Monies
should be subjected to grave risk and to take actions and steps necessary
to resolve the situation. His terminal is CS-3.
Lt. Robin Roos CS-3 Material
Aide for
L. RON HUBBARD Founder LRH:ei.rd Copyright @ 1969 by L. Ron Hubbard ALL
RIGHTS RESERVED
70
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Rernimeo
FES Hat HCO POLICY LETTER OF I I NOVEMBER 1969
OES Hat
Accounts Hats
Finance Course Chksht
PRO Course Checksheet ACCOUNTS AND PRO
It's a PRO world today.
Public Relations Office or Officer is meant by "PRO". It is also slang
for "Controlled Good Relations in the Community or Area".
When you "PRO" something you visit, write, handle it so as to enhance
and improve your Public Image.
A terrific amount of PRO effect.occurs on ACCOUNTS lines.
Bad or inaccurate statements of debt can ruin your PRO with a customer,
pc or student.
Unfair accounts decisions can mess up the PRO of a whole area.
Unpaid bills can ruin your PRO in a whole town.
So there is a lot of PRO connected with accounts actions.
Repairing the damages done by not submitting correct accounts to
customers or failing to pay commercial bills or rents or utilities is a PRO
action and requires sane thought and careful handling so as to restore the
org's PRO.
The biggest crime one can commit in this modem society is to be without
money. Even in a Supersocialism this is a crime.
For an org not to have and make lots of money is stupid. Given a
potentially remunerative activity, only thoroughly lousy service and
horribly bad handling of promotion or criminal carelessness in accounts can
leave an org without money. Doing standard oxg actions, giving excellent
service and adequate pTomotion brings in plenty of money. The outnesses
which prevent income or waste outgo have to be truly glaring and goofy to
leave an org without money.
The way to have NO PRO is to have no money at all.
Lack of money or wild outnesses in handling money can practically
destroy an org's PRO.
"Credit" as a quality is a sort of god in Western society. If your
"credit is bad" that finishes you to one and all. It is a statement far
worse than meie "murderer". It must be since psychiatry murders daily but
is well thought of in governments.
So you get the extreme value of "good credit".
Dateline paying and other accounts policies prevent bad credit.
But when it has gone bad, it takes making money and brilliant PRO
actions to restore a good credit image. AND IT MUST BE RESTORED.
Money as a total motivation for an action is not high grade motivation.
In espionage services the man who works for money only is expected to turn
his coat and allegiance and is regarded with contempt.
But money is a basic point of judgement on which higher levels of
motivation can be built in a wog world. It is PRO to the commercial world
which has no real dedications.
So billing debtors and paying creditors have high PRO value to an org.
All this can become a strange cycle. The org mucks up it-, area, let us
say, by bad
71
or indifferent service, promotion then is unreal so the org PRO with
customers collapses. These don't buy service. The org runs out of money.
Its bills mount up and its commercial community PRO collapses so it has no
public credit. There goes the org.
Accounts is the area hit and will go on being hit until it begins to
insist on GOOD SERVICE, the repair of all bad service, good real promotion
and finds money to spend on PROMOTION. Then money will come in. Accounts
actions must now PRO the commercial field, get that handled with good PRO
accompanied by money on dateline payments and sound arrangements.
Further money is spent on more PROMOTION. Former bad service is handled.
Credit is re-established in the area. Any accounts trouble with customers
is cleared up. The org is fully there again.
There is no substitute in Accounts PRO for knowing one's finance policy
and following it.
.Sloppy accounts files, no Financial Planning, no Purchase Order system,
ignorance of finance policy as in the Finance Checksheet can lead an org
directly into losing its community PRO regardless of service quality or
promotion. So just as accounts can be mucked up by lack of money coming
from bad service or bad promotion, it also happens that Accounts all by
itself can wreck an org's Community PRO.
Therefore it is VITAL to PRO that an org:
1 . Has its Accounts personnel have their Accounts Hats on and
finance policy being closely followed.
2. That Financial Planning is real and income remains greater than
outgo.
3, That adequate funds are available for promotion and that org
funds do not get all soaked up by the HCO ES and OES divisions on
film cabinets and new roofing paper.
4. That the pcs and students (customers) of the org are handled to
generate high PRO on their accounts contacts.
5. That the commercial connections of the org in the community, the
org's creditors, are smoothly handled to generate high PRO.
6. That any adverse reactions along accounts lines are instantly
handled to restore good PRO. These can include a covert operation to
one's creditors by some enemy-which is handled by proving the
falsity of the accusation. They can include wrong change, failure to
refund, reluctant or inaccurate or failed payment to Field Staff
Members. These and any other adverse Accounts action MUST be pushed
back to good PRO fast.
Lack of money comes from slow or bad service, and a failure to go flat
out to remedy it or from no or poor or unreal promotion. Or no money can
stem directly from off-policy or messy handling of accounts and org
finances.
In the final analysis it's a PRO world and high PRO cannot be effected
for an org if there is anything wrong in its accounts lines. Thus PRO is
affected strongly by accounts and finance actions.
Our orgs do not go into debt, do not finance themselves by borrowings.
Our orgs make their own way. That is why they are still our orgs. And
Accounts PRO has a lot to do with it.
L. RON HUBBARD
Founder
LRH:rs.cden Copyright @ 1969 by L. Ron Hubbard ALL RIGHTS RESERVED
72
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 4 NOVEMBER 1970
Issue IV
Rernirneo SO & Scn Orgs and Ships 00s & Exec Dirs FBOs & A/GFs & ECs to
activate All Div Secs Treas Sec Hat Dir Disbs Hat Purchasing Hat Acets &
Materiel Bureau
ESTIMATED PURCHASE ORDERS
NECESSITIES
The divisions and staff of an org or ship require certain necessities to
operate and promote and deliver service.
Stats enter this where stat rise and vital function require certain
quantities of supplies directly related to a particular stat or function.
To get more letters out would require more letterhead paper.
NECESSITY = Materiel needs directly related and necessary to the vital
functions, promotion, delivery, stats and acceptable image of a division or
org or ship.
Financial Planning operates to create and maintain viability by causing
the org to make money and continue in good credit.
It directs payment of existing bills (dateline) and authorizes PT
expense.
In handling PT expense, Finance is planned and used to back and provide
the necessities with which Div Sees and staff can cause GDS and income
rise. Not every stat or function requires materiel. Some do. Some don't.
Some do more than others.
The judgment required is the line drawn between actual need and "got to
have". Finer judgments are "how much" and "what quality".
Aligned to stats and vital function the judgment becomes easier.
A Financial Manager who would permit vast quantities of letterhead
ordered far in excess of need and at the expense of other necessities
actual in present time or would approve an expensive paper when a less
expensive one would do as well would be as unwise as one who would ignore
the need and reduce or halt the letter stat by denying paper altogether.
The object and orientation and action of Fl? is to enhance viability by
providing promotional and operational necessities which assist or cause
stat rise.
The operative term is NECESSITY. Not because an org should ignore
facilities that better image and conditions. But because finance channeled
into NECESSITIES first brings back the return and increase which permits
facility improvement.
ESTIMATED PURCHASE ORDERS - HISTORY
An FP system which seeks to provide necessities but admits only exactly
priced
73
purchase orders sometimes collides with the fact that the exact cost of a
vitally needed item is sometimes not known or obtainable when FP convenes.
Extensive and time consuming price searches for items then not accepted
by FP is time lost.
Ships, being mobile, are subject to price variations from port to port.
Bills files have prices but many items are infrequently purchased and
have no price on file or easily accessible.
Or a vital dissem mailing may lack the 3 required quotes when FP is
held.
This leaves FP members with 3 choices:
1 . Delay the whole FP to obtain the missing prices.
2. Delete the unpriced items ignoring need.
3. Accept P0s which, although apparently valid, are actually a
guess and which get the originator into trouble with accounts or
which deny him the item anyway when the real cost is discovered, or
even worse, results in a bill far exceeding the planned amount.
SOLUTION
To solve all this and provide a workable FP system which prevents
exclusion of vital org necessities, ESTIMATED PURCHASE ORDERS were
developed aboard Flag and are established by this policy letter for use in
all ships and orgs.
EPO
EPO = ESTIMATED PURCHASE ORDER.
AN EPO IS NOT A PURCHASE ORDER AND GIVES NO AUTHORITY TO PURCHASE.
An EPO is submitted to FP in place of an actual and valid purchase order
when the exact cost of a needed item is not yet known~ It serves to hold
aside the ESTIMATED amount needed until an ACTUAL purchase order with exact
cost can be raised against it.
That's all it does.
No purchase or order may occur by reason of an EPO.
EPO format and color are distinct and different from that of an actual
and valid Purchase Order.
An EPO is mimeoed in black ink on white low grade low cost paper.
CSW required of an EPO is the full and exact reason for need.
EPOs are made in duplicate-one for FP use, carbon for Div See to retain
and use when making actual P0s against them.
RED PO
An actual and valid PURCHASE ORDER is on deep pink paper and because of
this is called a RED PO.
ONLY AN ACTUAL (RED) PURCHASE ORDER EXACTLY PRICED AND
74
SIGNED BEFORE PURCHASE AUTHORIZES PURCHASE AND NO PURCHASE OR COMMITMENT TO
EXPENSE MAY OCCUR WITHOUT ONE.
A Red PO has the exact cost of an item and any specifications (size,
color, quantity) required by Dept 8 to purchase. It is not another estimate
or an EPO re-copied on a Red PO form. It is EXACTLY COSTED.
Red P0s may go direct to FP before meeting.
Red P0s raised between FP meetings are only against already approved
EPOs.
This gives two possible sequences:
A. 1 . Red PO made and complete prior to FP meeting.
2. FP meets.
3. Red PO approved (or not).
4. Purchase occurs if Red PO approved.
-OR-
B. 1 . Exact cost unknown, an EPO is made instead.
2. FP meets.
3. EPO approved (or not).
4. If approved, exact price obtained as and when available.
5. Red PO made up.
6. EPO and Red PO matched up by Dept 8.
7. Red PO signed (or not) by PO signer.
8, Purchase occurs if Red PO approved.
In either case PURCHASE OCCURS ONLY BY REASON OF RED PO APPROVAL, AND
ONLY AT THE PO AUTHORIZED COST OR LESS. NEVER MORE.
FP ACTION
Date and time of FP meeting published in Orders of the Day or by staff
notice board sets the deadline for submission of newly prepared EPOs and
Red P0s for the coining week or month. The primary requirement is coverage
of all NECESSITIES.
FP members take up EPOs and Red P0s in meeting against the gross amount
established as available for PT expenditure.
At the moment when P0s and Estimated P0s thus presented reach the
established sum the EPO and PO signing is stopped. No further P0s are
acceptable except those subsequently raised against the approved EPOs.,
As P0s and EPOs presented often exceed the allocated sum prior to FP
meeting the first action of the meeting is adjustment or elimination to
meet the allowed total before any EPOs or P0s may be signed.
FP approval authority should require rejected P0s and EPOs submitted by
separate folder with completed FP for a check of items rejected.
Any real essential found rejected in favor of items less vital to
function and promotion causes FP to be reconvened or is adjusted by the FP
authority himself.
DEPARTMENT OF DISBURSEMENTS
Dept 8 receives from FP:
A) Approved Red P0s for immediate purchase.
75
B) Approved EPOs to be held awaiting Red POs. Q The FP directive listing
these by division. D) Dateline established for bills already owing.
A basket set up in Div 3 Comm Center and labelled "RED POs" collects the
Red POs submitted by Div Secs and staff against approved EPOs.
Purchasing section empties the basket once daily, staples to each Red PO
its corresponding EPO and prepares the day's collection in a folder for PO
signer. The action is only once daily. No RUSH POs and no body traffic.
On return of the signed Red POs Purchasing Section activates, and routes
to Bills File of the appropriate company. (Ships being mobile and having
many creditors normally file POs and bills by month instead.)
Bills arriving then match up with the Red POs already in the bills file
and are subject to payment by dateline.
POSIGNERS
PO signing and FP approval is by FBO or A/GF, D/GF (or A/G if held from
above), where there is one. SO units and ships having no FBO send FPs and
Red POs to the area FBO (Continental Finance Office). A remote OTL operates
against an established basic FP and reports expense in summary form to the
nearest SO Finance Office.
FP approval and PO signing in Scn Orgs where there is neither FBO nor
A/GF or A/G occurs at Exec See level. Any Exec Dir may add himself as
mandatory signer if he considers org financial position warrants it.
Signature of a Red PO exceeding the EPO amount would be occasional and
would be only on receipt of factual advice by Dept 8 that there exists
sufficient overa e on ,9
other EPOs to compensate. There is no obligation to sign. He may require
the EVO held for next FP and the shortage made up by a second EPO at that
time.
EPO AND RED PO MATCHING
EPOs and Red P0s usually match up one-for-one but not always.
1. An item too costly for allocation by one FP meeting may hold aside
EPOs of partial cost until accumulated EPOs reach the total cost. This
would give several EPOs against one final Red PO for actual purchase.
Thus, purchase of a large item can be covered by several months' EPOs
for it accumulated from FPs granting it.
2. Sometimes a single EPO may also accumulate Red P0s against it.
"Routine org supply items for February" could be a Div 3 EPO against
which there could be a Red PO for dispatch paper, one for carbon, one for
pens, etc. Maybe more is needed a few weeks later and there's a second Red
PO for dispatch paper.
Ships never know exact agent fees until arrival in a port and sometimes
not even then. Thus there is an EPO for "Agent's fees for January" against
which Red POS for actual agent bills accumulate.
Such an EPO is good until its total value has been used up by Red P0s.
It is then removed from EPO file as expired.
Red P0s raised against this type are in duplicate so that the original
can go to bills file leaving a copy attached to the still valid EPO to
indicate partial use of the total amount.
The most usual type of EPO is one-for-one and expires on use of a single
Red PO
76
to match it-even when there is money left over due, to actual cost being,
less than estimate.
HOW TO ACTIVATE THIS POLICY LETTER
1. Have adequate copies of the attached EPO form mimeoed off and
distributed to Div Sm.
2. Have this policy checked out on all Div Secs and staff and
particularly on Execs.
3. Require that the necessities of each division are represented by Red
POs or EPOs at the time of regular FP meeting.
4. See that EPOs do represent divisional needs and allow no change or
swap of EPOs after FP meeting. EPOs do not represent a divisional
allocation subject to change of amount or use. An EPO for light bulbs
cannot become something else. It's light bulbs or nothing. EPOs do not
substitute for planning. They only make it smoother and more real.
5. Enforce it if necessary by assignment of pay loss to any division or
staff member neglecting vital needs or requesting other items at the
expense of real necessities.
6. Groove your Div 3 in thoroughly on EPO and PO handling as in this PL.
7. Refine it by preparation and use of divisional checklists of materiel
needs required to effectively promote and deliver.
8. Refine it further by organizing a 5th disbursement voucher copy for
routing of vouchers to the Div Sec concerned so that a divisional cost
reference file builds up.
9. Apply the use of EPOs to improvement of FP ease and effectiveness. An
EPO system properly applied and supplementary to the existing Purchase
Order system (which is unchanged) gives the margin that allows a simple
and effective FP action without which the untended materiel needs of a
division or org can suddenly leap up as a real emergency.
10. Recognize any other use of this system as a misapplication to be
reported to ethics and to result in starrate checkout of the offender
on this policy letter and personal payment for any unauthorized or
illegal purchase or expense to the org in excess of authorized amount,
Lt. Vicki Polimeni CS-3 for L. RON HUBBARD Founder
LRH:VP:rr.rd Copyright (D 1970 by L. Ron Hubbard ALL RIGHTS RESERVED
77
E.P.O.
DIVISION: DATE:
NUMBER:
FP ESTIMA TED P. 0.
HAS NO VALUE OR EXCHANGE VALUE
AND HAS NO AUTHORITY TO PURCHASE
ESTIMATED COST: (in US S)__ (in local currency)
ITEM:
REASON: (attach CSW)
It is understood that this is an estimated cost and the item cannot be
bought until a fully and exactly Priced PO has been submitted and signed by
PO Signing Authority.
ORIGINATOR
DIV HEAD
FPMEMBER
FBO, A/GF, A/G
78
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 FEBRUARY 1971
Remimeo
Add Finance
Checksheet
All FP members
FINANCIAL PLANNING TIPS
FP need not be a burden at all.
If these five conditions exist then FP is very easy.
1 . PRODUCE AS AN ACTIVITY. Look over what your products should be,
particularly your Valuable Final Products, and then begin to get those
products somehow anyhow. This and only this is the shining reason why you
can have a decent allocation. If it is then denied you you can howl and be
sure of redress. A cap in hand with no product is a sure route to chopped
FP. (Example: An org with half a million collectable on its books but which
didn't even send out statements had an awful time with FP. Asking for
"allocations" that were really handouts, neither its FP body nor its FBO
fully understood WHY, but it just seemed unreal to give it money. It was
asking for money. It wasn't requesting the return to it of money it had
made and was entitled to. It did not make other value so could notiustify
value. Therefore it "sort of looked add" to Finance. Even Finance did not
know why. The wildest example of this was the 1950 LA Foundation which,
under a US Navy Ex-rear Admiral, wanted $47,000 a week to subsidize a
foundation potentially making $80,000 a week. But he closed its doors and
wouldn't run it until he could get "legal" and subsidized. Another one is
DK 1969 wanting Flag to pay it $3,000 a week to keep it going when it
wasn't even sending out letters and did not even own a typewriter yet was
accidentally making $5,500 a week average. There are tons of such examples,
Activities go on to government appropriation think instead of promote-sell-
collect and deliier and wind up with no pay, no food, no uniforms and FP
troubles and conflicts you wouldn't believe possible.)
2. KNOW YOUR FINANCE PACK. When members of FP bodies have not done,
their Finance Pack they get into total confusion. Further any Finance
authority gets disgusted with their admin irregularities and won't regard
their propositions or troubles with any seriousness. Failure to do, refusal
to do a Finance Pack (which only takes a couple part time study days) can
give an FP body a bad name with Finance people simply because their
ignorance is mistaken for foolish proposals.
3. SEPARATE OUT DIFFERENT TYPES OF EXPENDITURE. An early FO on "Title"
of various items helps clarify. Find out and get it agreed to what is
covered under Title A (permanent) Title B (valuable nori-expendable) and
Title C (issuable or usable) and get Finance to agree to what is which and
exactly what one is doing FP on and the tangle becomes easier to undo. What
is Permanent Fixture? Does one FP for new ships, new buildings, vital
repairs, vital spares? (Actually no, but it has to be covered in general
Finance.) Is one FPing for gimmicks and oddities and possibly useful things
(Title B). Or is one FPing for expendables, wages, food, fuel, papers?
(Title C.) Maybe one FPs for all three BUT in the category of necessities
to operate and would be nice and future hopes. Necessary spare parts for
Title A that would break everything down are of course necessities. So
probably should pass without question. Whereas Finance people often don't
see them that way. Wages, food, uniforms, fuel are subject to cutbacks
where an activity is not able to demonstrate production. Good idea Title B
usually comes in for purchase when the activity is really making the money
and otherwise are a yawn. Future hopes depend totally upon one's profitable
use of what one has, Once you get all this agreed to with Finance people
they can't change the rules on you every FP. And a lot of the strain goes
out of it. No FO or P/L could easily set up exact rules for every type. of
activity there is. Essentially it would be what is agreed upon between the
Finance people and the FP body. The Finance people want to get cash to
reserves and they resent justly a freeloader activity that has subsidize or
unwise think. They want to give an activity X beans (money) and get back X
beans plus. When they give out X beans and get back no beans they are hard
to live with. Even a ship that produces no money directly still sells org
help events and trained experienced SO members for beans from orgs. Any erg
would give it good hard beans for real help and trained experienced SO
members. If AOLA could "buy" all the
79
excellent SO members it wanted and needed from the station ship it would be
delirious with joy. But if the SS has not been making them, it has a hat-in-
hand aspect to Finance people. Finance people then shift the rules around
to try to get out of giving any money at all, naturally. While this is
covered in No. 1 above, it also affects No. 3, this one. Everything is
considered Title C, even the ship, and subject to total reduction as it
does not increase Finance people's viability. So "the rules" get shifted on
the FP body. If it isn't making a valuable final product that can be
changed for cash with something that has cash (No. 1 above) and if it
doesn't know general Finance rules (as in No. 2 above) and if it has no
solid agreement with the Finance Authority on Title A, B and C, then of
course FP is a nightmare for everyone concerned.
4. NEGLECTING NECESSITIES. When an FP body is not aware of the
necessities of its operation and neglects to FP for them Finance people
(Bureau Three Treasury and FB0s) have to do it for them. This causes a lot
of bad feeling from Finance people. A new drinking fountain or trampoline
mat for staff and no postage FPed for is sure to cause a lasting engram! An
FP body should have a list of vital necessities by division and FP for
those first before it begins to wonder. Strangely,, pay, food, uniforms are
not considered necessities. They do not directly influence an activity's
income. A "necessity" is what it takes to make products and valuable final
products. In a cap-ht-hand activity food is qualified as "some food,
oatmeal maybe". Pay becomes "maybe but no bonuses ever". Uniforms become
"none". Recruiting posters YES. Fuel becomes "econornical amounts carefully
used". Training materials becomes YES. So what's a necessity? A necessity
is what it takes to make the valuable final product, not individual
survival but group survival. So an FP body doing individuated think can get
in severe FP trouble just by the nature of economics.
5. USING FP TO NEGLECT DUTY. It is a shame but true that people will
excuse lack of vital action by blaming FP. "The building burned up because
we couldn't get fire hoses through FP." "The main engine broke down because
FP
rej ected Actual tracing of such statements usually discloses the
item was never
FPed for at all even to the FP body or that "FP" was used as a means of
escaping the
work. If you buy all this blame of FP you will think FP and Finance people
villainous.
Actually FP is often a whipping boy to excuse not doing the job or to delay
it. Failure
to handle and saying it was FP when it wasn't is Comm Ev stuff. So don't
let FP get a
bad name unjustly. It's grim enough even when done right.
The future of any activity depends upon these five factors above. It is
an economic world in which we live, regardless of "isms" like Capitalism or
Communism or Socialism.
If you have these five things cared for you can do FP quite merrily.
The essence of getting money is making money in the first place. FP is
the second step of what do we do with the money we make. It will never
solve neglecting to make it. You always have trouble with money if you
don't make any.
.1 hope this -helps lead sane Finance bodies out of the jungle into the
sun.
L. RON HUBBARD
Founder
LRH:sb.rd Copyright Q 1971 by L. Ron Hubbard ALL RIGHTS RESERVED
80
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 FEBRUARY 1971
Issue 11
All Finance Hats To be displayed on the desk of every Finance Personnel
FIRST FINANCIAL POLICY
INCOME IS MORE IMPORTANT THAN DISBURSEMENT.
Board of Investigation FCO 1121 Lt. David Murphy, Chairman Lt. Peter
Warren, Secretary Ens. Bill Lowrance, Member for , L. RON HUBBARD Founder
LRH:BL:PW:DM:sb.rd Copyright @ 1971 by L. Ron Hubbard ALL RIGHTS RESERVED
81
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 16 APRIL 1959
BOOKS, COST OF
Inform all Assoc Secs.
The principal comm particles of Scientology Organization are books.
Obviously, books cost money.
When books are sold their money must be safeguarded so that replacement
books can be bought.
Book monies cannot be part of Prop Income. A book is bought by a Central
Organization at 50% of the list price, sold to members at 80%. If this 80%
is halved for prop pay and added to salary sum, it costs the Org 10% of
list just to handle the book! This means a 10% loss every time a book is
sold! Therefore books cannot become part of the salary or expense sum. They
must remain as they are, the income from them kept ready to buy new stocks
when old stocks are exhausted.
The price of all books should be computed on the basis that when 20% is
deducted from the price for members, a round sum remains which is not less
than 4 times the exact printing cost. No book may be listed at less than 5
times the cost of one volume. Only then can the sale of books be
remunerative enough to buy new stocks.
As policy, no book may be printed without my permission. Most books will
be printed in London or the U.S.
These books will be sold to Central Orgs by HCO Ltd for a distributor
figure of 50% of the list price.
The books will be shipped as soon as ready.
The continental magazine should forecast only any book (or tape) until
it is actually in hand, then announce it as arrived and on sale. No book
should be neglected. Send copies gratis to local papers for review always
each time a new book appears, or whenever an old book has been neglected in
this way. Announce in the magazine. Advertise on the Bulletin Board. Push
books at Congresses.
From 10 to 25 people read every book sold, according to advertising
people. This then is high level dissemination.
Send out the continental magazine every month or two, one issue to the
whole list you have, not just to members. And advertise Books, Books,
Books.
About once a year send a full list of books on hand on a sheet order
form to everyone. This says "Which of these books don't you have?" People
order them by the ton from the form by marking X and sending a cheque.
Book business is cash business from a Central Org to the field. Credit
on books can be a bad headache in several ways.
Send out your magazine to the whole mailing list frequently. Heavily
advertise books first, services second. And set the money you get aside.
I am about to do several new books. A new book can sell two to three
thousand copies in your area in a few weeks if you handle it right. Books
are the sparks you need to light the fire. Let's handle them so they make
us (as above) not break us.
LRH:mp.aap.cden L. RON HUBBARD
Copyright Cc 9 9
)1 5
by L. Ron Hubbard
ALL RIGHTS RESERVED
82
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 14 MAY 19 59
Distrib. "Central" HCO Offices only
HOW TO ESTABLISH PRICE OF BOOKS AND TAPES
BOOKS
Establish fully the printing cost. Multiply by five. This is cost of the
book to usual buyers. However, a book price can be further increased so
that when one gets a 20% reduction he pays a whole figure. Example:
Printing cost X = 20 shillings. This is minimum safe retail price. This can
be fixed further so members buy it for 20 shillings after their 20%
discount, i.e. 24s X 20% = 20s.
TAPE PRICING
Add:
I . Cost of tape original.
2. Cost of recorder and equipment depreciation (2 yrs per
recorder); includes cost of recorders in copying.
3. Cost of time of engineer (gross weekly).
4. Cost of tape for copy master.
5. Cost of tapes for copies.
6. Rental cost of recording room or rooms.
7. Performer cost. (Min. X15.0.0./week)
8. Shipping cost of whole package by air + insurance.
Add 100% of above.
LRH:mp.pm.eden L. RON HUBBARD
Copyright @ 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
BOOK PRICING FORMULA
[Excerpt]
16. The costing formula for pricing a book by the publishing agency (not
the seller) is as follows: Printing cost x 5 + 2 x Surface post to furthest
org. This is the standard publisher costing formula and allows for
discounts up to 50% for large distributors, overhead and royalties. To sell
for less than this is to cause loss and prevent distribution. This also
allows enough money for the distributor and the publisher both to
advertise. This is a minimum price formula.
L. RON HUBBARD
LRH:jw.rd
Copyright @ 1965 [Excerpted from HCO Policy Letter of 10 February 1965, Ad
by L. Ron Hubbard and Book Policies. A complete copy of this Policy
Letter can
ALL RIGHTS RESERVED be found in Volume 2, page 101.1
~3
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 FEBRUARY 1961
HCOs
Central Orgs
Franchise PROFESSIONAL CHARGES
No Franchise or Field Auditor may charge less for services than the
Central Organization for that Continent.
They may, however, charge more.
LRH-.js.rd L. RON HUBBARD
Copyright @ 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HOD POLICY LETTER OF 14 JUNE 1962
CenOCon
Franchise
Field Auditors PROFESSIONAL CHARGES
BPI (Amends and amplifies HCO Pol Ltr
of 10 February 196 1, same title)
No Franchise or Field Auditor should charge less for services than the
Central Organization for that Continent. They may, however, charge more.
The Organization cannot be fully responsible for the excellence of any
auditing that is not regularly purchased through the Registrar and done in
the HGC at a Central Organization. However, in the case of complaints
against an auditor, if it is found that the auditor has conscientiously
applied standard procedures to the best of his ability, and has not charged
less than the recognized fee for the area, he may expect some support from
the HCO, HASI and myself.
All auditing rates in an area are uniform. Field auditors are supposed
to charge the same as the Organization.
Good auditing today is excellent. It is worth far more than the fees
charged in the HGC. Bad auditing is money wasted.
No responsibility need be accepted and no. legal help or advice need be
given where, on investigation of a complaint, it is found that an auditor
has given auditing for fees that are less than those charged by the Central
Organization for the area. In the event of preclear complaints in such
circumstances, severe disciplinary action may be taken against the auditor
concerned.
The Central Organization should take steps to ensure that all field and
Franchise auditors in its area are kept informed of their current charges
and terms, so that field auditors can align their charges and terms
accordingly. Field auditors also should assume responsibility for keeping
themselves informed of the current charges.
LRH-.jw.rd L. RON HUBBARD
Copyright Q 1962
by L. Ron Hubbard 84
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 SEPTEMBER 1964
Remimeo
interested Sthil Staff lExcerptl
COST OF SERVICE
You must realize, despite propaganda about our expensiveness, that our
services break into two parts.
(a) Cheap, broad services for everyone.
(b) Personal services at a much higher (but cheaper than any other
field) price.
Don't get confused and try to make (a) expensive or (b) cheap.
Whenever I get a plea from some staff to "cut our prices" I now realize
they haven't got (a) and (b) separate and they're confused and try to
identify all service with all service.
Make our cheap services (PE, HAS, Co-audit, brief assists) very, very,
very cheap. Give them away, in fact. This is broad, general Scientology.
You have to spend money to give them away. The book auditor, the Extension
Course, the dollar book, the magazine, these are all part of these cheap
services.
Most orgs err in never really spending money on cheap services. They get
all tied up with income needs and sell only expensive services and never
get a whirlwind of interest going.
Cheap service costs the org money. You have to hire staff just to
administer it. You have to have people to care for it. You answer-letters
from book auditors (but the Letter Reg doesn't) and PE people and greet out-
of-Towners with a hostess.
You don't turn such traffic off because it doesn't buy. You form a place
for it to come to like a public lounge. You give it tape plays. You whip it
up to a roar. And you don't let it into your production departments or
lines because it bothers these and upsets them.
For instance, you never give away an Academy Course. You always charge
heavily for it. But you give public tape plays that train the
'~multitucfe".
ALL PERSONAL SERVICES RENDERED TO THE INDIVIDUAL RESULTING IN A GOOD
PROCESS RESULT OR A WORTHWHILE CERTIFICATE MUST BE CHARGED FOR HEAVILY.
L. RON HUBBARD
LRH:jw.rd Copyright (D 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
(Excerpted from HCO Policy Letter of 23 September 1964, Policies:
Dissemination and Programmes. A complete copy of this Policy Letter can be
found in Volume 2, page 4 1. ]
85
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo HCO POLICY LETTER OF 9 MAY 1965
Registrar HAT TECHNICAL & QUALIFICATIONS
Tech See HAT DIVISIONS
Qual Sec HAT
Org Sec HAT DIVISION 5
Dir Accts HAT URGENT
Cashier's HAT
AUDITING FEES
PREFERENTIAL TREATMENT OF PRECLEARS
SCALE OF PREFERENCE
There is a definite and positive Scale of Preference for accepting and
scheduling preclears (including students sent to Review) for auditing in
the HGC and in the Case Cracking Section of the Department of Review.
Last on the list is any person who seeks auditing as a favour "to
demonstrate to others what it can do" or "because of importance as a
person". The auditing of someone just because the result would "prove"
something or other or because the person has money or power and might
donate, by firm policy since 1950, has been relegated to the "circular
file" (the waste basket). Giving auditing away to such persons or their
friends or children or psychotic brother in the asylum is in fact
forbidden. Giving preference in scheduling to such persons is governed,
when for pay, entirely by the Scale of Preference. Such bids are a snare
and a delusion; it sounds good; it doesn't work out. Mr. Big takes his
place in line with Mr. Little, and the Scale of Preference alone applies.
The person who has to be audited AT ONCE for desperate reasons is also
governed only by the Scale of Preference.
The person who will only be audited by a certain or special auditor is
also governed entirely by the Scale of Preference (See A).
SCALE OF PREFERENCE
Assignment of Auditor and Preferential Scheduling is governed as
follows:
A. Best Available Auditors, earliest possible commencement;
Pcs Paying full rate Cash in Advance with the longest consecutive
auditing period purchased. Where two pes have to be chosen between
for the best auditor, the one who has purchased the most auditing in
consecutive periods is given the best auditor at the earliest
moment. (It is obvious that to get a special auditor one should pay
full public rate in cash even when entitled to Professional Rate.
Otherwise there may be no pc requested auditor assignments. Buying
additional auditing or offering a specified donation in addition to
the full rate as per A can also influence the assignment of a
requested auditor. The auditor does not have to accept.)
B. Skilled auditor (but not specially requested auditor), early
commencement;
Full rate pes whose credit has proven excellent and prompt by past
experience.
C. Good auditor, early commencement;
Pcs paying cash in advance professional rate.
D. Auditor staff available scheduling;
Full public rate pcs with 50% deposit and unknown or not established
credit.
E. Interne Auditor and any scheduling convenient to org;
Full public rate pes requiring up to 75% credit, credit unknown.
F. Any Interne Auditor, and any scheduling convenient to org;
Professional rate requiring credit.
G. Any student, any scheduling convenient to org;
Total credit at any rate, credit unknown.
H. Students who need practice, cases not supervised except for
student cheek sheet in Examinations, scheduled randomly or by
waiting list, charity or pcs on full credit of a pcs unknown nature.
86
In scheduling there is also the problem of matching Interne Auditors in
pairs so they can crack their own cases.
This is normally done by Case Parity. Cases more or less the same in
state of case should be matched up.
Auditors who goof seriously in handling specially assigned processes in
HGCs or Case Cracking Sections and are removed from active auditing because
of it as dangerous, are normally paired with the last one who goofed and
they are assigned as a co-audit team and they are permitted to slug,it out,
getting a better reality on goofs and their cases in shape as well. This is
not disciplinary assignment. It is prevention of case damage to others,
both by giving them a reality and by advancing their cases. Their folders
are carefully watched by auditing supervisors for false entries on auditing
reports.
The whole theory of the above is not Cash. It will be found that those
who will pay were the most able to begin with and have the greatest value
to others. Their worth as persons is greater. Thus good, swift auditing
brings up even this value.
I have never thanked myself for giving any concessions on fees or
scheduling not based on the above. 1 can say with complete case histories
that giving free service to those who demanded it or sought it has never
resulted in any useful gain for Scientology. On the contrary some of our
biggest headaches administrationally come from those who continually sought
free courses and free auditing.
In the case of award auditing or training it is a different matter. Here
it was worked for and deserved before the fact. The Registrar is never
faced with such persons as awards are given staff and staff has staff staff
auditors.
The "the world owes me a living" preclear (or student) is a candidate
for the Better Dead Club. There were two branches of this Club, by the way-
Better Dead for their own sakes and Better Dead for the sake of others.
Demands by individuals for free service on any pretext should be given a
light, airy laugh. It doesn't do anybody any good, often not even the
person who received it.
Real charity cases who never pay are actually hard to find, In Charity
Auditing one must always give them a chance to pay.
A Registrar's matter of fact attitude about paying for auditing or
training is a valuable asset. Giving the person a problem about how and
what they'll pay is poor Registraring. Don't make them choose about paying
in full or not paying in full. Just tell them "Go to the Accounts Cashier".
An evil laugh when they advance the idea of some tiny down payment on
auditing and a remark, "Well, that would put you on the waiting list and
give you a new student," might be very effective.
Printing up the above preference scale for presentation to falterers on
payment might be effective.
Accounts must always give Scheduling Personnel a copy of the invoice.
Accounts must mark the Invoice clearly as per the above preference
scale.
Scheduling may only be done by scheduling personnel and must be done in
accordance with the above Scale of Preference, and the prospective preclear
already in the office (not on promotion lines) should be informed that the
above scale exists.
L. RON HUBBARD
LRH:mh.rd Copyright (D 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
87
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 12 OCTOBER 1967
Remimeo
CHARGES
As WE NEVER VALIDATE A DOWN STAT (it is entirely fatal to all to do so)
we ALWAYS CHARGE FOR RAISING STATS ON ANY DYNAMIC.
And we always adjust charges in proportion to the degree the stat was
down. The further down, the more we charge.
L. RON HUBBARD
Founder
LRH:jp.rd Copyright@ 1967 by L. Ron Hubbard ALL RIGHTS RESERVED
88
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 SEPTEMBER 1970
Issue I
Rernimeo
Cashiers
Div HIs
Pub Div Hats
Div Il Hats Organization Series No. 6
FSMs
F/Os CUTATIVE PRICES
HCO PL of 27 Apr AD 15 "Organizational Price Engram" is fully valid and
must be followed. It explains why price cuts damage orgs.
Price cuts are forbidden under any guise.
1. PROCESSING MAY NEVER BE GIVEN AWAY BY AN ORG.
Processing is too expensive to deliver.
2. BOOKS MAY NEVER BE GIVEN AWAY BY AN ORG OR BY PUBS ORG.
They are too expensive to manufacture.
3. FSM COMMISSIONS MAY NEVER BE PAID ON DISCOUNTED OR CUT
RATEITEMS.
If an FSM can't sell for full value he does not rate any commission.
4. SCHOLARSHIPS FOR COURSES ARE* LIMITED TO INTERNESHIPS, HSDC AND
ACADEMY LEVELS.
S. COURSE SCHOLARSHIPS ONLY MAY BE OFFERED FSM ON CONTEST AWARDS.
6. SCHOLARSHIPS ARE ONLY AVAILABLE TO WORKING FSMs OF PROVEN
SELECTEE SUCCESSES.
7. ALL SCHOLARSHIPS AND AWARDS OUTSTANDING TERMINATE IF NOT TAKEN
BEFORE I JANUARY 197 1.
8. FSM COMMISSIONS ARE PAID ONLY ON THE ARRIVAL OF A STUDENT OR PC,
NOT ON RECEIPT OF THE FEE.
Adv payments are sometimes refunded.
9. ONLY FULLY CONTRACTED STAFF IS AWARDED FREE SERVICE, AND THIS IS
DONE BY INVOICE AND LEGAL, NOTE WHICH BECOMES DUE AND PAYABLE IF THE
CONTRACT IS BROKEN.
10. FSM BONUS AWARDS TO ORGS MAY ONLY BE DELIVERED TO CONTRACTED
STAFF MEMBERS OF THAT ORG.
L. RON HUBBARD
Founder
LRH:sb.rd Copyrigb . t @ 1970 by L. Ron Hubbard ALL RIGHTS RESERVED
89
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 JANUARY 1971
Rernimeo
Cashiers
Div 3s
Public Divs Hats
FSMs
Franchises
FSM CONTEST AWARDS
(Modifies HCO PL 27 Sept 1970,
CUTATIVE PRICES)
FSM Awards outstanding as of 27 September 1970 were to be taken by I Jan
1971 or forfeited by the above policy letter.
Many were not able to arrange to take their awards within the stipulated
time.
In response to public requests the deadline for claim and use of such
awards is abolished.
Lt. V. Polimeni CS-3 for L. RON HUBBARD Founder
LRH:VP:nt.rd Copyright Q 1971 by L. Ron Hubbard ALL RIGHTS RESERVED
90
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 APRIL AD 15
Remimeo Issue 11
ORGANIZATIONAL
PRICE ENGRAM
It's an awful good thing I found the engram in organizations before we
released the new pattern of orgs and began to expand.
Had I not found it we would have expan ded to insolvency!
A few suppressive persons with their "everybody" and "they" have here
and there over the years set up a price ridge between orgs and public.
"You charge too much!" "Money" "Prices too high!" combined with
"everybody thinks" and other generalities have made executives believe that
the public won't pay.
Not detecting the true reason for this attack, the executive swallowed
it whole. The true reason is a suppressive reason-if we don't charge we
will vanish.
A guilt complex (I won't use a Scientology term on anything so low)
arose about money.
Accommodatingly around the world org Scientologists tended to cease to
exist. financially. All to please Jo-jo the famous loop of Capetown or Too-
Too the famous paranoid of Sydney or Gut-growl the renowned psychotic of
Washington or Oh-no the wildly celebrated pervert of Los Angeles or
Sinangulp the loudest mouth in Johannesburg.
These ARC Break specialists howled so loud their minority was
overlooked. They wanted us gone. We helped people. A dastardly act.
To prove it, Sinangulp tried to give away Johannesburg's buildings! And
stole HASI's equipment and tapes and recorders!
Staffs resenting these attacks, resisted. But gradually succumbed.
Covertly prices were lowered.
Very covertly.
While still reporting and advertising high prices some orgs were
charging very small prices.
It's a case of how crazy can one get.
It's one thing to advertise the discounted price. It's quite another to
only advertise the high price while secretly selling at a ridiculously low
price,
The tendency then against which we must guard is covert lowering of
prices once set.
The prices given me last year for use in computing a discount programme
were in some orgs higher than the actual price taken by the org.
Therefore, when we went on the early 1965 programme, the lie about
former prices made it appear to the public in some areas that we had raised
prices from 400% to 1000%! Hence, no business and the Jan-Feb slump.
It's good this happened while we were still small in orgs. For had we
expanded without discovering this the tendency of secretly lowering prices
would have wrecked us. The bigger we got the broker we would have been and
the poorer the staff.
I now know why staffs got higher than average units on proportionate pay
when I managed an org personally. I just didn't cut-rate things. And the
public paid happily.
The lesson we have learned and which we must never lose sight of is that
secret price cuts by separate orgs and discounts can undermine all
financial planning and lay in an engram that can destroy all expansion.
91
Hardly one price actually collected in the world was the authorized
price or the advertised price. And when the false data was used for
planning the public was confronted with a HUGE increase even in the
discounted price, which was based on reports that made the discounted price
equal to the advertised 1964 price. But that reported 1964 price was not
the price received for service.
I personally am of the opinion that even top executives in orgs did not
know what their staffs were charging by the org.
What it amounts to is that a big false report by orgs lay behind the
1965 Jan-Feb slump. They did not report their actual low prices, only their
advertised prices.
Therefore we can draw up some policies on prices.
1. The advertised and reported price of anything sold by an org must be
the actual price received by the org for that item.
2. There may be no hidden discounts, trick reductions, whims or favours
given in pricing.
3. Merchandising by advertising that prices are going up soon is
forbidden.
4. Anyone covertly reducing prices is guilty of suppressing an org which
is a high crime.
5. Any price passed upon at Saint Hill by myself may not be changed for
anything by anyone else in any org.
And finally:
6. Efforts to reduce prices below a set scale will be considered
suppressive acts.
I can easily handle a situation when I have all the data. It was easy to
re-shuffle programmes to get us again into an income range where orgs and
staffs will prosper and which pleases the public. But it was a lot of worry
until I got the real story.
We have learned some valuable lessons by the Jan-Feb 1965 slump.
And we were saved by the bell. We didn't have a public book pouring in
people and we didn't set up the orgs to boom. Had these two things been
done, without my establishing a programme which started the rabbits out of
the brush and into view, we would have been wiped out by a boom.
Now we can plan with a better reality and set up the org and release
some popular books and boom.
The only other datum on this also teaches us a lesson. Earlier in 1964 a
query to all org3 about their prices elicited a good response. I several
times asked for those despatches to be collected in a folder and given to
me and it was not done. In the press of things, I didn't notice I was
getting a non-compliance here and so never saw them until last week.
However those price reports too were not correct. And I did have other data
given me later in the year of 1964 on prices and National Councils did
inspect the raises without comment.
There's no mystery left about this-the price data given by most orgs for
planning were not the prices actually paid by the public-and orgs sold
things for far less in most cases than what they said they did. And the '64
discount complexity was greater than the '65. The engram was that prices
were covertly reduced and the new prices of 1965 were thus many times the
old.
Don't listen to suppressives. Turn them in to HCO. And hold the prices
set. And tell me the truth.
L. RON HUBBARD
LRH:ml.eh.rd Copyright @ 1965 by, L. Ron Hubbard ALL RIGHTS RESERVED
92
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 18 APRIL 1965
Remimeo
Sthil Execs ALL SCIENTOLOGY
Franchise
Insert separately PRICES LOWERED BECAUSE OF NEW
in Auditor 8 as
a printed Pol Ltr ORGANIZATION STREAMLINE
BPI
May be mailed to COST OF TRAINING, PROCESSING
Scn Mailing Lists AND BOOKS LOWERED BY NEW
DISCOVERIES
Cancels HCO PolicY Letters:-
19 Oct 1964 Pricing Formulas
30 Oct AD 14 Mailing List for Franchise Holders
31 Oct 1964 Issue 11: Current Policies, Orgs & Franchise
3 Dec 1964 Pricing Meetings Final Policy
23 Dec 1964 Field and Public Programming
15 Mar 1965 Issue IL Only Accts Talks Money
22 Mar 1965 Saint Hill Services, Prices and Discounts
Scientologists may now have a Membership Free.
And all prices and sign up procedures revert to 1964 levels and
conditions. We are retaining all that was good of the programme such as
obtaining funds and heavily advertising books. We are only cutting out
discount puzzles and raised prices.
I have answered your request that we do so by streamlining orgs and I
have returned you to the 1964 arrangements that you did Eke and wanted. We
can do this because of costing lowered by our new organizational pattern.
All International Memberships recently purchased will be extended 6
months free.
The Professional Auditors' Bulletins (the PABs) will no longer be
shortened and will be restored to their old format and are to be sent to
all International Members regularly. They will contain the tremendous
backlog of invaluable data of HCO Bulletins of 1964. HCOBs printed in it
will come on up to present time and will continue to be issued as PABs as
before.
The higher prices and discount plan of early 1965 are rendered
unnecessary because of technical and organizational advances.
LOWER LEVELS
The technical advances which came from the level above clear when I
contacted it, opened not only the top, but the bottom of the levels and I
found many new 11 sub-zero" levels and developed many of the processes that
go with them. This lets us undercut the toughest cases we've ever seen in
the fastest possible TIME.
DISSEMINATION FORMULA
Also, I have discovered and developed the long awaited dissemination
formula which makes it a walk in the park to easily present Scientology to
even the roughest objector, much less decent people.
Its drills just need to be written up in Bulletin form and they will be
part of the PABs in due course. You will get the PABs with your
International Membership.
FIELD STAFF MEMBER
With the Field Staff Member programme and lots of book auditors we don't
want a complicated price programme to stand in anyone's way now.
FIELD AUDITOR PRICES
All Field Auditors and Centres are now being required to return to the
1964 price level of their Continental Organization and may not charge more
or less than those prices.
93
Such auditing is not supervised from Saint Hill. Only HGC and Academy
auditing and training is supervised by me.
To charge a fee an auditor must be Classified up to the level being run
for fee.
ORG PATTERN
The new org pattern makes for a somewhat less costly org per person
trained or processed so the prices can be dropped back.
Also volume will be rising.
NEW BOOKS
I am holding up new books here until orgs are better able to care for
very heavy traffic flows. The new books will increase the volume again.
Before we start pouring new public in we want to clean up all our old
clearing contracts and our existing field auditors and Scientologists. This
should take about a year. After all, they have first call on org services
and we'd better not start such a heavy flood of business that the old timer
will be crowded out before his case and training are up.
PLANNING
I've been working to remove any obstacles in the way of the training or
processing of any old time Scientologist.
If we can get all our present people well up while we still have
breathing space, their help will be invaluable as we spread out.
Therefore, consider the 1965 discount programme run out and erased. We
don't need it and you found it hard to understand.
Things are as they were in 1964-same prices, same services, same courses-
same people, but the orgs with a new streamlined pattern based on
technology taken from the high levels above clear.
I'm glad to be able to give you this break.
And I'm going to need every last Scientologist in the world as highly
trained and processed as possible.
And so I have swept aside all the blocks I could. We must we can get the
show on the road in time.
So let's get the show on the road!
L. RON HUBBARD
LRH:mI.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
94
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 OCTOBER 1964
General Non
Rernimeo
Assn/Org Sec
HCO See
Adcomm
Deputy Assn/Org See PRICING FORMULAS
Reference: HCO Exec Ltr of July 3, 1964, (Requested Data on Prices).
(This Policy Letter modifies HCO Pol Ltr of Sept 23, 1964, in giving
three monthe average income, instead of one month's as the average price
for training and promsing. Otherwise, HCO Pol Ltr of Sept 23, 1964, is
generally valid.)
PRICES AND DISCOUNTS ARE EFFECTIVE JANUARY 1, 1965, (but must be
prepared for and announced as contained herein.)
First, thank you for your response to my request for pricing data. I now
have formulas and data to give to you as policy now issued.
THE NEEDS OF A NEW PRICING FORMULA
The needs for new pricing formulas are required by:
I . Inflating currencies in all countries.
2. Low units in many orgs.
3. No flexibility.
PRICING FORMULAS
The pricing formulas are:
1. The price of a 25 hour intensive or any one course above the level of
HAS shall be computed as costing the same as three months' pay for the
average middle class working individual. Each Continental District shall
make its own computation of what this sum is. From this total price,a
Lifetime Member shall have a discount of 20%. An International (yearly)
member may have a discount of 30%. For the purpose of Courses and
Intensives only these two discounts may be additive. Courses above the
level of HPA may be increased in price at the discretion of the Continental
Director or Executive Director. Processing bought in amounts more than one
25 hour intensive may be decreased proportionally at the discretion of the
Continental Director or the Executive Director.
ASSISTS
2. Assists are to be charged at the hourly division of the above, but no
assist shall be more than five hours and must be delivered in one session.
Discounts are allowed. Two or more assists may not be sold the same
preclear in any one month.
PE FREE COURSES
3 * HAS Courses are to be divided into a free period of one or two
weeks, but only for five or six evenings on course.
HAS COURSES
4. The HAS Course is to continue for an additional series of evenings
paid for by the evening or in advance and shall be no less than 30 and no
more than 60 additional evenings on course. The amount to be charged is
based on three weeks pay of the average, middle class pay rate and, if paid
in advance, is subject to a refund in cash or future credit of 25% of the
total fee, providing the course is fully completed
95
and the refund payable only at the end of the course. Lifetime 20% and
International 30% discounts apply.
PROFESSIONAL RATES
5. Professional rates are abolished as they are cared for by
membership discounts.
STAFF MEMBER AUDITING
6. Staff members, full or consistent-part-time under contract, may be
audited 12Y2hours or 25 hours in any week in the HGC by giving up half of
their units for a 121/2 hour intensive and all their units for 25 hours
which then serve as a general rise in all the othere units; but staff
members may not have more than one 121/2or 25 hour intensive in a month.
They may have 121/2 hour intensives over week-ends by directly paying the
staff auditor auditing them the average units for the week before last
calculated for 2V2 days only, if this is overtime for the staff auditor, or
by paying the org the same amount, if the staff auditor is a regular, week-
end, part-time auditor. No staff member may be audited if paying pcs
consume the available auditing time. Two staff members must be audited in
the same week by the same auditor if only 121/2 hours is taken.
BOOK DISCOUNTS
7. Book discounts will be:
(a) Central Orgs which act as the Continental Book Dept for the
continent and Saint I-fill from Washington or Washington from
Saint Hill get a 50% discount on the retail sales price, plus
postage and any shipping charges.
(b) City Offices which are not the Continental Book Dept, and
Franchise Holders get 33 1/3% discount with no other discount,
whether ordering from Saint Hill, Washington, or a Central Org
or a City Office, plus postage and any shipping charge.
(c) An International Member gets a 10% discount, plus postage and
any shipping charges on tapes, books and meters.
(d) A Lifetime Member gets a 10% discount on tapes, books and
meters, plus postage and any shipping or handling charges,
whether buying from Saint Hill, Washington, Central Orgs, or
City Offices, but not binding on Franchise Holders. BOOK PRICES
ARE NOT UNIFORM CONTINENT TO CONTINENT, BUT ARE FIXED WITH
PERMISSION FROM SAINT HILL.
(e) Lifetime and International Membership discounts are additive in
all cases except where the Lifetime Member has been promised
before Nov 15, 1964, a 20% discount on books, tapes or meters,
in which case the discount will be honoured in all orgs, but the
additional International Membership discount does not apply then
on tape, book and meter purchases. The maximum membership
discount is therefore 20% in all orgs including Saint Hill on
tapes, books and meters.
(f) Any org may buy tapes from Saint I-Ell at 509o discount.
(g) Other discounts on tapes, books and meters to be arranged from
time to time.
(h) Central Organizations and City Offices may arrange for discounts
with the Director of Publications at Saint Hill on quantity
purchases of meters, tapes, insignia, etc. Any such discount is
a temporary arrangement. Evidence that an organization or office
is selling books, meters, tapes or insignia at cut rates (below
list price for that area less proper member discounts) will
cause cancellation of all further meter, or insignia discounts
(except membership discounts) to that area.
96
INTERNATIONAL MEMBERSHIP FOR STAFF MEMBERS
8. Staff members full or part time, continuously employed and under
contract are given their International Membership yearly without charge.
Their Lifetime Membership must be purchased by themselves. On departure
from staff a staff member's International Membership is cancelled as of
that date, but may be renewed on proper payment.
THE NATIONAL MAGAZINE
9. International Members receive every other month a Major issue of the
National Magazine. Everyone in the address files receives the Minor issue
hi~ the alternate months.
THE AUDITOR
10. The Auditor goes to all Founding Members, International Members,
Lifetime Members and Professional Auditors, but the mailing of this
magazine is not to be promised and comprises no part of the pricing
programming, Saint Hill making no promise to continue to issue it to any
certain person or anyone.
THE PROFESSIONAL AUDITOR'S BULLETIN
11. The Professional Auditors Bulletin goes to all International Members
and Professional Auditors either direct from Saint Hill or as an enclosure
in a Major national issue.
RESEARCH TEN PERCENTS OF GROSS INCOME
12. ~ Central Orgs, City Offices and Franchise Holders contribute 10% of
their gross weekly income to various expenses and usages at Saint Hill or
to L. Ron Hubbard as Director of Research. But this 10% shall not include
payments received for books by anyone.
BOOK TEN PERCENTS
13. Washington and Saint Hill pay 10% of their gross book sales to the
Research Fund Account of Scientology Library and Research Ltd., but only on
books actually published and printing paid for by each area. If Washington
publishes a book it pays I 011o of the gross retail sales price as sold. If
Saint Hill publishes a book it pays 10% of the gross retail sales price as
sold. If Washington, for example pays Saint Hill for a shipment of books
and sells them from Washington, then Washington does not pay any 10% and
vice versa. Although it is not policy at this time for other offices to
reprint books, if one ever does get permission, it will also pay 10% to the
Research Fund of Scientology Library and Research Ltd on each.
INTERNATIONAL AND LIFETIME MEMBERSHIP PRICES
14. International Membership shall be uniform at this time for the world
at 910 or $30.
Lifetime Memberships shall be uniform at this time for the world at f
25 or $75.
Neither Membership may be bought at a discount. Memberships are not
refundable.
RECEIPT AND USE OF INTERNATIONAL AND LIFETIME MEMBERSHIP MONIES
15. Both International and Lifetime Memberships shall be paid into the
HCO in the Area Office and deposited only and at once in the HCO Book
Account, and shall serve, amongst other things, to defray magazine
printing, handling and postage costs of the National magazine. All
Memberships must be paid for in cash, made out directly to HCO Book
Account. Memberships shall be deposited only in the Main Book Account of
the Area Office. The Continental Office may call on sums proportionate to
the number of magazines (their cost of printing, handling and postage)
mailed in the area of the HCO Area Office, but book ads saying books are
available at the Area Office and the ads of the Area Office must be carried
in the magazine. All sums additional to magazine cost in both the Area and
Continental Office shall be used only to purchase
97
more books, and tapes and to defray expenses of high quality facilities for
tape playing and the expenses of Congresses. All Membership monies received
by an Area Office, not called upon to defray magazine printing and postage
may be retained in the Area Book Account.
CONGRESS FEES
16. All Congress fees shall be received into the Area Book Account of
the area where held.
No Congress fees, membership fees, or book monies received may be used
for the payment of units, rent (except for Congress Halls) or organization
expenses.
USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES
17. Congress, membership and book fees may be used for advertising
Scientology books in magazines, but not for newspaper or magazine
advertising of PEs, auditing or services.
FURTHER USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES
18. Any further use or disposition of Congress fees, membership fees or
book receipts shall be at the sole permission, personally signed, of the
Executive Director.
HCO BOOK ACCOUNT SIGNATORIES
19. The HCO Continental See and HCO Area See or where the HCO
Continental See is also an Area Sec, by the HCO Continental See and the HCO
Communicator jointly, or the single signatures of LRH and MSH are requisite
on any Book Account cheque for it to be valid and all bank mandates for
that account must so state and must include the signatures of LRH and MSH.
OTHER PRICES
20. All other prices of all other commodities or services shall be set
by the Continental Director in agreement with the HCO Continental Sec for
all offices in their continental area.
COMMITTEE DETERMINATION OF AVERAGE MIDDLE CLASS PAY
21. The determination of what constitutes 3 months' pay for an average
middle-class individual for a continent shall be determined by a Committee
of which the Continental Director shall be chairman and each Association or
Organization Secretary of that zone a committee member. All government data
and averages shall be consulted as available from departments or ministries
involved in commerce and labour and from other sources and it is the
responsibility of the Chairman that this data is obtained.
MEETING TIMES OF THIS COMMITTEE
22. This Committee is to meet in the fourth week of November in this
year and on, the first week of September in succeeding years to determine
the price scale that will become effective on the first of January of the
coming year and these prices shall be announced in the National Magazine at
once as they will generally be found to be rising in the coming year,
causing a rush of business in December.
CONGRESS DATES
23. Congress dates should be set for the period July 1 of the coming
year to June 30 of the next year after and announced in the same issue of
the National Magazine.
AUTHORIZATION OF PRICES
24. Final authority for prices must be obtained by cable from the
Executive Director before publication with brief supporting data.
98
Note: It is called to your attention that if an International Membership
and a Lifetime Membership is held by an applicant for training above the
level of HAS and below the level of HPA or for processing, then there must
be one pc or student per month per staff member to give each staff member
11/2 times the average pay of a comparable post to his own in an outside
business firm.
A staff of 20 would have to sign up 5 students or pcs per week on
courses above the level of HAS or 25 hour intensives to do that and it was
common (at comparable prices to those arranged for in these formula
policies) in Washington or London in 1956 to sign up more than that with a
staff of less than 20. (But book ads were being regularly placed-an action
amply provided for in this plan.)
HCO AREA SEC BONUS
25. The HCO Area See is granted a bonus of 2 percent of the gross
receipts of the local Book Account.
ASSN SEC/ORG SEC BONUS
26. The Association/Organization Secretary is granted 2 percent of the
gross receipts of the HCO Book'Account but may not be a signatory to that
account.
HCO CONTINENTAL SEC BONUS
27. The HCO Continental Secretary is paid Y2 of one percent of each Book
Account in the Area, whether or not acting as an HCO Area See as well.
CONTINENTAL DIRECTOR BONUS
28. The Continental Director is paid 1/2of one percent of the gross
receipts of each Book Account in his continent, when acting as an Assn/Org
See or when not.
MONTHLY PAYMENT OF BONUS
29. All such bonuses are payable monthly only, computed on the first of
the month.
NO ADVANCES OR LOANS FROM HCO BOOK ACCOUNT
30. No person may be paid such a bonus in advance nor may any loan be
made to any person from any HCO Book Account.
HCO BOOK ACCOUNT BONUS SUSPENSION
3 1. When a Book Account tends to become insolvent by reason of owing
more than it receives, bonuses are suspended until the condition alters but
in no event less than 60 days.
REGULATIONS CONCERNING HCO BOOK ACCOUNT
32. Book, Congress, Tape and Membership Income may not be used or loaned
for any salary sum, expense sum, building fund or past bills of the
organization as a whole, but past book and tape bills are an exception.
STAFF MEMBER LOANS
33. All loans to staff members from any organization or outside source
must have the permission of the Treasurer at Saint Hill before being
granted or received. Exception is actual personal leases andlor Hire
Purchase or Time Payment purchases by the staff member for his or her own
use, and no monies may be borrowed by full or part time staff members from
past or present organizational students or pcs.
STAFF REGULATIONS
34. Any staff member accepting for training or processing any student or
pc for his personal profit or for favours during his time of employment on
staff, or any HASI
99
student or pc for two years following will be subject to a Committee of
Evidence and possible revocation of certificates.
REPORTING OF UNUSUAL FAVOURS
35. Any unusual favours received by a staff member from organizational
students or pes must be reported to HCO Exec Sec World Wide via the HCO
Area Sec and Continental Sec. This includes uses of cars, apartments or
receiving expenses as well as other favours.
FRANCHISE AND FIELD ACTIVITIES
36. Franchise and Field Auditors are influenced in prices in that they
must not charge less than but may charge more than the auditing and
training prices above the level of HAS for their continent, but they may
credit the facts of International and Lifetime Memberships discounts, even
though they should not sell them.
INTENSIVES OF MORE THAN 25 HOURS
37. Additional sliding scale discounts may be given when pcs or students
buy more than one intensive or course at the same time but the reductions
for quantity purchases must be passed upon by the Continental Director.
TAPES
38. No tapes may be manufactured, copied or copied for resale by any
Central Organization or City Office. Only Saint Hill may copy tapes.
Evidence of any tapes being copied or copied for resale in a Central
Organization or City Office will suspend their tape discount for one year.
Please note that the only discount Policy Letter marked BPI is Pol Ltr
of October 31, 1964. This is a repeat of others and additional data of
special interest to and clarification for the Franchise Holder and the
public. The one you release is October 31, 1964.
DO NOT RELEASE ANY OTHERS OF THIS PRICING SERIES OF OCTOBER-NOVEMBER
1964 TO FRANCHISE OR THE GENERAL PUBLIC.
CREDIT PAYMENTS
39. Previous policy disallowing discounts on credit are cancelled. This
does not mean that memberships may be had for credit. They cannot be. It
does mean that all discounts apply whether the full or only a part of the
payment for training, processing or other service or materials are
purchased.
However a reasonable deposit, covering the actual cost of the service or
material must be procured in all cases where credit is extended.
On future credits, after January 1, 1965, no penalty clauses should
exist on new credit notes signed and these are hereby cancelled for new
notes. Interest must not be lower than the highest permitted by law in the
area or 10% in areas having no limit.
Interest for the term of the note is added in full sum for the term of
the contract to the note on signing it, the amount of the note then being
owed sum plus interest for the entire term of the note.
RELEASES REQUIRED
40. Releases of the older type are now required on all sign-ups,
particularly credit sign-ups where an even tougher release form should be
drawn up especially for those persons signing notes.
Sign up policy remains otherwise unchanged.
100
Note: New programming, new processes, new PE format, the technology of
how we lose pes and students, the data in HCO Pol Ltr of September 23, 1964
and Exce Lty of October 5, 1964, a recognition of the field and franchise
auditor as a pc and student source that must be encouraged, a recognition
of how units and staff members and business-done balance up, new books, new
type Congresses, my general planning on your promotion lines and your
increasing activity and alertness, combined with expected case gains, the
new Book of Remedies, these things and others combine to guarantee an
increasingly busy future with considerable rise in personal income and
general financial health. You realize, of course, that as you increase
students you don't increase instructors to that degree and staff auditors
pay for themselves as added, and that a great deal more income lies in
salvaging all old cases and increasing the potential to earn in all new
ones.
All this requires a lot of snap, pop and hard work but it can be done
and you can be paid better for doing it.
In the business of fast plainly spiritual healing you will also increase
your activity and income beyond expected average.
Advertising actions are arranged for in the above. Nobody expects
magazines to cost any more than they have previously. Magazine cost and
postage is dropped from org expenses.
Note also that under tl-ds plan the most neglected action in producing
income in any area, BOOK ADVERTISEMENT, the No. 1 magic formula of
dissemination, is pushed into being by restricting the expenditure of
memberships and other HCO Book Account monies until, to get rid of the
surplus, book advertisements nationally and locally on a large scale would
have to be placed constantly. With quantities of book ads, income from
students and pes as well as books will flood in. It always has. This is the
basic formula of the coming boom. Because they cost the org money it could
spend and "needed" elsewhere, the number of national magazines printed was
curtailed and book ads were dropped out and that has been the chief cause
of any financial difficulty in any org.
As local offices and franchise centres become truly active, they will
cease to drain off the old timers from the Central Org and stir up more
local business of which the Central Org gets its part in courses and pes.
This all looks pretty favourable to me. I hope it does to you.
L. RON HUBBARD
LRH.jw.cden Copyright @1964 by L. Ron Hubbard ALL RIGHTS RESERVED
[Important. See also HCOP/L 18 April 1965, page 93.]
[Note: In 34. STAFF REGULATIONS the phrase or any HASI student or pc has
been added per HCO PI, 26 November 1964. 7 (h), 38, 39 and 40 have been
added per HCO PI, 9 November 1964.]
101
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 OCTOBER AD 14
Gen. Non-Rernimeo
Sthil Students
Franchise
Sthil CF MAILING LISTS FOR FRANCHISE HOLDERS
(HCO Sec: Note that this is an important piece of current promotion and
see that it, with Pol Ltr on Pricing Formulas, Exec Ltr on CF Overhaul,
are thoroughly known and understood by the Assn/Org See, Dir Prom Reg,
and CF and Address In Charge. We're arranging a boom. Don't let any
parts of how we're doing it go awry, in your Org. If all steps are taken
and continue in force, the boom will be on in your area.)
For some years we have had a policy of no mailing lists should be sent
or issued to the field.
That policy is now relaxed only so far as the following:
I . Franchise Holders in good standing may be issued a certain type of
list.
2. The list may only be issued by being addressed on address
envelopes for a brochure as follows and may not be in tape roll or
card form and no plates may be given to Franchise Holders.
3. No list of persons actively in communication with the Central
Org may be released and such persons may not be part of any list
issued.
4. A Franchise Holder may receive lists only for the area in which
he is actually operating.
5. No list issued becomes anyone's exclusive property and lists may
be duplicated where areas are the same or overlap.
TWO TYPES OF ADDRESS FILES
A Central Org or City Office with Address Equipment and Files normally
carries and preserves all addresses ever collected.
In practice, certain plates are retired to storage when the name has not
been actively in communication with the Central Org for some time. This
period has varied but was usually 3 years. In short, if someone was out of
comm with a Central Org for 3 years, the address plate was retired to dead
files.
If this procedure has not been followed, then this action will have to
be done: All invoices ever written by the Org will have to be exhumed from
Accounts and a whole new Address Plate File made, from the start of the Org
up to its present "active" plate files.
If the plates have been kept, this is a simple matter. One simply
regards "inactive address plates" as Franchise Files.
The two types of address files are then as follows:
File A: Active Address Files of the Central Organization.
File F: Franchise File.
All files are by districts as postal authorities usually require it for
mail packaging. If they aren't then File F must be broken down into states
or counties or some such geographical area. Population density, not square
miles, is the best criteria, so you may have 3 districts for Greater New
York and one for Arizona, New Mexico and Wyoming.
BROCHURE FOR FRANCHISE
A special brochure for the Franchise Holder must be made up and printed
by the Central Org. This should consist of the 17 basic definitions and
what a Franchise Auditor can do and what training he can give. A Franchised
Auditor should be defined. An invitation to communicate should be given.
A space for a Franchised Auditor to write, print or stamp his name or
the name of his centre must be left on the brochure.
The brochure is provided with proper mailing envelopes.
102
BROCHURE DRILL
On payment for a certain number of brochure copies (500, 1,000) to cover
printing, addressing and posting the carton to him, a Franchise Auditor in
good standing may receive addressed brochures from Central Orgs (not Saint
Hill).
Address addresses the envelopes up to the number of addresses available
for that district. Only File F (above) is used. Address does not stuff.
The addressed envelopes in one bundle of the carton and the brochures in
another part of the same carton are shipped off to the Franchise Auditor.
Any part of the ordered brochure envelopes remaining when the number of
plates for that area are exhausted, are sent blank for the Franchise
Auditor to put his own addresses on.
The Franchise Auditor receives the carton, addresses the envelopes left
blank as he wishes, has a printer run off his name and address on all the
brochures or stamps them or writes his name and address on them, and,
paying the postage, mails them out to his area.
People, finding service close to hand, will often break silence and
correspond or call. Groups will form. Personal contact will revive. Now
that we have why people dropped out (definitions not understood in older
subjects or in Scientology, a fact which can be mentioned in the brochure),
we can get them back.
FACTS ABOUT THE FIELD
It is hard for a Franchise Auditor to get in touch with people.
People when they know he is there will wake up and go to him when they
never would come into the org.
. Central Org which does not cultivate auditors in the field does badly.
. Central Org has been known to misguidedly suppress field
"competition".
. survey of pcs some time ago showed the majority originally had been
sent in to the HGC by the field, a fact Central Orgs sometimes overlook.
The Franchise Auditor, delivering service as a well trained professional
is nobody for an Org to deter but encourage.
Only bad experiences with squirrel, badly trained or untrained persons
in the field lead Orgs to withhold from them. These experiences seldom if
ever occur with Franchise Auditors.
It would be dull to release the total active list to the field. It would
be dull indeed to release File F to anybody and everybody, competent and
incompetent alike. It would be equally dull not to forward the programme
covered in this Policy Letter.
NEW PROMOTION
The above project should be undertaken quickly. The sooner it is
undertaken, the higher the general activities of Scientology will increase.
The line must be grooved in now while it can be. The brochure must be
prepared and printed. Special help must organize the separation of Files A
and F and in at least one case File F will have to be put on plates all
over again.
The reason this will have to be done quickly is because there won't be
any spare motion later with wl-dch to do it.
New promotion is so rigged that City Offices will be putting out vast
amounts of advertising of books locally and Central Orgs nationally.
These new book buyers have been missing in our planning for years for
reasons of false economy. Now we are going to start them rolling in.
New Promotion-and new books-will send orgs into a state of such activity
that they might flub the drill of Franchise brochures if begun later. So
start it now and you will have it grooved in when things really start. You
will soon have more addresses than you know what to do with.
103
HANDLING NEW ADDRESSES IN CENTRAL ORGS AND OFFICES
Starting right away, this is the drill for new book buyers. This drill
also will be kept in and followed after advertising begins.
1 . A person buys a book personally or by mall for the first time.
2. The invoice is made out with the name and address bright and
clear on all copies.
3. One copy goes to shipping or books whether mailed or just
handed out.
4. One copy goes to own Address. (This is true of all orgs
including City Offices. Whatever is done with remaining invoice
copies is according to standard accounts procedure.)
5. Address cuts a plate or stencil and puts a date on it and a
designation like BB 3/3/65, meaning the person bought a book on
3/3/65.
6. This plate is put in File A and receives whatever goes out to
File A for 3 or 4 months.
7. Any new invoice, indeed all invoices, go to Address. If a BB in
File A buys more books or training or processing Address obliterates
the BB 3/3/65 on the plate or stencil either by just flattening it
on a metal plate or cutting a new stencil in case of less durable
stencils.
8. At the end of each quarter (Mar. 31, June 30, Sept. 30, Dec. 31
all
approximate) Address removes all BB plates older than 3 months.
9. These plates are now placed in File F with its geographical
mates.
10. Franchise Holders are informed they should buy new brochure sets
and these should be addressed from File F, using all plates in it,
old or new.
FRANCHISE OBLIGATION
To procure a set of addressed brochures, a Franchise Holder must pay
cash to the org and must specify how many addresses for what districts and
how many envelopes are to be left blank.
On receipt of the carton, the Franchise Holder is obliged to mail at
least the addressed envelopes, containing the brochure furnished and any
piece of his own additional literature, providing only that it mirrors no
games condition with other auditors or the org, and contains no claims
contrary to standard policy regarding healing, the insane, etc., as
contained in HCO Pol Ltr of Oct. 27, 1964, or as amended from time to time.
The Franchise Holder is obligated to turn in to Saint Hill at the end of
each year a COMPLETE LIST of the names and addresses of persons who have
bought things from him-books, auditing, processing, courses-so that these
people can be sent a copy of an International Magazine.
Failure to carry out these above named obligations would result in a
cancellation of the privilege of receiving mailing lists, if not of
Franchise.
CITY OFFICES
A City Office must forward copies of its new book buyer list to its
Central Organization the moment it becomes File F. It must be plainly
marked File F and include only File F names as above.
The City Office may keep its book buyers who then buy more books,
training or processing (its File A). However, to get its people sent a
magazine it should routinely send ENVELOPES pre-addressed by the City
Office to the Central Org. If a City Office finds this arduous, it may
simply send all its invoices to the Central Org for the Central Org's
complete address and File A, File F handling.
A City Office may then (a) keep its own address unit going, or (b) count
oil the Central Org doing it all for them. Either one or the other must be
selected and followed.
Where a City Office fails to keep its address unit cracking, the Central
Org must demand the address unit copy be sent to the Central Org when the
invoice is written up
104
by the City Office just as though the Address Unit of the Central Org was
part of the City Office.
A City Office may not retain the Address Invoice Copy if it is not
maintaining an Address Unit, even if it "plans to" but must send the copy
to the Central Org, not save it. It can note down and record its active
"customers" in a book and still send the invoice copy to the Central Org.
The names and addresses of City Offices must be carried in each issue of
every magazine mailed by Scientology Orgs.
A City Office may also buy its area's brochure but in this case should
add to the envelope a sheet of its own stating it is a City Office and
defining Central Org, City Office, Franchise Holder and Field Auditor as to
their relative status and seniority in Scientology. This should be done
without ARC Breaking Central Orgs, Franchise Holders or Field Auditors, but
should also emphasize the virtues of a City Office as the responsible
representatives for Scientology in the area.
DESIGN FOR THE BOOM
You see the promotion pattern emerge now. First, get the org
streamlined, with tech high. Second, the Pricing Policy Letter of Oct. 19,
1964. Now the using of names to the fullest extent.
The HCO Pol Ltr of Oct. 19, 1964, is going to force city and national
book advertising into existence. This is done by building an account up
(HCO Book Account) that has only one real outlet-book advertising. I intend
to get each org's HCO Book Account into a very swollen condition and get it
spent on book advertising as the only possible value that saves it from the
tax man. Into this channel, new effective books will be poured into the
public's hands.
The ensuing prosperity will come first to Central Orgs and City Offices
and then to Franchise Holders. Out of this prosperity the HCO Book Account
is going to fatten up alarmingly and have to be spent prodigiously on
advertising books.
Given only effective training and processing in accordance to current
design and supported by our now existing technology, this cycle ran
continue over and over. The HCO Book Account in each Central Org and City
Office will swell up by reason of processing and training discounts and
book sales and can only be lowered greatly by new book ads.
The book buyers will be channeled to Franchise Holders as above. These,
to cope, and because org income is spectacular, will become City Offices
and coming under the rule of the HCO Book Account and now able to sell
membership and higher level courses, will pour new advertising out in their
areas. And new Franchise Auditors will come into existence and in their
turn ----
Well, you get the pattern.
There. are those who dread a boom. They think if it can all be kept
small enough it can be handled easily.
But we don't happen to have easy handling of things as our main purpose,
so I trust such won't be too spun about by the rush. The truth is, things
are only hard to handle when you haven't got any volume. Right? So let it
boom!
I said I was kicking the door open.
That pop you just heard was the top hinge.
L. RON HUBBARD
LRH:jw.rd
Copyright @ 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED [important.See also HCO P/L 18 April 1965, page 93.1
105
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 OCTOBER 1964
Issue Il
Gen Non-Remirneo Franchise BPI
CURRENT POLICIES ORGS & FRANCHISE
HQS Course Permission
As of this date, no further permissions to teach HQS Courses will be
granted to Franchise or Field Auditors.
Existing permissions for Franchise Holders to teach HQS Courses will
expire on January 1, 1966.
The reason does not Lie in poor teaching. The HAS Course has been
expanded and is well designed and effective and is adequate and long enough
to receive a good fee.
From this date forward permission to teach HQS will be given only to
Central Orgs AND CITY OFFICES.
Franchise Soon To Be Required For HAS
As of Jan 1, 1966 the teaching of HAS or PE Courses may be done only by
Franchise Holders.
As of that date the general permission to any field auditor to teach HAS
or PE Courses will be ended.
City Office And Central Org Courses
Eventually City Offices will be teaching HAS, HQS and HCA. Central Orgs
will be teaching HAS, HQS, HCA, HPA and HCS Courses. In 1968 Central Orgs
will also be given permission to teach HAA and HSS.
Franchise Becoming City Offices
Successful Franchise Centres may become City Offices on application if
their record and activity as a Franchise Holder is adequate.
The requirements of a City Office are (a) corporate regularity by which
is meant their incorporation must be passed upon and in accordance with
policy, (b) adequate premises, (c) the presence of a full time HCO Area
See, (d) training of someone in org administration at.their central org.
Membership Sales
No Franchise Holder may sell memberships. International and Lifetime
Memberships may be sold only by City Offices and Central Orgs.
All Membership money received by a Central Org or City Office must be
paid into the HCO Book Account of that office and this money is used for
dissemination. Salaries and general org bills may not be paid from the HCO
Book Account.
Franchise Holders receiving requests or monies for membership must
forward the matter to the Central Organization, referring the requests and
sending the money in its entirety. There is no commission.
This does not restrict a Franchise Holder from advising memberships-and
indeed he should do so as he will receive the benefit of it directly,
membership monies being invested mainly in advertising of books and
assisting his own sale of these as well as bringing other indirect
benefits.
106
Membership Discounts
Membership discounts on training and processing amount to 20% for a
Lifetime Member and an additional 307o for an International Member. These
discounts are additive, making a 50% discount in all for training and
processing.
Membership discounts on books, meters and tapes are never more than 20%.
An International Membership gives 10% and a new Lifetime Membership gives
10%, making the total of 20%.
Old Lifetime Memberships, bought prior to November 15, 1964 give a 20%
discount on books, meters and tapes which will be honoured. But in this
case an International Membership discount is not also added.
Memberships Non-Refundable
No membership monies are ever refundable even for a portion of a year
since the purchaser of one usually receives many times its value in
discounts within a few days or months.
Membership Prices
An International Membership is necessary to keep a certificate in
force.
A Lifetime Membership costs Z25 Sterling or S75.
An International Membership costs E 10 Sterling per year or S30.
Franchise Not Bound By Discounts
Franchise Holders do not have to give discounts because their book
buyers, pes or HAS students have memberships. But they may do so if they
wish to bona. fide members. They do not however receive membership monies
but if any is offered, as above, they should send it at once to the Central
Org. A Franchise Holder may persuade the student or pc to send the
membership fees to the Central Org and then grant the discount as this all
helps only dissemination and a boom, after all.
A Franchise Holder may not grant membership discounts to non-members.
Franchise Processing Fees
Franchise Holders must keep to the scale of processing fees announced by
Central Orgs for each year. These are precisely calculated. However he can
charge more than this amount if he wishes.
Increase Of Fees
A Central Org or City Office can also charge more for special auditors
or considerations and for courses of higher levels above HPA. In fact any
demand by a pe for a special or particular auditor or class of auditing
should be cared for by an increase in fee for that particular person or
level of service otherwise it could not be delivered.
R6 auditing should be double or treble any usual fee, with discounts
allowed on the higher fee.
In November of this year (1964) and September of future years an
Association or Organization Secretaries meet under the Continental Director
to set the auditing and training fees for the coming year.
Other prices (HAS, etc) are set by the Continental Director of the
zone.
Book Prices
Book, tape and meter prices are not uniform, Continental Zone to
Continental Zone. U.S. and U.K. prices are on a parity of one pound equals
three dollars for easy computation and to make up for exchange delays and
fees.
Other Continental Zone book prices are computed on the cost of books
generally in the area plus handling and shipping charges.
These prices are published from time to time in "The Auditor".
107
Central Org and City Office discounts are included in HCO Pol Ltr of
Oct 19, '64.
Franchise Book Discounts
Franchise book discount is 33 1/3 percent now whether the book is bought
from Saint Hill, Washington, D.C., a City Office or a Central Org BUT this
discount may not be given unless 25 or more books are bought at the same
time. Otherwise only any Membership discounts to which he is entitled apply
to the Franchise Holder.
Book Handling Charges
All shipping and handling charges are contained in the price of a single
book sale from Saint Hill or Washington on the new price list effective Jan
1, 1965. This is absorbed by Saint Hill or Washington..
Central Orgs, City Offices and Franchise Centres may still charge
postage as is customary in mailing in the past.
Also, on lots of more than one book ordered from Saint Hill or
Washington, postage and handling are added to the price of the order. But
if from a Central Org or City Office the payment is received with the order
in cash, Saint Hill and Washington will waive postage and handling. They
will ship at the airmail price or the surface price as requested and in
accordance with the proper amount received. Central Org, City Office and
Franchise Centres receive all their discounts on the book prices published
in "The Auditor". They need to pay, for air shipment on quantities, only
the air mail price quoted if cash accompanies order. By cash payment at the
surface price they may add the actual air cost but will find it amounts to
the same thing.
Central Orgs and City Offices may have books on credit where their
payments are not far behind already, but must pay the postage and handling
fees in addition, as we cannot carry these on credit, being due and owing
at once from us by the shipping companies and agents.
No Credit
Credit is not extended at Saint Hill or Washington to Franchise Holders
or members on books, tapes or meters as it makes too much accounting.
No SHSBC Discount
No Membership discounts are given at Saint Hill on the Saint Hill
Special Briefing Course as no membership money comes to Saint Hill.
Membership Not Part Of 10%
No 10% administrative percentage is to be sent to Saint Hill on
memberships sold. It all goes into the HCO Book Account in the area where
the membership is bought and is not part of the organization's weekly gross
income. Membership monies go to dissemination.
Saint Hill Discounts To Members
Saint Hill, however, grants the standard membership discounts as above
on all books, tapes, meters and insignia, etc.
Franchise Discounts Limited
Franchise Holders may not have membership discounts in addition to their
33 1/3% discount on lots of 25 or more books.
There is no discount other than membership to Franchise Holders on
tapes, meters, insignia, etc., but the membership discount is granted where
their memberships are in force.
L. RON HUBBARD
LRH.jw.eden
Copyright@ 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED [Important.See also HCO P/L 18 Aprfl 1965, page 93.1
108
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 DECEMBER 1964
Gen Non-Remirneo
PRICING MEETINGS FINAL POLICY
On the basis of cables and minutes from various continents and accepting
various recommendations fully explained or implied the formulas and policy
letters of recent weeks are confirmed.
By adjusting the'average weekly pay given in cables and minutes, I was
able to honour most recommendations concerning what prices should be.
By re-working basic promotion and using what had proven successful in
the past I therefore amended pricing policy slightly as follows and with
Mary Sue's help recalculated the sum known as the average weekly wage to
mean "What sum did we have to charge to get staff the reported average
weekly wage in an area?"
None by the way mentioned staff or pay in recommendations at the various
meetings. I just wanted to be sure that we didn't set a price that
impoverished staffs.
These reported sums were then computed and ratified on the following
basis:
We took the average weekly wage reported as the required average wage of
a staff auditor. This was multiplied by two to allow for one administrative
staff per staff auditor. This sum was then considered to be 45% of the
required gross. Then, examining recommendations for some reduction, we
recalculated the figures for the various areas. They are very close to
figures recommended by the committees in those areas all things considered.
(The US requested a sliding training fee and this was met by giving HAS
official academy day course status as well as retaining it as an evening
course.)
UNITED STATES: Average income figure reported $100 per week. Figure
recalculated to meet requests for lower prices, $83.33 giving a potential
staff average
pay of 8100. Full price of HQS, HCA, HPA or a 25 hour intensive, $1,000
making 20% $800, 30% $700, 50% $500. This is a reduction for US prices. HAS
as a Cheap Academy I month course provides sliding scale. Free PE cautioned
to be well done if retained.
LONDON: Average National Income reported f 15 per week. Meeting in
London recommended f 12. 10. 0. Figure allowed for publication based on
111. 3. 4 per week.
This gives full price of HQS, HCA, HPA or a 25 hour intensive as f 134, 20%
f 107~ 4. 0, 30% f 93.16~ 0, 50% f 67. 0. O~ This is a very small increase,
but a larger one considering initial outlay of memberships. It is not
sufficiently great to cause many balks as some of the membership fee may be
paid at HAS level on students, and pes can see advantage of discounts.
MELBOURNE: Average weekly income reported for Australian middle class
workers was astonishingly high, showing inflated condition of Australian
pound and high local prices prevailing. It was f 25 Australian. The
committee asked for changes in the number of weeks to be used but as no one
else had, this was over-ruled and instead the weekly pay calculation figure
was based on an average, lowered a similar amount to the weeks they wanted
lessened (they wanted 2 months average pay for training and 21/2 months for
processing). Accordingly the rough figure f 18 Australian was authorized as
this gives about f25 Australian as the potential average staff member pay.
Full fee for an HQS, HCA, HPA or a 25 hour intensive f 216, 20% f 172.16~
0, 30% f 151. 4. 0, 50% f 108 all pounds Australian.
NEW ZEALAND: Running with different currency and economic conditions,
New Zealand reported f 20 New Zealand as the average weekly income. Using
this for staff member pay, the figure f 15 New Zealand was authorized. This
gives a full fee for HQS, HCA, HPA or a 25 hour intensive as f 180. 0. 0,
20% f 144. 0. 0, 30% 026. 0. 0, 50% 00. 0. 0.
SOUTH AFRICA: Meeting reheld as Continental Director just returned to
Johannesburg from Saint Hill. Data not available yet so will not be
reported in policy letters but only directly for local issue. These
remaining policies in this policy letter are, however, binding on South
Africa as these hold a majority opinion amongst committees.
HAS COURSE
The sliding scale of courses already working well in the US is retained
not by lowering the HQS Course but by formalizing the HAS Course as an
Academy course.
109
The price of this course is set by the Continental Director, who may
wish to reset the price he first recommended in view of this change of
status.
The HAS Course will be one month long, is to teach only data and listen
style, has as its training goal a Scientology vocabulary and knowledge of
Scientology philosophy and as its auditing goal "feeling free to talk to
anyone".
This course also can be taught evenings as set by previous policy.
This gives a gradient of payment for courses. It also guarantees no
missed words.
HAS is requisite for HQS.
HAS is not classified.
There is no final examination.
Certificate is given at course end and may be denied only be repeated
tardiness or non-attendance, neither made up by the student.
You must realize in costing for the HQS Course that it is the old 1956
HCA/HPA Course, not a light course easily taught. Therefore to reduce its
price would be to invite a reduction of quality. The earliest successful
procurement was a cheap data course, well taught, followed by a tough
auditing course. We have never reached the percentage of enrollment from
that early data course to the tougher course since.
PC "COURSW'
In the Gradation Programme, we have pes being taught. This continues but
don't confuse this pc training with any HAS Course or any Academy course.
All pc training is done by the pc's auditor and that auditor's text
assignments. No course makes a
PC 11.
The HAS Course is a data course teaching the basic fundamentals of
Scientology as a vocabulary and a philosophy. It has no bearing at all on
pc training.
CLASSIFICATION
A student is given his certificate when he completes any course's
month's training, without final examination.
However to enroll in the next course the student takes his
Classification Examination. This is just a good, comprehensive examination
of the exact course he has completed earlier. It is in theory, practical
and auditing. It takes about 3 hours. If the student flunks his
Classification Examination he is enrolled in the next course anyway. He is
not however classified.
This rule, then, is made:
NO AUDITOR MAY ACCEPT PAY OR FEES FOR ADMINISTERING PROCESSES FOR A
LEVEL HIGHER THAN THAT FOR WHICH HE HAS BEEN CLASSIFIED.
Example: J.B. is Class I (HQS). He takes HCA. On seeking to enter HPA he
flunks his Classification Exam. He is permitted to take his HPA and at its
end is again examined for Class H. If he still flunks, he can only accept
fees for Class I processing. In the upper grades he is only a Co-auditor.
We have a Pro Class I with an HPA Certificate. He is a Grades 11 and III Co-
auditor, only a pro in Class 1.
VIOLATIONS OF THIS POLICY MUST GO BEFORE A COMMITTEE OF EVIDENCE.
As the policy will be known to pcs (in the PC Log Book now under
completion, and from the magazines) we can force status over to
Classification. Thus we end most sloppy field auditing. And where we have
Classified auditors auditing we will get proper results in pes in the
field. Where there are bad field results, we will be able to take action,
for it will uniformly be violations of Classification. We are that good at
training now. Co-auditing is knowingly done at risk. P~o field auditing
that is bad is a direct betrayal of us.
These policies keep auditors progressing at minimum public risk.
CO-AUDIT COURSES
You see how we have handled the "Co-audit Course" mentioned in earlier
policy letters.
A Co-auditor is just somebody who never does get classified. Flunks
exams for Classification. Doesn't turn up for them. He goes on getting
trained, course after
course. But he isn't a Classified Auditor. He's a Co-auditor. He can't
audit for fee.
110
This then is your answer to "But why take a course? I don't want to be a
professional." You say, "But my dear fellow, who's trying to make you a
professional? We just know you won't succeed in using Scientology unless
you can audit."
And when the AMA starts to scream "Your people aren't qualified!" we
look stern and say "These fast courses are for the public. Our
professionals really have to study. More than yours with your six hours of
lecture to make an MD into a psycho-quack!" So this also has good
propaganda value.
IMMEDIATE EXAMINATION
It will be found occasionally that an auditor is anxious for his
Classification in order to audit pcs at once on his return home at that
level professionally for a fee.
1 In such cases, our policy is that we favour the professionally inclined
auditor in all training. We will grant an immediate after course
Classification Exam if the auditor's class record warrants it. If this
class record does not warrant it, or if this professionally inclined
auditor fails his Classification Exam given at Course end (rather than the
beginning of the next course on which exam failures this section does not
apply to anyone) we will permit the. professionally inclined auditor only
one repeat of the
course he or she has taken, repeating the exact same course, but only its
one month before re-examining. We will only do this once for one course
paid for. We will not require further fee but HCO may charge the equivalent
of one week's average national pay for having to give two examinations, one
of which failed.
This favour is not accorded auditors not interested in fee auditing.
If the professionally inclined auditor still fails the second exam, he
is yet awarded an In Training Classification for the level just above the
one lie is already classed for (or in the case of an HQS, an In Training
Class 1). With this he may audit for a fee providing he informs his pes of
the facts of his classification. An In Training Classification expires
without further notice one year from date of issue. At that time or before,
he can enter the next higher course, take an examination for the level he
had In Training Classification for and if passed may receive it permanently
as a Classification. He may also repeat the actions allowed to the
professionally inclined auditor in this section at the conclusion of his
next course. This is a favour not a right he has. The favour is extended
only by the Org/Assn See.
All an erg makes out of this is a better trained professional in the
field.
But at no time may an organization sell the same course twice to any
person or refuse a certificate for the course taken except on grounds of
continual tardiness or non-attendance not made up.
HUSBAND-WIFE TEAMS ENTERING ACADEMIES
Husband-Wife teams should not be forbidden. But in all cases where
husband and wife are trained to co-audit each other they must mail their
auditor's reports routinely to the D of P for which they will be charged a
nominal but real fee for case supervision.
Professional auditors or Co-auditors who use auditing in or out of an
Academy to estrange husbands and wives are subject to a Committee of
Evidence at. their nearest HCO on complaint from either party, husband or
wife, and a penalty up to suspension of certificate and 500 hours of HGC
auditing at their own expense may be sentenced the offender if proven
guilty.
During training it is against policy to team husbands and wives together
for practice drills or actual Academy Auditing even when they will be co-
auditing after leaving class.
Where possible husbands and wives should, however, be persuaded to bring
another couple to be trained rather than co-audit and it should be arranged
that the wife audits the other wife and the husband the other husband after
training. In this case it is all fight to team them in any pairing under
training for drills and actual class auditing.
DISCOUNTS
Discounts may be granted without full payment of fee for training or
auditing. But a realistic arrangement of payment must be made and the first
deposit must cover actual cost of the service.
The interest charged on notes should be the maximum interest rate
allowable for the zone or state or 12 percent where there is no limit.
LEGAL ASPECTS OF SIGN UPS
No persons may be admitted to an Academy or HGC who have not signed
waivers (release forms) of the old type.
All such waivers must include a statement that the person is there on
his or her own determinism and that the person has no record of being
committed in an institution or has a criminal record for felony.
Persons with such commitments or records should be referred to a field
auditor near their home and refused training or processing at the
organization.
Persons suspected of purely medical illness should be referred to a
doctor for competent treatment if such a doctor or treatment exists.
Minors must have their parents or guardians sign the waiver and any note
for time payments.
I Known trouble sources as per recent HCO Policy Letter, all of which
remains in force, should be required to straighten up their lives before
enrolling or signing up for processing or should be forthrightly refused.
They may however be referred to a field auditor near their home.
Anyone objecting to an E-Meter check should be refused entrance.
Thus by keeping the legal aspects straight you will be able to help the
many and not be messed up by a few. For a very few such people (21 to be
exact) were the sole sources of grief in the 1950 boom.
To have a boom, you have to keep your nose clean legally or you can be
stopped by the enturbulence generated, both in the org and the public. Such
enturbulence is all that shortens your lines or overworks staff.
NEWS POLICIES
Our news policies have not changed. Just kick reporters down stairs.
Every time it has been relaxed we have not profited at all.
PLEDGING CODES
Applications for certificate must be made by every student for each
course taken during the course. This should give how they want their name
on the certificate, address, and the routing of the student out of the org,
CF routing and all that.
This application must also carry a pledge stating that the applicant
subscribes to and promises to uphold the Auditor's Code, the Code of a
Scientologist and it must state he is informed of and will follow the
policies relating to gradation and classification.
MEMBERSHIPS
Members enrolling must be furnished their cards at once. However, this
is also done by application form and on that form the person signing must
pledge himself to abide by the rules, codes and policies of the
organization and that he understands there is no refund of membership and
that he does not belong to or work for any hostile organization or group or
any group undisclosed to us that is dedicated to the harming of Mankind.
Every Registrar must be or have near to hand in the organization-such as
the receptionist-a person with notary powers, or where that is not
available by reason of state restrictions, must accomplish the same purpose
otherwise, so that the member swears to his membership statement, its
pledge and denial, under oath, to the end that anyone falsely signing may
be prosecuted for perjury or false swearing.
In the case of mail-in memberships the same statement must be sworn to
on the application by the person filling it out. This is done by the person
going to a notary.
PINS
Wherever possible, make it easy for persons to obtain and wear
Scientology pins, the S and double triangle.
Such a pin as available should be given new members. Pins should be
purchasable for a small sum along with books in the reception office.
Policy as to who wears a Scientology pin is governed only by their being
a member and subscribing to the membership application statement. However
there is no penalty for non members wearing general pins that do not bear
notation of class for grade or state of case.
HIGHER CLASS AUDITING
A pe applying for auditing higher than his grade should be smoothly put
into the proper grade.
112
Pes who are not brought up through grades have many session-disabilities
which if not handled in the lower grades, make the pc a very serious
problem to the HGC or the auditing section of the Academy in the upper
grades.
Technically it is foolish to be persuaded to let a pc jump grades. Pcs
who deniand to are always the roughest pcs and simply have some necessity
for status rather than a wish to improve. To handle this, it is always
permissible to charge more than a going rate for special consideration and
this can be made so high the pc accepts the proper grade at normal cost.
The higher rates are never quoted in the hope they will be paid but in the
certainty they won't be.
Demands for special or certain auditors are similarly handled by
increased fee. But in this case the fee can be quite real and is quoted to
compensate for the trouble caused and it is expected it will be accepted.
Example: 9 only want a Saint Hill graduate." Correct response. "Very good.
There is one here. The fee is exactly double normal fees but discounts
still apply. You will of course be audited by him in your correct grade."
Example: 9 must be cleared at once and can only be audited by a Saint Hill
graduate on Grade IV materials." Correct response to a Grade I pc. "Very
well. The fee for that is five times the normal fee." Naturally he takes
Grade 1 auditing.
TAPE PLAYS
Orgs can hold all the tape plays they want but only for a fee and not in
lieu of taking courses.
Special courses are now forbidden as the materials are fitted to their
levels and the courses for each level should be routine.
However, if a higher classed auditor wishes the right to listen to
tapes, he or she should be charged an annual fee for the privilege of
coming into an org and putting on the headphones. But the favour should not
be available below Class IV. And it should not cost less than $30 a year.
Tapes may not be removed from the org or microphone copied.
Notes of tapes may not be published by individuals as it is an
infringement of copyright.
R6 COURSE
Permission to teach an R6 course will not necessarily be given to an org
in 1968. The permission depends on an org's Academy excellence and volume
reviewed between now and 1968 and re-reviewed in 1968.
Saint Hill training will not cease as permission has been granted by the
government for extensive new buildings.
An org should therefore build its future on Grades 0 to IV and stress
clearing as the highest offered goal, with no public mention of OT or even
Grade V.
Keep it this lifetime and clear, all problems of training and processing
now being cracked for easy training and processing up to Grade IV. Grades V
and VI training and processing problems are all cracked but they aren't
easy and nobody expects them to be easy, ever.
So new publications will slant at Grades Uto IV.
PE COURSE
Where you can't guarantee an excellent free PE it is better to use only
the new HAS sign up for fee as the student's entrance gate. In that way
they won't drift off in a fog. They stay because they've paid and we get a
chance to straighten them out.
With heavy book sales. you will have no trouble filling up an HAS Course
for fee with no free introduction.
Free PE is allowed only where it is very high calibre and very text
book. Otherwise it is abolished and HAS Courses for immediate fee only are
offered. That's firm policy.
SCHOLARSHIPS
No scholarships are now allowed.
FIELD AUDITOR PRICE REGULATION
All regulation of field auditor prices is abolished. Field auditors may
charge whatever they please for auditing.
COURSE FEES STANDARDIZED
Any course taught in a continental zone must conform to that zone's
course fees.
113
OUTSIDE COURSES
An Academy may send an instructor to teach a group formed for the
purpose up to required course levels.
The fee in such a case may not be less than the full Zonal fee for the
course per student. The fee must be paid in full in advance to the
Registrar of the org. The group also pays for all facilities. The erg
sending the instructor pays his or her expenses while instructing that
group.
Any such "outside course" conducted by an Academy shall be conducted as
a day Academy Course, tightly scheduled and precisely conducted. It may not
be instructed, as a night course or part time course.
In event of the group requiring classification examination first, it may
be given by the instructor on arrival.
In cases where 'Tastest available transport" fee exceeds $100 round
trip, the group must also pay the instructor's travel fare and travel
expenses. The 8 100 is not deductible from these.
To receive an instructor, the group must have no less than 10 enrolling
students.
This applies to all organizations and areas of the world.
Trips for translation and dictionary purposes may be arranged otherwise
but in that case, where the above group instruction conditions are not met,
no course of any kind may be taught.
STRESS ON TRAINING
It will now be seen that an organization potentially will make a larger
staff unit from training than processing due to the lesser number of
technical staff members required.
This is purposely designed. A boom depends on training, not processing.
The high auditing fee is maintained to deter pes while shunting them
into the Academy. A high processing fee in the HGC then permits higher
training fees and keeps the org solvent.
When our Academies did less business and orgs concentrated on HGCs,
gross income declined.
THEBOOM
The whole forward thrust of the boom depends upon:
1 . Getting books to orgs.
2. Heavily, even extravagantly, advertising books and filling the
orders.
3. Running an excellent Academy.
Getting books to orgs depends on me, on Saint Hill and upon orgs making
sure they're ordered and paid for. If we take care to do just those things
we'll see (1) above hugely successful.
, Advertising books depends on intelligent adherence to the
price~membership scheme, the Registrar pushing the advantage of membership
with every breath. The Assn/Org See and HCO Sec are in the best position to
see this doesn't choke off-hence their bonuses. It will cost them money
personally not to plaster the place with book ads. and drive memberships
home. They are given no bonus on a net. Only a gross. They get paid a bonus
from the book account based on volume not its profit. The Department Heads
and Staff. get their bonus indirectly by an org driving in a heavy volume
through ads and books and the alertness of the Org/Assn See and the HCO
See. Continental also has a vested interest in books flowing and is paid
for it. Thus this point is cared for.
As for the Academy, it may not at first be visible why this has a
dissemination value about 150 times that of an HGC. The following are long
established data:
(a) Students disseminate. Pes don't.
(b) High income in orgs has always occurred when the Academy was good.
And when the Academy really did its job the income was continued. HGCs can
receive a good income from the public, bad or good, but the flow of income
suddenly shuts off when processing has been poor for six months. There is a
6 months lag and then a depression caused by a poor HGC. The lag is about
one week on a sour Academy. I never have fathomed how the public finds out
so fast about a bad Academy beyond knowing students disseminate and pes
don't.
(c) The. only thing which ever gets us into public trouble is an HGC. If
we had no HGCs we would almost never have a ripple of discontent from the
powers that be.
114
Why? Because an HGC brings us the failed cases of the AMA-BMA psychoquacks.
Thus
we gather the lunatic fringe around orgs. One can never really discover the
bad cases until they're processed and then it's too late. The
characteristic of a lunatic is one-way-help-inflow. They don't want to help
anyone. They only want to be helped. The moment you insist they help others
they either (a) vanish or (b) do so and get well fast.
The dear laughable old buffoons, the psychiatrists, shut the door on
their own boom with insisting on " 12 years of training (in meat carving)
to make a psychiatrist". They made patients into patients forever and
"trained" their students forever. We were well on the way to doing that in
April this year when I took the helm again.
You must let people help or you condemn them utterly.
(d) The original plan, 1950, was to train people on short courses, let
them go out and get some experience and then let them come back and be
trained. By 1959 only I was doing this, with ACCs. We had too few courses.
We now have a remedy for this with lots of I month courses and
examination after experience.
REGISTRARS MUST PUSH COURSES
The fairest, cheapest way to get auditing is to get trained and then co-
audit.
An HGC doing its job well is really a public service unit, no more. I
wil I not run
down HGCs. We do a great job. But the moment when we can train "outside"
auditors to do that great job, we're no longer interested in an HGC as such
but only in its income. It's money we don't need and it's very expensive.
money.
Stress must be on Get Trained! That's the pat answer to any questions
about the cost of auditing or how to get audited.
HGC auditors and Ds of P, bless them, have alone held high auditing
standards all these years. That was why they were there.
But wouldn't it be nicer to have those staff auditors running the org8
co-audits and classes? Training groups in far places? Handling the
Correspondence Courses?
We'll still have HGCs. But we must not count on them for income for more
than another two years. (The time it will take to get really rolling on the
boom.)
Instead, enroll pcs in the Academy whenever possible by:
I . Sell them auditing and also an HAS Course ("It will make you
progress so
much faster, Mr. Jones - -"). Short of that, sell the auditing and
also a basic book and demand the pc do a chapter each evening during
his intensive.
2. Put a ceiling (stated to the pc) on how much auditing you sell
them before they take an HAS and insist on an HAS before you exceed
that limit of number of weeks set, even when you accept them back in
the HGC afterwards.
3. Use the HGC to feed the Academy and not the, Academy to feed
the HGC.
4. Count on Academy income only.
5. Use the HGC to square up field ARC Breaks to promote. To set an
example. To pick up dropped balls. Not to make income.
6. Sell Training hard.
ASSN/ORG SEC MUST PUSH ACADEMY
The state of the Academy should be the first thought every morning of
the Assn/Org See. Not the despatch pile. How is that Academy doing? Better
look in. Ali! Floor dirty. One minute past schedule and the sessions not
running! Rave! An instructor explaining confusedly off-text. New janitor!
Make an Academy Taut Ship. Every halyard humming in the wind. And
suddenly it will be full. Suddenly things get solvent. Suddenly the income
soars. We start to go!
No matter how many students there are, make it a tremendous Academy. If
there are 2 or 2,000, make it a streamlined piece of glittering efficiency.
Short of instructors? Coolly take the best auditors in the HGC. That
makes the HGC short of auditors. So what? Enroll the pes.
Teach Scientology in a Central Org or City Office. Don't try to process
the world to enlightenment. Make it process itself in that direction.
Otherwise you'll never make it at all.
The Assn/Org See must promote Academy hard and see, of course, we have a
good HGC because it's a model, you know.
Income? Think Academy.
115
PROMOTION
Many people "want to know about Scientology but don't want to be an
auditor
you know .......
You'll have to break that attitude. Honestly how can a person use
Scientology who can't audit? How can an executive use it in his business if
he hasn't been trained? Well, he can't. That's the reality you must put
across.
Don't say "If you want a happy home, get audited." For that may or may
not be true. There may be so much messy environment and so little auditing
time that there's no win. Say instead the bald truth as you and I know it,
"If you want a better environment, become an auditor!"
Thank the HGC for what they do. Demand the Academy perform only
miracles.
THE PROGRESS OF THE BOOM
A. Person sees an ad, buys a book.
B. Gets interested, writes in.
C. Gets told he should be trained to HAS to get the full benefit
of it.
D. Person says "That's cheap. I will."
E. Person really gets trained, no words misunderstood, really gets
it, in a sparkling Academy.
F. Person makes a big case gain in finding he can talk to anyone
freely.
G. Decides at home wants his wife audited and writes in.
H. Is told to bring his wife to the HAS while he takes the HQS
Course.
Etc.
THE PCS
Now what about the pcs who want to be pcs?
Don't be hoggish. Let the field auditor live.
Pcs who are only pcs can be salvaged too. But, being pes they don't
write in when they read a book.
So send people who haven't corresponded as name lists to field auditors
who are franchise holders.
Field auditors make people trainable, people come in for courses
eventually. Field auditors get fat. Everybody happy.
THE FIELD AUDITOR
You are only a rival of the field auditor if you are hungry for pc
income.
The field auditor actually has sent orgs the bulk of the org business in
the past.
So don't count on HGC income. Count on the much greater Academy income
and earn and guarantee its continuance with fine training,
Encourage the field auditor to succeed. Make him take out a Franchise.
Use successful franchise holders as success stories. Use them as
procurement agencies for more auditors.
Let them have their groups and pcs.
Keep them as friends. Sell them the next course they should take. Make
millions of field auditors.
SUMMARY
These then are the designs and policies which have shaped up. All
earlier policies in this "boom series" stand.
It may seem odd to base staff member income on HGC pcs and then tell you
you must not count on the HGC.
But this boom is just beginning. Your economy depends in a large measure
on your HGC. It will have to go on pulling its load for a while. And you'll
always have me! And there is another factor. I don't intend for a staff
member to draw only an average national wage. And the ratio of I Admin
staff to I staff auditor is quite low. As you get to swinging along it may
become one technical staff member to more than I Admin personnel even when
you have a huge Academy. For dissemination takes a lot of Admin. As you
expand, you'll get tech thin. So Tech personnel have to be freed up by
assistance from Admin as you expand.
So it's more that I want to be sure you still charge enough to be able
to eat than that I expect you to go on with only HGC income.
That's the design.
If it needs improvement, we'll improve it. Right now let's make it work.
I've got to go off and get the books written, You get your end of it
done too. Okay?
LRH.jw.rd L. RON HUBBARD
Copyright@ 1964
by L. Ron Hubbard [Imporiant. See also HCO P/L 18 April 1965, page
93.]
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 DECEMBER 1964
Gen. Non-Remimeo Franchise BPI
FIELD AND PUBLIC PROGRAMMING
Since April 1964 we have been busy with organizational reorganization,
public and field programming all aimed at the realization of a boom. All
levels and technology from Hubbard Apprentice Scientologist Level 0 to
Hubbard Senior Scientologist Level VI are complete and being taught.
We have our boom already under way. Six Scientology organizations across
the world have done more business in December than in any previous month
this year. At Saint Hill, as a result of planning and new programmes, mail
volume rises daily and is entering boom proportions.
In the midst of all this change, we have had to grope our way and things
are now being smoothed out.
This is the design of the boom:
BOOKS
We are about to broadly advertise books as never before and use all book
and membership income to push book ads.
I am publishing several new books with public appeal.
Franchise Holders may also sell books.
BOOK PRICES
Pricing has done a bit of a wobble and is being corrected.
Publishing costs have risen enormously in the past few years but we are
countering this.
Books being offered to the public in ads will be at cheap prices. More
advanced books will be more in keeping with what the books cost to publish.
DISCOUNTS
People are. expected to become both Life Members and International
Members.
The cost is EIO sterling per year for International Membership or $30.
This gives a 10% discount on books, a 30% discount on training and
processing. An International Membership is membership in the main
International organization.
A Lifetime Membership costs f 25 sterling or $75. This gives a 10%
discount on books (added to the International 10% making 20% if one holds
both memberships). It gives a 20% discount on training and processing. This
adds to the International 30%, making it possible, by holding both types of
membership, to obtain a 50% discount on training and processing.
The old Life Membership (bought prior to Nov. 15, 1964) still gives 20%
on books and 20% on training and processing. But on books only, this does
not also add an International discount. 20% is the maximum book discount
obtainable for
117
individual Scientologists. Lifetime Membership means membership in that
Continental Zone Organizations.
Anyone can be an International Member and a Lifetime Member providing
only that they are on our side.
All Membership monies go into supporting the advertising and sale of
books, so it's in a good cause.
TRAINING AND PROCESSING FEES
Each Continental Area has now fixed its training and processing fees for
its own zone.
The increase, discounts considered, is very slight most places. And on
training and processing fees 50% discount is obtainable by being both types
of Member. So everyone gets a break as the membership costs less than what
one saves with his first intensive or Level I Academy Course, and the
discount is still valid afterwards. Only the International Membership has
to be renewed yearly and this is far less than what one saves in books or
Congresses or training or processing.
So there is a great deal of incentive to own both memberships. And the
membership money goes to make a boom by advertising books and therefore
expanding Scientology.
FIELD AUDITOR FEES
Field Auditors can now charge whatever they please for processing
Processing fees are no longer regulated for them.
This applies also to Franchise Holders.
Some field auditors have not understood this. They can charge now as
much or as little as they please. Many charge more than orgs.
However a field auditor or Franchise Holder must now be Classified for
any level he receives a fee for. If he or she is only classified for Level
11 and yet seeks to collect money for doing Level III processes, he or she
will be subject to a Committee of Evidence. This is public protection as
the field auditor should not use processes he or she is not trained to use.
Processing is very workable today. Why spoil it by poor application?
And a field auditor seeking to run Level VI while classified only for
Level IV on a pe who isn't up to Grade I on his own case is going to injure
somebody. So this is frowned upon. Today's processes are very powerful.
Only the worst cases insist on upgrading their processes anyway-by which
is meant demanding to be processed over their heads. They are a bit
suicidal, it seems.
COURSES
All courses are now exactly one month long. These include HAS courses.
At the end of the course one gets his certificate without examination.
But before taking the next Level Course, students must be examined for
classification. Even if they fail the classification exam they can go on
and take their next course. But they can only process people as high as
their own actual classification, duly awarded by a Hubbard Communications
Office examiner.
PC GRADES
Pcs can be run on any process the auditor is classified to run. All
processes now belong in one level or another. Pcs are not limited nor do
they have to be trained before being processed.
118
For their own good, pcs should-
1. Make sure their auditor is classified in the Level being
audited, and
2. Move up through the pc grades 0, 1, 11, 111, IV and VI in an
orderly fashion so they don't get in over their heads.
PE COURSES
PE Courses will still be taught by field auditors and franchise holders.
They may cease to be taught in some orgs.
HAS COURSES
Hubbard Apprentice Scientologist Courses are now Academy type courses,
less costly than others, but equally precise, and are 160 class hours in
length whether taught daytime, evening or week-end.
Some very fine new processes and a full curriculum now exist for this
Level 0 Course.
HQS COURSE
Until Jan. 1, 1966 some Franchise Holders can teach Hubbard Qualified
Scientologist Courses. Mainly it is taught to certificate in City Office
and Central Org Academies.
To give some idea of where we have gone technically, present HAS (Level
0) and HQS (Level 1) Course data formerly was taught as HPA in the
Commonwealth and HCA in the U.S. We have gone very high above these levels
and so have to have new courses to teach the material.
Further, we can't keep holding people in an Academy for a year at a
crack and at the same time we can guarantee an auditor's skill by requiring
he be classified in order to charge a fee.
So the new HAS and HQS courses embrace everything Academies used to
teach. And above that, level by level, the new materials are laid out. Each
level has a definite, finite, end product, attainable by an auditor if
trained and by a pe if run up through the levels one by one.
SUMMARY
We are grooving in the policies developed for the boom. Be patient with
the rough spots, old timer.
Part of our programme is to coax field auditors over to Franchise
Holders, and Franchise Holders, by helping them with mailing lists for
their areas, are going to be coaxed up to City Office status. And some City
Offices are going to become Central Organizations in their own right.
With teamwork, hard work and patience we will climb the hill rather
easily.
In April I started to work on orgs. Through the summer and autumn I also
developed the lower levels to good effectiveness. Here in December I have
just begun to receive org reports on the telex which speak of greatly
increased volume as a direct result of all our hard work.
Shortly we will really begin to enter the boom. We are just on its
fringes now.
Whenever lines become more active their weak spots show up. It's our job
right now to locate and fix those up. This boom will be an orderly one. The
objective is extremely worth while for all of us.
And I myself am pretty cheered up. In April '64 1 plan a boom. In
December it starts to happen. There are no rough spots in it that can't be
fixed up. So let's get the show on the road.
LRH:jw.rd L. RON HUBBARD
Copyrighto 1964
by L. Ron Hubbard [Important. See also HCOP/L 18 April 1965, page 93.]
ALL RIGHTS RESERVED 119
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 MARCH 1965
Issue II
Rernimeo
ONLY ACCOUNTS TALKS MONEY
Scientology organizations are service organizations. Now, it goes
without saying, that service costs money. So please don't equate service
with the idea that it is all give away. People expect to pay for good
service, and they do pay for good service, unless you barrier the line, or
by some foolish handling, convince them otherwise.
It is the job of the Registrar, whether it is Letter Registrar or Body
Registrar, to find people to communicate to, to communicate with people, to
PROMOTE whether by mail, phone, or in personal interview, SERVICE, and to
help people arrive at and attain whichever Scientology service best suits
their needs and goals. So the Registrar does take responsibility for them,
listens to their problems and aspirations, becomes friend and advisor to
them, AND CHANNELS THEM TO THE PROPER SERVICE AND CHECKS TO SEE IF THEY GOT
THAT SERVICE, ROUTES THEM BACK TO THE DEPARTMENT FOR COMPLETION IF THEY
DIDN'T AND BRIDGES TO FURTHER FUTURE SERVICE, IF THEY DID. Now a Registrar
knowing about the road to Truth, hence knowing an infinity more about the
person usually, than he or she knows himself or herself, must take
responsibility for this and channel them and keep them on the road until
the person cognites and reaches for the rest of the road himself. Even
then, the Registrar must work to keep them on the road, and keep them from
falling into pitholes, side paths, etc, that the confusions and randomities
and distractions of life present.
But none of this has anything to do with money, except that such
services are expected to be paid for. Money is an Accounting function. When
money is a concern of the Registrar, and "how is he going to pay for this",
and "we have got to keep our units up", "gads, I have got to write up a
note form now", "that's going to cost him too much" (the guy has walked in
and wants 75 hours of processing and 3 courses before going to Saint Hill)-
when the Registrar's concern is all about money, money, MONEY MONEY MONEY,
she gets all inverted into what are we going to get out of it, instead of
what the person is going to get out of it. In all his, years of auditing
which exceed anything any of the rest of us have even dreamed about, Ron
has never talked to the guy who wanted some auditing or whatever about
money. Yes, it was understood it was going to cost something and what it
would cost, but that was the end of it. Ron's concern was for the guy and
getting him better, and he was not even remotely worried about the money,
and the money rolled in because he got the guy better. Oh yes, sometimes he
was paid in eggs or cheese, but the guy was wanting to pay because he got
service. He never had a problem about money, and he never talked about
money. Registrar's concern on money barriers the line for someone coming
in, and that's an overt any Scientologist recognizes-to barrier the line of
someone coming into Scientology. Here is an example. A person who has been
out of contact with Scientology for about 9 years writes in and says to the
effect of "Are you there? I need auditing. Send me details, including
costs" and was written back (by the FCDC Registrar, winter 1965),
"Regarding processing. The original cost is S1000, for 25 hours of
auditing. (25 hours constitutes what we call an intensive.) We do have two
memberships and there is a good discount on each of these. The first is the
International membership (830) on which the discount is 30% making
therefore auditing $700; the second membership is the Lifetime membership
(S75) making a discount of 20% which would mean auditing would be S800. If
perchance you have both memberships, the discount would then be S500.
(509o.) You can have more than one intensive should you so desire, in fact,
I believe you can have up to 250 hours at any one time." !!!!! The person
writing in said "I need auditing". They were saying, "HELP!" and the answer
was analogous to throwing a bunch of confetti in their face, just when they
needed a stable datum.
The answer was a confusion and that confusion is a barrier. The answer
to HELP! is help, not confusions. And if the Registrar's concern is on
money instead of help then her communications are going to communicate a
confusion, and barrier the line. It amounts to an alter-is, so REGISTRARS
ARE FORBIDDEN TO TALK, WRITE OR THINK ANYTHING ABOUT MONEY.
120
Well, how about money, then? How does this get handled?
Simple. MONEY IS AN ACCOUNTING FUNCTION. It IS the proper concern of
Accounts.
I
Accounts, in the past, has had difficulty collecting in some cases where
credit was extended. Registrars in the past had been on the money line, and
were busy issuing credit, and the line to Accounts was poor or non-existent
for checking to see if the person was a good credit risk or not. Well, that
is a thing of the past, with money totally in Accounts where it belongs,
and the following into operation:
1. Three fliers (printed handouts) are to be made, as follows:
A. International Membership Flier.
HASI INTERNA TIONAL ANNUAL MEMBERSHIP
The Cash Discount Membership
The HASI International Membership is open to anyone, of whatever race,
colour or creed, who is not hostile to Scientology. It is an annual
membership, and the yearly fee is $25.00 / Z 10.0.0 (apply to your
currency). It must be renewed yearly.
The HASI International Annual Member enjoys a 50% discount off the
public price, when training and processing is paid for in full at the time
it is taken. The HASI International Member enjoys the privilege of buying
the books, tapes and meters and insignia of Scientology which are offered
to members only, at 50% discount of the local price when paid for in full
with the order. The International Membership is the ANNUAL 50% CASH
DISCOUNT MEMBERSHIP. Its holder gets a 50% discount on everything and as
many as he wants of anything.
The person applying for membership signs a pledge to abide by the rules,
codes and disciplines of the organization and that he understands there is
no refund of membership and that he does not belong to or work for any
hostile organization or group or any group undisclosed to us that is
dedicated to the harming of Mankind. The pledge signing must be notarized.
The International Member is a member of the brotherhood of Scientologists
which span this planet. He or she receives a numbered membership card and
Scientology pin (only issued once).
Those who already have an International Annual Membership in force may
have a 50% discount until its expiry date if they have signed their pledge.
The card is annual, and a new card is issued with renewal. HASI
International Annual Membership brings all issues of (put your continental
Magazine name) and the Professional Auditor's Bulletins, which is the
oldest continuous Scientology publication, and is direct from L. Ron
Hubbard to the professional field in Scientology. A HASI International
Annual Membership is necessary to keep a classification in force.
Membership may be applied for from the following Hubbard Communications
Offices (put offices and addresses of all the HCOs of City Offices and
Central Orgs coming under one Continental Office).
B. HASI Lifetime Membership Flier.
HASI LIFETIME MEMBERSHIP
The Scientology Credit Member
This is the Scientology wide open credit card, entitling the owner in
good standing to one of anything in Scientology at a 25% discount from the
regular price. One of any book published, one course, one grade of
processing intensives, one meter, one tie, one anything. When the first one
is paid for he can have another. There are no down payments, only routine
billing. It is a full wide open credit card, valid all over the world.
The HASI Lifetime Membership is open to anyone, of whatever race colour
or creed, who is not hostile to Scientology, and who is not in default on
any credit extended to him or her by any Scientology organization. It is a
lifetime membership and the fee is $75.00 (put your currency). The HASI
Lifetime Member enjoys the privilege of being extended credit by
Scientology organizations. Flagrant default in payments on credit extended,
and as agreed to, results in loss of membership without refund. Fulfilling
of payments within 12 months or before, when credit has been
121
extended results in a gold star credit rating for that year. Credit may be
extended only on one course, one intensive through one pe grade, I of each
book, payment for which must be fully discharged before further credit may
be extended on that type of item. And the further credit, again, may be on
only one thing of that type. The credit may be up to 100% credit extended,
and the 'one thing' it may be extended for include one course, one
intensive through one pc grade, one of each book, one meter, one tape, one
insignia-in other words, one of a kind only. Memberships may never be
purchased on credit.
The HASI Lifetime Member, when using his credit privilege, enjoys a 25%
discount off the regular price on courses, intensives, books, tapes,
meters, insignia, etc. (If the person is going to pay in full, it is
con"Ceived that he would take out a HASI International Membership and enjoy
the 50% discount.)
Loss of membership through default in payment may be regained by
payment in
full of the amount owed, plus a penalty fee of 25% of the amount owed in
full at the
time of default, plus the purchase price of the HASI Lifetime Membership
fee- Until the above is done, the person may not have a HASI
Lifetime Membership. This however does not affect their International
Annual
Membership if held.
The person applying for HASI Lifetime Membership signs a pledge to abide
by the rules, codes and disciplines of the organization and that he
understands there is no refund of membership, and that he will fulfil the
obligations within one year or before on any credit extended to him, and
that he understands that failure to do so will immediately result in his
loss of membership, and that in order to regain his membership,he must pay
in full the amount owed, plus a penalty of 25% of the amount owed (in full)
at the time of the default, and that he then may purchase a new membership.
He must declare that he does not belong to or work for any hostile
organization or group or any group undisclosed to us that is dedicated to
the harming of Mankind.
The HASI Lifetime Member is issued a numbered membership card with years
blocked in on the reverse side for impressing of the gold star credit
rating when achieved.
Extant HASI Lifetime Members are granted the above credit if they sign
the new declaration for membership and are not indebted to a Scientology
organization. Otherwise they still get only a 20% discount.
HASI Lifetime Membership may be applied for at the following Hubbard
Communications Office (list offices and addresses)~
C. The third flier is a rate card.
SCIENTOLOGY SER VICES RATE CARD
Services Offered Full Public Price Lifetime Member International
(give in your Price (Credit) Member
currency for 25% Discount (cash) price
each item) (Reduce each 50% Discount
item by 25%)
Academy Courses
HAS Level 0
HQS Level I
HCA Level 2
HPA Level 3
etc.
Scientology Processing
121/2 hi Intensive
(1/2 week or week-end)
25 hour Intensive (I week)
(Leading to Preclear
Grades 0, 1, 11, 111, IV
more than one Intensive may
be required per Grade).
(Full Public Price is your local full price per January price
raises.)
122
On the back of each Rate card give a full book list of books you have at
your local prices.
SCIENTOLOGY MATERIALS
All sent Postpaid from your Local HCO
Books you actually have Full Public Lifetime Member International
Advertised Price (Credit price Annual
25% off) Member (cash)
(50% off)
Titles of Books
Tapes
Meters
Materials, badges, etc
(but not pins which are now free)
So now, you have these two fliers and this rate card. Now, the
Registrar, in response to queries on prices, and otherwise in
correspondence, talking, phoning, etc, supplies only these three things.
Does not otherwise discuss money in any way, shape or form.
Now what happens when a person comes in, wanting to sign up? He or she
doesn't "sign up" at all. The person is routed by Reception to Accounts for
an Accounts Clearance.
In Accounts, the cashier is at post preferably in a wicket. This is
exactly like a theater ticket front, complete with the glasses window with
the hole (small and awkward) in it to talk through and the hole at the
bottom to slide money through. Any accounts office door, if up front in the
org, can be fixed with a half door to look like this. It would not at all
be out of place for the cashier to wear a green eyeshade, and have a very
detached attitude about anything except money or money matters. Very
businesslike. The person coming in is routed to this cashier. Posted on the
outside of the wicket or immediately in the area on display signs, is
exactly the same data contained in the above fliers and rate card. If the
cashier is asked for data, he points to the proper sign. The cashier's
actions otherwise are:
I . He checks the membership. If none, he collects the money (if the person
is seeking the HASI Lifetime membership, the cashier must check his
defaulted list to make sure the person is not on it. [This tells you
immediately that the defaulted list must be kept up to date daily, and
defaulted lists circulated between orgs on a fast comm line, for immediate
posting. No show is made to keep a defaulted list confidential. It must be
posted in Accounts. I). After collecting the money for the membership, he
invoices it, marks the membership number in the invoice, issues the white
copy as an Accounts Clearance slip for whatever kind of membership it is,
and
the person is routed to HCO to sign his membership pledge and receive his
card which is issued on the spot by HCO in a log book. It is Accounts that
keeps and assigns the numbers of members. These are coded LM + (area code
letter such as Me for Melbourne) + 15 (Scientology year) + number in
sequence for the area. International is IM + (area code letters) +
Scientology year + number in sequence. HCO gets a copy of the invoice which
bears the person's name, address and number.
2, If the person already had a membership, or now having one per above
(remember, if the person had a Lifetime membership and is seeking credit,
the cashier must also check the defaulted list), the cashier does the
following:
I . If the service or material is being paid for in full he collects
the money and invoices, and issues an Accounts Clearance slip for whatever
the service is, and the person is then routed directly by Reception to the
service section (Division 2), directly into testing to the D of T or D of P
and thence into class, or processing. In the event the person is not
acceptable for processing by the D of P, who so marks the Accounts
Clearance slip, the person is routed back to Accounts who immediately
returns the money and voids the invoice upon having the slip turned in to
him, or destroys the payment pledge. The routing slip for processing must
say (name of person) CLEARED BY ACCOUNTS FOR PROCESSING (in whatever
amount) THIS SLIP DOES NOT CONSTITUTE AN ACCEPTANCE BY THE HGC FOR
PROCESSING, BUT IS AN ACCOUNTS CLEARANCE ONLY.
123
2. If the person is seeking credit, which he may have unquestioned,
providing he has a HASI Lifetime Membership, and is not on a defaulted
list, but may have it for one item only (AND NO FURTHER CREDIT MAY BE
EXTENDED ON THAT TYPE OF ITEM UNTIL THIS ITEM, COURSE, PC GRADE, ANOTHER
COPY OF SAME BOOK, IS PAID FOR IN FULL, ON SCHEDULE), then the Cashier
invoices the Course, Intensive, book(s), or whatever, i.e.
John Jones address
I HCA Course $1,000
L.T. discount 250
Charged to Account S 750
L.T. Membership No. LMDC15459
John Jones (signed)
THE CASHIER MUST HAVE THE PERSON SIGN THE INVOICE (with carbons) so that
the signature goes through on all copies. The white copy is given to the
person. And he is issued an Accounts Clearance slip.
The Accounts Clearance slip which says -
John Jones
has been cleared by Accounts for I HCA Course.
April 25, 1965
Signature in full of Cashier.
Remember the slip for Processing must say, THIS SLIP DOES NOT CONSTITUTE AN
ACCEPTANCE FOR PROCESSING, BUT IS AN ACCOUNTS CLEARANCE ONLY. A rubber
stamp for this may be made and used.
The customer is led to look on these as monthly bills, not time payment
or hire purchase.
There are NO notes. NO contracts. There is NO interest. This is simply a
credit sale. This is maximum protection for us.
The statements are arranged for (1) (Academy bill), (2) (Processing
bill) and (3) Books and materials. If the (1) Account is unpaid, no more
credit courses until it is. If (2) account is unpaid, no more credit
processing until it is, if (3) is large and unpaid no more books, tapes,
etc. If nothing is paid in a year on any one of the three, no more
membership.
Accounts, in billing for amounts owed, just issues a routine monthly
statement. If a payment has been made on the account, then that, of course,
is posted, and the next monthly statement reflects only the amount now due.
3. Scientology niaterials. Any person off the street, public, etc, who
comes in wanting information on Scientology, etc, is only told by reception
to get a book. In the reception office are placed books for sale. One
section contains books for the public, marked BASIC SCIENTOLOGY BOOKS, and
posters around saying, THE WAY INTO SCIENTOLOGY IS TO START AT THE
BEGINNING, and DON'T ASK SOMEONE TO EXPLAIN SCIENTOLOGY TO YOU, GET YOUR
OWN REALITYREAD A BOOK, THEN TAKE A COURSE, and THE DATA IN SCIENTOLOGY
SPANS THE TOTALITY OF EXISTENCE, WHICH MAY SEEM TO BE AN ENTICING MYSTERY
TO YOU, BUT IF YOU WANT TO UNDERSTAND THE TOTALITY OF EXISTENCE, THE
MYSTERY WILL ONLY UNRAVEL BY INCREASING YOUR REALITY, OTHERWISE THE MYSTERY
DEEPENS. BEGIN HERE with an arrow pointing to the Basic books.
The other books and materials of Scientology are in a divided section
marked FOR HASI MEMBERS ONLY.
When the person has selected the book or books he or she wants, the
cashier collects the money and reception delivers the book or books. If the
person is a HASI member he gets 507o discount on the books in the Basic
section, or the International Membership price if paying cash for materials
for members only (must have
124
International Membership), or if seeking credit, must have the HASI
Lifetime membership with the same checks on default as in Services
applying, and the rule of one of each item applying. If the person is new
and wishes a membership to get the 50% discount or to buy books from the
Membership section, he or she is handled exactly as in (1) above. He or she
is not then prevented from buying higher level books, but the signs still
warn the person to start at the beginning.
Reception looks after books and their cases. Reception is to have
nothing to do with money as she is a Division I personnel and is not
Division 3.
If a person comes into the org not knowing what he wants, but presents
only his or her problem, and wants help, he or she is routed to HCO to the
Registrar who channels them according to their needs, but who does riot
talk money. The Registrar may (and must if pressed by the incoming person
for information about costs) say "Only Accounts can talk to you about
money. I am here to help you find what you need in the way of service." And
when the person is routed by Reception to Accounts, it is all on the signs
wl-dch the cashier merely shows them, or hands them the two fliers and rate
card. The Registrar is forbidden to hand them to body callers.
Accounts is admonished not to mention credit. Also Accounts has no
interest in credit rating before it is defaulted. Let the person ask about
it. It was found many years ago that most people walked into the org with
the money for the service on them. If the Registrar (in those days she was
handling the money) asked, "Will this be cash or credit?", the person, with
this invitation, inevitably said, "Oh, can I get some credit? Well, let's
see, I'd like to pay so and so, and get the rest on credit." And they would
walk out of the Registrar's office with the rest of the money still in
their pocket. The Registrar's question should have been "Are you paying
this by cash or check?", and if there is a question of credit, let them
bring it up, as an origination. But today the Registrar mustn't talk money
at all.
Think of the most exclusive restaurant that you know of. Get the idea of
going in there and ordering a meal without any money or credit card. You
cringe? Well, create that same kind of atmosphere and attitude for the org.
All service today is "travel now pay later". This must pay because everyone
selling service that way is rich and powerful. The public does pay its
bills. Your prices are now rigged to absorb the 33 1/3% loss we have due to
bad credit. The prices are 33 113% higher than cash. No interest or notes
or trouble. Train now, pay later, get Grade 0 now (2 or 3 intensives) and
pay later. If they don't pay, then worry. Don't worry everyone because 1/3
are dead beats. Create the attitude that a person's credit card is
extremely valuable, and must be kept in good standing at all costs. It is
practically a moral code in the society today. Use it. But it will not
prevail with sloppy handling of accounts, breaking the rule for a friend,
just letting this one go by. It will be strict and unbreakable 8-C on the
line-heartless, maybe, but not any more heartless than a low, below living,
unit check ... not any more heartless than the guy who doesn't get into
Scientology next year because there weren't enough funds to disseminate
because the guy last year didn't pay for what he got. Well, what about the
guy who got poor service-no gains, ARC breaks instead of training? Well,
Accounts has a control line on that too. It is Accounts who issues the free
week of processing, or who can send a student back for free retraining (not
a next course up, retraining on the course that was flubbed on). And it's
the whole org who is to scream when people start defaulting. Too many
defaulters tells you there's bad tech going on, so it is an indicator, and
you'd better start screaming, because people won't pay if there's no
delivery. They'll say "To heck with it", the same way you would if you had
a Diner's Credit Card, and every restaurant you used it in served you soup
with flies in it, you found finger nail clippings in the mashed potatoes,
and the steak was green on the under-side. You'd tear up your credit card,
walk out without paying, and probably go see your lawyer. You have the
total tools for delivery today. So deliver. Count on good delivery to
collect the credit issued. Not on lawyers or complicated registration.
Reception ONLY ROUTES. She does not answer questions except with "Oh,
where you want to go is to Accounts", or "You need to get a book", and she
routes. Accounts is to be located adjacent to Reception, and people are to
be routed and handled with a friendly dignity. The public tries to wander
all oveT-it is unaware, generally, of your hats and lines. They will try to
put anybody's hat on the nearest guy they can get hold of. If it isn't your
job, and hasn't come to you on the proper routing line, then you only
route. A river will overflow if the barriers (banks) at the side are
125
not there, or so weak that they can't hold up. If it has strong firm banks,
the river will flow down the channel so delineated.
Having, by now, 1 hope, heard the tape of March 2, 1965 you recognize
that you don't do a big acknowledgement job on the incoming student or
preclear. You don't say "Well, you arrived. Good. Fine. 1 am sure glad you
got here." You don't end the cycle this way for him. Reception never
greets. It is just barely at start. Getting the person to reception was not
the cycle you are working for, and neither is the pc or student. So you
say, "Well, you must be anxious to get going. Let's get you into class," or
'7esting is waiting for you."
Staffs should dress and behave with appropriate dignity to create the
attitude and atmosphere set out in this Policy Letter. So you have had a
hard time and have no clothes! Well, get inventive, until you get so
affluent that you can hire a tailor. Get inventive on low or no cost ways
of sharpening up the premises, particularly that part which meets the
public eye, until you are affluent enough to do something better about it.
And demand cleanliness and neatness of premises at all times. But don't let
clothes and shaping up premises distract you from your job. Just make a
habit of expectancy on it, got the idea?
The day of the doldrums is over, so just end cycle on that. THANK YOU.
We have entered a new echelon of Scientology.
P.S.: The effective data of this Policy Letter is as soon as you are set up
with your materials printed up, you need to get your wicket in and the
personnel drilled on it, but at the latest June 1, 1965. You will be
receiving the additional data needed on this, how to handle pledges
internally, membership card mock-ups, etc. In the meantime get going on
what is supplied here. And muzzle Body and Letter Registrar on money. Route
to Accounts.
Design by: L. RON HUBBARD
Written by: Marilynn Routsong
for
L. RON HUBBARD
LRH:jw.rd Copyright Oc 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
[Important. See HCO P/L 18 April 1965, page 93 and HCO P/L 11 March 1971,
page 268.1
126
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 MARCH 1965
Gen Non Rernimeo
.BPI SAINT HILL SERVICES, PRICES AND DISCOUNTS
Saint Hill has just opened its Hubbard Guidance Centre in order to be in
line with all orgs over the world in all departments.
The Saint Hill Course now handles all levels of Training but these
courses are review courses at the lower levels and HCA(classed or
unclassed) or old Commonwealth HPA (classed or unclassed) remain the
entrance requirement. Students go through all levels, usually the lower
ones very rapidly, and are Classified for each Level with a Saint Hill
Classification.
Saint Hill Classification takes precedent over all other classifications
in any level. A student's own Classification is not taken away but for the
duration of the course is invalid but may be resumed on departure from the
course. However the student usually has a far higher Saint Hill Class on
leaving.
The purpose of the Saint Hill Special Briefing Course remains the same-
to make the auditors and instructors who make the auditors and instructors
over the world and to put the final polish on auditing. As auditors
sometimes do not realize that an auditor of a higher level always audits at
the pe's level, seeing and getting lower level results and clearing with
them is very revelatory. One does not expect a Class VI auditor to run only
Level VI. Quite the contrary, Level VI training is never applied to an
untrained pc by an ethical auditor. A Level VI auditor should be able to do
Level 0 work superlatively well. Level 0 processes release people with case
and many clear today at only Level 11, much less IV. So the Saint Hill
Course enters all students today at Level 0 and rapidly moves them right on
up in quick time. Students who know the lower material of course get it
checked out very readily. A student can always ask HCO Board of Review for
a classification while on course, but of course must pass all lower classes
before being tested for the one asked for.
DISCOUNTS
International Membership 50% discounts apply to all HGC pc and Course
Student enrollments at Saint Hill, now.
Credit, by agreement with other orgs, which might lose business if Saint
Hill allowed it, will not be extended by Saint Hill, so Lifetime Membership
does not apply at this time.
This gives a 50% cash discount on all courses and Intensives.
COURSE
The Course (50% discount price) is still L275 sterling. This makes its
public price f 550, but of course no public applies. This is about f 40 a
level, making it a very cheap review course. It must be bought all at once
or f 275.
HGC
Intensives: are the same price as in the U.S. The 50% cash discount
makes an intensive S500 or the equivalent in sterling.
Saint Hill Student price for an intensive (75% discount price for Saint
Hill students only) is $250. The student may be an old graduate or one
currently on course. Academy Students do not qualify for the Saint Hill
Professional Rate, only Saint Hill Students and Graduates.
Any level pe is taken but only the pe's level will be run, of course.
However it will be run very well,.usuafly by Level VI auditors.
Pcs are issued their Grade Certificate the moment they complete a level
and this Certificate takes precedence over all other Grade Certificates in
the world.
BOOKS
Saint Hill book prices carry a 50% discount from list for International
Members.
LRH:jw.rd L. RON HUBBARD
Copyright Q 1965
by L. Ron Hubbard [Important. See also HCO P/L 18 April 1965, page
93.1
ALL RIGHTS RESERVED
127
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 MARCH 1965
Gen Non Rernimeo Post Staff Not Public Boards (Expose all sheets on board)
CURRENT PROMOTION AND ORG PROGRAMME SUMMARY
MEMBERSHIP RUNDOWN
INTERNATIONAL ANNUAL MEMBERSHIP
There are two Memberships-THE INTERNATIONAL ANNUAL MEMBERSHIP-This is
the CASH DISCOUNT MEMBERSHIP. It gives a 50% cash purchase discount across
the boards-Training, Processing, Books, Meters, Tapes, Insignia, Congress,
the lot. If we sell it, an International Member gets 50% off. The
Membership must be renewed every year. It expires on the same date the
following year at one minute past midnight. It keeps one's certificates in
force. No services are ever promised to its holders but a monthly magazine
is sent and a copy of the Professional Auditors' Bulletins comes to them
from Saint Hill providing Saint Hill is given their addresses and changes
of address. Members' lists are kept in orgs and org Central Files and the
Org Roster of Members. Anyone can have an International Annual Membership
providing they are for us and not members of groups seeking to harm
Mankind. The cost is Z 10 sterling or $30 US. The entire fee is paid into
the HCO Book Fund Account and buys advertising for Scientology books and
pays book bills. (All receipts for books, meters, tapes, Insignia and all
Memberships go into this Account. These are the funds that promote
Scientology through books, the only effective way orgs have ever promoted.)
To obtain or renew an International Membership one must (1) Get an
Accounts Clearance and (2) what will be called a Division 9 Clearance and
(3) sign a sworn statement promising to uphold the codes of Scientology and
declaring they are not a member of a group hostile to Mankind or
Scientology. Note that there is no waiver of rights to sign now.
LIFETIME MEMBERSHIPS
THE LIFETIME MEMBERSHIP is the CREDIT MEMBERSHIP of Scientology. Its
holders can obtain a discount from the list price of courses, intensives,
books, meters, tapes, Insignia, Congresses, etc. They can have ONE of
anything on credit. One course, and one grade worth of intensives. In
books, meters, tapes, Insignia, Congresses, they in actual practice can
have a reasonable amount, as it is too hard on accounts to keep more than
three items in view (courses, intensives, books, etc). It acts as a Carte
Blanche credit card. There is NO note, NO interest rate, nothing. The
Lifetime or Credit Member is billed monthly on a standard charge account
system. There are no arrangements for payments at regular intervals.
However, the Credit Member must have paid for his course or his Grade worth
of intensives or his book bill before he can have another course or grade
or beyond a reasonable amount of books. If the bill is not paid in 12
months the membership is forfeit. After a forfeit of a Credit Membership,
if the person then belatedly pays his bill in full with any additional
amount as penalty, he may now buy another Lifetime Membership if Accounts
will sell him or her one. The idea here is to keep one's credit good, for
the card itself has good value in supporting credit elsewhere. Old holders
of these may have the new discount if they sign the sworn statement for the
new status. If not, then they get 20% off on books, meters, courses,
intensives bought for cash. Neither the old or new Lifetime Membership adds
now to the International Discount. That went out because the International
alone gives one the cash 50% discount. If a Lifetime-International
combination Holder that bought both before March 1, 1965 insists on a 50%
combination discount for credit the way we were selling we always deliver
what we promised and he or she may have it by signing notes, paying heavy
interest, giving the down payment and signing a waiver of liabilities and
all that just like we were doing from January 1, 1965 to March 1, 1965.
Newer ones (sold after March 1, 1965) can~t have that "privilege". Actually
it is likely to be more costly to them than the new system.
128
For in 1966 we will begin to GOLD STAR the Lifetime Members' cards,
giving them a GOLD STAR CREDIT RATING where they have promptly paid their
bills and a Gold Star Credit Card in Scientology will carry a 45% discount.
To get one really sizable credit will have had to have been advanced and
promptly paid such as courses, or grades. A Gold Star Credit Rating must of
course be kept good after award and default carries the same results as a
new Lifetime Membership. A Lifetime Membership will be a handy thing to
have-one will only have to sail into an org, get his Accounts Clearance
slip and so have his next pc grade or course any time he feels like it. The
Lifetime Membership costs f 30 or $75 and need not be renewed unless
forfeited for payment failures. It is paid for in cash at the time of
application.
Anyone can have one, of any race, colour or creed. They need only sign a
sworn statement to abide by Scientology Codes and that they are not a
member of a group hostile to Mankind or Scientology.
OLD HASI SHARES
You may wonder what to do with old HASI Ltd Shareholders.
The share, of course, can't be cancelled.
The answer to this is that a HASI Ltd Shareholder is not a Lifetime
Member in any sense of the word.
The 2017o discount if promised in that area is not additive. If the
Shareholder buys books or intensives or courses, for cash of course, since
nobody promised any credit discount ever, the HASI Shareholder-if the local
offer to buy one said so originally-gets 2017o discount and no other. It
does not add to International.
A few of these shares in South Africa were maliciously held onto. Most
other places converted back and turned their shares in.
Such Shareholders should be written to personally and advised of the
advantages of a new Lifetime Membership and the above limitations of the
old share should be heavily stressed. They should be told that the local
government would not grant HASI Ltd a non profit status and so we remain
HASI, Inc of Arizona and will continue so and offer them their money back
or a new Lifetime Membership with all its advantages of full credit and
good discount.
Please shake off these old HASI Shareholders so we can close the
company. We're booming Internationally as HASI, Inc.
It's to their advantage to become Lifetime Members now.
QUALIFICATION OF MEMBERSHIP
There is no grade, certificate or classification Qualification for any
Membership.
One must only swear to abide by and uphold the Codes of Scientology
including the Auditor's Code, the Code of a Scientologist and any other
Code of Scientology and that one is not now a member of a group hostile to
Scientology or Mankind.
This sworn statement is made in and the membership issued from the
Membership section of the org at once.
OPEN DOOR
You may detect from the above that we have now opened the door of orgs
for action. Hitherto one was interviewed and registered personally by the
Registrar. This is no longer necessary. The Registrar is now HCO personnel
and handles no money, makes no notes.
One should be able now to walk straight into an org, straight up to the
Accounts Cashier near the entrance and get an Accounts Clearance. This is a
white invoice slip. Accounts receives any payment and issues the "white
copy" to the person. If it is a
129
credit sale, the person must sign the white while it is still on the
Invoice machine but this is, not necessary on a credit mail order from an
org.
This is all the procedure for the person. He or she then takes the
"Accounts Clearance" to the division giving the service and gets it then
and there. If one is buying a membership and then processing or training or
books, one goes to the Accounts Cashier first, then to Division 9 nearby
and gets the Membership issued, then with their membership card returns to
Accounts for the "Accounts Clearance" for the next service. Reception near
Accounts is ready to direct anyone to Membership Issue or the UGC or
Academy interviewers. If a member requiring processing or wanting training
wants advice, a registrar is available. But actually all the necessary
advice is posted beside the Accounts Cashier window complete with
Membership descriptions and costs and all prices including book, meter,
tape and insignia prices. A floor plan is in plain sight in reception if
one wants to find one's own way. Therefore there is no waiting.
THENEWCOMER
If a person comes in asking "What is Scientology", reception instantly
says, "That is very well covered in a book. Here is the correct book for
you and it will tell you all
about it. The price is Reception, via Accounts, sells the person
the public
book and reserves all other books for members only. Thus nobody there
explains
Scientology. They sell him a book. The Registrar does not talk to newcomers
and
indeed is forbidden to try to explain Scientology or processing to a
completely
uninformed person. If they didn't know, she like everyone else, sells the
newcomer the
public book.
There is no brochure given out in Reception, no PE brochure. Only book
ads.
In the back of the book the newcomer buys, an inserted card fastened in,
invites him to a PE Course. This card must be discovered only by someone
who has read that far in the book-it mustn't merely fall out and no such
cards may be placed about in reception. PE is for book finishers. If they
can read a book we. want them. If not, we don't as they'll only fog others
in the class. The passport to PE is "Have you read a book?" That alone is
what we require before we will put in Admin time on them.
There is a formula and drill for use on public persons on personal
contact. We don't use it at the front door of the org. We use it through
members of our Field Division only-the Field Auditors.
This handling of the newcomer is based on 15 years of experience. The
Field Auditor can handle him best. Only when the newcomer has read a book
or been audited or trained by a Field Auditor can he or she be entered into
an org at any higher level than "Buy a Book". What you have to do to sell
the Newcomer a book is another thing and is technology, not policy and so
is not covered here. The policy is the Newcomer must buy a book and that's
it. Otherwise an org tends to develop a psychiatric type practice that
wears everyone out. Orgs are live activities, not morgues. Admitting the
Newcomer who has not read a book into PE or the HGC or Academy is pure
nonsense. Scientology is aimed at the able. When you curve it toward the
unable, your dissemination programme will go all awry as it is no longer
reaching the able public for which it is designed and you will get into the
org a lot of fringe that breaks the instructors' and staff auditors' hearts
and breaks the economics of the org as well.
Scientology is for Scientologists, not for the person in need of daily
nursing. You can't build a new civilization with dead meat. You tend to
them afterwards when you've time and money to burn.
The simple selection is, Can they read a book? If they can't they'll
take far too much time and effort and will only distract the main body.
There's plenty who can read a book and if you only handle them you'll
handle more and more of them. If you even try in an org or a practice to
handle people too distracted to do so you'll handle less and less. That
formula alone is the determining force of whether an org auditor goes up in
activity and numbers or down. If you accept only those who can read a book
you will grow. If you ever accept those who can't you will shrink. There
are no exceptions.
Leave it to me to give them the book they can read. You tend the store
and we'll have a rush hour 24 hours a day and the staff to handle them.
130
Advertise and sell books hard. Then service those who could read.
Book prices of public books will be such as to permit the book to sell.
There will only be 3 or 4 public books in all. You don't have them yet.
Meanwhile sell Problems of Work or old Dianetics or Scientology Evolution
of a Science or the Original Thesis. The real Public Book # I will be out
before the end of 1965 by the thousands. It's already outlined and mostly
written. It will probably cost the public S5 in the US and 30s. in England
and some round equivalent in the Australian or SA market, whole paper money
in every case, post paid, even Airmail. So don't use up too much public
medium ad money yet for old books. Just feel your way around until we shoot
the works on Public Book # 1. We have to groom up our orgs first anyway and
get them booming by existing actions alone and clearing up their existing
public. They better come in and get clear now because next year will find a
jam for service no matter how many we have on staffs. Tell them so.
PROFESSIONAL RATES
Old time Professional Rates are back for the HPA/HCA or above (classed
or unclassed). If he or she has an International Annual Membership in good
standing (current year and unexpired) intensives cost only 25% of the
public list. Cash only. HQS, HAS are not eligible when not actually in the
Academy. However an HAS or HQS student, only if ordered by the D of T to an
Intensive may also be given the Professional Rate if they have also an
International Annual Membership.
This is an excellent chance and should receive wide publicity. However,
trip up HAS/HQS students who enroll on course only to get HGC student
rates. For the D of T may not order a student to processing if he suspects
the enrollment was only for that purpose.
HAS PRICES
HAS prices may be too low to take a 50% cash discount in some areas. If
so, raise it. Continental Director has that authority. It still gives a 25%
refund if the course is finished by the student.
These HAS courses can be weekend courses, too, you know. Or night
courses, 160 course hours, I think.
COURSE TIMES
All courses in all orgs enroll every Monday. No special courses for
certain dates will be tolerated in any org. Magazines should say "Enrolls
every Monday" after every course in every Academy Ad. If you don't you go
mad trying to get pcs every week for ad money and wind up with a
psychiatric ward for an HGC. The check sheet system 6sed now at Saint Hill
for levels fits every course nicely and requires no "every 4 weeks". Saint
Hill enrolls all week long! Further, Instructors in Scientology must not
personally lecture students on technology. Instructors only do this when
they don't know their HCO Bulletins and the same instructor is always
giving squirrelly unusual solutions in answer to student questions rather
than answer them accurately or get the student to find the answer in his
student materials. If you want a current check sheet for a level write your
comm-member (HCO Pol Ltr of March 13 '65) at Saint Hill.
PROCESSES TO USE
Break down the Q and A that Class VI auditors run Class VI only on all
pcs. It isn't so. Pcs not trained don't get enough TA and Class VI caves
them in, quite. Same pc gets as much as 75 TA Div per session run on Level
0 where he should start. A Class VI auditor can do better Level 0. One
audits always where the pc is. Never only where the auditor is. That error
alone stops you from making clears.
CLEARS
Clears are bobbing up routinely now. They release these days at Level 0
or Level I and begin to clear at Level 11 free needle. However Levels III
and IV stabilize them very well and they really go very clear if the
auditing is good and smooth.
131
Sell Release and Clear with confidence. Only squirrelling on levels and
rough ARC
Break handling can prevent it. The total rundown of processes is easy to
groove in in an
HGC and should be adhered to violently if you want to get results and
releases and
clears. It's no myth now. I
A person who clears at Level 11 can be audited on Level III and IV
providing you don't do subjective processes-only CT work. And the clear can
(and must) audit others subjective and objective.
PC GRADES
Pc Grade Certificates as already outlined in recent awards HCO Policy
Letters will save your bacon on odd demands for hidden standard type
results and save you as well from HGC squirrelling.
A pc is given his Grade Certificate when he has finished all the
processes of a level. Some new auditor may try to do this in 20 minutes.
But it really takes about 3 twenty-five hour intensives on a lower level to
do all the processes of that one level and flatten them.
This is easy, easy. Don't strain anyone's brain. Just use a check sheet
on the processes run in the HGC for each level. It's a form. The auditor
has to certify each process has no more TA in it when left. It also finally
says the pc has no ARC Breaks now and is very okay. The pc must also agree
and sign the sheet. When done, the Grade check sheet goes rapidly to
Certificates and a Grade Certificate (a letter) is signed by the HCO Area
See and is issued to the pc. The pc only now can go on to the next grade.
Where a pc gets to a Grade in the middle of an intensive and has no more
bought (and particularly where he has this one on credit) spend the last
few hours of any Grade doing Itsa in all his treatment, auditing and other
solutions. Now that he's loosened up by the Grade, you may be astonished to
see your meter needle start to float. Clearing has always been easy. People
mainly were too rough on pcs or tried too strenuously. The Grade Sheets
(and the pes) must all begin at Level 0 and go on up no matter who the pc
is or what old certificate he or she has or how horribly urgent it is that
OT be reached last week. HGC processing must now be all by Grade
Certificate.
The Grade Certificate says on appropriate stationery, "Let it be
known this day
of that John Doe has completed all processes of this Grade as a
Preclear in the
Hubbard Guidance Centre and has successfully completed Grade and is
now
fully qualified to be processed on Grade (next grade) processes. Signed
HCO"
The sooner that system is in-check sheet, grade certs-the quicker you'll
start making Releases and Clears. Release and Clear are Honorary not
technical awards. Release is simply "Know now 1 won't be getting worse" and
Clear is a Meter condition of near TA position and a floating needle. You
can't miss it when you see it. Some meters aren't dead centre on the clear
read. But it's near 2 or near 3 and all meter needles float.
Just because a person attains release or clear is no reason to halt
either an intensive or a grade. Let the pc have a win on the process if he
or she insists that one is flat now. But go on to the next process. You
only begin to skip subjective (figure or think) processes (except pure
Itsa). All Clay Table work is obfective.
STUDENTS
Let a student "finish his course" (such as complete his own case for
grade) if he insists but a course completion is a check sheet not a
condition or classification.
It is now a crime to run a course without a check sheet or to change a
check sheet on a student after it's issued. A different check sheet can be
issued to the next student that enrolls on that very same course. But once
issued, the same one is completed for a course completion of that course
and the student gets his certificate for the Level when it is and can take
his exam for class. There are 3 check sheets actually-Theory, Practical and
Auditing. There is no Academy check sheet for student's own case but an HGC
case check may be used but not taken much account of. All 3 should be
complete
132
before you let a student go up for classification. A grade certificate is
only issued a student who has had all the processes run, not because he
finished his study of the level. The Grade Certificate, if issued, says
Loudly Academy and may have no weight in an HGC or Saint Hill.
CLEARED STUDENTS
Students who are clears have to do all the required auditing as an
auditor. And get it passed. Clear is an honorary, not a technical award.
But a truly floating needle clear may not be audited on involved subjective
processes. This doesn't get him off any CT work at all. He or she may not
be jumped a grade or a course. (One course early on in clearing they
panicked and urged promotion of a student to high levels at once from an
incomplete Level II, were refused and in CT work the student cleared more
clear.) A student doesn't know more about Scientology just because he's
clear. He just learns faster. So the cleared student must do all his
auditing on pcs, subjective and objective, clear or not. If you don't have
any raw meat for a student to do all his levels on, make the student
scrounge his own pes off the street or city dump. Remember, don't panic on
clear. It means the student like any other student must do all his required
check sheets and go on up, level by level just like every other student.
Just don't run any further subjective processes or he'll key in. CT will
only key him out more if properly done.
SAINT 14ILL PRICES
Saint Hill is being careful not to undercut anybody and wog't give
credit in order to prevent orgs from losing out.
Saint Hill auditing prices are same as US Professional discounts and
student discounts apply at the Saint Hill HGC.
The Saint Hill Course was doubled in price and then halved for
International Members just to be able to grant the discount like anybody
else.
Saint Hill books, tapes, meters, insignia, are all 50% off for
Internationals. 20% for all Lifetime if cash. Not additive now. Just like
in other orgs.
This standardizes the shape and activities of Saint Hill and makes it
the same as other org boards. This makes its advices more real too. Saint
Hill has the world's most experienced people in Central Org activities so
don't be misled about the advice you get-it's hot and good.
MAILING LISTS
The elementary Emergency formula for a down org is:
I Promote Promote Promote.
2. Then change bad spots and re-organize.
3. Then economize, cut off all Purchase Orders except postage,
communications and rent.
4. Get ready to Deliver to the people who will be coming in as a
result of the promotion and deliver.
To promote you must have a full mailing list. Anyone who failed to get
his mailing list back off old invoices will probably make about thirty or
forty thousand pounds less between now and Christmas-which is punishment
enough for not following my late '64 orders where the job was skimped.
I see two orgs that are limping also have a very small mailing list. Any
connection?
Rush the project ordered in '64 wherein you culled your addresses back
from old invoices and you'll have lots of people and money again.
Scientologists never get truly lost.
133
Then get onto Book Promotion, put a return self-address card for "more
info" in the back of every book you sell and get your list up both from the
book sale and the card. Omitted that?
Look over the earlier 1965 Policy Letters that define promotion. That's
all it is.
But promotion is successful when you use books to front for you and a
flop when you don't. If you think promotion is costly it's because the
money isn't invested in getting books sold. Books are your first line of
promotion.
Re-organize your book department if it doesn't slam back a book at every
orderer within 24 hours of the receipt of the order. Why be poor all the
time?
I . Place ads.
2. Get mailing lists from anywhere.
3. Get mailing lists by selling books.
4. Sell more books to them.
5. Have good processing available for them and say so loudly.
6. Have good training available for them and say so loudly.
Do just those t6gs and do only those things and you'll be 10 times your
size with a lot more pay.
It's very easy. Why keep doing it the hard way?
I'm interested in review that only those orgs are poor which haven't
been following my direct orders. Well, anybody has a right to be poor, I
suppose, if he has an appetite for it. Personally I don't care for it. It
must be a carefully acquired taste. As a brand new idea in those orgs that
are struggling, why not get rich by doing what Ron says?
L. RON HUBBARD
LRH:jw.rd
Copyright @ 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED [Important.See also HCO P/L 18 April 1965, page 93.)
134
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 MARCH 1968
Remimeo
STUDENT & STAFF PROGRAM
STUDENTS:
Students will now have an opportunity to earn free Level Courses.
Any student who is presently on a Level Course and brings in 5 students
for HAS or above may have his next Theory or Practical Course free.
He may do this as often as he likes.
This offer only applies to students actually on a Levels Course (HRS to
HAA), now or in the future (in other words, this does not just apply to
those presently on a course, but to future enrollees as well).
The award is given for actual people brought in who signed up and paid.
Five HAS courses sold should equal the cost of a Levels Course. If it
does not in your Org, then change the number of people the student must
bring in until it does.
STAFF:
If RAP finds a student who shows himself to be intelligent and
responsible (up stat) or an untrained or partially trained staff member who
has the same indicators, RAP may offer that person his or her Levels up to
and including HAA free of charge in return for a one year contract.
The contract is specifically for auditing-we want trained and
experienced auditors from tliis. We want them in the Tech division or in
Qual.
The contract commences after the training has been completed.
Later, the staff member may be offered his Class VI or VII in return for
a 21/2year contract. This contract would include getting his Power free.
This contract requires him to be Staff Status 11.
Inter Org arrangements and agreements re awards will have to be made
between those concerned. The outer Org would pay unless specifically
awarded by the Guardian, or unless it fell in to some other award system.
These programs are designed to increase Org flow, speed movement
upwards, expand staffs, and increase the number of trained auditors in the
world. We are beginning to have much larger flows and must get trained
staff quickly to handle it.
Lt. Fred Payer
Sea Org
Approved by
LRH.jc.cden L. RON HUBBARD
Copyright @) 1968 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
[This policy was cancelled by LRH in HCO P/L 27 September 1970, Issue 11,
Volume 3-page 136, being in direct violation of HCO P/L 27 April 1965,
Issue 11, Price Engram, Volume 3-page 91, wbich forbids cutatives in prices
as damaging to expansion.]
135
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 SEPTEMBER 1970
Issue II
Remimeo
CANCELLATION
HCO Policy Letter of 15 March 1968 "Student and Staff Program" which
advises many give aways, issued by Fred Payer, is cancelled.
It is in direct violation of HCO P/L 27 April AD 15 Issue 11
"Organizational Price Engram" which forbids cutatives in prices as damaging
to expansion.
Covert Price Cuts by orgs are directly responsible for low staff Pay.
L. RON HUBBARD
Founder
LRH:sb.ka.rd Copyright @ 1970 by L. Ron Hubbard ALL RIGHTS RESERVED
136
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 27 APRIL 1959
WHY NEW BOOKS ARE FEW
The income I am supposed to derive from Scientology should pay for
research, investigation, my promotional time, the writing of books and my
living expenses. At present it does not.
We are short of new books because I haven't had the time or the place to
write them and do not even have a transcription secretary.
Clear results were delayed and released incomplete because research
funds were missing and 1 had to do it all on the cuff. 1 couldn't pay
auditors to assist me.
Right now I am buying a home in England which will be a research centre
and am faced with getting another house in the U. S. soon.
Basically the 10% paid as royalty by Central Orgs is looked on as my
income. It is not income. It pays for HCO personnel in most places who are
more and more doing the administrative and promotional work vital to keep
the lines flowing. HCO is worth, in income to Central Orgs an enormous
amount just for these things.
1 have a need for help here. Research and writing, on which we exist, is
not being paid for. Therefore it is very hard for me to get it done. It
would not be unusual for 10% to be paid for these two items. On the
contrary. But the 10% is absorbed in paying for administration-and vital
administration it is! Magazines, promotion, organizational data, to name a
few, come under the 10%.
We are in for a boom. You may not see it in your area yet but HAS Co-
audit well run has begun the project "Clear Earth". HGCs have already begun
Theta Clearing. And hotter stuff is to come.
But unless 1 can up my income for writing, research and living, we are
somewhat slowed down.
My program has gone as far as this: 1 have bought, with my own money and
whatever I could gather, a place in Sussex that's quiet enough and remote
enough for research and in which 1 can get lost enough to write. I emptied
out all my loose cash. sold my boats and made my credit creak but we have a
writing and research centre for the U.K.
The place belonged to an important person and is itself more or less
self supporting as to upkeep.
I want to get a research centre for the U.S., equally remote and later
on for each continent. In such places research records can be safe and the
kind of research which now has to be done can be done.
This will take several years. I am perfectly willing to do and finance
any and all of this out of my 10% royalties from Central Orgs.
If HCO personnel can be paid out of Congresses, books, tapes, records
and memberships, if certain HCO services can be nominally charged for, and
if Central Orgs can help out by paying HCOs where needed, then 1 can get
every one into a position through writing, research and planning to take
all the strain off by increasing book sale volume and general volume.
Right now we are doing things a bit backwards. 1 am having to bolster
and plan to keep things afloat without the whereabouts or wherewithal to do
the writing and research that will make floating easy.
137
HCO is vital to keep us going. So is writing and research.
I am truly and honestly concerned with all our incomes and work
ceaselessly in an effort to raise yours. Only recently did I realize that I
was having a hard time raising yours because my own income was too low,
despite the overall high current and steadily increasing income of
Scientology, to pay for the things I have always paid for from any income
or money I received-research and writing. In establishing HAS Co-audit in
London I found ads to be fabulously expensive. I realized suddenly that I
could get plenty of press with books and book reviews. I abruptly cognited
that "Have You Lived Before this Life?" was our first new book in two
years. And "All About Radiation" was our first new book for two years. As
we did in AAR, we sell from 6,000 to 9,000 new books worldwide, every new
one I write. The market we have is steady. Only old books reprinted cost
heavily. New books get their cost out in about 80 days and make us
thousands in friends and money. Our book market would take a new book every
six months. These, sent to reviewers widely in every area would give us
plenty of press. And we'd have data in usable form. And 9 to 25 people read
every book printed!
HCO has taken off a heavy administrative burden to a great extent,
freeing the time. This leaves lacking (1) Finance for research (testing and
leg work), (2) A place I can do research and do the actual writing, (3)
Book transcription.
If we want a boom, it's vital to free the income needed to create it.
And this will up all our incomes, as well as got the job done.
My book schedule is now
I . Have You Lived Before this Life? (I rewrote it in the last 2 weeks
amongst doing the new HCA/HPA series. It's now at the printers.)
2. The Elements of Scientology. (Needed as the new course book to fit
with the tapes. It's partially compiled-has been for a year and a half
but needs complete redoing.)
3. The Criminal Mind. (To give us a whole prison clearing program.)
4. The Mentally Retarded Child. (The text for the Society for Mentally
Retarded Children program we are now piloting in the U.K.)
5. Great Men of the Mind. (The biographies of mental healers, a
missing text in
psychology courses in universities.)
You maybe sometimes wonder why I don't write more new books. For a
research confirmation, to whom do I say "Audit Bill on so and so" (HGC
processes are too stable now for research). To whom do I say, "Run down to
the local library and find
out Whom do I Pull off post and say "Type 'Up these 80,000 words of
dictation tapes I've done?" Why me, of course. And I just can't get it all
in. So-no new
books.
But 10% devoted to these and the cash I need can do it easily.
Any comment or suggestion any secretary or executive in Central Orgs
would care to make would be very welcome. I would find your views very
helpful.
P.S. Only the F.C.D.C. bears the cost and more of writing and research
at this time.
P.P.S. You didn't realize I too had problems, did you?
Best,
L. RON HUBBARD
LRH:cden Copyright@ 19 5 9 by L. Ron Hubbard ALL RIGHTS RESERVED
138
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF'21 MAY 1959
(Convert to See ED)
HCO MONIES AND BOOK STOCKS
Effective now,
All monies received by reason of book sales, ACCs, Congresses, tapes,
records and memberships shall be invoiced to the credit of and deposited in
the accounts of the Hubbard Communications Office.
All book printing, bills for tapes, records, Congresses but not magazine
printing or postage costs, shall be paid by HCO save only where Central
Organizations need tapes, etc., which they then buy from HCO.
All book stocks are now the property of HCO and Central Organizations
obtain books at 50% discount.
Exception: The sums advanced by Central Organizations for copies of
"Have You Lived Before This Life?" to HASI London, will be credited to them
and all sales of this book will be paid into Central Organizations, not
HCOs until Jan 1, 1960.
L. RON HUBBARD
LRH:mp.cden
139
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 28 MAY 1959
Central Convert to Sec ED
PROMOTIONAL WRITING FUND
Pursuant to the HCO Policy Letter of April 27, 1959, it is now generally
agreed that the suggestion of Jack Parkhouse is best.
He suggested that instead of 20Yo or 15% of the proportional income
going into the Building Fund of each Central Organization that 15% or 10%
be so deposited and the other 5% be made available to me for promotional
writing.
This 5% of the proportional income would then immediately be applied to
the expenses mentioned in HCO Pol Ltr of April 27. Any part of the regular
HCO 10Yo would be applied directly to research expenses.
However, New Zealand and others suggest 121/2 percent. Let us do it this
way. We make it 8% now and drop it to five when our income is all brought
up by all our actions and my promotional writing.
All Assoc Sees should get the immediate opinion of staff and if
favourable should then at once begin the regular, routine weekly transfer
of 8% of the proportional income to "Special Fund HCO WW, National
Provincial Bank Ltd., 6 Fitzroy Sq. London, W. 1 " and delete the sum from
the Building Fund.
It should be clearly understood that this money and any funds that can
be salvaged from the HCO 10% (which is spent locally in most Central
Organizations) will help pay the expenses of the new promotional writing
and research centre, located at Saint Hill, East Grinstead, Sussex.
If this money can assist promotional writing, we will all experience an
increase in income since it is promotional writing that carries most of the
public interest and I am currently too pressed by other things to do it to
an adequate extent.
We can continue with other financing plans for research, many of which
are quite good.
I have been paying for and shoe-stringing research for so long that an
enormous backlog has developed needful to be done now to advance the whole
picture of Scientology.
So if we can get this 8% coming in very soon, and gather up what HCO
cash is about and send it in we can get both promotional writing and
research going with attendant rise in income everywhere.
L RON HUBBARD
LRH:mp.cden Copyright Q 1959 by L Ron Hubbard ALL RIGHTS RESERVED
140
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 9 JUNE 1959
HOD SPECIAL FUND
Scientology Research and Investigation Fund is the name of the HCO
Special Fund to which the following monies should be transferred:
1. All sterling area HCO 10%s except where needed for office and salary
expenses to finish out CBM deficiencies.
2. All HASI and other Central Organization 80/os.
The only exceptions are the 10%s from US organizations which go to LRH
Founder personally.,
This means that all HCO surpluses anywhere above immediate office needs
should be now transferred routinely to HCO WW Research and Investigation
Fund as well as all Central Organizations' 8%s.
L. RON HUBBARD
LRH:gh.pm.cden Copyright Q 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
141
HUBBARD COMMUNICATIONS OFFICE
3 7 Fitzroy Street, London W. I
HCO POLICY LETTER OF 24 JUNE 1959
All Franchise Holders in US
All HCO
STATUS OF HCO OFFICES AND HCO SECS
AND HCO VOLUNTEER SECS IN US
The status and duties of HCO Sees and HCO Volunteer Sees in the US are
not changed by the fact of HCO WW mailing bulletins to HCO Franchise
holders except as follows:
There is no need to duplicate the mailing by sending HCO WW bulletins
again to HCO Franchise holders. However, special bulletins from US HCO
offices will still be sent to Franchise holders by HCO Sees and Volunteer
Sees as appears needful. They themselves can author needful bulletins or
add data from bulletins not mailed by HCO WW to Franchise holders but
mailed to HCO offices only by HCO WW.
There will be no need to collect money directly as all 1 0%s will be
sent direct by the Franchise holder to HCO WW and all accounting will be
done by HCO WW. However there will be many collection items (delinquent
payments, checking income, etc) that will be handled by US HCO Secs and
Volunteer Secs as requested by HCO WW. The US HCO offices are still in the
financial picture but relieved of funds handling and accounting.
Funds for HCO office operation in the US where very dependent upon the 1
0%s from the Franchises, should be solved by giving Congresses, tape plays
for charge, book sales, and the revenue of a model HAS Co-audit Course.
Relieved of mimeographing, mailing and invoicing, the HCO Sees in the US
can devote time to personal service for Franchise holders, and more
vitally, promotion.
We are now looking at HCO Sees US for front line promotion and keeping
Franchise holders in line on ethical and technical standards.
Central Orgs in DC and LA and HCO Area offices are in no way changed in
their contracts and relations with HCO WW by reason of this change of
handling Franchise holders.
Where financial duress is created for HCO Sees by this by-pass of the
ten percents, HCO WW will handle the situation on an individual basis.
However, tapes, congresses, books and other means are looked to to support
HCO offices not attached to Central Orgs.
The collection arrangements to HCO WW are after all only temporary to
get the show rolling and HCO US organized meanwhile to cope.
L. RON HUBBARD
LRH:mp.aap Copyright@ 19 5 9 by L. Ron Hubbard ALL RIGHTS RESERVED
142
HUBBARD COMMUNICATIONS OFFICE
3 7 Fitzroy Street,, London W. I
HCO POLICY LETTER OF 22 JULY 1959
(Reissued from Washington DC)
CenO
MONIES INTENDED FOR
SCIENTOLOGY RESEARCH AND INVESTIGATION FUND
The following type monies are deposited to Scientology Research and
Investigation Fund-therefore, the checks should be made out not to L. Ron
Hubbard or HCO, but to "Scientology Research and Investigation Fund" and
sent directly to HCO WW, Saint Hill, East Grinstead, Sussex, England:
I Any Central Organisation 8% checks (such as Founding Church,
Washington DC-8% is deducted weekly specifically for this Fund).
2. Any HCO I O%s.
3. Any 10% monies from Franchised Auditors.
Mildred Galusha
for
LRH:MG:gh.rd L. RON HUBBARD
Copyright@ 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 25 JULY 1959
CenO
MEMBERSHIP MONIES
No monies received for memberships in HASI U.S. or HASI U.K. may be used
for proportionate pay but must be kept in a sealed account.
LRH:brb.cden L. RON HUBBARD
Copyright Q 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
143
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East.Grinstead, Sussex
HCO, POLICY LETTER OF 10 AUGUST 1959
To All US and
UK Franchise Holders
This Policy Letter cancels all previous Policy Letters which you might
have received referring to your gross weekly income from Scientology and
Dianetics.
All I 07os are to be sent to HCO WW Saint Hill Manor, East Grinstead,
Sussex. This is directly to Ron and HCO WW who need your I Mos to
disseminate Scientology in the field for you.
Do not send any 10'Yos to your Central Organization-send all 10%os to
HCO WW, Saint Hill, East Grinstead.
HCO Secretary WW for L. RON HUBBARD
NW:brb.rd Copyright Q 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
144
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 24 AUGUST 1959
All HCO Offices and Assoc Secs
HCO FINANCIAL ARRANGEMENTS ALTERED
Effective on receipt to the nearest prop income Thursday, the following
financial arrangements will be in effect.
On all new franchises including those now being drafted for Central
Organizations, and all permanent franchises, any office which has the
personal services of an Area HCO office shall pay 15% of its gross income
and no other sums to HCO. (It is now 187o.)
This will be apportioned as follows: 5% will be held by the area office
for its own payroll and expenses. This 5% as a separate cheque shall be
deposited to the local HCO Acct and will have as its signatories, L. Ron
Hubbard, Mary Sue Hubbard, and. the HCO Secretary in that area. To this
same account will be added, books, tapes, special events and any other
sums.
The other 10% will be transferred directly as royalties from the
organization or franchise holder as a royalty payment to HCO WW, Barclays
Bank, East Grinstead, Sussex and the transfer will be weekly.
If any franchise holder is granted the presence and majority service of
an HCO Office his franchise payment shall be increased to IS%. If he has no
HCO local office, he may not train above. the level of HAS as the
professional course could not be properly certified examined and assisted.
In the case of an HCO City Secretary devoting full time to HCO duties,
it is necessary to attach the office of HCO to the largest franchise holder
in the city and increase the franchise payment from 10% to 15% and handle
the matter as above.
This applies worldwide. All transfers of funds and arrangements of these
matters is the responsibility of the Treasurer of HCO, Mary Sue Hubbard,
and the HCO Area Secretary in the organization involved.
I feel these are fairer terms.
All Central Organizations should return to 50% of their prop income for
their salary sum and HCO should now pay its own personnel.
Responsibility for solvency of any HCO Area Office now rests wholly with
the HCO Area Secretary.
HCO AREA EXISTING ACCOUNTS
All HCO Area Accounts balances not due on immediate HCO Area bills
should be forwarded at once as collected royalties to HCO WW, HCO Sec: This
means send HCO WW your full account balance as of effective date.
EXISTING DEBTS NOT ALTERED
This arrangement does not in any way alter existing debts to HCO. These
should be computed and collected at once and forwarded to HCO WW as soon as
possible.
COLLECTIONS FROM STERLING AREAS
Regular royalty payments have been found to be feasible to obtain
government permits for.
145
However, if this is found completely impossible the HCO Area Secretary
is authorised to employ a shares broker to regularly buy bonds for shipment
to England which can be sold for a similar price in London, providing this
is not specifically legislated against by the government.
COMMUNICATION EXPENSES
Central Organizations or franchise holders are to bear communication
costs in their own areas for HCO. HCO WW will in its turn pay its costs of
communications to HCO office and Central Organizations.
Any Telex installations and costs are included in this arrangement.
L. RON HUBBARD
LRH FOUNDER CHEQUES
All cheques for LRH Founder 10% including U.S. organization cheques for
LRH are now to be made out to "Hubbard Communications office Royalties",
instead and mailed to HCO WW.
CHEQUES DESIGNATIONS
All cheques, regardless of for what, are to be made out to Hubbard
Communications Office. They can be further designated, "Royalty I 0V or
"Area Office 5%" or "Book Refund" or whatever. But Payee in all cases is:
Hubbard Communications Office.
Any cheque to be signed as a disbursement by an HCO Office anywhere must
be entered first on a disbursement voucher machine (exactly like an invoice
machine except it says "Disbursement Voucher With the Compliments of the
Hubbard Communications Office" instead of "Invoice".
Any cheque made out by an HCO office may be signed only as follows:
Hubbard Communications Office by L. Ron Hubbard
Hubbard Communications Office by Mary Sue Hubbard
or: Hubbard Communications Office
(signature of HCO Secretary)
by the Authority of L Ron Hubbard
No other types or styles of signature will be permitted.
HCO ACCOUNT SIGNATORIES
All HCO Bank Accounts must carry each of the following signatures for
any withdrawal:
,L. Ron Hubbard-singly. Mary Sue Hubbard-singly. HCO Area Sec singly or
with another.
L RON HUBBARD
LRH:cden Copyright Q 1959 by L. Ron Hubbard ALL RIGHTS, RESERVED
146
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 SEPTEMBER 1959
Ltd HCO Offices
HCO BOOK ACCOUNT
On receipt of this Policy Letter, HCO Secretaries everywhere are to make
arrangements to open a new account in the HCO Account called the "HCO Book
Account". In this account must be placed all monies obtained from the sale
of books and tapes.
This will enable us to see at a glance what sums are available for the
printing of new books. Hitherto this money has apparently often been
swallowed up in running expenses.
From time to time surpluses will be used for printing new books and
other promotional projects, both local and worldwide.
The Account should have the same signatories as the regular HCO Account.
PH:brb.rd Peter Hemery
Copyright@ 1959 HCO Communicator WW
by L. Ron Hubbard [This P/L was also reissued from Washington as
ALL RIGHTS RESERVED HCO B 9 September 1959.1
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO BULLETIN OF 9 SEPTEMBER 1959
CenOCon
CBMT ACCOUNT
It has been stated in the past that all Sterling area HCO offices would
pay London and any other bills on the Central Organizational's CBMT
account, in return for receiving all book stocks of the Central
Organization. However, Jack Parkhouse has suggested a more equitable
solution to this situation and his suggestion has been passed by Executive
Director.
All HCO Sterling Area offices will now submit a report to each Central
Organization of the total stocks which it received from the Central
Organization and the pound value of such stocks basedupon the prices which
were charged by London to the Central Organization.
The Central Organization shall then do an accounting of how much was
owed on by the CBMT account to London and to other firms up until the time
HCO took over the book stocks.
The two amounts obtained from doing the above shall then be subtracted
one from the other. HCO shall be responsible for paying to London that
portion which represents the amount of the book stock it received and the
Central Organization shall be responsible for paying the remaining amount.
Have this done as soon as possible and submit an accounting of this to
the Treasurer, WW.
In the meantime, the Central Organization and HCO shall send weekly
payments on amounts owed to London to HCO, WW. We would like to clear these
debts up as rapidly as possible.
MSH:iet.rd MARY SUE HUBBARD
Copyright@ 1959 HCO Treasurer WW
by L. Ron Hubbard
ALL RIGHTS RESERVED
147
HUBBARD COMMUNICATIONS OFFICE
23 Hancock Street, Joubert Park, Johannesburg
(Issued Saint Hill)
HCO POLICY LETTER OF 14 OCTOBER 1959
HOO Offices only
plus Vol Secs
DIVISION OF HCO PERCENTAGE REVISED
(Cancels earlier directives on this subject)
In order to assist offices in giving service to Franchise Holders, the
following arrangements are now finalized on franchise monies.
America
There is no HCO Continental Secretary or Office, U. S., except in
Sussex, England.
Therefore the full 109o of HCO Franchise monies is to continue to be
sent to HCO Sthil.
Where an Area, City or Vol HCO Office exists, arrangements must be made,
in finalizing franchises particularly, to receive another 5% of the
Building Fund of any franchise holder nearby to support that Area, City or
Volunteer Office.
Provision will be made for this in awarding permanent franchises. Local
arrangement can predate final franchise.
United Kingdom
As the U.K. Continental Office is at Sthil, the same arrangements apply
as for America.
South Africa, Australia and New Zealand
As these areas have Continental HCO Offices, the following arrangements
should be put in force the nearest Friday to the date of receipt of this
letter, but in no case later than Nov. 1, 1959.
The Continental Office of S. Africa, Australia or New Zealand collects
100% and retains 66.213rd of all franchise Ms. The remaining 33.113rd is to
be sent to HCO WW.
This is arranged because the burden of franchise management falls on the
Continental Offices in the mentioned areas.
When a franchise is finalized, as in the case of Central Orgs, they will
have to have Area HCO Offices.
A permanent franchise holder is to pay 10% of his gross and 5% as in
Central Orgs for his privileges, which will include training. The 5% is to
remain with his Area Office along with book sales, etc.
When a franchise is made permanent, 5% of the gross 10% is to be
retained by the Continental Offices in S. Africa, Australia and New
Zealand, and the other half of the 10% is to be sent to HCO WW.
148
This arrangement will continue with permanent franchise holders until
such time as they are surviving well as permanent franchise holders, at
which time they will assume the same percentile plans as is in force at
Central Orgs at that time.
PERMANENCY DECLARATIONS
All permanent franchise awards are made by HCO WW only, therefore the
financial arrangements of interim franchise holders are in force in the
case of each holder until a permanent franchise is awarded, at which time
the above percentile arrangements for permanent holders will go into force
for that awarded centre only.
Central Org Percentiles
The current percentile arrangement of Central Orgs with HCO are:-
1 0To of gross goes to HCO WW the same week as earned by the Central
Org.
5% of the Building Fund to the HCO Area Office plus Book Sales, Special
Events and ACC Collections.
This is modified as follows for the Sterling Area only:
In any week that the Central Org makes' a gross in excess of �1,000 the
Continental HCO Office of that place receives 5% of that gross, HCO WW
receives 59o of that gross, and the Area HCO Office receives 5% of the
Building Fund as before.
This arrangement will also go into force with permanent franchise
holders at such time as they are sufficiently stable to warrant it, but
will not be in force for another two years at least.
Excess Funds
All HCO Area, City and Continental excess funds should be forwarded to
HCO WW for research.
By Excess Funds is meant monies not immediately needed in running
expenses and publication.
L. RON HUBBARD
LRH:dd.cden Copyright Q 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
149
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 29 OCTOBER 1959
CenOcon
Assoc Secs
HCO Secs
Dir Acc
INTERNATIONAL MEMBERSHIP
International Membership money has been handed over to the HASI and
should be entered into a special account from which all printing expenses
on the Minor Magazine should bernade.
LIFETIME MEMBERSHIPS
Lifetime Membership money is to be entered into a special account and is
not to be touched at any time unless with direct consent or authorization
of the Executive Director himself.
HCO Secretary WW for L. RON
HUBBARD
LRH:js.rd Copyright (D 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
150
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 18 NOVEMBER 1959
CenOCon
HCO CENTRAL ORG FINANCIAL MODIFICATIONS
On advices from HCOs the following financial modifications are made:
The HCO, of any Central Org will collect and bank any and all membership
monies (but not lifetime members or shares money) received by any Central
Org and will use this money to pay for the make-up, printing and postage of
the monthly magazine, the Central Org furnishing addressing and enveloping
services only.
Further HCOs will cease on receipt of this letter to pay 10% of local
HCO income to HCO WW. Central Orgs will continue to remit 10% of their
gross income to HCO WW direct. Central Orgs will pay 5% of their Building
Fund to the local HCO.
All books will be sold by HCO (excepting American College, Perth, and
Franchise Holders with no HCO). HCO will give a 20% discount to all members
of whatever class on books, tapes, congresses and special events but the
discount applies to cash sales only. Whole or partial credit sales carry no
discount.
A lifetime member or shares member may not be promised a magazine as
part of his membership in any literature.
A lifetime or shares member who also buys an annual membership gets an
additional 10% discount on all books and tapes purchases and gets both
magazines (Continental Monthly and PAB Monthly). This gives him a 30%
discount on all book and tape record purchases.
HCO receives therefore the whole of C.B.M.T., pays the whole of printing
and posting (but not addressing) books, magazines and pays the whole of
recording and selling tapes and pays for its supplies, desks, machines (but
not address machines which must be owned and paid for by the Central Org);
HCO pays for its personnel, (but not Sec ED) transport, legal fees, etc.,
but does not pay rent for offices contained in a Central Ores quarters, it
being of value to Central Orgs to have HCO on the premises; HCO pays for
any offices it rents outside Central Org premises.
HCO Continental offices where they exist retain 66 2/3% of all Franchise
Holder 10%s (not true of U.S. or U.K.) 33 1/3% of such money goes to HCO
WW.
Since HCO is a profit company unlike HASI its excess funds are quarterly
sent to HCO WW for disposition. By excess is meant monies over and above
all expenses and not to be used for local investment.
L. RON HUBBARD
LRH:js.cden Copyright @ 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
151
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 DECEMBER 1960
HCO Offices plus vol Sees
REVISION OF HCO PERCENTAGES
(Cancels HCO Policy Letter of October 14, 1959)
Because PE Foundation has proved successful and �1,000 weeks will be
more
evident in the future, HCO Policy Letter of October 14th 1959, "Division of
HCO
Percentages Revised" is herewith cancelled and the usual percentages will
go to HCO
WW and the Area.
LRH-.js.des.eden L. RON HUBBARD
Copyright @ 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 APRIL 1961
Central Orgs
All HCOs
City Offices. REMITTANCE OF HCO MONIES TO HCO WW
Do not Remuneo
Due to the difficulty of collecting large sums of money from various
Commonwealth countries, the policy of sending weekly to HCO WW the 10% of
all book sales and 33 113% of all weekly Franchise income from the local
HCO is re-instated.
Monetary restrictions are more difficult on large sums of money than on
regular payments of small sums of money; therefore, upon receipt of this
Policy begin sending weekly to HCO WW the following:
1. The regular 10% of HASI's weekly income.
2. The 10% of all book, tape, records, Congress, Special Events, in
other words, 10% of all its weekly income excepting its 5% income
from the Central Organization, ACC income, and income from Franchise
Holders.
3. The 33 1/3% of all weekly Franchise income. This applies to all
HCO Offices throughout the world where applicable.
Mary Sue Hubbard
Treasurer
LRH.jLcden for
Copyright@ 1961 L RON HUBBARD
by L Ron Hubbard
ALL RIGHTS RESERVED
152
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 17 JULY 1962
Accts Depts
HCO Secs
Assoc Sees
ACCOUNTS: BANK CHARGES ON REMITTANCES
Orgs remitting I 0%'s to WW by bank draft or credit transfer must bear
the cost of transmission and any bank charges.
E.G. Melbourne's 10% for week = Australian f100-which is equivalent to
E80-British Sterling, Bank charges amount to ZI -British Sterling. WW must
actually receive E80-and not f79 (i.e. British Sterling equivalent less
charges).
WW must receive the exact equivalent of the Org7s 10%, and not this
amount less bank charges.
This policy letter is effective on receipt and is not retroactive.
Central Organizations routinely bear HCO's costs in postage, mailing,
telex, telegraph, cable and equipment, and should bear as well, cost of
transmission of funds as a routine administrative cost.
Issued by Mike Rigby,
Director of Accounts WW
for
L RON HUBBARD
LRH.jw.cden Copyright (D 1962 by L. Ron Hubbard ALL RIGHTS RESERVED
153
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 SEPTEMBER 1962
Assoc Sees
HCO Sees
Accts
HCO WW FORM AC I
HCO WW Form AC I is the only Proportionate Breakdown acceptable to HCO
WW Accounts.
No exceptions will be acceptable unless specific written instructions to
the contrary are received by the Director of Accounts WW from the Treasurer
WW and OK'd by either L. Ron Hubbard or Mary Sue Hubbard. So if you require
an exception communicate direct RUSH to Treasurer WW.
Commencing week ending 4th October 1962, HCO WW Form AC I (one sheet
lightweight Pink Foolscap, green printing) will be the only acceptable
form. This Form AC I is to be remitted direct to Accounts Department WW
with cheque each week, plus a copy for LRH info Treas WW.
Issued by: H.G. Parkhouse
Treasurer WW
Authorised by: L. RON HUBBARD
LRIf:gl.pm.rd
Copyright @ 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 SEPTEMBER 1962
Assoc Sees
HCO Sees
Accts
HCO WW FORM AC I
(Changes HCO Pol Ltr of Sept 19, 1962)
In accordance with HCO Policy Letter of September 26, 1962, entitled
"Memberships", HCO WW Form AC I will be amended as follows:-
Line G. Delete Memberships.
Beneath Line B write Line B I Memberships.
Line R. Change to read:-
Add B, B I, C and D, put total here and on the line to the side.
(Put down twice.)
Issued by: H.G. Parkhouse
Treasurer WW
for
LRH:jw.rd L. RON HUBBARD
Copyright Q1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
154
(Use Green Ink on light-weight pink paper)
HCO WW FORM AC I (Org name) (In Capitals)
PROPORTIONATE INCOME BREAKDOWN WORK SHEET WEEK ENDING ..................
A. GROSS INCOME Put down total
B. DONATIONS RECEIVED Put down total
B 1. MEMBERSHIPS Put down total
C. RENT COLLECTED Put down total
D. LOANS COLLECTED Put down total
E. PHONE CALLS COLLECTED . Put down total ....
F. REFUNDS GIVEN Put down total
G. Put down the total of all Congress, books, tape
monies & special event monies if any were
invoiced by Central Org for HCO ................
H. Put down total others .........................
1. ADD 13,111, C,D,E,17,QH &putdown totalhere&
on the line to the side~ (Put down twice) ..........
J. CORRECTED GROSS INCOME Subtract I from A
& put down here ........................................
K. HCO WW 10%. Take 10% of J & put down here ................
L. PROPORTIONATE AMOUNT. SubtractIC from J &put downhere
M. SALARYSUM50%ofL. Take 50%of L&putdownhe-re .......
N. DISBURSEMENT SUM. Take 30%of L &put down here ........
0. Add E & H & put total here & on the line E
to the side (Put down twice) H
Total
P. TOTAL DISBURSEMENT SUM. AddN&O&puttotalhere .....
Q. BUILDINGS6M. Take 15%of L &put down here ..............
R. Add B, BI, C&D,puttotalhere&on theline B
to the side. (Put down twice) B 1
c
D
Total
S. TOTAL BUILDING SUM. Add Q & R & put total here ..........
T. AREA HCO 5%. Take 5% of L & put down here ....
U. Put G down here ............................
V. TOTAL SUM TO AREA HCO. Add T & U, put total
here & on the line to the side. (Put down twice)
BALANCE CHECK
AA. Put down total Gross Income from line A .....................
BB. Put down total refunds from line F ..............
CC. Put down HCO WW 10% from line K .............
DD. Put down Salary Sum from line M ...............
EE. Put down Total Disbursement Sum from line P .....
FF. Put down Total Building Sum from line S .........
GG. Put down Total HCO Area Sum from line V .......
HH. Add BB, CC, DD, EE, FF, GG & put total here & on
the line to the side (Put down twice) -
Il. Subtract HH from AA & put down here (There should be NO
BALANCE) ............
SIGNATURE & TITLE .......................................
155
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 SEPTEMBER 1962
HCO Secs
Assoc Secs
Accts Depts
ACCs AND SPECIAL EVENTS COURSES
All ACCs and Special Events Courses have been, and are currently, run
under the auspices of HCOs.
As of this date all monies received for such future Courses must be
totalled on the last day of the Course and the running costs deducted; any
excess of Income will be dispatched to the "L. R. Hubbard Trustee Account".
With regard to past and future ACCs and Special Events Courses, any and
all payments received from this date forward from past and future ACCs and
Special Events Courses will be paid in full to the "L. Ron Hubbard Trustee
Account".
This money will be remitted WEEKLY and on a SEPARATE cheque (not
included with 10% etc).
This ruling is made in agreement with the Copyright Holders of such
Technology Tapes and Literature originated by L. Ron Hubbard for use in
these Courses, in as much as that all ACCs and Special Events Courses shall
be run on a non-profit basis and that any excess of Income over Expenditure
shall be deposited with the "L. Ron Hubbard Trustee Account". This account
is a Trust Holding pending the formation of the Hubbard Scientology
Research Foundation.
Any accounts containing such monies shall now be closed and the balance
sent to L. Ron Hubbard Trustee Account.
Issued by : H.G. Parkhouse
Treasurer WW
for
L. RON HUBBARD
LRH:dr.oden Copyright @ 1962 by L. Ron Hubbard ALL RIGHTS RESERVED
156
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, Fast Grinstead, Sussex
HCO POLICY LETTER OF 26 SEPTEMBER 1962
HCO Secs
Assoc Secs
Accts Depts
MEMBERSHIPS
As of the date above all Membership monies will be received by I-IASI,
(this does not apply to Share monies) and shall be deposited in the
Building Fund where it will be allowed to accumulate. Such money as is
deposited may not be used without direct orders from L. Ron Hubbard or Mary
Sue Hubbard.
The costs of magazine mailings (i.e. Certainty, Ability, etc.) will be
borne by
HASI.
Issued by : H.G. Parkhouse
Treasurer WW
for
LRH:jw,cden L. RON HUBBARD
Copyright @ 1962
by L. Ron Hubbard [Important. See also HCO Policy Letter of 11 April
1963,
ALL RIGHTS RESERVED Memberships, on page 252.1
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 SEPTEMBER 1962
CenOCon
HUBBARD SCIENTOLOGY RESEARCH FOUNDATION
This Foui lation is to be formed with the purpose of receiving
donations, gifts, dues, etc, and t-aen disposing of such accumulated funds
as grants, loans or gifts to further Scientology Research in accordance
with its aims and purposes.
Any monies remitted to this proposed Foundation pending its formation
should
be made payable to the "L. Ron Hubbard Trustee Account".
H.G. Parkhouse
Treasurer WW
for
LRH:gl.rd L. RON HUBBARD
Copyright @ 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
157
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I FEBRUARY 1963
Central Orgs
HCO Secs
Assoc Secs
HCO AREA 57os
(Cancels earlier directives)
Effective immediately the payment of 5% of the corrected gross income by
the Central Organisation or City Office to its attached HCO Area Office is
cancelled. As a corollary to this, the HASI or FC will pay the salary
(units) of its attached HCO Staff Members. For the present this will also
apply to HCO Continental Offices.
As a result of this, the area 5% sum is added to the Salary Sum which
will now stand at 55% of the corrected Gross Income. An amended version of
Form AC I is attached, the form of which should be introduced immediately
in all orgs.
All routine administrative expenses of an area HCO and-where applicable-
a Continental HCO, must be borne by the Central Organisation to which the
HCO is attached. This would include cost and maintenance of telex machines,
telegraphic and telephone charges, postal and mail charges, etc. The
services which HCO provide and maintain, such as the telex, are for the
benefit of the Central Organisation and should therefore be paid for by the
Central Org.
Issued by: Mike Rigby
Director of Accounts WW
for L. RON HUBBARD
Authorised by: L. RON HUBBARD
LRH:jw.rd Copyright (2) 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
[Note: The error in the original mimeo issue of Form AC1 opposite has been
corrected per HCO P/L 6 February 1963, HCO Area 5%s.]
158
(Use Green Ink on light-weight pink paper)
HCO WW FORM AC I (Org name) (In Capitals)
PROPORTIONATE INCOME BREAKDOWN WORK SHEET WEEK ENDING..
A, GROSS INCOME Put down total -
B. DONATIONS RECEIVED Put down total -
B 1. MEMBERSHIPS Put down total
C. RENT COLLECTED Put down total
D. LOANS COLLECTED Put down total . .
E, PHONE CALLS COLLECTED . . Put down total . . . .
F. REFUNDS GIVEN Put down total
G. Put down the total of all Congress, books, tape monies & special
event monies if any were invoiced by Central Org for HCO
................
H. Put down total others .........................
1. ADD B, B I, C, D, E, F, G, H & put down total here & on the line to
the side. (Put down twice) ..........
J. CORRECTED GROSS INCOME. Subtract 1 from A
& put down here ........................................
K. HCO WW 10%. Take 10% of J & put down here ................
L. PROPORTIONATE AMOUNT. Subtract Kfrom J &put downhere
M. SALARY SUM 55176 of L. Take 55%of L&putdownhere .......
N. DISBURSEMENT SUM, Take 30%of L &.put downhere ........
0. Add E & H & put total here & on the line E
to the side (Put down twice) H
Total
P. TOTAL DISBURSEMENT SUM. Add N & 0 & put total here
Q. BUILDING SUM. Take 15% of L & put down here ..............
R. Add B, B 1, C & D, put total here & on the line ... B
to the side. (Put down twice) B 1
c
D
Total
S. TOTAL BUILDING SUM. Add Q & R & put total here ..........
T. SUM TO AREA HCO. Put G down here twice -
BALANCECHECK
AA. Put down total Gross Income from line A ~ . ~ ..................
BB. Put down total refunds from line F ..............
CC. Put down HCO WW 10% from line K .............
DD. Put down Salary Sum from line M -
EE. Put down Total Disbursement Sum from line P .....
FF. Put down Total Building Sum from line S .........
GG. Put down Total HCO Area Sum from line T .......
HH. Add BB, CC, ' DD, EE, FF, GG & put total here & on
the line to the side (Put down twice) -
11. Subtract HH from AA &.put down here (There should be NO
BALANCE) ............
SIGNATURE & TITLE ......
159
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 FEBRUARY 1963
Australia Only
HOO Exec Sec ANZO
HCO Sec Perth
HCO See Sydney
HCO I O%s DUE TO WW
Effective immediately all HCO I O%s due to WW will be forwarded directly
to WW accompanied by copies of the appropriate form AC42.
These monies will not be sent to Melbourne HCO or to the HCO Secretary
ANZO. They must be routed to the Director of Accounts WW.
This directive applies particularly to HCO Perth and HCO Sydney.
L. RON HUBBARD
LRH:dr.cden Copyright (D 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 APRIL 1963
HCO Secs
Assoc Secs
Acets Depts
REVISION OF CONGRESS PAYMENTS TO HCO WW
The payment to HCO WW of 50% of Congress gross takings is cancelled.
Instead a payment of 10% of the gross takings will be remitted to HCO WW.
This will appear on the revised HCO Accounts Form AC.43, Section B-part 4.
Personal Congresses given by L. Ron Hubbard are not included in this
directive.
Issued by M. R. Rigby Director of Accounts
for
LRH:gl.cden L. RON HUBBARD
Copyright @ 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED Authorized by L. RON HUBBARD
160
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 JANUARY 1964
CenOCon
CONTINENTAL AND AREA HCO FINANCE POLICIES
All HCO Area and other offices excepting only HCO WW and HCO Sthil
should be on the following salary and expense arrangements.
HCO Area and Continental personnel are paid from the Salary Sums of the
Org to which attached.
All HCO Area and Continental expenses are paid from the Disbursement Sum
of the Org to which attached.
There is no HCO Local 5% paid to Local HCO by the Org to which attached.
HCO Area and Continental have no separate accounts system of their own.
All their accounts are handled by the Org to which attached.
Book Sales money and Special Events (such as Congress fees) are held and
banked under the direction of the senior HCO official of the area to ensure
that the Central Org does not use this money for operating expenses but for
book, tape and film replacement and bills. The mailing costs, personnel
handling such items and a quarters charge, as well as Congress costs, etc,
may be deducted from book receipts by the Central Organization. Such
receipts, books, tapes, film and special events must not be used for
Central Org operating expenses as this would drastically reduce
dissemination.
Membership monies are also separately banked.
The Salary Sum of Central Orgs has been increased to 55% to compensate
paying HCO staff.
All magazine costs and mailings are paid for by the Central
Organization.
An additional 5% of the receipts of an organization is contemplated as
payable to HCO (WW) Ltd, for administrative expenses now that HCO (WW) Ltd,
is a separate corporation. Heretofore I have financed HCO WW's costs out of
my 10% and own income. This 10% is desperately needed to help defray
research costs and although still submitted as Administration Expenses will
be used in research. I am engaged in the compilation, recording and
preparation of the whole of Scientology, the most expensive step.
Heretofore I have borne research costs out of income intended for me
personally. I no longer choose to do so as the most expensive research step
is just ahead of us-writing it all up and publishing it, a step which is
the most expensive of all,
Therefore, financial reorganization is in order if we ever are to have
all the data of Scientology in an organized codified and published state.
L. RON HUBBARD
LRH:gl.rd Copyright @ 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
161
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 NOVEMBER 1964
Gen Non
Remimeo
HCO BOOK ACCOUNT
The handling of this account is of considerable interest in view of new
membership and book ad policies.
As all corporations are now HASI, Inc of DC except in the US where they
are churches, all HCO Book Accounts are of course under the same corporate
name as the main organization. Thus even a church organization holds the
HCO account in its own name.
For example: the Melbourne HCO Book Account would be called at the bank
HASI, INC HCO DIV ACCOUNT.
For a Church, this would be FCDC HCO DIV ACCOUNT. "Div" of course stands
for DIVISION.
The signatories of the account should be the HCO Area See and one other
officer, not the Assn/Org See, and each cheque should bear two signatures
to be valid. Three persons, the HCO Area See, and two others may be named
of which any two out of the three signatures can be valid.
The account also carries as a signature my own name, that of Mary Sue
Hubbard as Secretary and of Marilynn Routsong as Treasurer, any one of
these three signatures being valid to withdraw.
The account is handled by the regular Accounts Unit of the organization,
not by a separate system in HCO.
Invoicing to the HCO Account is, however, done on a separate Invoice
machine in the Accounts Unit. On this machine no other than HCO funds are
invoiced. All membership receipts for Associate (5 shillings or $I),
International and Lifetime Memberships are invoiced only on this machine.
All book, tape, meter and insignia sales are invoiced on this machine. All
Congress and tape play receipts are invoiced on this machine.
There is also a separate disbursement voucher machine and all
disbursements from the HCO Div Acct are disbursed only with a voucher from
the disbursement machine. Even when a cheque on the account is written a
disbursement voucher is also written. If the voucher has on it a printed
"HCO Division of HASI, Inc. With Our Compliments" no transmission letter is
needed with the cheque as the data of what is being paid is on the voucher.
Thus Accounts does not need an additional letter to go with a cheque.
An office which is too small to afford two invoice machines can do as
well with a Sales Book for Income and a Disbursement Book for
disbursements, such as they have in Department Stores, providing the books
give adequate carbons and are used consecutively (one book completed before
another is started). These books can also be printed and have carbon pages.
One copy remains in the book and when finished that book becomes part of
accounts records.
You must be very careful in invoicing and properly depositing membership
funds particularly as many states and countries have regulations concerning
such records of membership,
162
No books may be invoiced to the Central Org or City Office general
accounts for any reason. All book sales are invoiced only to the HCO Div
Acct-
In some orgs, reception does all invoicing. When this is done, the same
procedure applies, and the same invoice machines or books are used, but the
disbursement machine or book is kept by the Accounts Unit.
No wages of any kind may be paid from the book account.
The only postage which may be paid from the account is book or magazine
postage. No correspondence postage may be paid from the account.
No rent may be paid from the account.
No loans may be made from the account.
Book and tape purchases may be made from the account.
Magazine printing and postage bills may be paid from the account, but no
extravagant increases in printing quality or volume may be paid from it,
nor may brochures or mailings announcing service be paid from it. Further,
magazine bills for magazines which do not have half their advertising space
taken up with book and membership ads may not be paid from the account.
The organization pays any salaries or space rental connected with books
or tape handling. Congress hall space may, however, be paid from the
account.
The above arrangement is equitable to the organization in that it
receives without further cost to it all its training and processing ads in
magazines andthe full benefit of the increased business.
Advertising fees may be paid from the HCO Div Acct but only for book
ads. No general advertising of the org may be paid for from the account. No
personnel ads or PE ads may be paid from the account or be included in ad
coverage contracts. No advisory fees may be paid to advertising firms from
the account.
In handling this account, great care must be taken to buy enough book
stock so as to have stock available to mail in response to ads. Air freight
of books is very dear from Saint Hill or Washington to Commonwealth
countries and books must be ordered in time to arrive surface and pass
through local customs.
No office should ever seek to enter books or meters into its country
free of charge on grounds of "educational" or "religious" materials, as
there is no surer way to stop receipt of books. Some book departments are
mad on the subject of "getting it in for free" and will doodle about for
months, wasting ten times the price of the duty in lost book sales. The
department seldom tells the Org/Assn See or the HCO See why the books
aren't being let in. Customs is fast so long as you pay duty.
Local reprintings of books are now forbidden. New Zealand only is
excepted from this but New Zealand may now not export books to other
offices.
The HCO Div Acet should be opened at once and should be the only HCO
Account operating in Central Orgs or City Offices.
L. RON HUBBARD
LRH:jw.cden Copyright @ 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
163
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
General HCO POLICY LETTER OF 20 JANUARY 1965
Non-Rernimeo
Sthil Executives FINANCE
Franchise
CURRENCY REGULATIONS AND 10%s
It should be brought to notice that an old policy regarding currency
regulations is in force.
When organizations such as New Zealand, or Franchise holders in currency
restricted areas, are prohibited from paying 10% of their gross income to
Saint Hill for their administrative expenses and services, the following
procedure must be followed:
A bank account in the name of the International Organization to be
called the HASI International Administrative Account must be opened in the
local area of the Org or Franchise Holder.
Into this account must be deposited weekly 10% of the past week's gross
income from Scientology.
TAX PICTURE
Once paid into the account, sums in it are the property and
responsibility of the International Board and are an expenditure for
administrative purposes by the local org or Franchise holder.
These sums cettse to be part of the local org's tax picture as they are
owed abroad and are accounted for abroad by the International Board in its
own returns in its area.
The deposit slip must be sent to Saint Hill along with the weekly
report.
SIGNATORIES
International Board Members, the Chairman, the Secretary and Treasurer,
each one singly, are the only allowed signatories for the account. There
may be, of course, local paying in or endorsement signatures on the
account.
STARTING AN ACCOUNT
To start such an account it is only necessary to obtain the usual blank
forms and cards from a nearby bank and airmail them to Saint Hill for
signature and return to the bank.
Saint Hill gets these papers signed and airmails them to the designated
bank and informs the org or Franchise holder of the action.
In returning the papers to the bank a cheque book is requested of the
bank.
This cheque book and copies of all papers become part of the Treasurer's
files at Saint Hill.
Deposit slips of monies paid into the account are handled as follows:
An org's local Saint Hill Account deposit slip is given to the
International Org Supervisor and is noted in that Org's files and is passed
on to the Treasurer.
Franchise holders' deposit slips into their local Saint Hill Account are
sent to the Franchise Secretary, who notes them in the records of that
Franchise holder and passes the slip on to the Treasurer.
Neither slip is invoiced for Saint Hill accounting. Instead it is
invoiced by the Treasurer. The Treasurer sends the white copy of an org to
the International Org Sec, who sends it to the org, or to the Franchise
See, who sends it to the Franchise holder.
All deposit slips and other materials relating to the account are held
by the Treasurer at Saint Hill.
All bank statements for the Account go only to the Treasurer at Saint
Hill.
L. RON HUBBARD LRHjw.rd
Copyright (D 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
164
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I I MAY AD 15
Remimeo
HCO BOOK ACCOUNT POLICY
RECEIPT AND USE OF MEMBERSHIP MONIES
I All membership monies shall be paid in to the HCO in the Area Office
and deposited only and at once in the HCO Book Account, and shall serve,
amongst other things, to defray magazine printing, handling and postage
costs of the National magazine. All Memberships must be paid for in cash,
(there are only Free Memberships, or Memberships paid for by cash) made out
directly to HCO Book Account. Memberships shall be deposited only in the
Main Book Account of the Area Office. The Continental Office may call on
sums proportionate to the number of magazines (their cost of printing;
handling and postage) mailed in the area of the HCO Area Office, but book
ads saying books are available at the Area Office and the ads of the Area
Office must be carried in the magazine. All sums additional to magazine
cost in both the Area and Continental Office shall be used only to
Purchase; more books, and tapes and to defray expenses of high quality
facilities for tape playing and the expenses of Congresses. All Membership
monies received by an Area Office, not called upon to defray magazine
printing and postage may be retained in the Area Book Account.
CONGRESS FEES
2, All Congress fees shall be received into the Area Book Account of the
area where held.
No Congress fees, membership fees, or book monies received may be used
for the payment of units, rent (except for Congress Halls) or organization
expenses.
USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES
3. Congress, membership and book fees may be used for advertising
Scientology books in magazines, but not for newspaper or magazine
advertising of PEs, auditing or services.
FURTHER USE OF CONGRESS, MEMBERSHIP AND BOOK MONIES
4. Any further use or disposition of Congress fees, membership fees or
book receipts shall be at the sole permission, personally signed, of the
Executive Director.
HCO BOOK ACCOUNT SIGNATORIES
5. The HCO Continental Sec and HCO Area Sec or where the HCO Continental
Sec is also an Area Sec, by the HCO Continental Sec and the HCO
Communicator jointly, or the single signatures of I-RH and MSH are
requisite on any Book Account cheque for it to be valid and all bank
mandates for that account must so state and must include the signatures of
LRH and MSH and Marilynn Routsong.
BOOK PRICES
6. Book, tape and meter prices are not uniform, Continental Zone to
Continental Zone. US and UK prices are on a parity of one pound equals
three dollars for easy computation and to make up for exchange delays and
fees.
Other Continental Zone book prices are computed on the cost of books
generally in the area plus handling and shipping charges,
165
These prices are published from time to time in "The Auditor".
BOOK TEN PERCENTS
7, Washington and Saint Hill pay 10% of their gross book sales to the
Research Fund Account of HCO WW, but only on books actually published and
printing paid for by each area. If Washington publishes a book it pays 10%
of the gross retail sales price as sold, If Saint Hill publishes a book it
pays 10% of the gross retail sales price as sold. If Washington, for
example, pays Saint Hill for a shipment of books and sells them from
Washington, then Washington does not pay any 10% and vice versa. Although
it is not policy at this time for other offices to reprint books, if one
ever does get permission, it will also pay 10% to the Research Fund of HCQ
WW.
RESEARCH TEN PERCENTS OF GROSS INCOME
8. Central Orgs, City Offices and Franchise Holders contribute 10% of
their gross weekly income to various expenses and usages at Saint Hill or
to L. Ron Hubbard as Director of Research. But this 10% shall not include
payments received for books by anyone.
HCO AREA SEC BONUS
9. The HCO Area Sec is granted a bonus of 2 percent of the gross
receipts of the local Book Account.
ASSN SEC/ORG SEC BONUS
10. The Association/Organization Secretary is granted 2 percent of the
gross receipts of the HCO Book Account but may not be a signatory to that
account.
HCO CONTINENTAL SEC BONUS
11. The HCO Continental Secretary is paid 1/2 of one percent of each
Book Account in the Area, whether or not acting as an HCO Area Sec as well.
CONTINENTAL DIRECTOR BONUS
12. The Continental Director is paid 1/z of one percent of the gross
receipts of each Book Account in his continent, when acting as an Assn/Org
Sec or when not.
MONTHLY PAYMENT OF BONUS
13. All such bonuses are payable monthly only, computed on the first of
the month.
NO ADVANCES OR LOANS FROM HCO BOOK ACCOUNT
14. No person may be paid such a bonus in advance nor may any loan be
made to any person from any HCO Book Account.
HCO BOOK ACCOUNT BONUS SUSPENSION
15. When a Book Account tends to become insolvent by reason of owing
more than it receives, bonuses are suspended until the condition alters but
in no event less than 60 days.
REGULATIONS CONCERNING HCO BOOK ACCOUNT
16. Book, Congress, Tape and Membership Income may not be used or loaned
for any salary sum, expense sum, building fund or past bills of the
organization as a whole, but past book and tape bills are an exception.
166
HCO CHECK BOOK TO SAINT HILL
17. All HCO Area Officers are to send a check book for the HCO Book Acct
to Saint Hill, and to keep St Hill apprised of the balance in the account
monthly, and also to inform St Hill of any large amounts written against
the account locally.
THEBOOM
The whole forward thrust of any boom depends upon:
1 . Getting books to orgs.
2. Heavily, even extravagantly, advertising books and filling the
orders.
3. Courses in and running per Gradation Chart.
4~ Running an excellent Academy.
5. Running an excellent HGC.
Getting books to orgs depends on me, on Saint Hill and upon orgs making
sure they're ordered and paid for. If we take care to do just those things
we'll see (1) above hugely successful.
It will cost the Assn/Org See and HCO Sec money personally not to
plaster the place with book ads. They are given no bonus on a net. Only a
gross. They get paid a bonus from the book account based on volume not its
profit. The Department Heads and Staff get their bonus indirectly by an org
driving in a heavy volume through ads and books and the alertness of the
Org/Assn See and the HCO See. Continental also has a vested interest in
books flowing and is paid for it. Thus this point is cared for.
Advertising actions are arranged for in the above. Nobody expects
magazines to cost any more than they have previously. Magazine cost and
postage is dropped from org expenses.
Note also that under this plan the most neglected action in producing
income in any area, BOOK ADVERTISEMENT, the No. 1 magic formula of
dissemination, is pushed into being by restricting the expenditure of
memberships and other FIC0 Book Account monies until, to get rid of the
surplus, book advertisements nationally and locally on a large scale would
have to be placed constantly. With quantities of book ads, income from
students and pcs as well as books will flood in. It always has. This is the
basic formula of the coming boom. Because they cost the org money it could
spend and "needed" elsewhere, the number of national magazines printed was
curtailed and book ads were dropped out and that has been the chief cause
of any financial difficulty in any org.
As local offices and franchise centres become truly active, they will
cease to drain off the old timers from the Central Org and stir up more
local business of which the Central Org gets its part in courses and pcs.
This all looks pretty favourable to me. 1 hope it does to you.
L. RON HUBBARD
LRH:wmc.rd Copyright Q 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
167
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 DECEMBER 1965
Perninteo
HCOINCOME
MEMBERSHIPS - CONGRESSES - TAPE PLAYS
Money received for Memberships, tape plays and Congresses goes into HCO
Dissemination, Division 2, income and is deposited into the HCO Book
Account.
The use of these funds is outlined in HCO Policy Letter of May 11, 1965,
"HCO,
Book Account Policy, Receipt and use of Membership Monies ".
This income is not part of the gross Divisional statistic and is graphed
on a separate graph.
LRH:ep.kd L. RON HUBBARD
Copyright (D 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
OFFICE OF LRH
27 Hancock Street, Joubert Park
Johannesburg, South Africa
AFRICA ONLY HCO POLICY LETTER OF 26 APRIL 1966
Applies to
Johannesburg
Cape Town
Durban SOUTH AFRICA 10%s
Port Elizabeth
Franchise Holders SA (Effective at once)
(Info Saint Hill)
South Africa I O%s will not be forwarded straight to Saint Hill as from
this date. Johannesburg, Cape Town, Durban, Port Elizabeth and Franchise
Holders will forward their 10%s weekly to the LRH Communicator AFRICA where
the 10%s will be invoiced and put into LRH No. 2 Account for "MISSION
AFRICA".
White Invoice will go to the Org concerned.
Blue Invoice will go to Saint Hill.
Yellow Invoice remains in the book.
Pink Invoice to Org Exec Sec AFRICA.
Org Exec Sec AFRICA will make out a deposit slip and bank the money.
This invoice will then be filed in Continental files. This will be
forwarded by LRH Communicator AFRICA to "MISSION FILES".
Any funds so invoiced may be held by the LRH Comm AF in a Johannesburg
account designated "HCO Mission Account".
LRH:cden
Copyright (D 1966 L. RON HUBBARD
by L. Ron Hubbard
ALL RIGHTS RESERVED 168
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Gri6stead, Sussex
HCO POLICY LETTER OF 3 MAY 1966
Gen Non
Rernimeo
RESERVE FUND
1. Every Scientology organization must accumulate a
GENERAL LIABILITY FUND
The fund is to be built up against claims made against organizations or
any Scientologist by the public or governments for legal costs, libel and
slander costs, defence funds, destruction of repute and restraint of trade.
Uninsured risks to buildings, lapsed insurance policies, acts of God, war,
riot and civil disorder, usurpation of power, restraint of princes,
radioactive fallout, atomic destruction, salvage of persons and property,
reorganization costs due to departure or demise of founder.
This fund is computed by taking the number of Scientologists on the
mailing list and the value to each Scientologist is assigned at the
manager's discretion. It is computed every year and added to the fund.
Refuse to breakdown the calculations on how the fund is computed if
demanded by an insurance inspector or tax collector, instead obtain an
estimate of coverage cost from Mecca (Brokers) Ltd London, to confirm our
cost assignment to fund. It should not be less than f 5/-/- per year per
Scientologist on our list.
This fund may be kept as a reserve.
A special bank account must be opened to care for this fund called "The
General Liability Fund" account to which is added the local name of the
organization. The signatories on this account are the Board members of the
controlling Scientology organization.
Money is paid out of this fund only on claims and demands approved by
the Board of Directors on subjects or requirements as covered in the
description of the fund above.
The Fund may be retrospective-which is to say calculated for former
years. Income Tax reports should be refiled for the former years.
L. RON HUBBARD
LRH:lb-r.oden Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
169
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 OCTOBER 1966
Issue II
Remimeo
ADDITION TO HCO DIV ACCOUNT POLICY
(Amplifies HCO Policy Letter of I I May 1965)
The HCO Div Account (Old Book Account) has very rigid policy on how its
money can be spent. The reason for this is that money must be safeguarded
to provide for adequate promotion and sale of books. BOOK SALES have always
been your FIRST LINE OF DISSEMINATION and will always be so.
Improper use of this money has resulted in depletion of the HCO Div
Account in some orgs leaving insufficient funds to order adequate book
stocks, print and mail the magazine and provide for other vital book
promotion. Book promotion and book sales are an absolute must for the
continued health of any org. The most important and successful
dissemination line is book sales and about three months later the buyers
come in for service. To cut this line by reducing book sales will seriously
damage the org income three months later.
NEW POLICY
Because poor book sales could result in a collapse of the org and
misappropriation of the HCO Div Account can make it impossible to buy and
promote books, violation of HCO Div Account policy now becomes a HIGH
CRIME.
HCO Div Accounts are now to be monitored by WW. Each Org Exec Sec is to
see that an exact accounting of the HCO Div Account expenditures and
deposits with full information on who, what for, how much and when monies
are paid into and out of the account are sent monthly to the ES Comm
Treasury WW. Failure to comply with this order and other orders regarding
bank mandates, sending of cheque books, etc., will result in immediate
Ethics action being called for by ES Comm Treasury WW.
POLICY ON USE OF THE HCO DIV ACCOUNT
Following is an exact list of items that the HCO Div Account may be used
for. No others are allowed:-
I . Books ordered from Saint Hill or DC (other orgs when and if allowed
to print).
2. Meters and material for resale only ordered from Saint Hill or
DC.
3. Authorized book printing, meter and material manufacture.
4. Books, meters and material packing, shipping costs.
5. Printing or ordering of books, meters and book flyers, and book
promotion material.
6. Assist in defraying the costs of the printing and mailing of
continental magazines. (This does not mean that the HCO Div Account is
obligated to pay any amounts for such.)
7. Ads and promotion for books in newspapers and magazines.
170
8. Mailing list purchase and rental for book promotion purposes only.
9. Special book promotion projects other than the above. (Not usual, but
possible if approved for project status by WW-)
10. Direct Congress expenses for items used specifically and only for a
Congress. Examples: hall. rental, sound equipment rental, program
printing, advertising, ES Comm WW speaker fees to WW, hall decoration,
visual aids, tape and film charges.
11. Printing membership cards, applications for memberships, and
membership promotion expenses for the sale or renewal of memberships.
12. Tapes for org use.
Examples of illegal uses of HCO Div Account monies in the past are:
Staff member fares from Saint Hill, ES Comm Qual WW expenses and fares,
Release pins and course certificates and flowers for staff members having
babies.
To be paid into the HCO Div Account are: -
1. All receipts for books, meters -and material sales, (called Gross
Book Sales).
2. All membership fee receipts.
3. All Congress receipts.
L. RON HUBBARD
Founder
LRH:lb-r.cden Copyright @ 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
171
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 FEBRUARY 1967
Remirneo
All Staff
Treasury Hats
,ALLOCATION OF INCOME
(Cancels HCO Pol Ltr 6 Feb '63, "HCO Area 5%'s")
All orgs allocate their income as specified in this Policy Letter unless
specifically exempted from doing so by The Guardian WW. (At present Saint
Hill is the only org managed under different financial arrangements.)
The basis of the proportionate income breakdown is only changed in that:
I . The allocation between Salary Sum, Disbursement Sum and Building
Sum reverts to 50%, 35% and 15% respectively.
2. Minor changes have been made in the AC 1 report form to bring it
into line with Policy changes since 1963.
(Note - all additional information regarding the ACI form must be
written on a separate sheet and not on the form.)
The increase in the Disbursement Sum from 30% to 35% of Corrected Gross
Income has been found necessary to keep orgs solvent.
As income expands, bills expand and if a sufficient proportion is not
allotted to Disbursements, some bills cannot be paid, and debts accumulate.
However, whatever the allocation to Disbursement Sum, IT IS THE PRIMARY
RESPONSIBILITY OF FINANCIAL PLANNING TO SEE THAT THE TOTAL OF EXPENDITURE
APPROVED IN ANY PERIOD IS LESS THAN THE FUNDS AVAILABLE FOR EXPENDITURE IN
THAT PERIOD.
This of course includes making allowances for routine expenditure on
electricity, telephone, telex, postage, and other utilities; it is part of
each staff member's hat to see that no wasteful use of such utilities
occurs.
In order to improve the Cash-Bills ratio of an org, the local Executive
Council may propose on lines to the Executive Council WW a further change
towards reducing the percentage of the Salary Sum, while increasing the
Disbursement Sum percentage. It is expected that the better the ratio of
Cash-Bills of an org and its solvency is permitted to develop, the more
scope there will be for expansion as well as an increase of pay. This is
with reference to HCO Policy Letter "Financial Planning" of 15 December
1966.
And if anyone commits the org to expenditures that have not been
approved, this must be immediately reported to the Ethics Officer, who must
see that the org is reimbursed out of that person's own pocket.
SALARY SUM
The reduction of Salary Sum to 50% of the Corrected Gross Income should
make no difference at all to staff member incomes.
If the org is kept solvent by having funds to pay bills, Execs will be
able to put their full attention on (1) making Scientology more widely
known, (2) promotion to
172
Scientologists, and (3) excellent delivery; the more efficient and
effective the org becomes, the greater the flow will become and the faster
oxg income and staff pay will rise-provided the number on staff is not
increased beyond what is necessary to handle the increased flow
efficiently.
NUMBER ON STAFF
Too many people on staff in relation to the rate of delivery bogs an org
down with Dev-T and poor rewards for good statistics.
Too few people on staff in relation to the flow they have built up of
services signed up results eventually in stagnation: the flow jams,
efficiency falls off and the flow tends to dwindle and not increase,
because THE FLOW OF PEOPLE DEMANDING SERVICES IS MONITORED SOLELY BY THE
EXCELLENCE OF DELIVERY.
Thus the optimum number on staff depends on the efforts of the whole
org: THE OPTIMUM NUMBER ON STAFF IS WHEN EACH MEMBER OF TECH AND QUAL STAFF
IS WORKING FLAT OUT AT HIGH EFFICIENCY AND THE TECH/ADMIN RATIO IS I : 1.
(Tech/Admin ratio = number in Tech & Qual
number in all other Divisions.)
This does not mean that orgs must get rid of half their staff. It means
that they must dismiss any deadwood (chronic low statistics personnel) and
then get moving to increase the effectiveness of Distribution, Dissem,
Tech, Qual, and all other org functions.
Technology is firmly established, stable, and works when applied
exactly. All that is needed for a fantastic boom is to get your job done
well.
Written by Ralph Pearcy, A/Div Org Treas WW
George Galpin Qual Sec SH
Dalene Regenass HCO Area Sec SH
Brian Livingston Chairman
Ad Council SH
Joan McNocher Exec Council SH
Otto Roos
Ken Delderfield LRH Comm SH
Betty James Chairman
Ad Council WW
Leon Steinberg Exec Council WW
Fred Hare
Philip Quitino LRH Comm WW
Mary Sue Hubbard
The Guardian WW
for
L. RON HUBBARD
Founder
LRH:jp.rd Copyright@ 1967 by L. Roil Hubbard ALL RIGHTS RESERVED
173
Div 3 WW Form AC 1 (Pol Ltr 15 Feb 1967) Org ..................
PROPORTIONATE INCOME BREAKDOWN WORK SHEET FOR WEEK ENDING ...........
Put down total
A. GROSS INCOME ....
BI. DONATIONS RECEIVED -AI. ADVANCEPYMIS
B2. MEMBERSHIPS RECD
C. RENT COLLECTED. . . . A2. Subtract A 1 from A . .
D. LOANS COLLECTED_ _A3. ADEPAYMENTS
E. PHONE CALLS USED
COLLECTED A4. ADD A3 to A2
F. REFUNDS GIVEN
Fl. REPAYMENTS
F2. FSM COMMISSIONS
PAID
G. Put down the total of all Congresses, books, tape monies and
special event monies if any were invoiced by the org
for HCO .............................
H. Put down total others . ..................
1. ADD Bl,B2,C,D, E, F,F1,172,G,H&puttotal here and in right-hand column
(put down twice)
J. CORRECTED GROSS INCOME Subtract 1 from
A4 and put down here .............................
K. HCO WW 10% Take 10% of J and put down here ...........
L. PROPORTIONATE AMOUNT Subtract K from J
and put down here ...............................
M. SALARYSUM:50%ofL, Take 50%of Land putdownhere ...
N. DISBURSEMENT SUM Take 35% of L and put down here ....
0. Put down amount from line E ...........
Put down amount from line H ...........
Add E and H and put total down twice .....
P. TOTAL DISBURSEMENTSUM Add N & 0 and put total here
Q. BUILDING SUM Take 15% of L and put down here .........
R. Put down amount from line B 1
Put down amount from line C ...........
Put down amount from line D ...........
Add and put total down twice ...........
S. TOTAL BUILDING SUM Add Q & R and put total here ......
T. SUM TO AREA HCO Put down amount from line G
..............................
Put down amount from line B2 ..........
Add G & B2 and put total down twice ....
BALANCE CHECK
AA. Put down Gross Income corrected for Advance
Payments from line A4 ...................
BB. Put down Total Refunds from line F ..........
CC. Put down Total Repayments from line F I ......
DD. Put down FSM Commissions Paid from line F2 ...
EE. Put down HCO WW 10% from line K ..........
FF. Put down Salary Sum from line M ............
GG. Put down Total Disbursement Sum from line P ...
HH. Put down Total Building Sum from line S .......
11. Put down Total HCO Area Sum from line T .....
JJ. Add BB, CC, DD, EE, FF, GG, HH & II and put down total here and at
right-hand side .........
ICK. SUBTRACT J.1 from AA and put down here (there should be NO BALANCE)
.................
ATTESTED BY (Signature and Title)
174
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 MAY 1968
(Reissue and Amendment to
HCO Policy Letter of 3 May 1966)
Gen Non
Rernimeo
RESERVE FUND
I Every Scientology Organization must accumulate a
GENERAL LIABILITY FUND.
The fund is to be built up against claims made against organizations or
any Scientologist by the public or governments for legal costs, libel and
slander costs, defence funds, destruction of repute and restraint of trade.
Uninsured risks to buildings, lapsed insurance policies, acts of God, war,
riot and civil disorder, usurpation of power, restraint of princes,
radioactive fallout, atomic destruction, salvage of persons and property,
reorganization costs due to departure or demise of Founder.
This fund is computed by taking the number of Scientologists on the
mailing list and the value to each Scientologist is assigned at the
manager's discretion. It is computed every year and added to the fund.
Refuse to breakdown the calculations on how the fund is computed if
demanded by an insurance inspector or tax collector, instead obtain an
estimate of coverage cost from brokers recommended and approved by Legal
WW, to confirm our cost assignment to fund. It should not be less than
15.0.0 per year per Scientologist on our list.
This fund may be kept as a reserve.
A special bank account must be opened to care for this fund called "The
General Liability Fund" account to which is added the local name of the
organization. The signatories on this account are the Guardian WW and the
Treasurer WW, these being Mary Sue Hubbard and Denny Gogerly jointly.
Money is paid out of this fund only on claims and demands approved by
the Board of Directors on subjects or requirements as covered in the
description of the fund above.
The fund may be retrospective-which is to say calculated for former
years.
Income Tax reports should be refiled for the former years.
Proposed by
Lola Rossouw Treasury Liaison Off. WW
Denny Gogerly The Treasurer WW
Kevin Kember Qual See WW
Lenka Marinko HCO Area See WW
Exec Council WW
Allan Ferguson O.E.S. WW
Tony Dunleavy P.E.S. WW
Anne Tampion D/HCO E.S. WW
Ken Delderfield LRH Comm WW
Joan McNocher D/Guardian WW
Mary Sue Hubbard
LRH.js.rd The Guardian WW (Policy Review Section)
Copyright @ 1968 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
175
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 MAY 1968
Limited Non-Remimeo
BOOKS
ALL STOCK NOW BELONG SH AS BEFORE ALL INCOME PUBS ORG SHOULD BE BANKED
BY PUBS ORG AS SH ORGANIZATION BUT SEPARATE ACCOUNTS SH PAYS FOR AUDITOR
AND PROMOTION AND SUBSIDIZES FUTURE BOOKSTOCKS PUBS SHOULD BE SOLVENT ON
ITS OWN BUT LACK OF FUNDS SHOULD NOT MAKE PROMOTION, METERS OR BOOKSTOCKS
BEHIND HAND AS THESE FORM THE FUTURE INCOME OF SAINT HILL. SH CONTINUES TO
PAY FOR ITS BOOKS AND PRINTING.
LRH:js.rd L. RON HUBBARD
Copyright @ 1968 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 17 JUNE 1968
(Corrects HCO Policy Letter 23 May 68
paragraphs 10 and I I only)
Remimeo
HOD BOOK ACCOUNT
HCO Book Account Pol Ltr restored.
No book meter etc monies subject to allocation of percentile and must be
kept separate as is foremost dissem line. Books must be subsidized by
adding reserve monies to HCO book from time to time.
LRH:js.rd L. RON HUBBARD
Copyright (D 1968 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
176
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO WW POLICY LETTER OF 24 JULY 1959
HANDLING OF MONIES
Any cheques or postal orders coming in to HCO WW should be taken
personally and handed to the person doing the invoicing.
Once the money is invoiced it should be taken to Mrs. Shorney who
deposits all monies in the bank.
Never leave money on desks or in filing baskets over night. Always place
the money in the safe or at least in a desk drawer.
HCO Secretary WW
NW:brb.rd Copyright (D 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
177
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 JUNE 1961
sthil
PURCHASE ORDER SYSTEM
(Re-issued from Aug 25, 1959)
Effective September I st, 1959 and continuing, nothing may be bought for
the Manor, Grounds or HCO Activity by any domestic or office staff at Saint
Hill Manor without a purchase order made out and okayed before the purchase
is made.
Copies of these forms will be found in the domestic staff message center
and in the staff office.
This form must give the person or firm from which the purchase is to be
made. It must give the item, quality, description and actual or estimated
cost. If the item is for food, house supplies or such activities it is
given the word "Domestic".
All food, dishes, Calor gas, coal, petrol, garden supplies, seeds,
paper, ink, stationery, printing, repairs, building materials, salaries on
a continuing basis, casual labour and any and all items subject to being
paid for are included in this Purchase Order system.
Every Purchase Order must bear the initials of myself or Peter Hemery
before the order can be phoned or placed.
When bills are presented for payment each and every item on every bill
must be covered by a Purchase Order. If it is not then the purchase shall
be considered unlawful and may have to be paid for by the staff member who
placed the order without authority.
No cheque will be signed unless the bill it is paying and all Purchase
Orders appertaining thereto accompany the cheque.
The salary sum cheque likewise must be accompanied by a Purchase Order
giving the pay rates and numbers of all persons.
L. RON HUBBARD
LRH.jl.cden Copyright (K) 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
178
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 OCTOBER 1959
STHIL
INVOICING, ACCOUNTS
PROJECT 12
(Cancels Earlier Directives)
Project 12 is assigned herewith to Mr. Godfrey in all aspects to permit
Mrs. Shorney to assist me in correspondence and purchasing.
All invoicing and disbursements must be done on proper machines.
RULES GOVERNING ACCOUNTING
All income from whatever source is banked.
All funds are disbursed by cheque even when disbursed again by cash.
All transactions are recorded in full, and all invoices and
disbursements are given any history known about them on the invoice or the
voucher. There is no reason for making accounts history a matter of memory.
All financial receipts and disbursements are reported weekly (by Monday
2 p.m.) by Accounts to the Executive Director. These are also reported by
Project Supervisors on their Income and Disbursement Sheets.
All purchases require purchase orders before made. If a purchase is made
for Sthil with no order, the staff member making it must pay for it.
The Accounts Project is responsible for enforcing financial policy on
staff.
CURRENT BILLS FILE
Every firm or person-even staff members, has a place in our accounts
files in a separate file folder, One firm or person = one folder. All
records, bills, letters, etc relating to such are placed in one file. Any
bank or other loan has its own file.
Cancelled cheques and bank statements are kept in their own files by
account. But a photostat of each cheque back and front is made and filed
with the firm folder to which it was issued. So are Invoices and
Disbursement copies also filed as they apply in these files.
A summary sheet of billing and payments is kept in each folder.
These folders are retired to dead file each year when actually dead.
STATEMENTS FILES
Each debtor of any company we are handling has his own file.
All invoices and papers relating to such debtors are kept in this file
folder.
. statement sheet is also kept.
. copy of the contract (photostat) is kept in this file. The original is
kept in a Valuable Document file in the safe.
This applies to any company, firm or person who sends us money or owes
us money.
INVOICING
All monies received are invoiced with full data.
The white goes to the payor as a receipt.
The yellow goes to the Project Supervisor or person most interested.
The red goes to Accounts for filing in folders.
The blue stays in the machine and is never detached from its consecutive
pad of paper.
179
Invoices are used to sort out banking, reports, statements, etc.
DISBURSEMENT VOUCHERS
All disbursements, whether by cash or cheque, are written on a
disbursement voucher.
Payroll vouchers are signed while still on the machine by the recipient.
Cheque numbers, a firm's bill number, any data applying, is written on a
voucher.
The white goes as a complimentary statement to the firm, obviating
letters or other papers. It is all that goes with the cheque (we keep all
bills).
A copy of a voucher goes to the Project Supervisor most interested.
A copy goes to Accounts for filing in the folders of the firms or
persons.
A copy remains in the machine and is not disconnected from its pad.
BANKING
All monies are placed in the safe once they are invoiced and are only
removed to be banked.
The Accountant is responsible for them from the moment the mail is
delivered to him until they are banked.
The Accountant should be bonded.
All money banked is recorded on deposit slips stamped by the bank. These
are filed then with bank records along with statements and cheques.
Collections done by the bank are recorded with new invoice and must be
sent to us by the bank.
Adjustments and transfers in Accounts are subject to Disbursement
Voucher recording and should be so recorded. These are done by cheque, not
letter,
PROJECT FILES
When a Project Supervisor receives his invoices and vouchers, he records
these on appropriate sheets and presents them by 2.00 p.m. Monday for the
week passed to the Executive Director who then passes them to Accounts.
These are filed by Accounts in appropriate folders. Supervisors may have
access to these folders.
Accounts also presents its own report.
PAYING BILLS
A cheque is made out on an account and is presented with the full folder
of the firm or person to receive it,
The total of cheques are added up on a separate slip.
Current bank statements are also presented.
These items are necessary to the payment of any bill.
All bills being paid by bankers order are recorded routinely in the
folders.
Bills being paid by cash require the initials of the Executive Director
on an authority to do so.
GENERAL
All tapes of addition and other accounting records and all rough
computations are kept by Accounts and appropriately filed.
LRH:dd.prd.rd L. RON HUBBARD
Copyright@ 19 5 9
by L. Ron Hubbard
ALL RIGHTS RESERVED
180
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 MARCH 1960
Sthil only
All personnel ECONOMY WAVE
Until the low collection period of November-December-January is
cancelled out, strict economy of materials and contracture must be carried
out at Sthil.
1 will not sign any purchase orders except food, vital office supplies,
needed petrol, enough sand and gravel and cement to complete construction
using our night casuals. Conserve existing supplies. Scroungewhat you can.
No further contracts or major purchases will be undertaken until further
notice.
This does not mean we are suddenly poor or broke. It means that I want
Sthil to run on available routine income without incurring capital losses.
Please assist to wipe out the income-outgo inequality now existing.
LRH:cden L. RON HUBBARD
Copyright (D 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 MARCH 1960
sthil
ACCOUNTS LINES
All purchase orders, cheques and disbursements will be handled by myself
until further notice and all such reports or requests should be sent to me.
All income matters should be sent to Mrs Hubbard, with proper reports.
She is responsible for income and collections, but for no other accounts,
or administrative action.
Each Monday I should be supplied, by accounts, with:
1. Income sheet for preceding week, general and books income;
2. Deposit slips of past week;
3. The most recent statements; and
4. Bills summary report, made fresh each week.
We will only then disburse on bills. No bills except as below may be
presented at other times or in any other manner.
The only cheques that I will sign on other days than Monday are postal
cheques and cheques to prevent shut-off of communications, lights or fuel
but the last only if the shut-off is actually occurring; threats have no
value.
I wish to get the accounts up to the level of Z4,000 or f 5,000 and
until I do all economy measures will remain in effect.
LRH:cden L RON HUBBARD
Copyright @ 1960
by L. Ron Hubbard 181
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 JULY 1960 Sthil
LOSSES
HCO WW is receiving about f 600 per week and is spending about f 700 per
week.
This data is gained from a review of the last year of operation and of
current bills.
Nobody's job is threatened by this providing it is resolved.
Here are the plans for solvency and reduction of loss.
We will cut f 150 per week from the domestic bills and office supplies,
postage and telex.
We will increase our income ~C200 a week.
By doing both we should have a 'black' in short order.
Therefore, note that the following bills are too high.
Postage
Office Paper
Electricity
Office Supplies
Contracts
Food
Soap
Outside Laundry
Peter Cowell is appointed Director of Economy to eradicate these
overages, to remove three telexes and reduce supplies, paper and office
costs.
Antonio will do all food and service buying for cash and all such
accounts will be cleared.
By installing our new information centre, and giving better service we
can, by making an effort, increase income Z200.
These improvements and other economy actions are up to the staff to
implement.
L. RON HUBBARD
LRH:dm.rd Copyright (E) 1960 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 AUGUST 1960
Sthil
PURCHASING
Until further notice, all Purchase Orders for all needed materials,
except kitchen and household supplies, must be passed to Dr Hubbard via
Peter Cowell, who will review and co-ordinate the purchasing line as
Director of Economy.
Issued by: Peter Hemery
LRH:js.rd HCO Secretary WW
Copyright (D 1960 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED
182
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 JULY 1961
Sthil for Action
HCOs and HASIs
for Info Only ACCOUNTS
Modifies Earlier Directives-EFFECTIVE AT ONCE
Two Accounts Divisions are created herewith.
These are the Income Division and the Disbursement Division.
They are in separate areas and are run by different persons.
They must be kept separate,
INCOME DIVISION
The Income Division performs the following actions:
A folder is made for every organization or person who pays HCO WW money.
This includes all HCOs and all HASIs and all these income accounts are kept
in no other place nor by any other person.
The Income Division sees that Statements, pre-addressed by Address on
proper
envelopes, go out to each foldered person or organization once each month.
This is a
Thermofax of the summary sheet in each folder, stuffed in these Pre-
Addressed
envelopes. New addresses for this list are routinely forwarded to address
to be put on a
silk screen stenci , 1. Old addresses withdrawn are also routinely passed
to Address to be
deleted from the stencil file and sent to be re-silked.
No ledgers are kept by the Income Division. No notebooks or Journals are
kept. All data is retained in folders. Each folder has a summary sheet for
Thermofaxing. All accounts are written on this sheet.
All invoicing is done by the Income Division.
Notice of all bank payments paid in go to Income Division and all Bank
Statements.
When invoicing, mark each invoice for what it is-Franchise, Books,
Royalty, HCO Payment, Training, etc.
White copy goes as receipt in the next statement mailing.
Next copy goes to the Department concerned. Next copy goes to basket for
Income Summary and when summaried is filed in folders.
Final machine copy is retained as income summary, not torn but kept
consecutive.
On Monday following a week, the basket copies are sorted into boxes,
Franchise, books, etc. Each box is totalled and given an adding machine
Tape wbich is marked Franchise, etc. The Tapes are then totalled and
marked, the cash deposited or received in the bank must equal the final
total.
These tapes are stapled together and passed to LRH, MSH and Peter Hemery
as income information. When returned to Income Division they are stapled to
the machine copies. These are put in an envelope, dated for the week and
filed. This is total accounting record.
The basket copies are now filed in the folders and each figure is
entered on the statements sheet in the folder. The filing is done all at
once. Once a month the statements sheets are brought to date from these
invoice slips. When a slip is put on the statements sheet an X is put on
the invoice slip to show it is entered.
On receipt of Adcomm reports, the 10% due HCO WW is calculated and the
sum owing is written on the statements sheet in the folder as a debit. The
filing and the entries are separate. The filing is done at one time, every
week, the entries are done at another, every month. The Adcomm Accounts
type report is filed in the folder. The other Adcomm type reports are filed
for OIC elsewhere. The Income Division has only to do with the general
accounts Department part of the report.
183
It does not matter if all statements are up to date when Therniofaxed
for mailing. Bring them routinely to date as a continuing activity, not in
a monthly rush. Folder statements sheets not up to date one month as to
debit and credit, will be up to date the next.
The Folder Statements sheets are mimeographed in general and lettered in
particular.
On invoicing books, this is the first operation of the day. The invoices
go at once by hand to Shipping so books may be mailed same day. This is a
rush invoice item.
Folders are filed alphabetically by Class, which is to say Orgs form a
group. Franchise forms a group, books form a group, etc.
It is the responsibility of the Income Division to know what HCO WW is
owed and to see that it is collected.
The Income Division must insist on a disbursement copy of monies sent
being forwarded us by each org when it is sent. This copy is never entered
on our statements sheets, but is kept in the folder. It is Info Only. Only
money received in our banks is entered.
The income report from the income section also includes the amount shown
on the last statement for each bank account. There is no further attempt to
balance cash deposited but not shown on statement or cheques issued but not
cashed in by the person or firm who received them. This weekly report is
the Money On Hand report. It goes to LRH, MSH, then Peter Hemery. It is
then filed with the week's income report. It is compiled and despatched
when all statements for the week are in. It is not attached to the Income
Report but is separate. In practice, if convenient, it could be so
attached.
The Income Division retains and has all invoicing machines but no
Disbursing Machine.
DISBURSEMENT DIVISION
The Disbursement Division has the responsibility of correctly disbursing
the money of HCO WW such as bills, wages, mortgage payments, etc.
Each creditor, including staff members, has a red folder. Each folder
has a statements sheet in it.
Whenever a cheque is disbursed or a wage or cash is paid out, a
Disbursement Voucher must be written giving all particulars.
The White Voucher is sent to the creditor, the next copy is filed in the
statements folders. The Machine copy is retained unseparated and filed in
an envelope dated as of the week disbursed.
The copy of the Disbursement Voucher for filing is placed in a basket
for filing and then is filed without entering it at that time on the
Statements Sheet in the folder of the firm or person disbursed to.
All incoming bills are placed in a basket along with the Disbursement
Vouchers. They are all filed at once at the same time as the Disbursement
Vouchers. They are not entered on the statements sheet at that time.
Once each month minimum or every two months maximum, the folders'
Statements Sheets are brought to date. This is a routine and continuing
action. All debits and credits are entered on the Statements Sheet. These
sheets are kept in the folder.
When Disb Voucher or a company's bill is entered on the Statements Sheet
a large X is drawn on it. It is returned to the folder.
These folders when brought up to date are brought up on the not X'ed
bills and vouchers.
The Purchase Orders are filed in these folders and bills are checked
against them.
Disbursement is from 30 to 60 days on bills.
Wages are paid now by cheque. The cheques are signed by Peter Hemery
over the stamp "On Authority of L. Ron Hubbard".
Cheques are given out late Friday afternoon.
184
We will cash our own cheques but not on pay day, only the following
week.
Each cheque issued for wages or bills must be written on a disbursement
voucher.
Persons receiving wages do not have to initial or sign the voucher. They
receive the White Copy. The Folder copy is filed in their folder. Their pay
books, ete are kept in their folders not in any separate file.
The Government has a folder of its own, one for each department of the
Government to which we pay out. Other pay papers than in the folder are
kept in the Government folder for pay. This folder is filed adjacent to the
pay folders of staff. There must be no loose tables, folders or booklets
kept anywhere but in folders. There may be no "miscellaneous" folders.
BANK STATEMENTS are filed in folders provided for the banks. There is
one folder for each bank account. The cheque books are in the sairle file
drawer but not in the folder.
Cancelled cheques are filed loose in the bank's folder for each account
until a cheque book is empty. Then each cheque is scotch taped, not
stapled, to its counterfoil.
Counterfoils are kept only in date, and no other data (not even amount),
as Disbursement Vouchers are used for record, not counterfoils.
Cheques may not be taped into cheque books in use, neither voided nor
cancelled cheques.
There is only one report and that is monthly. Mimeographed sheets
carrying each Company's name to whom we disburse is marked with the last
debit figure on the Statements Sheet and how long the aniount is owing. It
is expected that all such statements will be brought to date before the
monthly report is made. This report totals all bills owing. When executive
directions are given on them cheques are issued as directed against this
monthly report.
There are no other reports except when requested on some firm.
SUMMARY
The Disbursement Division makes no income reports or reconciliation of
bank statements. The Income Division makes no reports on disbursement.
Every quarter an accountant audits the books and submits a quarterly
report in summation form. He does not make books. The law requires records
be kept. We keep records. Actually we keep books as above, but their pages
are folders.
HISTORY: The bugbear of accounting is the failure to record all one
knows about each transaction. An executive is later expected to remember it
all and spend two or three weeks going over tangled accounts with each
audit. This is circumvented by writing all you know about the transaction
on the Disbursement Voucher or on the Invoice. We are at this writing being
a lot too brief on our History. If you know something about the transaction
related to what it's for and why, or what's odd about it, put it on the
Invoice or Disb machine, not in a despatch or in memory. Example: Joyce
Bibbin orders f 2 worth of books but sends f 3. 10.0. She wants us also to
retain f 1. 10.0 for a future purchase. Make out one invoice for E2.0.0 and
one for El. 10.0 but say on each what and why, and that it came out of Z3.
10.0. Also if you know a purchase was for the garden, when the bill is
paid, put it on the Disb Voucher. This way we'll not be racking our brains
and can have an audit without the place being torn down.
The person doing the Audit should do it here. Do not part with folders
and records.
All correspondence relating to a firm or person and all data on that
person is kept in the same folder. There are no "Business Files".
L. RON HUBBARD LRH:imj.cden
Copyright@ 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
185
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I I JULY 1961
Sthfl
PURCHASE ORDERS
All authorities to sign purchase orders are hereby revoked.
Only my signature and that of Mrs Hubbard may validate a purchase order
before a purchase is actually made anywhere whether for cash or for charge
account.
This includes food and all petty cash.
LF,H.jl.cden L. RON HUBBARD
Copyright@ 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 4 AUGUST 1961
Sthil
Staff and Students
PRIVATE MAIL AND TELEPHONE CALLS
All private telephone calls, telegrams and cables, of Staff members or
Students, must be paid for in cash at the time of making the call or
sending the telegram, etc.
The charges for such services are obtainable from the operator.
Private letters may also be stamped or franked on payment of the correct
amount.
These services may be extended as a courtesy, but it is understood that
there is no obligation to do so. As far as possible, please use the
ordinary public services in the town.
During business hours, cash may be handed direct to the Switchboard
operator in the front office. Outside of business hours, when the
switchboard is unattended, place the cash in an envelope in the Switchboard
operator's basket in the comm centre, with a note detailing the amount of
the charge, and the exchange and number, or nature of Service. This
facilitates the eventual checking of the account. If you have not the exact
amount, place enough to cover it, and the Switchboard operator will hand
back change next day.
Students wishing to use the telephone must always obtain the help of the
Switchboard operator, during business hours. At other times, they must ask
an instructor or other Staff member.
LRH:imj.rd Issued by: Peter Hemery
Copyright Q 1961 HCO See WW
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
186
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 OCTOBER 1961
sthil
Each Central Org
for info
Accounts Section INCOME RECORDS
The following is advices and procedure and policy on Income Records
at'Sairft. Hill.
TO THE INCOME SECTION:
You should have a way of dividing up all incoming data so you can
summarize it readily on to reports.
For instance, DCI Tape Inv. These should be filed as they arrive. All
data should be filed as it arrives, as fast as it's received or invoiced.
Therefore, you need a big
TO BE FILED
Basket in whiah to dump your filing copies.
Then you should have a
RECEIPTS
Basket in which to dump all your invoices for summary at end of week.
One copy of invoices you write goes into each. Everything you need for
the week's summary goes into RECEIPTS.
Then at week's end, Wednesday? Thursday? you only have to separate out
the contents of Receipts to do an Income Report. For this you need a basket
(cardboard box will do) for each type of thing you summarize in the Income
Report. You add up, each box. Then add up all totals and you have your
report.
You must have in your possession a folder for each Central Org, each
City Office, each HCO.. Into these and Franchise you file the contents of
your
TO BE FILED basket every few days.
Only when your filing is up, you summarize these folders. You will have
a complete Bills Statement in each folder. This is brought up to date
before mailing any bill.
Invoice everything you get from bank by way of Info on deposits. Only
file in these Org folders what is actually paid. Always invoice anything
paid, whether to us directly or to bank.
Always file in Org folders all DCI tape shipment copies of invoice.
File in folders constantly. Then each month take a folder and enter on
its Statements Sheet:
1. Each 10% reported from Adcomm reports.
2. Each DC1 Invoice of a tape shipped or any estimate of tapes sent
if invoices are missing. I and 2 are in foreign currencies, dollars
or rands or whatever.
Enter in your own paid invoices in pounds sterling in paid column.
4. Total each column in its own currency and/or dollars for DCI.
5. Thermofax the resulting sheet and send it to Org.
NOTE: Whenever you enter an invoice or an Adcornm report put an X across
the income or Adcomm report. Then leave them in file.
TO BE FILED
basket contains or receives:
187
All material to go in Org folders.
Every Adcomm financial report form received here. (Without correction or
marking.)
Every Invoice we write for books shipped to them.
Every Invoice we write of money received by them, either directly or
through the bank.
All Protest forms.
RECEIPTS
basket contains:
All data on money actually received by Org, directly or through bank.
Another copy of every Invoice form we write on monies received from each
Org directly or via bank.
A copy of every invoice we write.
TO BE FILED
basket contents is filed every few days into Org folders.
I I RECEIPTS
basket contents are dealt into boxes each end of financial week.
Each box is totalled.
All totals are totalled.
Income report consists then of the total of each box and its category;
total of all totals; actual money banked.
The report is made to be received on Monday by me. When report is looked
over, it and all the contents of the boxes are put in a large envelope and
marked for that week and filed separately.
The Receipts basket stays empty of last week. This material waits in
cardboard boxes until enveloped. Cuff ent week is filed in Receipts basket
and only current week ever.
No partial accounts may be sent to Orgs. I must see accounts statements
of each org before it can be Thermofaxed.
No correspondence may be engaged in with any org except DO and then only
to get complete tape records for collection.
All efforts to collect are done by myself. All I want is complete data
sheets.
The Income Div is a recording, compiling and billing section, and
attends to banking and bank records. It is not a collection activity.
A file section exists in the Income Division for each of the following:
I * A folder for each organizational creditor.
2. By extension, a folder for each Franchise holder into which is filed
their invoices.
3. A file for envelopes in series for each week's banking material.
4. A section for each separate bank account in which all statements,
bank correspondence, etc, is filed.
188
An org folder contains:
1. A WW Statement Sheet. And all previous Statement Sheets.
2. Every Adcomm pink on finance received by Saint Hill.
3. A copy of every invoice we write for books shipped.
4. A copy of every invoice we write for money received.
5. Copies of every protest.
6. Copies of financial correspondence.
We compile a Statements Sheet for a Central Org or City Office as follows:
I Enter at the top Accumulated Debt.
2. Enter at the top right Accumulated Income.
3. Enter in the left column for each consecutive week 10% of the
adjusted'gross from each Adcomm report. If a report. is missing enter
10% of 050 arbitrarily.
4. Enter all Tape, E-Meter and books shipments if to the Central Org
(not HCO) in the same column as 10%.
5. Total the columns at the bottom when it is reached.
6. Use foreign currencies dollars and their national currency for left
hand column.
7. Use pounds Sterling always in right hand column.
Just because you are sending them a bill is no reason to total.
An HCO organizational Statements Sheet contains:
1. All debits and credits cumulative at the top.
2. All debits in the left hand column in their National currency.
3. All receipts in the right hand column in pounds Sterling.
4. Every book, tape and E-Meter invoice of our shipment goes in left
hand column with. date and item.
5. 33 1/3% of all Franchise money they have collected (S.A., Australia,
New Zealand only).
6. 50% of every special course or Congress gross.
If statements do not now reflect this, at least get a current statement
going without a top summary. This avoids backlog.
Catch up backlog by filing, not by recording. When all filing is done as
above, then do a complete Statements Sheet.
Never record before you file. Never short cut or add to above procedure.
No further ~'booke' or files or notations should exist in the Income
Division. If they do, something is being done wrong.
To lose track or to not have this system costs HCO WW a very large
amount of money. Without money nobody can be paid at HCO WW, even the
Accounts Department.
L. RON HUBBARD
LRH:imj.cden Copyright Oc 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
189
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 SEPTEMBER 1962
PART-TIME STAFF AND OVER-TIME
(For St Hill Staff only)
Recently several upsets and emergencies have arisen over salaries. These
upsets and emergencies have occurred because wages are collected from the
Bank on Thursday afternoon or Friday morning in order for wage packets to
be made up, but reports of overtime or exact number of hours of work done
in the week were not submitted in time for inclusion in the wages cheque.
These upsets and errors arose through poor timing and administration. In
order to provide a service to youthat is workable with the minimum or no
upset or emergencies the following Policy will be in force from Friday, 21
September 1962.
PART-TIMESTAFF
Part-time staff will be employed for a minimum number of hours per week.
These hours are fixed and will therefore allow us to pay that person a
fixed wage each week. Any work done in excess of these minimum hours will
be called "Overtime" and as such will be paid the following week.
0 VER TIME
Overtime will not be paid in the week in which it is earned, but will be
paid the following week.
OVERTIMECLAIMS
Any person claiming Overtime must fill in a time sheet and hand this
time sheet to their Dept Head by Friday 12.00 (noon). The Dept Head will
then make out the required Purchase Order for signature of LRH or MSH
(provided the work was authorized and a true record) which must be
submitted before the 1.30 p.m. basket post collection of that day. Upon
receipt of the signed Purchase Order the accounts dept will draw the money
due and pay, it out the following Friday.
The purpose of this Policy Letter is to enable the accounts department
to provide you with a service. Give us the data in time and we can give you
the service.
Issued by : H.G. Parkhouse
HCO Treasurer WW
for
L RON HUBBARD
LRH:dr.oden Copyright @ 1962 by L. Ron Hubbard ALL RIGHTS RESERVED
190
HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 4 OCTOBER 1962
Sthil
SIGNING P0s AND CHEQUES
Effective immediately, Peter Hemery is authorized to sign routine
cheques and Purchase Orders.
All cheques and Purchase Orders should now be routed direct to Peter
Hemery via the normal comm lines.
Weekly account breakdowns and the monthly bills statement should be
routed'as before to me and Mary Sue Hubbard, and to Peter Hemery in
addition.
LRH:jw.rd L. RON HUBBARD
Copyright@ 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 OCTOBER 1962
Sthil
ACCOUNTS IRREGULARITIES
Specific, precise and definite policy in policy letters govern Accounts
Income and Accounts Disbursement at Saint Hill.
The only reason someone would not follow these simple procedures and
think other procedures were needful would lie in a failure to examine the
policy letters.
If Saint Hill Disbursements and Income Systems are not followed to the
letter, we could be cost hundreds of needless expenditures and gain a poor
credit rating all because of careless accounting practice.
Henceforth, if I find at any time that accounts policies are not being
followed and legible records are not being kept, I shall dismiss all
persons at once from that department and acquire new staff.
LRH:gl.rd L. RON HUBBARD
Copyright @ 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
191
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 JANUARY 1964
Sthil
PAYMENT OF MONIES FOR OVERTIME AND/OR MATERIEL
All Staff are asked to note that no payments can be made, for overtime
(where applicable) or materials, unless a Purchase Order for same is
submitted to, and approved by, the Saint Hill Administrator.
In the case of overtime, such Purchase Orders must tally with the time
sheet which must also be submitted in respect of the overtime.
For materials, Purchase Orders MUST be submitted, and approved, BEFORE
a purchase is made, and the APPROXIMATE cost AND THE PURPOSE of the
materials must be stated on the Purchase Order-or the exact cost is to be
stated, if it is known.
The correct use of the Purchase Order system is essential to the
financial "health" of Saint Hill, and it is therefore very important to all
Staff-in the interests of their own security as employees-to help in
preserving that "health".
PLEASE NOTE, THEREFORE: ACCOUNTS-PERSONNEL ARE NOT EMPOWERED TO PAY OUT
ANY MONIES FOR OVERTIME OR MATERIALS UNLESS A PURCHASE ORDER FOR SAME HAS
BEEN SUBMITTED AND APPROVED. FURTHER, AS FROM THIS DATE, ANY EMPLOYEE
MAKING A PURCHASE OF MATERIALS WITHOUT FIRST HAVING AN APPROVED PURCHASE
ORDER, RENDERS HIMSELF OR HERSELF LIABLE TO PAY-BY WAGE-DEDUCTIONS-FOR SUCH
MATERIALS.
Issued by: Saint Hill Administrator
LRH:dr.rd Re-statement of existing policy.
Copyright @ 1964
by L. Ron Hubbard Authorized by: L. RON HUBBARD
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 MARCH 1964
HCO (WW) Ltd
HCO (Sthil) Ltd
Scn Library & Res Ltd
CONTRACTS AND SERVICES
Contracts for services require the signed approval of the Executive
Director.
No existing contract may be extended for purposes beyond its original
intention without the signed approval of the Executive Director.
All types of contractual relations between the corporation and other
companies, .firms, banks, or individuals are included. Solicitors, service
companies, architects, banks, typewriter service, lift service, etc, and
any other type of binding contract involving expense to the corporation are
included.
Particularly included are contractors to be engaged for construction of
any kind or services connected with construction.
The Completed Staff Work and any papers for signature must accompany
all requests for contractual approval.
No requests for contractual approval will be entertained unless passed
upon in the affirmative by the administrative head of the corporation
requesting.
LRH:gl.rd L. RON HUBBARD
Copyright @ 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
192
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sumx
HCO POLICY LETTER OF 8 MAY 1964
Sthil
Students
TRANSPORT
Students desiring noon transport week days from Saint Hill to East
Grinstead at noon and return at 12.50 may have it by procuring an invoice
from the Income Section costing 5 shillings per week.
The invoice should be plainly dated and displayed to the driver on
departure from Saint Hill,
The reason for the charge is the limited transport space available.
There is no charge for staff members.
LRH:gl.cden L. RON HUBBARD
Copyright @ 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 MAY 1964
Sthfl
TRANSPORT
(Adds to HCO Policy Letter of May 8, 1964)
Regarding HCO Policy Letter of May 8, 1964, it should be clearly
understood that there is no contract to carry passengers on the staff bus
for fares.
The 5/- payment by students should be invoiced by Accounts as a
contribution to the upkeep of the bus. The student is then privileged to
ride on the bus as and. when available for one week.
LRH:gl.rd L. RON HUBBARD
Copyright @ 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
193
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 JUNE 1964
Sthil Staff Only
STAFF BONUSES
(Effective Monday July 6, 1964)
The following trial bonus plan is hereby released, to be effective from
Monday July 6, 1964, and if found effective will be confirmed from that
date.
DEFINITIONS:
HEAD OF DEPARTMENT:
Head of a Production Department and of only that Production Department
,regardless of other appointments or appearance of name on the Organization
Board.
DEPARTMENT STAFF MEMBER:
A member of a Production Department staff as posted on the Organization
Board as different from a unit staff member.
UNIT STAFF MEMBER:
A staff member who is not a member of a production department but
appears somewhere else on the Organization Board.
THE OR GANIZA TION SECRETAR Y:
The person in general charge of all departments and units and the
organization at Saint Hill, as listed on the Organization Board.
THE EXECUTIVE DIRECTOR:
The person in charge of all Scientology Organizations including Saint
Hill.
GENERAL BONUS:
An amount of money paid in excess of salary on a six months or yearly
basis.
CHRISTMAS BONUS:
One week's salary formerly paid at the discretion of the Executive
Director at Christmas time and which is cancelled by this directive in
favour of a larger and different bonus.
NETPROFIT..
The "net profit" of an organization is the amount an organization makes
above its income that is then paid out to directors or stockholders as a
profit. Net profit forms no, part of this directive or its calculations,
and the general bonus is not paid on the basis of net, profit as Saint Hill
is not run on a profit basis. Net Profit also means taxable profit, which
is not part of the plan, being a matter of accountancy.
194
CASH DIFFERENTIAL:
This is a phrase used to describe the difference between what a
department or organization receives in income and what it directly spends
in costs. It does not include funds, for research or the support of non-
profit activities, gifts, royalties or other matters. It is a clean
statement of so many pounds received due, to a department's or an
organiZation's activities less how many pounds that department or
organization spent for salaries, materials, supplies, printing,
advertising, maintenance and a general share of quarters, utilities, and
general service.
DEPARTMENTAL CASE DIFFERENTIAL:
The exact difference between the cash received by or for a Production
Department and the cash spent by or on behalf of that department plus its
share of the general eost~ so long as the result shows receipts greater
than expenses.
OR GANIZA TION CASH DIFFERENTIAL:
Same as the Departmental Cash Differential but for the whole,
organization.
GENERAL SHARE:
The cost of all personnel and activities which are not assigned to
Production Departments. .
NEGATIVE CASH DIFFERENTIAL:
Where a. department or the organization receives less cash than its
costs. In this the general share is taken into account as well as direct
costs.
ADMINISTRATIVE EXPENSE:
Research, general managerial and administrative expenses on a broader
basis are not included in Cash Differentials, thus making the Cash
Differential quite different from "net profit". Thus we are not concerned
with the corporate accounts but only with cash income and cash expenses in
the bonus plan.
DESCRIPTION
At the end of every six months period, those staff members who have been
with the organization for one year will receive a bonus based on certain
percentages of the cash differential of a department or the organization.
Those heads of departments who are in charge of Production Departments
will receive 20% of the cash differential for that period, based on weeks,
they are or have been the head of that department, providing the post was
occupied for more than six months and providing that they have been with
the organization in any capacity a full year and that they remain in any
capacity with the organization for a minimum of six months after having
ceased to be head of that department. A fraction of a six months period, in
cases of removal as head of department before six months have been served
is not then payable as such after removal and only for those weeks actually
in charge of that department. This applies only to Production Departments,
not to units.
The staff member employed in a production department receives his share
of 10% of that Department's Departmental Cash Differential. The exact share
is arrived at by taking 10% of that Department's Departmental Cash
Differential and dividing it by the number of staff members in that
department who have been with the organization for one year. In case of a
partial period with one department the bonus is paid on the basis of weeks
of service in that department, the weeks being those actually served and
the bonus being based generally on the cash differential of those weeks and
the number of staff members in that department at that time.
195
A staff member who is a member of a unit, not a department, receives his
or her share of 5% of the Organizational Cash Differential for the weeks in
the six months employed on a unit, providing the unit staff member remains
with the organization. Where a staff member is transferred from a unit to a
Production Department the unit bonus is paid for the weeks on a unit and
the Production Department bonus is paid for those actual weeks in the
Production Department. A unit staff member's share is calculated by taking
the Organization Cash Differential for any week and dividing it by the
number of unit staff members on staff at that time.
To arrive at a weekly departmental Cash Differential for any one
department one takes the weeks of that month, adds the total cash receipts
of the department for that month, subtracts the salaries and bills of that
department and its general share for that month and divides the difference
between receipts and expenses by 4 or 5 depending on whether the month
covered more nearly 4 weeks or 5 weeks, a fact which averages. This becomes
the Cash Differential Percentage for that week for that department. The
actual calculation is done by that department.
Similarly the Organization Cash Differential for any given week in the
year is determined by adding up the cash receipts of the organization and
its expenses for a month and dividing it by 4 or 5 as above.
The Organization Secretary receives 10% of the Organizational Cash
Differential.
The head of Department One receives no bonus and staff members of
Department One are considered Unit Members except where they also belong to
other departments.
A full time staff member is one who works a minimum of 40 hours in a
week, not including the lunch hour. A part time staff member is one who
works less than 40 hours a week. A bonus is calculated and paid on the
basis of a full time staff member. Part time staff members, regardless of
what part of the 40 hour week worked are counted as half a bonus, and are
paid half a bonus. In calculating the amount of the bonus part time staff
members are used as half a staff member.
No bonus is paid anyone for weeks he is on vacation or out sick for any
part of the week, or weeks in which any part of a day was taken off.
No person may receive a general bonus for two or more departments or a
unit and a department share for the same week.
The existence of the bonus in no way deprives management of transferring
or dismissing personnel at its own discretion.
All existing bonus or commission arrangements including the Christmas
Bonus are cancelled.
No monies received by myself personally or not paid for actual service
or commodity given by the Saint Hill Organization form no part of this
bonus plan. It applies only to cash received for service or commodities
delivered at or by Saint Hill, such as Training books or percentages for
service. It does not include US organization percentages.
Any liability for Income Tax by reason of general bonus lies entirely
with the receiving individual and not with the organization and acceptance
of a general bonus is accepted only with this condition.
The organization takes no responsibility for any matters of tax on the
bonus and must report it when paid, by law.
No advances on bonus owing will be paid.
Heads of departments who serve less than 6 months in that capacity
wilLbe paid
196
only on the unit staff m6inber basis from the percentage he would otherwise
receive, and if departing from employ forfeits bonus.
The General Bonus comes under the heading of a gift and is not owed to
the employee as it forms no part of his work contract. This scheme may be
altered or withdrawn at any time by the Organization at its discretion.
It will be found that 3% of a Departmental Cash Differential is quite a
sizeable sum.
It will also be found that 2% of a Departmental Cash Differential is a
very goodly amount even when.divided by the number of persons on that
department's staff (less the head of department).
It will also be found that 2% of the Organizational Cash Differential
divided by unit staff members will be found to be a very nice amount of
money. It does not matter whether they are in Department One or a unit as
they would be part of the same bonus system even though domestic was
transferred out of Department One.
This is my answer to your rising living costs, tax troubles, desires to
make more money and have a bigger share in things.
If you make more money in a Department or help the organization make
money by doing your job or promoting better or working harder and help the
organization do its work at less cost, then you will receive your ample
share of that difference. The earning potential of Saint Hill is high.
If at the end of the first 3 months period this system is found
ineffective or undesirable, it will be cancelled and no bonus for the trial
period of 3 months will be paid, but if found effective and workable it
will be confirmed and paid from July 6, 1964.
L. RON HUBBARD
LRH:jw.cden
Copyright @ 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
197
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 17 NOVEMBER 1964
Sthil Staff only
BONUS
In accordance with the last paragraph of HCO Policy Letter of 26 June
1964, the Bonus System is modified as per this Policy Letter.
All departments and the organization were deeply in debt as per July 6,
1964. This fact was only known partially at that time. In the ensuing
months large numbers of bills were discovered and paid that had not been
suspected.
In April, when I resumed active management, the organization had been
permitted to sink in very deep.
Industrious promotion and reorganization in the following months began
to bear fruit and when Mrs. Hubbard took over as Organization Secretary in
mid-June and began to reorganize the actual activities of each department,
the organization climbed well out of the crisis area.
Thanks to the co-operation of each staff member and his or her excellent
work in the past few months, expenses have fallen and income has risen.
As we still have a long way to go before any department or the
organization is out of the red, the bonus plan as such cannot yet be put
into full effect as there is no excess with which to pay it.
However, because the staff has co-operated so very well and done such a
fine job helping us handle this, even though it drops the financial
position back a bit, Mrs. Hubbard and I wish to show our gratitude by:
I . restoring the Christmas bonus as per the original policy letter
covering it so that the staff will at least have a bonus at
Christmas, and
2. doubling that bonus just to show that we really do appreciate
the splendid effort everyone is making.
Our review of the situation, undertaken on the 16th, shows that in
September 1965, the organization, continuing at the same level of economy
and income, will be level and able to pay a bonus from its overages, which
should then exist.
However, with good work and co-operation and great care in economy on
the part of everyone, that date can be brought back many months, perhaps
even to April 1965.
When that date is reached, a bonus system based ~on a percentage of an
easily computed ratio between amount owed and disbursed and amount
received, will be put into effect for departments and general staff. As we
are daily improving our effectiveness and as new promotional plans for
overseas are right now going into effect, we should do very well if we all
pull together.
Meanwhile we hope you will have a Merry Christmas.
L. RON HUBBARD
LRH.jw.pm.rd Copyright @ 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
198
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 12 NOVEMBER 1965
St Hill only
TRANSFERS FROM SHSBC TO SOLO AUDIT COURSE
Students wishing to transfer from the SHSBC to the Solo Audit Course may
do so only with permission,(jf LRH.
Full credit is allowed for any sums not consumed by the Saint Hill
Special Briefing Course.
Compute as follows-Number of weeks on SHSBC times i 11.9.2 subtracted
from f 275 equals amount to be credited toward the Solo Audit Course.
L. RON HUBBARD
LRH:ml.kd Copyright@ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
199
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
GenNon-Remimeo HCO POLICY LETTER OF 6 JANUARY 1966
Applies to SH only
Registrars
Cashier CREDIT AND DISCOUNTS
Invoking and
Qual Div
Info other orgs DISCOUNTS
Relatives of staff and students are not entitled to discounts.
Discounts are not additive on courses and processing. A person does not
get a 50% discount as a student and then 50% of that as a staff member.
Only one discount counts at a time. Also one cannot have a 50% discount as
a student or staff member and then 20% more as a Life Member.
The person receives only one discount on courses and processing. It may
however be the largest single discount to which he is entitled.
At Saint Hill Membership discounts count only on sales items such as
books, insignia, meters. But if a student discount also exists it is not
added to. The largest single discount only is given.
DEBIT INVOICES
Students and pes may not be extended into unpaid courses or hours of
processing by debit invoice. When a person's paid processing is consumed,
and he requires more he or she pays for it before being given more.
ORG CREDIT
Only credit for the Interneship was given to some orgs.
No other courses or intensives are given for credit to org staff from
other orgs.
The Org Executive Course is awarded occasionally by SEC ED. Otherwise it
is paid for.
When an org has been given special credit for a certain Saint Hill
service it is in writing and specifically arranged by the Executive
Director beforehand. Unless this evidence is presented no org gets any
credit.
CREDIT PROCESSING
No further credit pcs, in whole or in part, will be accepted at Saint
Hill, excepting only those specifically promised credit in writing or
booked as credit pcs prior to this date.
As with courses, processing is paid in full in advance.
Further processing must also be paid in full in advance.
QUAL CREDIT
Qualifications (Review) actions may be signed up for credit but only to
the sum of f 10.
No certificates or awards are issued until a person has an Accounts
Clearance marked paid in full at Saint Hill.
COURSE CREDIT
Credit for courses has never been permitted at Saint Hill.
No Saint Hill course may be had on any credit, part or full. This
applies to the SHSBC, the Solo Audit Course and the Clearing Course.
REASON
No organization can exist extending credit in vast quantities and the
policy at Saint Hill has always been no credit.
Therefore anyone extending credit at Saint Hill for Courses or the HGC
Service after this date is liable to an Ethics charge of a crime as it is
detrimental to the survival of this organization no matter what
arrangements are made.
Aside from material reasons when we give credit service-training and
processing-we deny full attention to those who are paying. Thus we cannot
but give poorer service all around if we give credit service.
Our purpose in this is to keep service quality at Saint Hill very very
high. To do that we have to provide that service. When we give credit, we
spread ourselves too thin for quality.
LRH:ml.rd L. RON HUBBARD
Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 JANUARY 1966
Gen Non-Rernimeo Issue 11 -
SH only
SH students
info other orgs CREDIT
(Modifies HCO Policy Letter
6 Jan 66 Credit and Discounts)
Credit may be extended for Review actions without limit.
Credit may be extended for small Tech and Qual Division specialities
like S & D or Rehab when a person is ordered to it.
Credit may not be extended for major courses or Power Processing
Intensives.
Credit is extended staff for their courses and unawarded processing and
is deducted normally from weekly pay.
Credit is extended to Orgs for Interneship but only when specifically
arranged with the org itself by the Executive Director.
No other credit is extended orgs.
Orgsdo not have to pay for awarded Executive Courses but have to pay any
travel or living expenses involved.
No certificate or award may be issued unless suitable financial
arrangements have been made and an accounts clearance is then shown by the
applicant.
LRH:ml.cden
Copyright @ 1966 L. RON HUBBARD
by L. Ron Hubbard
ALL RIGHTS RESERVED
201
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 FEBRUARY 1966
Remimeo
SH and WW only
Executive Hats
All HCO Mail Point Hats
All 'Phone Point Hats
To be enforced by
Dir Comm and Ethics IMPORTANT
LEGAL, TAX, ACCOUNTANT AND
SOLICITOR, MAIL AND
LEGAL OFFICER
There is all manner of legal type letters, government letters,
accounting notices, assessments and such and phone calls received by
persons in the org and this Pol Ltr FORBIDS it being routed all over the
org to anyone and everyone.
IT ALL GOES TO THE LEGAL OFFICER
I don't care who it is addressed to, or who is being called for if it
looks or sounds lawyer or legal or tax or T & C Planning or Council or
anything like legal or goiiernment IT MAY NOT BE ROUTED TO ITS ADDRESSEE
but must FIRST go to the Legal Officer only.
Anyone found holding or receiving or finding any legal or tax or
planning matter or letter or phone call without its being touted first and
at once to the Legal Officer will be reported at once to Ethics and Ethics
is to hold a hearing.
The Legal Officer is hereby authorized to have a clerk. The clerk is to
keep legal files and is to receive all such legal matters, letters,
summonses, etc.
The Legal Clerk may then Xerox a copy and send the copy only to the
addressee. But must keep the original and must show it to the Legal Officer
before even a copy is sent.
ALL OUTGOING MAIL to attorneys, tax cruds, the alleged government, the
Council, etc. AND A FULL RECORD 'OF EVERY VERBAL CONFERENCE ON SUCH MATTERS
must be sent to the Legal Officer BEFORE MAILING or before being held
binding and must not be sealed or ratified before so sending it to the
Legal Officer.
NO STFNO may mail a legal type letter or get it signed unless it is
FIRST SENT TO THE LEGAL OFFICER FOR OK.
Without that okay it may not be signed or mailed.
No officer, executive or person in the organization may make legal
contacts or commitments or arrangements that are not approved by the Legal
Officer.
Any phone or Telex operator receiving a request from an Executive for a
legal or government outgoing connection must route it instead to the Legal
Officer.
RECEPTION MUST ROUTE ALL LEGAL TYPE BODIES ONLY TO THE LEGAL OFFICER AND
TO NOBODY ELSE EVER.
Note: The government is so dispersed it mails anyone's mail to anybody
(absolute fact) and the most dangerous notices may get sent to the most
unlikely places and parts of the org. In the recent accountancy emergency
it was conclusively proven that a suppressive always selects wrong targets
and that includes wrong addressees. The most vital notices were being sent
to anyone whose name was handy.
THE LEGAL OFFICER
The purpose of the Legal Officer is to help LRH handle every legal,
government, suit, accounting and tax contact or action for the organization
and by himself or employed representative, to protect the organization and
its people from harm and to bring the greatest possible confusion and loss
to its enemies.
202
This purpose can only be carried out if every piece of mail incoming and
outgoing that has to do with legal matters, tax matters, Town and Country
Planning matters, government matters, solicitor matters of any kind passes
through his hands and is fitted by him into the tactics and strategy agreed
upon or formulated by the Legal Section.
The Legal Officer may not take direct orders from anyone but myself,
Policy Letters and SEC EDs, and obstructing him in the performance of his
duty is a crime and must be followed by a Committee of Evidence.
L. RON HUBBARD LRH:ml.rd
Copyright Cc) 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I I OCTOBER 1966
Remimeo
SH & WW only
Exec Hats
All HCO Mail
Point Hats
All HCO Phone IMPORTANT
Point Hats
Tobeenforcedby LEGAL, TAX, ACCOUNTANT AND SOLICITOR
Dir Comm & Ethics MAIL INCOMING AND OUT-GOING
(Amends HCO Policy Letter of 3 February 1966)
Any legal, accounting or governmental communication must be Xeroxed
(duplicated) upon receipt with copies sent to the Guardian WW, the Board of
Directors and the addressee BEFORE the original is routed to the Legal
Officer. The responsibility for such Xeroxing and routing is directly that
of the Internal Comm Flow Section.
This responsibility for routing and informing of all terminals involved
by Xerox copies is being turned over to the Internal Comm Flow Section as
it has been seen that a breakdown within the Legal Section itself can cause
urgent matters to be neglected and unhandled. This, therefore, changes the
HCO Policy Letter of 3 February, 1966 where such Xeroxing was the
responsibility of the Legal Clerk.
No legal, accounting, or governmental communication can leave the
organization which has not been approved by the Legal Officer AND SIGNED BY
THE SECRETARY OF THE BOARD OF DIRECTORS. A copy of such communications is
sent to the Guardian WW and to the addressee. This changes HCO Policy
Letter of 3 February, 1966 in which the Legal Officer approved such
communications and such communications were then signed by the originating
terminal. Now, no matter who originates such a communication, it is to be
signed only by the Secretary of the Board of Directors as a communication
from the Board of Directors, all Directors knowing about such.
In this way the Guardian WW, the Board of Directors, and the addressee
can be certain that ALL incoming matters of a legal, accounting, or
governmental nature have been received and handled and that outgoing
communications on these subjects are according to policy.
L. RON HUBBARD
Founder
LRH:lb-r.rd Copyright @ 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
203
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor,'East Grinstead, Sussex
HOD POLICY LETTER OF 10 FEBRUARY 1966
Issue III
Saint Hill Only
BONUSES FOR SERVICE DELIVERY
(Effective 25 February 1966)
TECH BONUSES
Staff Auditors and Internes
Every HGC completion passed by the Qual Examiner awards the staff
auditor who completed that, a bonus of f 1.
Additionally each HGC completion awards the Case Supervisor, D of P and
Tech See 2 shillings each.
Course Supervisors
Every Course completion passed by the Qual Examiner awards the Course
Supervisor under which it was done tl for each certificate or class awarded
by Qual.
Additionally 5 shillings is awarded the D of T and the Tech See each for
every completion, (certificate or classification) awarded by Qual.
QUAL BONUSES
Pe Examiner
Every pc completion flunked and sent to Review for Review auditing
awards the Preclear Examiner f 1.
Additionally the Qual See and Director of Review are awarded 5s. each.
Additionally each pc completion successfully completed by a Review
Auditor awards that auditor f 1.
Student Examiner
Every student flunked by the Qual Student Examiner awards that examiner
El for every student sent to Cramming.
Additionally the Director of Review and the Qual See get 5 shillings
each for each student flunk.
Additionally the Cramming Supervisor who completes the student so that
the Examiner will pass him receives f 1.
Dir Tech Services
The Director of Tech Services gets 10% of the total student and pc sum
awarded the Tech Division each week.
Dir Certs and Awards
The Director of Certs and Awards in Qual is awarded 10% of the total
Qual Bonuses awarded each week.
204
CLAIMS AND DISPUTES
All Claims and Disputes must be referred to the Director of Inspection
and Reports, HCO, who may convene a Board or hear personally all disputes
arising because of the bonus arrangements in this See ED.
A False Claim for bonus only may be referred to Ethics. Otherwise no
dispute because of these Bonus Arrangements may be made a matter of Ethics.
Any disputants must abide by the decision of the HCO Area Secretary
acting through the Director of Inspection and Reports.
OTHER DIVISIONS
It is obvious that if Results in Service are improved by this Bonus
System all other staff members in all other Divisions will benefit by less
frequent emergencies and more frequent affluences as technical service
quality monitors income.
RIGHTS TO BONUS
These bonuses are not a right. Voluntarily extended, the -system may be
withdrawn without notice by the Executive Director.
No pay claims may be made on the org by reason of this bonus or errors
therein and no error may become a matter for "back pay".
Those receiving such bonuses by accepting them agree to this clause.
NON-PAYING PCS OR STUDENTS
This Bonus System is not extended to cover non-paying pcs or students.
CALCULATION
As all completions are invoiced in Qual,, the Disbursement Section must
receive copies of all such invoices which clearly state what they are and
must evolve a ready accounting system to care for their payment.
Disbursement must be careful not to pay doubly on the same person at the
same time, pc or student, to both Tech and Qual.
The Org See, Tech See and Qual See form a Committee to establish and
correct the methods of calculation of these bonuses.
The bonuses are paid one week late in every case. The wages and tax of
the recipients is adjusted each week accordingly.
All bonus records become part of the pay file of the recipients, and
methods of duplicating records to permit cross filing must be evolved.
The Bonus Week runs the same as the Accounting Week;
Thurs 2.0 p.m. to
Thurs 2.0 p.m.
L. RON HUBBARD
LRH:ml.cden Copyright @ 1966 by L. Ron Hiibbard ALL RIGHTS RESERVED
205
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, Fast Grinstead, Sussex
HCO POLICY LETTER OF 9 MAY 1966
Gen Non
Rernimeo
St Hill BONUSES ADJUSTED
Only (Correction to Bonuses For Service Delivery
HCO Pol Ltr of I Oth Feb 1966)
HGC
1 Internes are awarded 30/-d for successfully completing a preclear to
Grade V
without re-assignment. For completing a preclear to Grade VA-�1.
2. Internes are awarded 1 0/-d for rehabilitating a pc to any Grade
of Release, which is passed by the Examiner.
3. 1 0/-d for each S & D successfully completed. There will be a two
week delay on claims for S & Ds complete, and evidence must be presented to
the Examiner that the pc has not Roller Coasted in that period.
4. Where an auditor is re-assigned on Grade V, the auditor who completes
the pc successfully will be awarded 15/-d. Where an auditor is re-assigned
on VA, the auditor who completes is awarded 1 0/-d.
5. Auditing a pc to Release on Levels 0 to IV �1 each level.
REVIEW
1 . Review auditor completing a pc on Grade V-�1.
2. Review auditor completing a pc on Grade VA- 1 0/-d.
3. Completing a pc who has flunked a Grade cheek 0 to IV- 1 0/-d.
CRAMMING
Cramming Officer is awarded 10/-d for each student passing his first re-
exam. If he flunks re-exam no bonus awarded.
EXAMINATIONS
Pc Examiner is awarded 10/A for each HGC pc flunked and 5/Od for any
subsequent re-flunk when the pc comes from Review.
Student Examiner is awarded 10/-d for each student flunked and 5/-d for
any flunk on a student coming for re-exam from Cramming.
COURSE
Dir of Tech Services is awarded 5% of the total student and pc sum
awarded the Tech Division each week.
Dir of Certs & Awards is awarded 5% of the total Qual Bonuses awarded
each week.
Course Supervisors are awarded �1 for each student successfully passing
Exam for Certification Classification, and Clear Cheekout.
Course Supervisor is awarded 2/-d for each Grade VI passed by Examiner.
Other bonuses are unchanged.
L. RON HUBBARD
LRH:lb-r.oden Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
206
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 JULY 1966
Sthil Only
All Staff
DISMISSAL OF STAFF
When a Staff Member is dismissed, he or she must be given:
I One week's notice if employed continuously for more than one week,
and
up to one year; or given one week's pay in lieu of notice.
2. Two weeks' notice if employed continuously for 2 years or more; or
given two weeks' pay in lieu of notice.
3. Four weeks' notice if employed continuously for 5 years or more; or
given four weeks' pay in lieu of notice.
LRH:lb-r.eden L. RON HUBBARD
Copyright (D 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 AUGUST 1966
Issue 11
Gen Non
Rernitneo
St Hill
Only
BONUSES ADJUSTED
(An amendment and an addition to
HCO Policy Letter 9 May 1966)
The Clearing Course Supervisor is awarded �1/10/0 and the Assistant
Clearing
Course Supervisor is awarded 10/-d for each student successfully passing
the Clear
check-out.
LRH:lb-r.cden L. RON HUBBARD
Copyright (D 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
207
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 OCTOBER 1966
(Cancels HCO Policy Letter of 12 January 1966, Issue 11)
Gen Non
Remimeo
St Hill only
Receptionist
Org Div
All Personnel
INVOICE ROUTING
All Invoicing Stations
Invoice copies are distributed as follows:
WHITE - To the customer.
PINK - To the department concerned with the service or item
purchased.
YELLOW - Debit and credit invoices are kept in the Department of
Income for collection purposes.
YELLOW - NOT debit or credit invoices for students and pcs are
routed to Address then to CF via Reception, so that
Reception can check the invoices against the In the Org
List. Other not debit or credit are routed from Address
straight to CF.
BLUE To the Department of Records, Assets and Materiel for
record purposes.
GREEN Consecutive series to be kept in the machine until the end
of the accounting week.
L. RON HUBBARD
Founder
LRH:rd Copyright Q 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
[Note; HCO P/L 12 January 1966, Issue 11, Invoice Routing, differed from
the above as follows: it gave I January 1966 as the starting date for the
system, and said "YELLOW-NOT debit or credit invoices are routed to Address
and then CF."]
208
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 17 OCTOBER 1966
Issue 41
Sthil Only
BONUSES
REVIEW AUDITORS, STAFF AUDITORS AND INTERNES
Review Auditors, Staff Auditors and Internes are awarded for each
completion as passed by the Qual Preclear Examiner as follows:-
10/- Per Grade Rehab, S & D, Assist or Sec Check
20/- Per audited Grade of Release-0, 1, 11, 111, IV or VA
30/- Per audited Grade V Release.
Further, Review Auditors, Staff Auditors and Internes are fined for each
completion failed by the Qual Preclear Examiner as per the scale above.
COURSE SUPERVISORS AND CRAMMING OFFICER
Every course completion passed by the Qual Student Examiner awards the
Course Supervisor or Cramming Officer under whom it was done 20/- for each
certificate or class awarded by Qual or a 20/- fine for each certificate or
class failed by the Qual Student Examiner.
TECH SEC
The Tech Sec is awarded a bonus of 10/- for each completion on a rising
graph and no bonus for any completion on a falling graph, this graph being
the total completions of preclear and student examinations passed by Qual
for the week.
CASE SUPERVISOR AND D OF P
The Case Supervisor and the D of P are each awarded a bonus of 5/- for
each completion on a rising graph and no bonus for any completions on a
falling graph, this graph being the total HGC completions passed by Qual
for the week.
DOFT
The D of T is awarded a bonus of 5/- for each completion on a rising
graph and no bonus for any completion on a falling graph, this graph being
the total completions of students examined and passed by the Qual Student
Examiner for the week.
DIR TECH SERVICES
The Director of Tech Services is awarded a bonus of 51- for each
completion on a rising graph and no bonus for any completion on a falling
graph, this graph being the total completions of preclear and student
examinations passed by Qual for the week.
QUAL SEC
The Qual Sec is awarded a bonus of I/- for each E I /-/- rise in income
on a rising graph and no bonus for any income on a falling graph, this
graph being the total monies collected for Qual Services performed for the
week.
DIR OF REVIEW
The Director of Review gets an award of 51- for each completion on a
rising graph and no bonus for any completions on a falling graph, this
graph being the total completions of preclears and students handled in
Review by the Case Section or the Cramming Section and passed by Qual
Examiners.
QUAL PRECLEAR AND STUDENT EXAMINER
The Qual Preclear and the Qual Student Examiner are each awarded a 51-
bonus for each preclear flunked on a rising statistic and no bonus for any
preclear flunked on a falling statistic for the Qual Preclear Examiner or a
5/- bonus for each student on a
209
rising statistic and no bonus for any student on a falling statistic for
the Qual Student Examiner.
DIR OF CERTS AND AWARDS
The Dir of Certs and Awards is awarded a bonus of 6d for each f I /-/-
rise in income on a rising graph and no bonus for any income on a failing
graph, this graph being the total monies collected for Qual Services
performed for the week.
CLAIMS AND DISPUTES
All claims and disputes must be referred to the Director of Inspections
and Reports, HCO, who may convene a Board or hear personally all disputes
arising because of the bonus arrangements.
A false claim for bonus may only be referred to Ethics, otherwise, no
dispute because of these bonus arrangements may be made a matter of Ethics.
Any disputants must abide by the decision of the HCO Area Secretary
acting through the Dir of Inspections and Reports.
RIGHTS TO BONUS
These bonuses are not a right. Voluntarily extended, the system may be
withdrawn without notice.
No pay claims may be made on the org by reason of this bonus or errors
therein and no error may become a matter for "back pay".
Those receiving such bonuses by accepting them agree to this clause.
NON-PAYING PCS OR STUDENTS
This Bonus System is not extended to cover non-paying pcs or students.
CALCULATION
As all completions are invoiced in Qual, the Disbursement Section must
receive copies of all such invoices which clearly state what they are and
must evolve a ready accounting system to care for their payment.
Disbursement must be careful not to pay doubly on the same person at the
same time, pc or student, to both Tech and Qual.
The Org See, Tech See and Qual See form a Committee to establish and
correct the methods of calculation of these bonuses.
I The bonuses are paid one week late in every case. The wages and tax of
the recipients is adjusted each week accordingly.
All bonus records become part of the pay file of the recipients, and
methods of duplicating records to permit cross filing must be evolved.
The Bonus Week runs the same as the Accounting Week: -
Thursday 2.00 p.m. to Thursday 2.00 p.m.
L RON HUBBARD
Founder
LRH:lb-r.cden Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
210
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 NOVEMBER 1966
sthfl
only ADDENDUM TO HCO POLICY LETTER OF
17 OCTOBER 1966, "BONUSES"
Fines for Review Auditors, Staff Auditors and Internes for each
completion failed
by the Qual Preclear Examiner as per the Scale given in HCO Policy Letter
of October
17, 1966 may not exceed the weekly basic, pay of the Review Auditor, Staff
Auditor
or Interne.
Such excess fines are carried forward from week to week and deducted
from bonuses awarded.
It was never thought possible that any Saint Hill Auditor could possibly
have more failed completions than passed completions in any given week;
however, this policy establishes how such can be handled when it does
occur.
Mary Sue Hubbard
The Guardian WW
L. RON HUBBARD
LRH.jp.cden Founder
Copyright @ 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 NOVEMBER 1967
Gen Non-Remimeo
WW Only
BONUSES ADJUSTED
(Additio n to HCO Policy Letter 17 October 1966
Issue 11, Cancels HCO Policy Letter of
22 August 1966, Issue II)
The Chief Supervisor of Advanced Courses is awarded 10/- and the
Clearing or
OT Course Supervisor or Assistant Supervisor who supervised the case, is
awarded 10/-
for each student successfully passing the Clear Check-out, and 15/- the
Section I or
Section 11 OT Check-out.
Chief Supervisor Advanced Courses Janet Guilford
Qual See SH Helen Pollen
HCO Area See WW Len Regenass
Exec Council WW Tony Dunleavy
Eunice Ford
LRH Comm WW Ken Delderfield
D/Guardian WW Joan McNocher
Mary Sue Hubbard
The Guardian WW
for
LRH:jp.cden L RON HUBBARD
Copyright Q 1967 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
211
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO, POLICY LETTER OF 18 NOVEMBER 1967
St Hill only
Treas Div
BLUE AND GREEN ACCOUNTS INVOICES
(Amends HCO Policy Letter 13 October 1966 'Invoice Routing')
Due to the expansion and volume of traffic through Saint Hill, it is not
practical to clear the accounts invoice machines of green invoices once a
week only. It is also impractical to bank weekly. These actions will now be
done daily. The green invoices will be kept continuous and removed from the
machines at the end of each day and at 2 p.m. Thursdays. The money will be
removed from the machines at the same time (leaving only the float). The in-
series green invoices are used for the banking record per HCO Policy Letter
13 January 1966. The additional set of invoices which are separated and
used for income analysis by separating into income types is the Blue set
and are placed in the folder with the green invoices and Bank deposit
records at the end of each week.
Blue invoices will be routed with FSM Commission routing forms per
HCO Policy
Letter 9 January 1967, 'FSM Administration in Organizations'. The costly
and time
consuming practice of Xeroxing these invoices is to cease. When the FSM
commission
cheques have been signed at the end of the week, the Disbursements Officer
detaches
the Blue invoices from the routing forms and delivers by hand to the
Records Officer
in the Dept of RAM for inclusion in the set. If for any reason the weekly
income sheets
from departments do not add up to the gross income for the week, the Blue
invoices
may be divided into boxes with , adding machine tapes taken as a quick
method of
checking the income reports. The Blue invoices,are then returned to the
appropriate
folder.
In the event of an FSM commission payment being queried by the Cheque
Signers, the Blue invoice will be detached on return to the Disbursements
Officer at the end of the week and replaced by a Xerox copy.
This resolves the confusions which have persisted on accounts invoice
policy at Saint Hill since SH have been banking daily and returns invoice
usage to the way it was when the extra (Blue) copy was introduced and HCO
Policy of 13 January 1966 written.
Treasury See SH Brian Livingston
Qual See SH Helen Pollen
HCO Area See SH Bene Neal
Advisory Council SH Helen Pollen
Executive Council SH Barbara Gentry
J.J. Delance
LRH Comm SH Irene Dunleavy
Executive Council WW Tony Dunleavy
Eunice Ford
LRH Comm WW Ken Delderfield
D/Guardian WW Joan McNocher
Mary Sue Hubbard
The Guardian WW
for
L. RON HUBBARD
Founder
LRH:jp.eden Copyright Q 1967 by L. Ron Hubbard ALL RIGHTS RESERVED
212
HUBBARD COMMUNICATIONS 0
Saint Hill Manor, East Grinstead,
HCO POLICY LETTER OF 12 NOVEM
Rernitneo
Public Divisions
Hats
Accounts Hats PES ACCOUNT VERSUS
HCO BOOK ACCOUNT
Since the beginning of Scientology no real special allocation has ever
been made to promotion that the Public Division could call their own. The
"PES ACCOUNT" is now created based on the idea that:
IF THE PUBLIC DIVISIONS MAKE IT THE PUBLIC DIVISIONS GET IT TO MAKE
MORE OF IT.
MONIES THAT GO INTO THE ACCOUNT
Dept 16 Ethnics
Dept 17 Public Planning
Membership fees. "FSM Magazine" Sales
Dept 18 Public Communication
$1 or 5s per New Name to C/F. (Emphasize that it is someone who has
actually bought something from the Org.)
Dept 19 Public Contact
Congress profits and 25% of all services (except Pub Div services which
go 100% into the PES Account) sold on the congress floor for cash at that
congress, plus 10% of all booksales made at the congress.
Ron's Journal Congress = 40% of the Org's income rise plus 10% of the
booksales made for the congress.
25% of Org signups made from monthly film presentations, tape
presentations, RJ weekly presentations, open evenings, and testing.
Income from the test centres other than book sales which go to the HCO
Book Account.
Dept 20 Public Supervision
HAS Course fees, HQS Course fees, Anatomy of the Human Mind Course fees,
Franchise Training Course fees, Extension Course fees, Basic Management
Course fees, Personal and Family Management Course fees. Children's Course
fees.
Dept 21 Success
Review fees for any pc riot passing the 2 Key Questions, 10% of Org
signups made due to a success story and success book sales.
Dep~ 22 Clearing
5% of signups for every selectee arriving at the Org for services. Field
membership renewal fees, IQ% of profits made from public programmes
actually co-ordinated by the Programme Officer. (The rest going to the Gung-
ho Groups who earned it.)
Dept 23 Expansion
Profits made from special projects, 5% on signups made of every
franchise selectee arriving at the Org.
213
Dept 24 Public Relations
Donations, 10% of signups from persons brought in by PRO TV, Radio and
press, Marriage counselling fees, Chaplain's Court fees.
USE OF THE ACCOUNT
Public Divisions promotional mailings, congress promotion, congress hall
rental, Public Events, financing test centres, or testing, service and PE
lecture Ads, success story publications, membership cards and promotion,
Public Programmes, Public Division magazine printing and posting,
Continental Mag printing and posting, financing open evenings, PRO
Appearances and PRO Activities. Note: FSM Commissions are NOT paid out of
the PES Account.
BONUSES
Two percent of the monthly gross income to the account goes to the PES
of the Org. 1/z% goes to the PES Continental. In the case of an AO the
1/zTo does not apply.
ITEMS ALLOCATED FOR BY FP
Income from the sale of the bookstore items such as scarves, Scientology
jewelry, insignia may be applied for by the Dissem Sec for use in purchase
of more such items and would be subject to approval or not by FP.
SIGNATORIES
The signatories to the account are the PES, PAS and the OES jointly.
Singly I-RH and MSH are made signatories. Jointly the 2nd Guardian Finance
and the PES WW. In the case of A0s, CS3 and the SBO are joint signatories
instead of the latter.
OPERATION OF THE ACCOUNT
The account is operated as any other account, by Division Ill. Every
month Division Ill forwards an exact accounting of the PES Account
expenditures and deposits to the PES of the Org. In A0s this is done weekly
and copies of the summaries go on usual lines via FBO to the SBO. For other
Orgs copies of summaries go to the 2nd Deputy Guardian for Finance and the
PES WW for their information. A cheque book is also forwarded to the PES WW
via Treasury See WW.
PUBLIC DIVISION PRICES
The prices of Public Division Services are all specified in policy.
Follow these prices. As a guide HCO P/L 23rd September 1964 outlining costs
should be followed.
HCO BOOK ACCOUNT
Into this account now goes booksales and E-Meter sales. The use of this
account is solely for books and their shipping and E-Meters and their
shipping and book promotion. HCO Policy Letter of 11 May 65 basically
stands. HCO Policy Letter 6 October 66 is hereby cancelled.
POLICING ACTION
PES's to ensure their account is paid its due, should make close liaison
to the cashier and if he's really smart, make a short questionnaire for the
Registrar to use in finding out what brought the public body to the Org.
Lt. Cmdr. Diana Hubbard CS-6 for L. RON HUBBARD Founder
LRH:DH:nt.rd Copyright @ 1969 by L. Ron Hubbard ALL RIGHTS RESERVED
214
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 DECEMBER 1969
Issue III
Rernimeo
Franchise WW
Franchises
PES WW ACCOUNT
The Franchise Section WW by reason of good stats, and on the
recommendation of CS-6, are authorized to have a Bank Account of their own.
Such an Account will be called the PES WW Account.
PURPOSE
The purpose of this Account is to enable the Franchise Section WW,
through the availability of funds, to expand and improve their services
with regard to Franchises in the field.
PERCENTAGE
Of the total monies received from Franchise 10%'s at WW each week, 5% of
the total amount is automatically deposited to this Account.
SIGNATORIES
The signatories for this Account are L. Ron Hubbard, Singly, and any two
of the following: PES WW, Distribution Sec WW or Franchise Officer WW, the
Account is operated as any other Account by Division III.
USE OF THE ACCOUNT
The allocation of monies from this Account lies at the discretion of the
PES WW, Distribution Sec WW and Franchise Officer WW with regard to what
promotional action will boost stats such as the mailing of an FSM Advice
Letter or FSM Material Packs.
NO MONIES MAY BE USED FROM THIS ACCOUNT OTHER THAN FOR OPERATING
EXPENSES OF THE FRANCHISE SECTION WW AND IMPROVEMENT OF SERVICES TO
FRANCHISES.
Lt. Robin Roos CS-3 for L. RON
HUBBARD Founder
LRH:RR.rs.cden Copyright @ 1969 by L. Ron Hubbard ALL RIGHTS RESERVED
215
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 24 DECEMBER 1969
Remitneo
Public
Divisions Hats
Accounts Hats
PES ACCOUNT
AMENDED
The use of this account for the Org's magazine is hereby cancelled and
the Policy Letter of 12 November 1969, PES ACCOUNT VERSUS HCO BOOK ACCOUNT,
is hereby amended. The duty of mailing and preparing the Org mag has never
been a function of the Public Divisions. The finance for this will be
allowed for by F/P.
Lt. Cmdr. Diana Hubbard CS-6 for L. RON HUBBARD Founder
LRH:DH:rs.ei.rd Copyright @ 1969 by L. Ron Hubbard ALL RIGHTS RESERVED
216
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 APRIL 1970
Cancels HCO PL 10 Dec 69, Issue III
Non Rernimeo WW Only Franchise WW
PES WW ACCOUNT
Ile previous now cancelled PL allowed Franchise WW 5% of the 10%s
received at WW from Franchise to expand services.
The former PL proved unworkable due to reported denial of the 5% to F/O
WW which was heavily involved in defense expenses.
Two changes in this -arrangement are therefore ordered effective on
receipt of this PL.
FSM SUM
The Franchise Officer WW is to have the sole management of an account
which is to be used for additional expansion over and above the cost of
running Franchise WW.
The amount to be paid into this account each week from Franchise 10%
receipts shall be computed on the basis of 5% of the total sums of FSM
commissions received by Franchises from orgs reported at WW in that week.
ENFORCEMENT
The Franchise Officer WW may appeal to the nearest station ship for
assistance in the event the sum is not paid over.
COMPUTATION
It is clearly understood that the FSM sums are not themselves received
but that only the I O%s are received at WW. The 5% is in the amount of 5%
of the reported FSM receipts, but is paid from the 10% receipts.
FP
The expenditure of this 5% is outside FP. The 5% is included in FP.
L. RON HUBBARD
Founder
LRH:dz.rd Copyright@ 1970 by L. Ron Hubbard ALL RIGHTS RESERVED
217
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 29 APRIL 1970
Rernimeo
Public Divisions
Treasury Division
FBO Hats
PES ACCOUNT REVISED
(Cancels HCO PI, 12 November 1969,
"PES Acct vs HCO Book Acet")
The principle of the PES Account is that:
IF TIIE PUBLIC DIVISIONS MAKE IT, THE PUBLIC DIVISIONS GET IT TO MAKE
MORE OF IT.
To reinforce that principle and the major actions of Public Divisions
and to more closely align PES Acet income with the disbursement percentiles
of orgs, PES Account policy is revised as follows:
WHAT GOES INTO THE PES ACCOUNT
1. S2.00 for every New Name to CF which has newly bought something from
that
org that week. 1
2. $1.00 for every 510.00 paid that week in FSM commissions (except Sea
Org orgs
which get S 1.00 for every $ 15.00 paid in FSM commissions).
3. All course fees from Public Division courses and income from test
centres (except booksales).
4. All ticket sales from congresses and ticket sales from any public
event financed by Public Divisions.
5. Sea Org orgs running Goodwill tours may deposit to their PES Accounts
2% of income they collect for their own org while on tour, provided that
all tout expenses are paid by the PES Account.
Memberships and donations, assigned previously to the PES Account are
reassigned as follows:
As book profits are affected by membership discounts, membership fees
revert to the HCO Book Account. Donations belong to the Building Fund.
USE OF THE PES ACCOUNT
Public Divisions promotional mailings, congress promotion, congress hall
rental, and congress expenses for items and facilities used only for a
congress, financing test centres or testing, newspaper ads for service or
PE lectures, success story publications, public programmes, printing and
posting of Public Division magazines and advice letters, financing open
evenings, PRO appearances and PRO activities.
FSM Commissions may not be paid from the PES Account. Membership cards
and promotion costs are payable from HCO Book Account.
218
BONUSES
2% of the monffs total deposits to the PES Account goes as a bonus to
the PES of the org. I/z9o' goes to PES Continental. These bonuses are not
paid in Sea Org 6igs' which are on a different pay scale.
SIGNATORIES
Signers on the PES Account are the PES, PAS and OES of which any two may
sign. LRH and MSH sign singly and the Dep Guardian Finance WW with the PES
WW jointly. Check signing policies apply to the PES Account as to any
other. For Sea Org orgs, CS-3 and CS-6 sign jointly in place of 2DGF WW and
PES WW,
OPERATION OF THE ACCOUNT
PES Accounts are operated as any other account, by Division 3. A monthly
accounting of all deposits to the account and expenditure from it goes to
the PES of the org, with copies to the PES WW and Dep Guardian Finance WW.
Sea Org orgs send the copies instead to the FBO (Flag Banking Officer) and
via him one to CS-3.
PES WW should have one spare checkbook for the PES Account of each org.
CS-3 holds one for each SO org.
PUBLIC DIVISION PRICES
Prices of Public Division services are given in policy and HCO Pl, 23
Sept 1964 may be used as a guide.
HCO BOOK ACCOUNT
HCO, Book Account Policy has been restored. HCO PL 6 October 66 ADDITION
TO HCO DIV ACCOUNT POLICY applies except where specifically in conflict
with this policy letter, as in Congress costs.
INCOME ALLOCATION
PES Account income is not subject to percentile allocation but is among
deductions made in calculating corrected gross income on the weekly AC-1
form. This also applies to Sea Org orgs.
The attached form is mimeoed on the reverse side or as an attachment to
the org's AC-1 form to provide a breakdown of PES income that week.
A wise PES will establish a close liaison with the cashier and check the
PES figure against invoices from time to time.
In a SO org the FBO checks it against invoices every week.
Ens. Vicki Polimeni CS-3 for L. RON HUBBARD Founder
LRH:VP:nt.ei.rd Copyright (D 1970 by L. Ron Hubbard ALL RIGHTS RESERVED
219
PES INCOME BREAKDOWN
W/E
1. $2 for every New Name to C17 which has newly bought something from
this org this week.
TOTAL
2. $1.00 for every $10.00 paid this week in FSM Commissions (except Sea
Org orgs
which get 51.00 for every $15.00 paid in FSM Commissions).
TOTAL
3. All course fees from Public Division courses and income from test
centres (except booksales).
TOTAL
4. All ticket sales from congresses and ticket sales from any public
event financed by Public Divisions.
TOTAL
5. Sea Org orgs running Goodwill Tours may deposit to their PES Accounts
2% of income they collect for their own org while on tour, provided that
all tour expenses are paid by the PES Account.
(SO orgs only) TOTAL
TOTAL DEPOSIT TO PES ACCT
220
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 12 JUNE 1970
Remimeo (Cancels HCO PL 12 Nov AD 19,
Pub Divs PES vs HCO Book Aect
TREASSEC and HCO PL 29 April 1970,
PES Account Revised)
PES ACCOUNT
(Two PLs [as above] sought to resolve the problem that orgs did not give
their public divisions sufficient funds to promote. They are cancelled.)
The basic outness in orgs is that they have in the past sought to
economize by saving on promotion.
Establishing a PES account was supposed to merely implement sums
normally given in FP for promotion.
A rough estimate of the amount of the money that should be allocated to
promotion in a Class IV org would be about 40% of the Disbursement Account
which is 35% of the gross income. This is about 14% of the corrected Gross
Income of the org. (In an SO org it would be 14% of a sum allocated for the
total bills of the org.)
This is minimum promotion.
Therefore, no FP can be considered passed or valid that does not provide
14% of the Corrected Gross Income for Promotion Expenses.
In an org which has three public divisions and is running public service
services and courses such as Testing (free), HAS, HQS, Group Auditing and
Co-auditing and Congresses the small fees for these courses and 1arger
Congress fees should be earmarked for and assigned to the cost of
materials, advertising, quarters especially procured, Supervisors and other
expenses directly related to giving these courses and services,
(understanding that the public divisions stress Div IV training courses in
their larger sales to such public). This is to prevent mobs of people being
serviced free to such a degree that the org would become financially unable
to continue such services.
The full intention of this PL is to finance promotion and inhibit
"saving" money at the expense of promotion.
Complaints arising from unreal denial of promotional funds to Public
Divisions which limits org income should be addressed to CS-6, Flag for
arbitration.
The continuance of PES accounts as such should be established after
study of their use or value by the D/Guardian for Finance. Until so decided
they may be used.
L. RON HUBBARD
Founder
LRH:nt.ka.rd Copyright @1970 by L. Ron Hubbard ALL RIGHTS RESERVED
221
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 18 APRIL 1969
Issue II
(Reissued from LRH ED 146 SH)
Remimeo
Accounts Hats
Star Rate ORG DIVISION
Income Dept.
The Income Dept has three sections which must not tangle and cross.
These are Area Cashier and Collections Section, Invoicing Section and
Collections Section.
The Area Cashier and Collections is total body traffic. It takes in all
payments and collections in the area-meaning people who are on the
premises. It must have its window, its own invoice machine, its own cash
box and records, independent of the other sections.
The Invoicing Section handles the letter mail and sent in payments. It
has its own invoice machine and records. It only receives money.
Neither Area Cashier and Collections or Invoice bank money. Banking is
handled by the Dept of Records.
The Collections Section sends out all mailed statements to individuals
and statements to orgs and acts and writes to collect any money owed the
org from any source. It has its own statements books and files and receives
whatever Area Cashier and Collections has uncollected when a person leaves
the area. Collections can advise Area Cashier and Collections that a person
now on the premises owes money and that Area Cashier and Collections might
collect it. Usually files of people now on the premises are turned over by
Collections to Area Cashier and Collections and are turned back when they
leave, care being taken not to lose track of such files in making
statements and mailing them. Collections should have a statement sheet for
every person who owes the org money.
The Income Dept turns over all its funds to Records for safeguarding and
for banking, bank reconciliation, etc. at the end of each day. Dept of
Records attends to deposits, clean and streamline the flow lines of income
and you raise gross income.
Leave a lot of details belonging to other depts in the Income Dept and
you reduce income.
Even where I person wears 2 Income hats, the desks, files and equipment
and actions must be separate for the Sections.
Arrange the flow lines so Area Cashier and Collections does not trip up
anywhere
or the other two sections and can collect money in the area.
L. RON HUBBARD
LRH:ei.rd Founder
Copyright@ 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
222
NOT HCO ORIGINA
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
ADMINISTRATIVE DIRECTIVE OF 10 APRIL 1958
RE: 5TH LONDON ACC
A DScn is charged full fee for lower courses than an ACC. ONLY ACCs are
free to DScns. "Testing fee only" applies only to ACCs for DScns. Lower
courses than ACC are paid for by DScns, as they can receive same
instruction on an ACC.
Assoc See per LRH comments to Tech Dir
223
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HASI POLICY LETTER OF 22 SEPTEMBER 1958
Distribution: ACC Admin Treasurer; Treasurer's Sec Registrar Association
Secretary HCO
ACC ACCOUNTS AND PAYMENTS
1. All ACC cash payments shall be paid into Account No. I in HASI's
London Bank.
These sums are to be left intact until further [disposition is made].
Banker's Order payments by ACC students after beginning of course shall
be paid into Account No. I until further disposition is made.
2. No student may be admitted to the ACC (save staff as per below) either
retread or new student for a price less than f 40 cash before course
beginning. No credit is allowed on retreads and no student is to be
admitted who has not paid f4O cash or more (preferably a cash payment for
course in full) before the course actually starts. This does not apply to
"staff members", see below.
3. All payments to be made by reason of notes incurred by course must be in
the form of a banker's order. No other payments of any kind are acceptable.
No notes of hand are acceptable to the Registrar on any processing or
training except banker's orders in any event.
4. "Staff Members" may enroll in the 5th London ACC only on the basis of
special
arrangement as given here.
Definition: A "staff member" is one who holds a permanent staff
certificate. This does not apply to persons on staff who do not hold such a
certificate. Such a "staff member" may take the 5th London ACC by paying a
deposit of f 10 and by having deducted from his salary 20% per week until
full amount of ACC fee is paid. The "staff member" must guarantee to work
for the HASI until the full sum is paid and is to sign a contract to do so.
A provision of the contract shall state that on leaving the employ of the
HASI the full remaining sum shall become due and owing at once. No pay
shall be paid a staff member during his time spent on course. All staff of
whatever category may attend the lectures given by me-during the course as
a precedent of some standing but this shall not constitute an enrollment or
give the person attending the lectures any credit toward a degree.
Any person not a permanent staff member who wishes to enroll in
coursemust abide by all the provisions of paragraphs (2) and (3) above.
5. All students of the 5th London ACC must be enrolled before 10.30 a.m.
Monday October 20th, 1958. Publicly we want them enrolled before 8.30 a.m.
but there are always stragglers and people who have not signed up
everything. These win be sent back to the Registrar as soon as they appear.
They must have a HASI white invoice receipt stating terms of sign-up which
they will be required to show the ACC Administrator, Dr. Jan Halpern at 7
Fitzroy Street Monday morning. Yellow copies of these invoices, showing
everyone enrolled, shall be delivered to Dr. Halpern Monday morning.
6. The HASI Registrar and The Assistant to the Treasurer shall have full
enrollment
and financial responsibility in enrolling the 5th London ACC.
L. RON HUBBARD
LRH:rs.cden
Copyright Q 1958 by L. Ron Hubbard ALL RIGHTS RESERVED
224
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HASI POLICY LETTER OF 19 JANUARY 1959
EXTRA WEEKS ON HPA COURSE
The following is policy in relation to students who could not make the
grade in the eight weeks HPA Course:
If the course was paid in whole, in advance, the student is entitled to
free weeks to finish his training.
If he has not paid in advance he is only permitted eight weeks.
Extra weeks will cost f 7.10.0 per week.
LRH:mp.vmm.cden L. RON HUBBARD
Copyright @ 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF I I MAY 1959
(Convert into a Secl ED)
HPA/BSCN "RETREADS"
Ther& is no such thing as an HPA/BScn retread fee.
If an HPA wants to retread to new HPA course, he can pay the usual price
per week for training (about 15 gns).
I know there is now a mish-mash in training because of a new course more
basic than old courses. We'll just have to cope.
LRH:cden L RON HUBBARD
Copyright @ 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
225
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 OCTOBER 1959
CenQCon
PROCESSING OF CHILDREN ON THE HGC
Children are to be charged full rates on the HGC. They are pretty
difficult to audit so should be charged as much as grown-ups, unless there
has been confirmation on this from LRH to do otherwise.
The only exception to full rates would be auditors, their husbands/wives
and
children.
LRH:js.rd
Copyright@ 1959 HCO Secretary WW
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 29 MARCH 1960
Reissued in Sthil
qenOCon
HGC AND ACADEMY PRICES FOR MINORS
(Cancels and replaces HCO Policy Letter of 27 October 1959)
The following two categories of minors are instituted for Academies:
I A minor below the age of eleven (11) is not eligible for training at
the
Academy except by special permission of LRH.
2. A minor, to qualify for training at the Academy, must have
reached his/her eleventh (I Ith) birthday and not have reached
his/her eighteenth (I 8th) birthday.
The minor's training fee for the HPA and B.Scn. (HCA and HCS) courses
shall be two thirds of the adult fee, whatever fee is in force.
The reason for disallowing minors below the age of I I to attend the
Academy is that such beings are, usually, still in need of special
attention that would normally tend to create a situation of specialized
care that would consume too much of the instructor's time.
HGC PRICES FOR MINORS
HGCs may accept a child of any age for processing (except psychos as per
present policy).
Below the age of 14 years, a child will be charged full price at HGCs.
They are pretty difficult to audit, so should be charged as much as grown-
ups, unless there has been confirmation on this from the Executive Director
to do otherwise.
SPECIAL CATEGORY
Between'the ages of 14 and 18, minors will be charged two thirds of the
HGC processing prices. (After the age of 14 children are easier to handle,
and this price reduction is an encouragement to teen-agers to get
processing.)
In the case of minors directly related to Certificated Auditors (their
immediate family), the current discounts apply as before.
LRH:js.gh.rd Peter Hemery
Copyright 1960 HCO Secretary WW
by L RonWubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
226
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 24 MAY 1960
CenOCon
EXTENSION COURSE PRICES
(Corrects HCO Policy Letter of May 20, 1960, same title)
HQO Policy Letter of May 20, 1960, contained incorrect information.
Please amend as follows:
Prices for the Extension Course are as follows:
HPA/HCA Extension Course - 112. 0 . . 0 or 834.00 B.Scn/HCS
Extension Course - L12. 0. 0 or S34.00
This course may be bought in units, one unit at a time. The price of
each unit of each course is f 3 or S8.50 per unit.
Usual discounts allowed for cash payments. Lifetime Members/Shareholders
are allowed to have the HPA/HCA Extension Course free, but must pay the
normal fee for the B.Scn/HCS Extension Course.
LRH~js.rd Peter Hemery
Copyright @ 1960 HCO Secretary WW
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
[Note: Revision was change of price from Z15 or $42 to Z12 or $34, also
addition of second last paragraph. ]
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 NOVEMBER 1960
HCCs
Central Orgs
HPA/HCA COURSE
To avoid any confusion that may exist, it is emphasized that the Academy
HPA/HCA Course is basically an eight week course, and is sold as such. The
student pays for any extra weeks he may take.
LRH-.js.oden Issued by: Peter Hemery
Copyright @ 1960 HCO Secretary WW
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
227
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 FEBRUARY 1961
HCO Secs Assoc Secs Registrars Dir PrR
FREE COURSES
The only free course given is where the student signs a contract to
audit HGC preclears under the D of P for at least one year.
The penalty if they refuse to carry this out is 250 guineas for the
training they receive.
L. RON HUBBARD
LRH.js.rd Copyright @ 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
I
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 MARCH 1961
HCO Secs
Assoc Secs
Registrars
Dir PrR
FREE COURSES
(Revises HCO Pol Ltr of February 27, 196 1, same title)
This Policy Letter applies only to professional auditors and night
training courses.
The only free course given is where the student signs a contract to
audit HGC preclears under the D of P for at least one year.
The penalty if they refuse to carry this out is 250 guineas for the
training they receive.
L. RON HUBBARD
LRH:ph.rd Copyright Q 1961 by L. Ron flubbard ALL RIGHTS RESERVED
228
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 DECEMBER 1961
CenOCon
INTER-ORG EXCHANGE OF STUDENTS
The following Policy Letter is written and requested to be issued by
Assoc Sec London and is issued herewith:
I A student starting the Course in an Org, whose account has been paid
for,
can without further payment carry on in another Org to complete a
course
begun but not finished.
2. If his account has not been completely paid, then balance due is
to be cancelled by the Org he is leaving and taken over by the Org
he is joining. The necessary papers to be completed thoroughly.
3. In the case of (1) above, no funds need to be transferred from
one Org to another. In the case of (2) above, each Org will receive
what is obviously in the books, without any transfer of funds except
the transfer of papers.
4. In the past, a gentlemen's agreement was arrived at between D of
Ts or Assoc Secs, but it can create randomities about Accounts,
transfer of currencies, right unexpired portion of Course (this is
unworkable now) for assessing costs, etc.
We have had three cases on harid-Joburg/London, London/Melbourne,
London/Washington. Those here have spent 14 weeks an Course. If they
finish in Melbourne, we would feel upset in disbursing some portion
of what was paid for, and for which we have given 14 weeks. On the
other hand, Melbourne will feel upset if in turn they had to give
themselves another 10 weeks for example.
On the other hand, only London and Washington could transfer monies,
whereas the other Orgs are under strict exchange control.
L. RON HUBBARD
LRH:esc.cden Copyright (D 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
229
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 FEBRUARY 1962
sthil
HCO Secs
Assoc Secs
SAINT HILL RETREADS
(Amends HCO Pol Ltr of December 19, 1961)
if a student has exceeded eight weeks initially on the Saint Hill
Special Briefing Course, he or she must pay for weeks of retread, if
returning to Course for further training, at the rate of $50.00 or;E 18.0.0
per week, which is half the weekly cost of the original course.
When a student has been terminated he or she has the right to extend by
paying the weekly retread fee from the date of termination.
LRH:sf.rd L. RON HUBBARD
Copyright @ 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Note; The amendment is the addition of the last paragraph. -Ed.]
I
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 24 JULY 1962
Franchise
ACADEMY
EXTRA WEEKS
Any extra week payment being required of Academy students in any
Organization is abolished herewith effective on receipt of this Policy
Letter.
The mission of an Academy is to make Auditors who can audit, and issue
them their certificates.
Should a student leave the Course and return after two weeks a retread
fee of 30% without further grant or discount of the original HPA/HCA full
course fee shall apply.
The Academy course has no finite duration but every effort should be
made to gradudte the student at the end of twelve weeks.
LRH:jw.cden L. RON HUBBARD
Copyright @ 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
230
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 NOVEMBER 1962
CenOCon Franchise Field
SAINT HILL RETREAD FEE
The retread fee for Saint Hill Special Briefing Course is 50% of the
regular course
fee.
A retread is sixteen weeks long.
Weekly retread fees are discontinued.
Once terminated, a student may only retread.
There are no special arrangements for retread or less time offered.
There is no time interval specified before a retread can be had.
Acceptance of retread on the course follows routine channels just as in
original enrollment.
LRH:dr.cden L. RON HUBBARD
Copyright Q 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 MAY 1963
CenOCon SA Orgs
STUDENT RATES FOR HGC AUDITING IN SA ORGS
Students on professional level courses in the Academy may be ordered to
processing by the Director of Training if such processing is necessary to
enable the student to complete his training.
This processing may be supplied by the HGC at R100 per 25 hours (no
further discounts).
Processing of students in an HGC is always secondary to the processing
of regular pcs in case of auditor scarcity.
Issued by: Jack Parkhouse
Continental Director Africa
Authorized by: L. RON HUBBARD
LRH:jw.aap
Copyright @ 1963
by L. Ron Hubbard 231
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, Fast Grinstead, Sussex
HCO POLICY LETTER OF 23 JULY 1963
Orgs
Sthil
Franchise
RETREADS ON SAINT HILL
SPECIAL BRIEFING COURSE
Students on the Special Briefing Course who require leave of absence for
emergencies may do so under the following conditions, otherwise they will
be charged a re-tread fee irrespective of the length of time they have
already been on Course.
2 weeks absence (with permission only)
3 months (by very special arrangements beforehand).
Other than that, any student leaving Course for any reason whatsoever
will be charged a re-tread fee on returning. No part of the original fee is
returnable.
L. RON HUBBARD
LRH:jw.cden Copyright @ 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
232
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 8 OCTOBER AD 13
Central Orgs
Franchise
Field
NEW SAINT HILL CERTIFICATES AND COURSE CHANGES
Without changing the curriculum, units or instructors, on I st December
AD 13 the Saint Hill Course will be divided into two certificate levels and
the cost will be reduced.
Many Auditors have not been able to take the course because of fear they
will be held over beyond the time they can afford.
As clearing has returned as a reality at Class III and as this was the
basic purpose of the course, two certificates will now be issued.
HUBBARD SENIOR SCIENTOLOGIST (ST. HILL). This certificate will be issued to
any student attending the course 16 weeks. If all course requirements are
also met a Class III will be awarded. An additional four weeks only will be
allowed for completion of check sheets, but no student enrolled will be
held beyond sixteen weeks or extended on course more than an additional
four weeks. The cost of the course has been dropped to E250 Sterling
(8700). The student so enrolled is then assured of being able to return
home after 16 weeks of intensive training and is assured of receiving the
certificate of HUBBARD SENIOR SCIENTOLOGIST (ST. HILL). HPA or HCA is
prerequisite to enrollment. Our experience has been that nobody can go
through the Saint Hill Course, whatever he or she did with grades, without
becoming a remarkably superior auditor.
The, second course begins with the completion of the HSS (ST. HILL)
Course, an HSS (ST. HILL) being prerequisite to it. This course is
scheduled as a 20 week course. It awards the certificate HUBBARD GRADUATE
AUDITOR and, if all check sheets are completed, Class IV is also awarded.
Class III may also be awarded on this certificate. This course takes the
student from clearing to auditing to OT. Its subject materials are those
now existing as Level Four. The cost of this course is additional to the
HSS Course. The cost is E250 Sterling (S700) with a E50 grant available
from Mary Sue to those she especially wants on this course.
During the past year the original 20 week SHSBC has been extended in
subject materials to cover all levels of auditing and as such has exceeded
the original requirements.
Students enrolled before Ist December, 1963 will receive the original
course at the original cost and may extend into the second course at option
without further cost.
Retread students will be honoured as having completed the first course
regardless of units they are assigned to and their cost will be that of the
second course.
Course materials have been stable for some time.
L. RON HUBBARD
LRH:dr.rd Copyright @ 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
233
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 JULY 1965
Remimeo
RELEASES
When any pc signed up and being audited on any 25 hour intensive reaches
the state of First Stage Release, the processing is immediately ended (with
a gentle That's It). The intensive is not completed. However, as the goal
of the processing has been achieved, the money of the balance of the
intensive is not refundable.
However, in celebration of the person having reached the State of
Release, the org may credit the person with that amount (of the unused
balance of the intensive) toward training. If no training is going to be
undertaken by the person, then, of course, there is no crediting. Training
should be heavily encouraged since that is the route to Cl VI and Clear and
it is not envisioned that there will not be plans on the part of the person
for training.
The fact that, in the case of Releasing the person before the completion
of the 25 hours, the money will not be refunded, due to the goal of the
processing having been achieved, should be added to the HGC Contract.
L. RON HUBBARD
LRH:mh.kd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
234
I
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER,OF I SEPTEMBER 1965
Issue VI
Gen Non-Rernimeo
SAINT HILL SERVICES AND PRICES
(Preserved policy from former Policy
Letters which have been cancelled)
Saint Hill has just opened its Hubbard Guidance Centre in order to be in
line with all orgs over the world in all departments.
The Saint Hill Course now handles all levels of Training but these
courses are review courses at the lower levels and HCA (classed or
unclassed) or old Commonwealth HPA (classed or unclassed) remain the
entrance requirement. Students go through all levels, usually the lower
ones very rapidly, and are Classified for each Level with a Saint Hill
Classification.
Saint Hill Classification takes precedence over all other
Classifications in any level. A student's own Classification is not taken
away but for the duration of the course is invalid but may be resumed on
departure from the course. However the student usually has a far higher
Saint Hill Class on leaving.
The purpose of the Saint Hill Special Briefing Course remains the same-
to make the Auditors and instructors who make the auditors and instructors
over the world. And to put the final polish on auditing. As auditors
sometimes do not realize that an auditor of a higher level always audits at
the pe's level, seeing and getting lower level results and clearing with
them is very revelatory. One does not expect a Class VI auditor to run only
Level VI. Quite the contrary. A Level VI auditor should be able to do Level
0 work superlatively well. Many release today at only Level 0, much less
IV. So the Saint Hill Course enters all students today at Level 0 and
rapidly moves them right on up in quick time. Students who know the lower
material of course g et it checked out very readily.
SAINT HILL COURSE
Any part of the Saint Hill Course or retread is L275 cash. There is no
credit extended, no discounts. Credit is allowed on auditing and Review to
Saint Hill Course students when on course.
SAINT HILL HGC
Prices are $500 or f 180 public, $250 or f 90 student and professional
rates.
Other HGC Grade Certificates are honoured in the Saint Hill HGC, but the
holder is carefully checked and any unflat auditing'detected and repaired
before the pc is allowed to go on to the next certificate.
NO CREDIT
Credit is not extended at Saint Hill or Washington to Franchise Holders
or members on books, tapes or meters, as it makes too much accounting.
L. RON HUBBARD
LRH:ml.rd Copyright Q 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
235
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 18 JANUARY 1969
Remimeo
ADVANCED ORG AWARDS
When an AO service is awarded a staff member from another Scientology
Organization for a job very well done, the org awarding the course forwards
payment to the respective AO.
Once payment is received the person will be enrolled on the course.
An AO does not deliver such services free.
The only exception is when an AO course is awarded by LRH personally.
Lt. Robin Roos
LRH:ei.rd CS-3
Copyright @ 1969 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Commodore
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 JUNE 1969
Remimeo
DIANETIC COURSE PRICING
The cost of the Hubbard Dianetic Counsellor Course (HSDQ remains as
already issued-$500.00 U.S. dollars and f 125.0.0 UK sterling,
The cost of the Supervisors Course (with an HDC, the graduate of this
course becomes a Hubbard Dianetic Graduate) is 8 125.00 U.S. dollars or f
30.0.0 in UK
sterling.
L. RON HUBBARD
LRH:ei.kd Founder
Copyright @ 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
236
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 SEPTEMBER 1969
Remirneo BPI Auditor
OLD ACC STUDENTS
Any and all persons who have ever enrolled in an ACC (Advanced Clinical
Course) providing only that a fee was paid in full, is entitled to the
following:
1 Full training as an HDG in the DAC of his nearest org or an SH or an
AO.
2. Student Auditing in Dianetics and org reviews to resolve any possible
case difficulties.
3. Assistance in obtaining any medical treatment indicated as necessary
by competent medical examination.
4. A retread to Class VI in a modern SH Course.
No fees, except for any medical treatment indicated, may be charged for
any of the services above.
All orgs, A0s and SHes are ordered to deliver the above services.
The Public Executive Secretary is to cause his division to unearth all
past ACC records for names and addresses and to have his divisions send
copies of this Policy Letter to all such former ACC students.
Those ACC students who have recently paid for the new Standard Dianctic
Course may have the amount credited to AO levels or AO reviews on
presentation of invoice to A0s,
It is the full intention of this Pol Ltr to ensure that old ACC students
receive full benefit of modern technical developments. These students were
once promised they would not have to pay for further training and this
favour is,offered to redeem that promise at least in part if not in full. I
want them to be well and happy beings wherever they may not have fully
achieved that goal.
L. RON HUBBARD
Founder
LRH:Idm.ei.rd Copyright @ 1969 by L. Ron Hubbard ALL RIGHTS RESERVED
237
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 SEPTEMBER 1969
Rernimeo
BPI
The Auditor
FORMER HDAs, HPAs
All persons who had achieved prior to the advent of Standard Dianetics,
the certificate of HDA (Hubbard Dianetic Auditor) or HPA (Hubbard
Professional Auditor) and who paid in full for the course are awarded as
follows:
I . A Standard Dianetics Course at their local org full or part time.
2. Student Auditing and Reviews in their local org.
Both at 50% of the existing Standard Dianetics Course and Review fees.
Any person who has paid for a new Standard Dianetics Course in full who
had already paid for an old HDA or HPA Course in full MAY HAVE THE FULL
AMOUNT PAID FOR THE STANDARD DIANETICS COURSE CREDITED TO SCIENTOLOGY
ACADEMY COURSES, TO A SH COURSE IF HE HAS HAD THOSE OR TO A CLASS VIII
COURSE OR AN AO GRADE.
It is the full intention of this Policy Letter to assist any Dianetic
Auditor to become an HDC and obtain thereby the excellent results available
in using Standard Dianetics.
LRH:Idm.ei.kd L. RON HUBBARD
Copyright Q 1969 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 SEPTEMBER 1969
Issue 11
Rernimeo
BPI SUCCESSFUL CLASS V111s
Any Class VIII auditor may have the new Standard Dianetics Course free
of charge at his nearest org or an AO.
The additional certificate of HDG is required of Class VIIIs so they can
handle Case Supervision and Standard Dianetic Auditing as well as audit
well in Standard Dianetics.
The certificate of HDG is a prerequisite (along with a Class VI) for all
new AO Class VIII enrollees after the date of receipt of this Policy
Letter.
STANDARD DIANETICS
The Course is available at AOs and SHes.
It has been found that the ability to audit Standard Dianetics well in
its simplicity speeds Academy, VI and VIII training greatly and reduces
failed students in the Academy, VI and VIII Courses to zero.
It is not the intention of this Pol Ltr to interrupt the plans or
activities of Scientology Classed Auditors or applicants and all possible
adjustment will be made in orgs to accommodate Scientology Classed Auditors
to quickly obtain their HDG during this period of adjustment.
We now have a smooth flowing tech training line and have found there are
no failed cases where training is good and which follows this gradient.
LRH:Idm.ei.rd L. RON HUBBARD
Copyright (D 1969 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED 238
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 NOVEMBER 1969
Remimeo
BPI
Auditor
CLASS Vill RETREAD
Retread of the Class VIII Course is free of charge to VIIIs who are
actively working (whether on Tech duty or not) in a Central Org, Saint Hill
Org, AO Org, Franchise or a Dianetic Counselling Group.
Class VIIIs on the other hand who are not active-meaning not working at
any of the above-are charged half price ($750.00) for retread of the Class
VIII Course.
Lt. Robin Roos
LRH:RR:rs.oden CS-3
Copyright@ 1969 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 NOVEMBER 1969
(HCO Policy Letter of 15 November 1969 Corrected)
Rernimeo BPI Auditor
CLASS VIII RETREAD
Retread of the Class VIII Course is free of charge to VIIIs who are
actively working (whether on Tech duty or not) in an Outer Org, Saint Hill
Org, Advanced Org, Franchise or a Dianetic Counselling Group.
Class VIlls on the other hand who are not active-meaning not working at
any of the above-are charged half price ($750.00) for retread of the Class
VIII Course.
Lt. Robin Roos
LRH:RR:Idm.ei.rd CS-3
Copyright (D 1969 for
by L. Ron Hubbard L~ RON HUBBARD
ALL RIGHTS RESERVED Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 DECEMBER 1969
(Clarifies HCO P/L Dee 7, 196 1)
Remimeo
INTER-ORG EXCHANGE OF STUDENTS
Orgs who transfer monies received for Scientology or Dianetic services
to another org are doing nothing but GIVING AWAY THEIR INCOME.
Students and preclears having paid for services at one org may receive
or continue service elsewhere if they have: -
I . Paid in full for services whether begun or not.
2. Partly paid for services.
The rule is: THE MONEY WAS COLLECTED BY REASON OF GOOD WORK AND
PROMOTION AND THEREFORE THE ORG THAT COLLECTED EARNS THE RIGHT TO KEEP IT.
It might first seem unfair to the org delivering the service for which
another org has collected the Income, but it should be remembered that the
org delivering the service has the benefit of the body in the shop with all
that this implies in terms of potential future sales of service to him, his
family and friends.
It is a Comm Evable offense for an org staff member to prevent a student
from taking a service because funds were paid in at another org. -
NO ORG OR FRANCHISE MAY INTENTIONALLY COLLECT MONIES WHICH WOULD
NORMALLY BE PAID TO ANOTHER ORG. SUCH MONIES MUST BE FORWARDED IMMEDIATELY
TO THE ORG CONCERNED.
NO ORG OR FRANCHISE MAY COLLECT MONEY FOR SERVICES
DELIVERED ONLY BY HIGHER ORGS.
Lt. Robin Roos
LRH:RR.rs.ei.rd CS-3
Copyright (D 1969 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 DECEMBER 1969
Issue 11
Remimeo
STUDENT RESCUE INTENSIVE PRICING
The cost of a five hour Student Rescue Intensive is $225 U.S. Dollars,
or the Sterling equivalent.
Lt. Robin Roos
LRH:RR.Idm.oden CS-3
Copyright @ 1969 for
by L. Ron Hubbard 240 L RON HUBBARD
ALL RIGHTS RESERVED Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 DECEMBER 1969
Remimeo
Div 1's
Div 2's
Div 3's
ORG PROTECTION
Orgs who send their staff for training to a higher org, must first
demand of the staff member that he sign a Note to the extent of $5,000 in
order that he may commence the course. (Each course received by the staff
member at org expense, is priced at the value of $5,000.)
Such a Note, as mentioned above, must be legally binding in that if he
breaks his Contract, he is automatically in debt to the org for $5,000.
Legal action is taken in the case of refusal to pay this debt, or failure
to adhere to regular payments until the debt has been paid off fully. His
Certs and Awards are suspended, and further training or processing is
denied until the matter is handled. SH & AO Registrars are informed by the
org of Contract breakers.
Val Does, Div 1, Dept 3, receives the original of the Note once it is
signed and witnessed, and Accounts receives a copy for filing in the staff
member's Accounts folder. A copy is retained by the staff member and
presented to the Registrar prior to being enrolled on the course. NO NOTE =
INELIGIBLE FOR THE COURSE.
The note is withdrawn, and cancelled when the staff member has completed
his Contract.
It is the intention of this Policy Letter that before Contracts are
signed and services taken at Org expense, due consideration is given to the
consequences of
Contract breakage.
Lt. Robin Roos
LRH:RR:rs.cden CS-3
Copyright (D 1969 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 JANUARY 1970
Remimeo
Div I
Div 2 PRICING-RESCUE INTENSIVES
(Cancels HCO Pl, 10 December 1969 STUDENT
RESCUE INTENSIVE PRICING)
Every 5 hour Rescue Intensive (whether a Dianetic or Scientology
intensive) is priced at $125.00 US or f.22. 10.0. sterling.
Five-hour Student Rescue Intensives fall under this category of service
and anyone having purchased a Student Rescue Intensive at the previous
price of S225 may have the balance in excess of the new price credited to
his account for future services.
W/O Vicki Polimeni
LRH:VP.nt.ei.eden CS-3
Copyright@ 1970 for
by L. Ron Hubbard 241 L. RON HUBBARD
ALL RIGHTS RESERVED Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 JANUARY 1970
(Corrects HCO Policy Letter of 28 November 1969
and HCO Policy Letter of 15 November 1969)
kernimeo
BPI
Auditor
CLASS VIII RETREAD
Retread of the Class VIII Course is free of charge to VIlls who are
actively working (whether on Tech duty or not) in an outer org, Saint Hill
Org, Advanced Org or any Sea Org Unit, Pubs Org or World Wide.
Class VIlls who are not active or are working in a Franchise or
independentlymeaning not working at any of the above-are charged half price
($750.00) for retread
of the Class VIII Course.
W/O Vicki Polimeni
CS-3 Materiel Aide
for
LRH:VP:jz.rd L. RON HUBBARD
Copyright Q 1970 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 JULY 1970
Rernimeo
I RETREADS
Academy Course retreads and retread packages are 50% of the current
course or package price.
SHSBC and Interneships give no discount for retread. However, Academy
payments are credited to SHSBC retread as they would for any enrollee on
SHSBC.
Class VIII retread is as per HCO Policy Letter 20 Jan 1970, CLASS VIII
RETREAD, free to org staff members, half price to others.
Lt. Vicki Polimeni
CS-3
for
LRH:VP:sb.rd L. RON HUBBARD
Copyright (D 1970 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
242
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 JULY 1970
Reminteo (Amends HCO P/L 13 Nov 1969 by adding Class 0, 1,
BPI II, III, IV and VI CS Internships and HCO P/L 18 Apr
Auditors 1970 Iss 11 which corrects HCO P/L 13 Nov 1969)
INTERNSHIPS AND CASE SUPERVISORS
Due to the necessity for skilled Case Supervision in all orgs,
franchises and groups, the following Internships are established in
Advanced Orgs, Saint Hills and Class IV Orgs respectively.
CLASS VIII CS INTERNSHIP
Class Vill CS-Requires an Internship in an Advanced Org after completion
of the Class V111 Course for a period of at least another six weeks.
During this time the Interns do the Class VIII CS Internship Checksheet.
On completion of the checksheet the Interns do a daily training period,
learn and do high level auditing, study Case Supervision under an expert
Class VIII. Case Supervisors do actual Case Supervision and on successful
completion are granted a Hubbard Scientist of Standard Tech Certificate. No
Contract required. (Prerequisite: 14DG and Class VIII.)
CLASS VII CS INTERNSHIP
Requires an internship in a Saint Hill Org for a period of at least six
weeks. Studies and does Power Processing and audits Dianetics, Progress and
Advance Programs and Expanded Lower Grades.
Completes or does the Org Exec Course. Studies and does the CSing of
Power, Dianetics, Progress and Advance Progranis and Expanded Lower Grades.
No contract required. (Prerequisite: HDG and Provisional Class VI.)
CLASS VI CS INTERNSHIP
Requires an Internship in a Saint Hill Org for a period of at least four
weeks. Studies Progress and Advance Programs. Audits all Class VI actions
including Expanded Lower Grades in the HGC and as a Review Auditor. Studies
and does the CSing of Progress and Advance Programs and Expanded Lower
Grades.
This Internship consolidates SHSBC training through practical
application under a Class VIII.
No contract required. (Prerequisite: Provisional Class VI.)
CLASS V CS INTERNSHIP
Requires an Internship in a Saint Hill Org for a period of at least two
weeks. Studies and does CSing of Progress and Advance Programs and Class V
actions under Class VIII supervision.
This Internship may be awarded if the Class V CS Checksheet is done
well.
No contract required. (Prerequisite: Class V Expanded Release.)
CLASS 0, 1, 11, 111 or IV CS INTERNSHIPS
Requires an Internship at a Central Organization for a period of at
least two
243
weeks for each level. Studies and does CSing of actions applicable to the
Classification attained.
Learns Tech and Qual Services and Admin.
These internships may be awarded if the applicable Class 0, 1, 11, 111
or IV Checksheets are done well.
No contract required. (Prerequisites:
Class 0 Grade 0 for Class 0 CS Internship
Class I Grade I for Class I CS Internship
Class 11 Grade 11 for Class 11 CS Internship
Class III Grade III for Class III CS Internship
Class IV Grade IV for Class IV CS Internship)
HDC CS INTERNSHIP
Requires an Internship at any official Scientology Org which teaches
HDG; Interning for a period of at least four weeks. Studies and practises
Dianetic Auditing. Studies and learns to Case Supervise Dianetic sessions.
Learns the handling and direction of other auditors. Studies Staff Status
11 to become familiar with general Administration.
(Prerequisite: HDC with an excellent record of auditing.)
HDG
Requires taking the Hubbard Dianetic Graduate Course. Qualifies a person
to teach the Hubbard Dianetic Counselor Course in orgs, franchises or
groups and obtain certificates for his students from an official org.
According to existing prices.
(Prerequisite: HDC with an excellent record of auditing.)
NOTE: All these Internships are taught in the Correction Division of
the org, except HDG.
INTERNSHIP PRICES
US, EUROPE,
DK, AFRICA UK, ANZO
CLASS VIII C/S INTERNSHIP S500 f 200
CLASS VII C/S INTERNSHIP S500 f 200
CLASS VI C/S INTERNSHIP S250 f 100
CLASS V C/S INTERNSHIP S125 f,50
CLASS 0 - IV INTERNSHIPS (per level) $50 L20
CLASS 0 - IV C/S INTERNSHIPS (package
rate for all 5 level Internships) 9200 f80
HDC C/S INTERNSHIP $125 f50
DISCOUNTS
All Internships offer 50% discount to contracted staff of official
Scientology orgs.
D/CS-5
LRH:JF:rr.aap for
Copyright @ 1970 L. RON HUBBARD
by L. Ron Hubbard Founder
ALL RIGHTS RESERVED
(See also HCO P/L 6 November 1971, Issue 11, Selling Internships, Volume 5-
page 325.1
244
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 OCTOBER 1959
CenOCon
MEMBERSHIPS
As of this date only memberships as follows may be sold:
Associate Member-No discounts or services, Pin. and Card only-5s. or S
1.00.
International Member-PAB Magazine, Continental Magazine, 10% discount on
books, tapes and possibly congress. (Cash purchases only)-5 gn. or $15.
Lifetime Membership-PAB Magazine as available, Continental Magazine as
available, 20% discount on Training, Processing, Books, Tapes. (Discount
valid on cash purchases only)-�25 or $75.00.
It will be seen that participating memberships will not now be sold and
will vanish when expired. No magazine subscriptions may be sold.
All members now on rolls except Associate Members will get the PAB
Magazine until their memberships expire.
B/A AND REGISTRAR NOTE
Note that no discounts are allowed on any but full cash purchases. In
other words full or part credit purchases are not now subject to any
discounts. If you have allowed discounts on credit purchases previously, it
is condoned but no such discounts may be allowed in the future.
L. RON HUBBARD
LRH:js.rd Copyright (D 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
245
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 DECEMBER 1959
CenOCon
MEMBERSHIP DISCOUNTS
Issue the following as a Sec ED.
Only Lifetime Members, Shareholders, and International Members are
entitled to discounts and only when the purchase is totally cash.
Associate Members, Sustaining Members do not get any discount on
anything.
This cancels any earlier inference as to ALL members getting discounts.
LRH:js.cden L. RON HUBBARD
Copyright (D 1959 Executive Director
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 MAY 1960
CenOCon
KEEPING MEMBERSHIPS IN FORCE
In order to deal with the problem of professional auditors who allow
their memberships to lapse, the following routine action is authorized:
When a membership lapses, the memberships clerk should write three
reminder letters. If the membership is riot renewed HCO Area See should
then be notified by the memberships clerk. The HCO Area See will then write
a letter informing the person that if he does not renew his membership
within one month, his Certificate will cease to be valid. If the membership
is still not renewed, Memberships and Addressograph must then be notified
by the HCO Area See. Addressograph should then remove the person's HPA or
other qualifying letters from his Address plate. However, the tab should
not be changed; in this way the person will still receive mailings to
auditors, and there is still a chance that his interest will be revived and
that he will eventually renew
his membership.
Peter Hemery
LRH:js.rd HCO Secretary WW
Copyright @ 1960 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED
246
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 6 JULY 1960
Reissued from Sthil
CenOCon
IT MEMBERSHIP PRIVILEGES
Some confusion may exist with regard to the privileges entailed in a
Lifetime Membership. The purpose of this Policy Letter is to clarify the
situation after review of this problem in various areas.
It is possible that the details as indicated here will not coincide with
the actual position in your area, or it may conflict with existing
privileges which have actually been granted hitherto to the Life Members.
However, since the advantages and privileges must be the same in any area
of the world it will be necessary for all Scientology Orgs, in all areas to
conform eventually to the rundown as shown here. Life Members in your area
should be informed of any changes which may affect them as soon as
possible.
A Lifetime Member gets 20% discount on Processing, Training and Books.
He does not get a discount on tapes or E-Meters or any other materials
which may be supplied by a Book Department, but on books only. He does not
get a discount on ACC fees, as the ACC is a specialized HCO activity. The
discount on Training is given on any training taken in an Academy,
including the Extension Course.
If a LT Member is also an International Member, he receives a 3090'
discount on books instead of 20% (so long as he retains both memberships).
The 30% discount applies only to books, not Processing or Training.
If an International Member becomes a LT Member, he receives a refund of
the unused portion of his International Membership (unless he wishes to
retain the Int. Membership).
Neither an International Member nor a LT Member receives any discount on
Congress entrance fees.
A LT Member gets the HPA/HCA portion of the Extension Course free, but
pays the normal fee for the B.Scn/HCS portion of the Extension Course (less
discount).
The LT Membership does keep a Certificate in force. A professional
Scientologist who is a LT Member does not need to take out an International
Membership in order to keep his certificate valid.
The LT Member receives the area magazine (Certainty, Ability, etc.) as
he is on the mailing list (not because he is a LT Member). He does not
receive the PAB magazine. The PAB magazine is sent only to the
International Members. Addresso Departments should therefore not include
the LT Members in the addressed envelopes or stickers which they send to
HCO WW for the PAB mailings.
All discounts are for cash purchases only. This Policy Letter does not
countermand the usual rule that, book discounts are not allowed on books
costing 5/-
or less.
Peter Hernery
LRH:PH.js.gh.rd HCO Secretary WW
Copyright @ 1960 for
by L. Ron Hubbard
ALL RIGHTS RESERVED L. RON HUBBARD
(Note: Paragraph 4 has been amended by the addition of "The 309o discount
applies only to books, not Processing or Training" per HCO P/L 13 July
1960.]
247
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF 28 JULY 1960
(Reissued from Sthil)
CenOCon
INTERNATIONAL MEMBERSHIP PRIVILEGES
The privileges and discounts entailed in an International Membership at
present are as follows:
International Members receive the PAB Magazine monthly, and also the
Continental Magazine (Certainty, Ability, etc.) monthly.
International Members receive a discount of 20% on all books, charts and
scales except those priced at 51- (81.25) or less. There is no discount on
testing materials.
International Members receive a 20% discount on tapes, and also 20%
discount on E-Meters supplied by HCO WW.
If an International Member also holds a Lifetime Membership, he receives
a 30% discount on books, charts and scales instead of 20%. The 30% discount
applies only to books, charts and scales, not to tapes and E-Meters.
International Members do not receive any discount on Congresses.
All discounts are given on cash purchases only.
This Policy is not intended to affect the discounts already in force for
Lifetime Members and Franchise Holders, which remain unchanged.
Peter Hernery HCO Secretary WW for L. RON HUBBARD
LRH:rf.gh.cden Copyright @ 1960 by L. Ron Hubbard ALL RIGHTS RESERVED
248
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 25 OCTOBER 1960
CenOCon
MEMBERSHIP RESTRICTIONS
Effective 20th February 1961 no person may be retained as a professional
certified member of Scientology organizations whose , case level is that of
the mentally deranged and/or who makes no arrangements with a Central
Organization to improve an undesirable case level.
Professional membership shall replace "International membership" on
January 1, 1961.
Professional membersl-dps shall be annual.
Professional membership is not covered by a share in HASI Ltd.
No certificate may be considered in force if professional membership
lapses.
The price of a professional membership shall be the same as
International Membership was.
A certificate of any level or grade is required for a professional
membership to be held.
L. RON HUBBARD LRH:js.rd
Copyright @ 1960 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 NOVEMBER 1960
SA only
Info Cen Orgs
There will be no professional rates allowed for processing as of
February I st, 1961.
This does not affect special auditing rates to HASI Staff Members which
will continue.
Alison Parkhouse Dir Prom Reg SA for L. RON HUBBARD LRH:AP:aec.js.rd
Copyright (D 1960 by L. Ron Hubbard ALL RIGHTS RESERVED
249
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London WA
HCO POLICY LETTER OF 29 DECEMBER 1960
Re-issued from Sthil
Central Orgs
MEMBERSHEF CHANGE
HCO Policy Letter of October 25, 1960 is now null and void.
Due to the many complaints of people desiring to get the PABs under an
International Membership, the International Membership is re-instated.
LRH:js.gh.oden Mary Sue Hubbard
Copyright @ 1960 Deputy Executive Director
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 OCTOBER 1961
BPI
PROFESSIONAL RATES RESTORED
Concurrent with an intense campaign to maintain Central Organization and
HGC staffs as the finest auditors in Scientology, we announce the
following:
Effective on Receipt, all persons holding a valid, in force, and in hand
professional certificate in Dianetics or Scientology shall be entitled to a
50% discount on all HGC processing.
This will be mandatory of acceptance by all HGCs.
We have been clearing for some time. Clearing has certain preliminary
steps. It is best to get these out of the way first. Further, nearly all
offices have or will have in the very near future graduates from Saint
Hill, qualified to find correct goals and terminals. It is very dangerous
to run an incorrect goal and terminal. The ones found and run must be
right. Only Saint Hill graduates are qualified to verify a pc's goal and
terminal.
Therefore this is the optimum solution-to restore professional rates so
that all auditors can take the first and at last the final steps to
clearing in fully competent hands.
LRH:jw.cden L RON HUBBARD
Copyright (D 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
250
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 29 MAY 1962
BPI
PROFESSIONAL RATES
(Adds to HCO Policy Letter of October 27, 196 1,
Professional Rates Restored)
Professional Rates for auditing in the HGC are hereby restored to the
immediate families of professional auditors, as formerly.
Registrars should use their discretion as to what constitutes "Immediate
family", though normally it is taken to mean wife, husband or children of
the professional auditor.
All professional rates apply only to auditing in the HGC.
The rate is 50% of the full rate for the first 25 hours, without any
membership or Shareholder discount. There is no reduction by reason of
buying more than one week.
Professional rate is always 50% of the full rate of the Ist 25 hours,
never 50% of the 3 or 5 week rate.
L ION HUBBARD
LRH:dr.cden Copyright @ 1962 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint HUI Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 JUNE 1962
CenOCon
PERMANENT STAFF PRIVILEGE
Staff Members who complete Permanent Staff requirements may receive the
benefit of International Membership while they are on the staff of a
Central Organization or City Office.
A NIC invoice is made out by Accounts (so that records exist) upon
application by a staff member.
If a Permanent Staff Member leaves the Org voluntarily or is dismissed
for a valid reason, the International Membership fee becomes payable (part
of a year's membership to be worked out pro rata).
L. RON HUBBARD
LRH.jw.cdon Copyright Q 1962 by L Ron Hubbard ALL RIGHTS RESERVED
251
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I I APRIL 1963
HCO Secs
Assoc Sees
Acets Depts
MEMBERSHIPS
(Cancels HCO Pol Ltr of September 26, 1962, same title)
HCO Policy Letter of September 26, 1962, Memberships, is cancelled.
All International Membership monies will be received by HASI, and used
as formerly to defray the cost of magazine mailings (Certainty,
Ability,.etc). HASI continues to pay for all expenses of the magazine.
LRH:jw.cden L. RON HUBBARD
Copyright @ 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 APRIL 1965
BPI
Gen Non-Remimeo
MEMBERSHIP
ATIPESTATIONS
Notary and Justice of the Peace notarizations are no longer necessary on
any member application forms.
These have been made unnecessary.
A simple signature is adequate.
L. RON HU13BARD
LRH:wme.kd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
252
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I SEPTEMBER 1965
Gen Non Rernimeo
Franchise
CURRENT POLICY-FRANCHISE
(Preserved policy from former Policy Letters
which have been cancelled)
Stable Franchise Centres aye expected to become City Offices, and other
Franchise Holders are expected to build stabilized Centres toward the end
of becoming City Offices. Those not doing so may become individual Field
Staff Members.
FRANCHISE BECOMING CITY OFFICES
Successful Franchise Centres may become City Offices on application if
their record and activity as a Franchise Holder is adequate.
The requirements of a City Office are (a) corporate regularity by which
is meant their incorporation must be passed up and in accordance with
policy, (b) adequate premises, (c) the presence of a full time HCO Area
Sec, (d) training of someone in org administration at their Central Org.
MEMBERSHIP SALES
No Franchise Holder may sell memberships. Memberships may be sold only
by City Offices or Central Orgs.
All Membership money received by a Central Org or City Office must be
paid into the HCO Book Account of that office and this money is used for
dissemination. Salaries and general org bills may not be paid from the HCO
Book Account.
Franchise Holders receiving requests or monies for membership must
forward the matter to the Central Organization, referring the requests and
sending the money in its entirety.
Franchise Holders who are Field Staff Members may, however, select
members and receive FSM commission on such selections.
A Franchise Holder should advise memberships as he will receive the
benefit of it directly, membership monies being invested mainly in
advertising of books and assisting his own sale of these as well as
bringing other indirect benefits.
FRANCHISE HOLDERS MUST CHARGE CENTRAL ORG PRICES
Franchise Holders must keep to the scale of processing fees announced by
Central Orgs for each year. These are precisely calculated.
L. RON HUBBARD
LRH:ml.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
253
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I SEPTEMBER 1965
Issue V
Gen Non-Rernimeo
MEMBERSHIP POLICIES
(Preserved Policy from former Policy
Letters which have been cancelled)
Memberships
Members enrolling must be furnished their cards at once. However, this
is also done by application form and on that form the person signing must
pledge himself to abide by the rules, codes and policies of the
organization and that he understands there is no refund of membership and
that he does not belong to or work for any hostile organization or group or
any group undisclosed to us that is dedicated to the harming of Mankind.
Only a signature is required, not a notary.
Pins
Wherever possible, make it easy for persons to obtain and wear
Scientology pins, the S and double triangle.
Such a pin as available should be given new members. Pins should be
purchasable for a small sum along with books in the reception office.
Policy as to who wears a Scientology pin is governed only by their being
a member and subscribing to the membership application statement. However
there is no penalty for non members wearing general pins that do not bear
notation of class for grade or state of case.
Membership Not Part of 10%
No 10% administrative percentage is to be sent to Saint Hill on
memberships sold. It all goes into the HCO Book Account in the area where
the membership is bought and is not part of the organization's weekly gross
income. Membership monies go to dissemination.
Memberships Non-Refundable
No membership monies are ever refundable even for a portion of a year
since the purchaser of one usually receives many times its value in
discounts within a few days or months.
International Membership for Staff Members
Staff members, full or part time, continuously employed and under
contract are given their International Membership yearly without charge.
Their Lifetime Membership must be purchased by themselves. On departure
from staff a staff member's International Membership is cancelled as of
that date, but may be renewed on proper payment.
L. RON HUBBARD
LRH:ml.kd Copyright (D 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
254
FOUNDING CHURCH OF SCIENTOLOGY
WASHINGTON, D.C.
FC POLICY LETTER OF I APRIL 1957
ALWAYS REGISTER AND INVOICE
All students and pes for whatever brief training or processing, must be
registered by Registrar whether charge is made or not. All books issued
anyone must be invoiced whether charged for or not.
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
LONDON
HASI POLICY LETTER OF 21 APRIL 1957
INCOME
The horrible truth about HASI income is that it comes from
I . The Outflow of the Registrar and CF auditors;
2. The expert handling of people by the Registrar and from her cornm
lines;
3. Sale of books, memberships and tapes;
4. Good ARC with the world;
5. Good Service in training and processing.
Thought you'd like to know -
RON
HUBBARD COMMUNICATIONS OFFICE
LONDON
HCO POLICY LETTER OF 16 MAY 1957
INVOICING ITEMS
No services, goods, memberships, books, tapes or any other item on which
there would ordinarily be a financial transaction may be given or released
without being invoiced even if the invoice states "no charge".
This means that a free week of processing given to an outside preclear
must be invoiced by the Registrar. This means that any item for which there
would ordinarily be a charge must be invoiced before Shipping may ship or
the service unit such as Academy or HGC may deliver or perform.
There are no exceptions to this. It applies to all processing of staff
and issuance of books to students.
L. RON HUBBARD
FOUNDING CHURCH POLICY LETTER OF 23 MAY 1957
copy to all staff copy to HCO London
ORDERING PEOPLE TO PROCESSING OR TRAINING
When staff is to be processed or other people have special arrangements
made for them, a pink slip must be originated and sent to the Registrar so
that all terms of the processing or training may be expressed on an
invoice.
When I tell the Organization Secretary or the HCO Board of Review to
send somebody to training or processing, the person told should originate a
pink slip and get my initials on it. All terms and conditions and payments
of the processing or training must be clearly expressed on the pink slip
and the person ordered to training or processing should be informed.
LRH:md.rd
5-23-57 L. RON HUBBARD
255
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 4 JUNE 1959
Convert to
Sec ED
INVOICING AND COLLECTION OF MONEY
Income apparently suffers in some instances by the failure of staff
members to receive money for the organization from preclears and students
of the Academy and PE Foundation.
Incredible as it may seem this fundamental is sometimes overlooked to
the embarrassment of the unit.
Money must be taken at once on sign up always. The note if any and
receipt invoice are made up. The money is taken, the note if any signed,
the receipt given and then the pc or student is sent to processing,
training or HAS.
Even a no charge activity such as the first week of PE is given an
invoice, even if it is "no charge". How else can you demonstrate value,
collect the name and address and know if the person did enroll in the PE.
All activities must invoice properly.
Further, the D of T, the D of P and the D of PE must have an invoice
ropy for every person sent.
If no invoice copy, no training or processing. No signed contract and
release, no invoice. Accounts must require the note, contract and release
to be in a signed form before any invoice can be written for pes and pre-
course students.
No HAS or co-audit instructor may permit a student in his class, even a
staff member, without receiving the yellow invoice copy of enrollment from
them.
In a matter of "lots of people to invoice before class begins" don't
just collapse and let them in and "get it later"-what apathy. Put a
Congress type multiple clerk line at the entrance point. Have more people
there to do it and more machines. Cope. Give the enrollee their white and
their yellow.
Instructors in HAS and co-audit should collect the yellows rapidly at
the start of class on the first night of the week and pass to the PE Fnd
Director. Require the students to bring the white to show on other nights.
The D of P and D of T should always receive the yellow from the
enrolling pc or student and it must be right or no processing. On "later in
the week payment" the invoice must be niarked "later in the week such and
such a sum" and it must be remembered and collected. A staff auditor should
ask to look at the pc's white receipt before auditing begins.
The Registrar has been found to do less well when the Registrar does not
make out the note, contract and release and receive the cash. The Accts
dept can invoice the cash then, but only if the note, contract and release
are in order. Accts gives the white and the yellow to the pc and the pc is
escorted to the D of P or D of T not left to wander.
We spend vast sums to disseminate and get people in. Our solvency and
size of
256
unit depends on precise 8C on the finance line.
Note: Permitting a person to be trained, processed or co-audited without
proper invoice or payment can result in deduction of the fee from pay. All
HCO Area Sees see that this line works.
ALLSTAFF
Get at cause over income lines and raise your unit.
CREDIT
Credit may not be extended to HAS co-audit people or book buyers.
Credit may not be invited on pcs and students in any written form or
literature. High interest rates should be used always on notes. No sum "as
a minimum deposit" on training or processing may now be advised to a pc or
student.
Do not invite credit. We are a financial institution not a bank.
Credit may not be extended to bad credit risks. The Registrar should be
provided with a bad risk list by Accounts.
Badly overdue accounts must now be sued.
If you have to waste money, collect it and then buy white china dog
doorstops for the coalheavers union. Don't waste it before it is paid out
as a unit.
L. RON HUBBARD
LRH:mp.cden
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF 27 JUNE 1959
Issue Il
CenOCon
INVOICING
All invoicing is to be done hereafter by reception, modifying earlier
directives.
Only one invoice station will be used and that is reception.
LRH:mp.cden L. RON HUBBARD
Copyright Q 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
257
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 OCTOBER 1959
Convert
Sec BD
ATTENTION REGISTRARS AND BOOK ADMINISTRATORS
Discounts by reason of memberships, status as pro auditors or any other
reason do not apply to credit purchases.
Discounts may be given on cash sales only and sales or service paid in
full. No businesses, anywhere, give discounts on credit purchases.
L. RON HUBBARD
LRH.js.c4en Copyright @ 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
BOOK ORDERS
The following LRH order is taken from a despatch, date approx 1960:
IT IS IMPERATIVE THAT ALL BOOK ORDERS BE INVOICED RAPIDLY AND THAT THE
APPROPRIATE COLORED INVOICE SLIP BE PASSED AT ONCE BY HAND TO THE BOOK
SHIPPING SECTION. ORDERS ARE FILLED THE SAME DA Y THEY ARE RECEIVED FIVE DA
YS PER WEEK. THEREFORE THERE MUST BE RAPIDITY IN INVOICING AND GETTING THE
SLIPS TO BOOK ADMIN FOR S141PPING VERY EARLY IN THE DAY.
LRH
258
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 AUGUST 1961
CenOCon
BOOK SALES
All book sales of whatever nature are handled by HCO and none are
handled by any Central Organization.
This Policy Letter, therefore, strictly prohibits the sale of books in
Reception by any Central Organization. All Reception book sales shall be
done by HCO and HCO only -
This changes the Proportionate Income Breakdown Work Sheet to the degree
that all books sold in Reception are now added in with the HCO Area 5%.
If ' this policy is not in effect in your area, please put it into
effect immediately. No Central Organization is exempt from this ruling.
LRH:jl.cden L. RON HUBBARD
Copyright (D 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
259
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 OCTOBER 1963
HCOs [Excerpt]
Central Orgs
Reception
INVOICING
FOUR: INVOICING (HCO WW note: These instructions may not be applicable to
your Org.)
All invoicing is done at Reception except Testing Materials which is
handled by Julla Salmen or the Director of Accounts.
A. What is Invoiced.
1. Anatomy of the Human Mind Lectures.
2. Communication Course.
3. Co-Audit Course.
4. Books.
5. Donations to the Church.
6. Hubbard Guidance Center Processing.
7. Academy of Scientology Training Courses.
B. How to Invoice
1. The final figure at the bottom right hand corner of the invoice
should always
equal the exact amount received. (Cash, cheque, or whatever.)
2. The invoice should contain all pertinent data.
(a) Buyer's name, address, phone number, date of purchase.
(b) Total charges, total on account, amount received, terms of
payment.
(c) Invoices should show clearly whether payment is for: Spiritual
Training, Spiritual Processing, Books, or whatever. In addition
to written words explaining the sale a large letter "B" is put
on a Book Sale Invoice, a large letter "T" is put on a Training
Invoice, a large letter "P" is put on a Processing Invoice.
(d) On Book sales the retail price of the Book should be shown, any
discounts deducted from that, charges, tax, etc. There is a tax
table on the Invoicing Machine. You should also indicate that
the Book was delivered to the person, or that the Book is to be
mailed.
(c) Invoices should show whether payment is by Cheque, Cash or Money
Order.
(f) If purchaser is making use of credit we owe him, it should be
shown where this credit originated.
(g) Initial every invoice written so that any question arising may
be traced to the writer of the invoice.
(h) Discounts..
1. International Members: Get a 20% discount on books and
tapes costing over $1.25; 20% discount on E-Meters.
2. Franchised Auditors: Get a 40% discount on books costing
over $ 1.25, and a 20% discount on E-Meters.
3. Lifetime Members: Get a 20% discount on books, tapes,
processing and training. Not on E-Meters.
4. Lifetime AND International Member: Gets a 30% discount on
books and tapes, 20% discount on E-Meters.
5. Staff Members: Get a 40% discount on books and tapes only.
DISCOUNTS FOR ANY CATEGORY OF MEMBERSHIP APPLY TO CASH
PURCHASES ONLY. THEY DO NOT APPLY TO CREDIT PURCHASES.
260
(i) Examples of Invoices
1. Book Invoice:
QUAN. DESCRIPTION PRICE AMOUNT
I Dianetics, MSMH 4.00
I Problems of Work 1.25
5.25
Le~ss 20% 1.05
(Tax on this amount) 4.20 4 20
Delivered: Date (or) To be mailed:
Tax 17
Total 4 37
Received By Mary Reception
2. Processing Invoice. Payment data taken from contract.
z
QUAN. DESCRIPTION PRICE AMOUNT
25 Hours of Spiritual
Guidance 700
Cash down 200 200
Balance due 500
P
I I pays $4 1.00
I pay S49.00
First payment Jan 0, 19XX
Tax
Total 200
Received By MR
3. Training Course Invoice. Payment data taken from contract.
I
QUAN. DESCRIPTION PRICE AMOUNT
HCA Course
Spiritual Training 750.00
Cash down 250.00 250 00
Balance due 500.00
I I pays S4 1.00
I pay S49.00
First payment August X,19XX
Tax
Total 250 00
Received By MR -1
3. Distribution of Invoices.
(a) White copy goes to the purchaser.
(b) Yellow copy is put in a basket at your desk. When you have
time, distribute Book invoices to the Comm Center basket of the
Book Administrator; Training Invoices to the Comm Center basket
of the Director of Training; Processing Invoices to the Comm
Center basket of the Director of Processing; Memberships and
other Invoices to the Director of Accounts.
(c) Pink Copy goes to Central Files (Addressograph) for address
check and inclusion in the person's CF folder.
(d) Goldenrod copy remains in the machine, undetached, and is
collected after 2 p.m. each Thursday by the Director of
Accounts. Dir Accounts will give you the invoice number starting
the new week. Record this number on your desk calendar for the
appropriate date.
4. Incorrect Invoices.
When an invoice is written incorrectly, void it and write one
correctly. Don't try to make complicated corrections. VOID ALL
COPIES, including the copy in the invoicing machine (Goldenrod
copy). Write VOID in large letters across the face of the invoice,
and in small letters across the final figures at the bottom right of
the invoice. ALL copies of voided invoices including the white copy
must go to the Director of Accounts. Failure to include all copies
may result in difficulties in auditing the books.
Issued by: Peter Hemery
HCO Secretary WW
LRH:lr.rd for
Copyright Q 1963
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Authorized by: L. RON HUBBARD
[Fxcerpted from HOO Policy Letter 31 October 1963, Reception Hat. A
complete copy can be found in Volume 1, pages 64-72.]
262
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo HCO POLICY LETTER OF 24 SEPTEMBER 1965
Tech Div
Qual Div
Dissem Div FREE RELEASE CHECK
When a person comes in for a Free Release Check only, the invoice is to
be clearly marked FREE RELEASE CHECK, NO CHARGE.
When a person comes in for a Free Release Check and Rehabilitation, the
invoice is to be clearly marked FREE RELEASE CHECK AND REHABILITATION with
the proper price for such invoiced.
This is necessary so that no-one can be declared RELEASE unless signed
up for Rehabilitation.
LRH:ml.kd L. RON HUBBARD
Copyright Q 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Gen Non- Saint Hill Manor, East Grinstead, Sussex
Remimeo
Org Secs
Dissem Secs HCO POLICY LETTER OF I I FEBRUARY 1966
Dir Pubs
Dir of Income
Shipping Officer
Income Invoicing
Officer SHIPPING CHARGES
For any books or supplies sold at a 50% discount, the receiver must pay
for any postage or shipping charges.
The receiver is to pay for any special shipping costs, such as. air
mail, at any discount.
Taped lectures are shipped airmail at no extra charge as per HCO Policy
Letter 17 Dec 1964 "Tape Prices".
To ensure this, the following procedure must be adhered to:
I . Invoice and order is routed to Shipping Dept.
2. If 50% discount or special shipping is indicated on the invoice,
the Shipping Officer fills out a P.O. indicating total postage
costs, service performed, Invoice No.
3. This is routed to the Org Division on normal P.O. lines.
4. The Income Invoicing Officer fills out a "Debit Invoice" for the
receiver, indicating total postage, service performed, and Invoice
No. of the material ordered.
Receipt of postage payment as noted in step (3) is not a requirement for
shipping material. Orders are filled and shipped swiftly.
LRH:ml.cden L. RON HUBBARD
Copyright@ 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
263
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 FEBRUARY 1966
All orgs except Saint Hill
Info SH Secs
INVOICE ROUTING
FOR ALL ORGS EXCEPT SAINT HILL
(For SH Invoice Routing-see HCO Pol Ltr
of 12 Jan 66 Issue II)
All Invoicing Stations
From I January 1966, for all orgs except Saint Hill, new invoice packs
are introduced which have 5 invoices, the original and 4 copies.
These invoice copies are distributed as follows:
WHITE - To the customer.
YELLOW - To the department concerned with the service or item purchased.
BLUE - Debit and Credit invoices are kept in the Department of Income
for collection purposes.
BLUE - NOT debit or credit invoices are routed to Address and then
CF.
GREEN - To the Department of Records, Assets and Materiel for record
purposes. ,
PINK - Consecutive series to be kept in the machine until the end of
the accounting week.
L. RON HUBBARD
LRH:ml.rd Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
264
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 DECEMBER 1966
Gen NonRemimeo Treasury Sec Dept Income Hats
ACCOUNTS INVOICES
NAMES ON INVOICES
In writing invoices, the Area Cashier and the Mail Invoicing Officer
PRINT IN CAPITALS the person's name in the form the person would use for
formal documents, e.g., in signing cheques or legal documents.
If the person is known in the org by a nickname this may be added in
parentheses. Examples: John William (Bill) Jones, Herbert (Bert) Garfield
Smith, etc.
INVOICE ROUTING
Each terminal which originates Accounts Invoices is to have a stack of
baskets, one basket for each separate destination to which invoices are
routed.
Immediately after writing an invoice, all the copies are torn off and
distributed, the top copy to the person taking the service and the others
to baskets for the correct terminals as per current Policy on invoice
routing. The In-Series copy stays in the machine.
Bundles of invoices are routed to their proper destinations from the
baskets when convenient but at least once a day and at 2.00 p.m. Thursday.
The bundles are secured by a rubber band or paper clipped together, with a
piece of despatch paper on top giving a clearly written and arrowed routing
and the date.
Written by a Board of Investigation
David Ziff
Otto Roos
Ralph Pearcy
George Galpin Qual See SH
Gareth McCoy HCO Area See SH
Ken Delderfield LRH Comm SH
Philip Quirino LRH Comm WW
Sheena Fairchild Guardian Comm WW
Mary Sue Hubbard
The Guardian WW
for
L. RON HUBBARD
Founder
LRH:jp.eden Copyright (D 1966 by L. Ron Hubbard ALL RIGHTS RESERVED
265
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East drinstead, Sussex
HCO POLICY LETTER OF 20 FEBRUARY 1967
Gen Non-
Remimeo Treas Sec Income Dept
SECURITY OF INVOICES
Invoices are the means of crediting someone with monies paid and thus
the right to take services on the strength of these, or receive items from
the Bookstore. As such they ake, prima facie, worth something in terms of
cash. Thus if invoice packs are not administered carefully then it is open
to anyone to pick up an invoice and credit himself for some goods or
service.
Invoices are the record, in time sequence, of monies received and unless
the numbers of the Cashier's fourth and machine copies are seen to follow
through consecutively, then there is no certainty that all monies are
accounted for.
Treasury invoice packs should be kept separate from any such packs used
by other divisions such as Qual, and such divisions should arrange for the
purchase of their own invoice packs (submit their own requisitions and not
depend on Treasury Division supply). Also such other divisions using
invoices such as Qual, for routing slips, should make sure that their
invoices do not look like the invoices used by Treasury Division, in order
to keep Treasury Division invoices completely unconfused. Otherwise the
ease of checking through the consecutive numbers of Cashier's invoices is
interrupted and made more difficult.
From the viewpoint of the outside professional Accountant doing the
Audit, the control of the invoicing system is fundamental to his check of
monies received add he will expect it to be carefully controlled and in
date and numerical sequence.
The control of Voided invoices is also important and in these cases the
original white ropy and ALL duplicates should be retained and attached to
the machine copy in the complete series. Without this there is no evidence
that a top copy has not been given to a client in, lieu of cash and
duplicate copies only marked 'Void'.
If the invoices are kept properly it will increase the speed of an audit
and decrease accounting costs.
Thus INVOICE PACKS MUST BE CONTROLLED AND ACCOUNTED FOR DOWN TO THE LAST
INVOICE. Therefore:
1 . The bir of Income is to keep a book detailing all the stocks of
invoice packs and their numbers. Such packs in stock are in his
charge and are to be kept under lock and key.
2. He issues and books out new packs as needed, in the series of
numbers following the just-completed pack. He issues the pack to the
Cashier in those orgs where the Cashier does all the invoicing and,
of course, in those orgs having also a Mail Invoicing Clerk, he may
issue new packs to him as needed.
3. He issues the new packs on request, but must check that the
previous used series-the fourth copy and the macl-dne copy-are all
accounted for and that they were used, and that any Voided invoices
are attached with duplicates to the machine copy.
4. Thus his book should show three things under three separate
columns.
266
(a) The stocks of packs, plus the additions of new packs coming into
stock. The stocks of packs are entered in the book by number per
pack, i.e. No. 062501-62750, if those were the series numbers in
one pack.
(b) New packs issued to the invoicing section(s) during the week.
(c) In the last column is the actual invoices used by the section(s)
in the week. The recording of the packs is obviously done by the
numbers of the invoices and invoice packs concerned.
Thus a complete accounting for every invoice can be easily maintained
and its history of issue and usage traced. The second and third columns
would show that invoices had been issued in consecutive series numbers and
the third column not only shows the actual usage week by week but also
enables one to see that the succeeding week follows on with the next number
in series.
The Dir of Income, in doing this, must not be content to make the
entries in the above book only. He must actually physically cheek by
examining the 4th copy and machine copy invoices for the week to see that
the book actually records what happened with invoices during that week.
Thus, what is recorded in column three for invoices used in the week must
be the actual numbers of the, 4th copy and machine copy put away in the
weekly folder with the adding machine tape of income, and the paying in
slips recording its banking.
Marilynn Routsong Treasurer WW
Joe van Staden Qual See
Dalene Regenass HCO Area See
Brian Livingston Chairman,
Ad Council SH
Otto Roos
Joan McNocher Exec Council SH
Ken Deiderfield LRH Comm SH
Betty James Chairman,
Ad Council WW
Fred Hare
Leon Steinberg Exec Council WW
Philip Quirino LRH Comm WW
Mary Sue Hubbard
The Guardian WW
LRH.jp.cden Copyright (D 1967 by L Ron Hubbard ALL RIGHTS RESERVED
267
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I I MARCH 1971
Issue I
Remimeo
Exec Dirs
Prod Officers
(Xg Officers
Dissem Hats
Registrar Hats
Treas Hats
CLOs for Compliance
REGISTRAR INVOICING LINE
(Cancels HCO PL 3 August 1970
"Registrars May now Talk Money
Only Accounts Talks Money Details"
Modifies HCO PL 15 Sept 65
"Only Acets Talks Money")
Note: This P/L does not apply to Public Regs in Division 6 and
does not change existing Public Lines.
Department 6 is now responsible for Income Greater Than Outgo Plus
Reserves.
Gross Income is a stat of Department 6 and is the stat for the
Registrar.
The Registrar, to control her stat and to achieve the Valuable Final
Product of Income Greater than Outgo plus Reserves, obviously must talk
money and collect it in bucketsfull.
The way the line is set up now Bodies get lost somewhere between the
Registrar and Cashier and because of this orgs are losing between S500 and
$1000 daily.
In one org there is known to be a one foot stack of sign-ups who never
got to Cashier from the Reg!
So where does all this lead us?
It leads us back to the former successful line of the late '50s and
early '60s when the Registrar would interview people, sign them up, AND
TAKE THEIR MONEY for individual training and processing.
This is the way the line was in in the first very affluent foundation.
The line was changed, probably on a wrong WHY, and since then has only
worked on personality and proximity of Registrar and Cashier. As evidenced
at SH through 1965-67.
Responsibility for the org's GI has been too long resting on the Dir
Income's shoulders.
With the way it is set up now, Department 7 mostly operates at the
irreducible minimum of collecting cash over the counter, while its vital
admin functions would be in total neglect.
The point is, ALL ORGS HAVE DEBTORS, be it only Qual Services, and
Freeloaders. Partially paid Advance Payments are also truly a debt to the
org-they must be followed up and collected. And it is Dept Ts major action
to see that ALL funds for org services and sales get collected.
268
It is a fact then that money worries begin when one doesn't produce and
then when one doesn't collect what one is owed.
From the above, we therefore get a split in Income functions:
1. Dept 6 collects new Cash.
2. Dept 7 collects Credit Owed and Advance Payments.
The Registrar is beefed up as an Income Producer and Treasury is freed
up to get in its standard collection actions.
It now doesn't become a question of who takes in the most Income.
BOTH DEPTS TAKE IT IN IN BUCKETLOADS.
THE NEW INCOME PRODUCING LINE
I The Registrar has an Invoice Machine on her desk. She is hatted on
the subject of making out Invoices.
2. The Registrar must be totally familiar with all pricing and price
structures of the Org.
3. The Registrar has an Org Price List and Refund Notice posted by her
desk.
4. The Registrar is totally money-minded and gets that body into the
shop. She is a cracker-jack at handling the Public Individual and
producing Income.
S. The Registrar has her lines fully in so that she never misses a Hot
Prospect from the Public Divs or the Div 2 lines, She signs them up and
takes their money.
6. The Registrar interviews public pcs and students after training and
processing and re-signs them up and takes their money and usually nets
some 50% of the Org's Income for additional sign-ups in these "after
Interviews".
ADMIN SET-UP
1. Dept 7 is responsible for the admin set-up necessary to Cash
Collection for the Registrar.
2. Invoice Packs are issued the Registrar by the Cashier and standardly
logged in and out.
3. The Registrar Invoices all monies received by her over the counter.
4. The Cashier and Registrar work in close liaison. One could even set
up a buzzer system between the Cashier and Registrar's office so that the
Cashier could be called upon at a moment's notice to serve the Registrar.
5. The Cashier makes change for the Registrar. The money and any notes
are handled by the Registrar.
6. The Registrar turns over to the Cashier the fourth copy of her
invoice and any note, and the money received. As usual, Dept 7 also gets
the 3rd copy of any Debit/Credit Invoice for collection purposes.
7. The Cashier then checks for correctness of invoice, and sees that it
matches the money received.
S. The Cashier keeps the money until picked up by the FBO or RAM for
banking.
269
9. Dir Income remains responsible for doing weekly income breakdowns,
combining Registrar takings and Income Dept receipts for the week.
10. Body Collections are done by the Cashier on past due payments
locally, and may also be done by FSMs.
11. The Income Dept is mainly concerned with getting in monies owed to
the org and advance payments through standard collection actions and
monthly statements,
12. The above is done with a routine admin set-up which uses the xerox
and address machine, but entails NO letter wilting or typing statements.
(Collection letters can of course be written to debtors who are not
answering up to statements.)
13. The Income Dept has a series of income folders. Each folder has in it
a summary sheet for that account.
14. Invoices are posted by hand to the summary sheets routinely.
15. Once a month, summary sheets are xeroxed for statements.
16. Dept 7 also uses a billing slip, which bears a "PLEASE REMIT" in bold
letters, and which has a blank space to write down the balance of
account.
17. Dept 7 keeps in its own area and under its own control, a tray of
address plates which matches exactly the set of collection folders.
18. The billing slip gets run through the address machine and matched to
its corresponding xeroxed summary sheet. Both get stuffed into a pre-
addressed envelope and sent out!
19. When receiving a Debit-Credit invoice from the Registrar, the Cashier
makes an address plate for the person's permanent address and makes up a
folder and a statement form if one doesn't already exist in the file.
20. An address check basket is set up in Income Dept. Before filing, all
Debit/Credit Invoices, whether written on Reg lines or by the Income
Dept, and all other Income mail particles go through this basket so that
plates can be checked and changed as needed or new plates made up,
21. A whole Advance payment billing layout parallels the above. The same
system with summary sheets and billing forms is used, but the full run
off is sent to Advance Reservations Reg in Dept 6 so she can nudge along
with the statement and mail the statement and letter out.
This new line is guaranteed to raise your Org's Gross Income, and if
putting an Invoice Machine on the Registrar's desk doesn't do it, then she
sure needs hatting and drilling on the subject of Producing Income.
Do the above and become a Member of the BE VIABLE CLUB!
Written by
Dissem & Treas Aides
from the notes of
L. RON HUBBARD
LRH:RR:LQ:mes.rd Founder
Copyright @ 1971
by L. Ron Hubbard
ALL RIGHTS RESERVED
270
NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH NOT GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
LONDON
HCO BULLETIN OF 3 AUGUST 1956
MAIL LINE
As the mail line contains money, preclear and student applications and
is in effect the income line of the organization, it must be secure in the
extreme. Only the Accountant must originally touch the mail box and mail.
He shall be provided with the single key to the box. While he may collect
the mail from the box oftener, the Accountant's invoicing day begins at
10:30 a.m, and all mail is invoiced prior to that hour once per day.
The Accountant opens all mail, whether personal or otherwise and no
matter how marked on the cover, which is addressed to the organization or
its personnel-excepting only mail for students and/or preclears, and
packages. Example: Any letter addressed personally to a staff member and
received at the HASI, even though marked personal, would be opened. (This
regulation has been found important in this London operation three years
ago.) (This discourages receipt of personal mail by staff at business
address.)
L. RON HUBBARD
271
k
NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO PROCEDURE LETTER OF 15 MAY 1957
METHOD OF OPENING & INVOICING MAIL, MODIFIED
All Mail goes only to Accountant. Accountant opens all mail from
whatever source.
Accountant's first interest in mail is whether or not it contains money.
Therefore, he rapidly opens mail and places it in either of two baskets.
Basket No. 1: Accountant to Comm Centre. Receives all mail not
containing money.
Basket No. 2: Accountant to Invoice Clerk. Receives all mail and money
(as further described).
Basket No. 3: Invoice Clerk to Comm Centre. Receives all mail as fast
as invoiced.
Cash Box: Beside Invoice Clerk, receives all money.
Accountant uses a stapler in fastening letters to envelopes. He staples
all envelopes to their letters. He uses paper clips to fasten money and
cheques to letters.
Invoice Clerk never uses a stapler, always uses paper clips.
Accountant does no further separation of mail than (1) mail with money
or orders in it and (2) with no orders or money in it. He does not stamp
mall as received.
Mail with money orders in it is placed by Accountant in Basket No. 2.
Invoice Clerk only invoices. Does not otherwise process mail. He writes
name and address very clearly. He marks the invoice number on the order
letter and with a paper clip attaches the white and the yellow to the
letter. He writes any special directions about the order on the invoice
slip. He puts any money in the cash box. He handles each order letter one
at a time. He takes order letter from Basket No. 2, writes invoice,
verifies sum of money, notes any discrepancy on the invoice or any credit
due or amount still owing, marks number of invoice on the letter, removes
money from order letter and puts money in cash box, clips white and yellow
to the order letter and places it in Basket No. 3 before he touches another
order from No. 2.
When invoicing to more than one organization the money is invoiced to
the organization giving the service, not necessarily the organization
mentioned in the letter or on the cheque or money order. Such mis-naming on
cheques or money orders by public is straightened out by Accountant at time
he deposits by simply adding his pinks for any organization and taking that
much money from cash box and depositing it to that organization. Cheques
can be cross-endorsed as needed to make this balance. It is balanced with
cash, not at time of invoicing. Further, a split of a cheque where part is
a payment for a book on one corporation and part is a processing payment on
another is simply invoiced with the proper amount to each corporation and
the cheque placed in cash box.
The moment the Accountant has finished with mail (he sets an hour such
as noon for end of mall day and keeps all mail arriving after this hour to
the next morning-thus invoicing only once a 24-hour day), he takes
everything in Basket No. 1 to Comm Centre and gives it to Reception.
The moment the Invoice Clerk is finished he takes everything in Basket
No. 3 to Reception.
272
Neither the Accountant nor the Invoice Clerk distribute. Reception
distributes.
Receptionist, being in charge of Comm Centre, does all distribution of
mail.
On receipt of any mail from Accountant or Invoice Clerk, Reception
stamps it with receipt time. We only now consider it to be in the Comm
lines of organization.
Reception places the yellow and white Invoice slips only in-
I . Shipping (books and tapes)
2. Memberships (for membership payments)
3. Accountant (payment on bills and notes)
Reception places no letters in these three baskets. Only white and
yellow invoice slips.
Reception detaches letters and places them in the indicated baskets.
All letters accompanying orders or other such letters not prospect or
applicant go to Central Files in Charge who herself writes answers to them
while CF Clerk carries on CF.
All applicant letters, meaning people who apply for training or
processing, go to the Registrar.
All prospect letters, people who are merely interested maybe, go to the
auditor to whom they are addressed or, in case of doubt, to Registrar.
Technical question letters go to the Registrar who tells them to come in
for training.
Complaints go to Director of Processing always.
Business letters go to Director of Administration. HCO Letters or
letters to LRH go to HCO. Non-classified letters go to CF in Charge for
procurement purposes.
This HASI Policy Letter is prompted by the following discoveries: (1)
Everyone in an organization tries to act as a Comm Centre to some degree.
(2) Comm Centre belongs to Reception. (3) Mail routing is not the business
of the Accountant beyond finance.
I expect this procedure to be adhered to. If it needs clarification or
change, tell me.
L. RON HUBBARD
273
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 AUGUST 1965
Gen Non-Remimeb
MAIL OPENING
The opening of mail is to be done in the Dept of Communications-HCO
Division 1, Dept 2. Mail is opened and distributed only once a day which is
after the first delivery. Any other deliveries of mail by the Post Office
are to be kept locked up in a safe place until the next day.
In opening mail, follow this procedure: first divide the mail into three
categories:
(a) letters into org (b) packages and parcels for the org (c) students'
and pcs' letters and parcels.
The mail is counted and the count is noted in the mail log.
The students' and pcs' mail is sent to Tech Services for distribution.
Org mail is opened and each despatch is date-stamped. If letters contain a
cheque, money order, postal order, cash or any other negotiable form of
money, they are to be logged in the mail log book with the name of the
remitter, exact amount of money, what form the money takes and the letter
is to be date-stamped in the usual way. When this has been done, distribute
all the mail into the comm centre with the exception of mail with money.
This is taken by hand to the invoicing cashier in Dept 7 Org Division.
LRH:ml.rd L. RON HUBBAR15
Copyright Q 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Note: Practice since 1966 has been for Dir Income or invoicing Officer to
be present when org mail is opened by Mail Opening Clerk.-Ed. I
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 DECEMBER 1970
Gen Non-Remimeo (Amends HCO PL 31 Aug 1965, Mail Opening)
HCO Hats (Amends HCO Pl, 7 Oct 1970, Issue 11, Mail Line)
Gdn Office Hats
GUARDIAN'S OFFICE MAIL
Mail to any Guardian's Office or its personnel is not opened by Dept of
Comm, but is distributed directly to the Guardian's Office.
This is for security reasons.
Leif Windle D/G Policy
Knowledge WW for Jane Kember
The Guardian WW for Mary Sue
Hubbard
LRH:MSH:JK:LW:nt.rd The Controller
Copyright @ 1970 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
274
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
A 1957 Letter issued by HAS1 Accounts, London
WHAT YOUR MONEY HAS BOUGHT
A research organisation functions first on intelligence, second on
carefulness and, in this society, third on indney.
With research nearing fruition of the deepest understanding Man has ever
possessed of Man, we must not falter now or fail to codify and disseminate
what has been learned because of the lack of a few pounds.
Night and day, thirty days a month, for more than six years L. Ron
Hubbard and back of him the organisations of Dianetics and Scientology have
laboured to give Man a chance. No other man or organisations on Earth have
advanced so far or come so near completing Man's civilisation.
Measured in money this work, by all earlier standards, should have cost
billions of pounds. It has not, even though the rigors and discipline have
been far superior to earlier work.
If we were to tell you now that this work, by the omission of a few to
pay their organisational debts, has been seriously impeded, it might
startle you. Perhaps you did not realise that these organisations were not
selling service. They were giving service to obtain money for research,
research that is being better done than that of the Atomic Energy
Commission, we assure you.
To codify this period of L. Ron Hubbard's work of the past three years,
and to put it in proper book form, the HASI London needs only �5,000 or
about a tenth of the money spent in the last hour by the public on pills.
Additionally the HASI London, "camped out" for years, has been forced to
find new staff headquarters and by October will need another �2,500 for its
new building or Conduct its business on the curb.
Our staff has been cut to a bare operating minimum to accomplish what we
must do. Yet this is not enough.
Probably the most valuable work ever done by Man is being scanted by a
lack of funds.
Research, you see, doesn't consist of a random group of auditors getting
some "hot ideas" and rushing them to the field. It consists of L. Ron
Hubbard summating and mathematically predicting findings and finding thern,
then placing very exact codifications in the hands of staff auditors who
test them against exact preclear result tests. No work undertaken by Man
has been more carefully or successfully done. Thus we double, treble,
quadruple older results-thus we advance, solidly, with care, with finality.
As this work reaches a zenith, we must not now fail to support it.
We are succeeding.
Don't lot us fail for lack of funds, withheld because it is not
understood what is being done with those funds.
Your intensive or course helped pay for this research and its
dissemination.
If Man succeeds on Earth it will be because of this work. We are certain
of that now. Would you please do your part?
Accountant
for
Hubbard Association of Scientologists Int
Brunswick House, 83 Palace Gardens Terrace,
London.
275
NOT HCO POLICY LETTER ORIGINAL COLOUR
FLASH BLUE ON PINK
HUBBARD COMMUNICATIONS OFFICE
3 7 Fitzroy Street, London W. I
HASI FINANCE POLICY LETTER OF 9 DECEMBER 1958
REGARDING ACCOUNTS RECEIVABLE
I . Find out how much is on Bankers' Orders.
2. Find out how much is on Bankers' Orders only the person is no longer
having his Bank pay out.
3. Find out what statute of limitation of debt is.
4. All those which are approaching statute of limitation should be
turned over to Attorney for suit. What arrangements can be made on such
suits? It is usual to pay filing fee for suit and Attorney keeps half of
fees collected. In other words, the suit is done on a percentage basis.
5. Also investigate possibility of selling notes-sometimes bank or
collection agencies actually buy notes at 50% off.
In other words, let's roll on this and see what we can do and how.
L. RON HUBBARD
Executive Director
HASI London
276
NOT HCO POLICY LETTER ORIGINAL COLOUR
FLASH NOT GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
1812 19th Street N.W., Washington, D.C.
HCO SECRETARIAL LETTER OF 26 DECEMBER 1958
Distribution: HCO Personnel Only HCO London for release to Sterling HCOs
Sec'I ED for conversion
COLLECTION OF ACCOUNTS
(This supersedes all earlier directives on the collection of delinquent
accounts.)
All accounts collections that are delinquent stem from two sources:
1. ARC Breaks
2. Premeditated fraud.
ARCBREAKS
Most failures to collect fall in category one. ARC Breaks received
during training or processing or through the mails or errors in accounts
cause a person to terminate the communication called money as well as other
kinds.
Suing such people does not collect money. Suits of this kind over a
period of the last two years cost more money than they collected And
worsened the ARC Break.
The remedy of delinquent accounts depends on the following steps:
1. Accounts prepares a list of delinquent debtors every thirty
days. This list is sent by Accounts to the Assistant Registrar. (It
is done at the same time as statements.)
2. The PR Communicator gathers up the files to go with the list and
gives to the Assistant Registrar.
3. The Assistant Registrar writes these people on the basis of ARC
Breaks (TRSN). No money is mentioned.
4. The Assistant Registrar pulls these people into communication
and repairs the breaks by continued correspondence at the time of
each new list submission.
5. Statements to the people are still sent out each month
independent of the Assistant Registrar.
No further action is taken than the above.
PREMEDITA TED FRA UD
In the case of Premeditated Fraud we have a person who at the beginning
never intended to pay, but intended to defraud.
Such persons can usually be spotted by an insistence on courses and
processing with no down payment. This is their hallmark.
Records should be combed for a list of such names and each time a
request for
277
totally credit arrangements is made by anyone, that name should be added
tentatively to the list. This list is called the "Questionable Risk List",
or the Q.R.
Of these people must be demanded a payment adequate to cover the real
cost of the training, processing or service and no departure from this may
be made.
In the cases of persons with proven past credit this caution may be
relaxed.
Suit of such persons is useless. They have, on the whole, no credit or
possessions.
The question now arises, when do we sue? We sue only when we have had to
guarantee a credit company that we would, which does not apply in the
United States.
On the whole in the matter of credit, the registrar and accounts must
learn to say, "This is a religious institution, not a credit agency. We are
not interested in credit and indulge in such credit activity only for your
convenience."
It is not true we lose money by extending credit. We make money by doing
so. Thus, cancellation of all credit-as has been tried-is a serious
mistake. We can out our income 2/3rds by trying to run on cash only. This
is a tested fact, so credit problems will be with us for a long time.
I believe that if we collect only 50% of our allowed credit, we are
justified in advancing credit. To cut our losses from advancing credit, use
the above procedures.
If a person is profiting by Dianetics or Scientology and has not paid
his share in it and he owes us money and won't pay it, refer the matter to
HCO for certificate cancellation. A great many such persons now exist. If
they are an ARC Break with us they will harm us with the public. If they
are a premeditated fraud they will harm us with the public. Therefore, if
all efforts to collect do not avail, do the following:
1. In the matter of a trained auditor, cancel his certificates and
rights and sue him for illegal practice via a local HCO.
2. In the matter of a pe, inform the person that the name will be
published, forbidding all further processing by anyone. And sue.
In other words, as a general financial policy, "Extend credit only when
the down payment covers all cost or the past credit record guarantees
future payment. Handle all failures to make payments as ARC Breaks and
stretch patience to the limit in seeking to collect. When all else fails
and apparently will never work out, play rougher than anyone would believe
possible."
L RON HUBBARD
278
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 AUGUST 1965
Issue 11
[Excerpt]
Gen Non-Remimeo
COLLECTION FROM SPs AND PTSs
On any Declared Suppressive Person an additional condition for return to
status (Steps A to E of HCO Pol Ltr I March 1965) is Stop B(l) which is the
requirement that the SP pay off all debts owed to Scientology
organizations.
Any Potential Trouble Source owing money to any Scientology organization
is handled the same as any other Scientologist. Failure to discharge a
financial obligation becomes a civil Ethics matter after normal, within-org
avenues of collection have been exhausted.
Civil Court action against SPs to effect collection of monies owed may be
resorted
to.
L. RON HUBBARD
LRH:ml.rd Copyright Q 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
[Note: The full text of this Policy Letter is found in Volume 1, page 430.1
279
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 FEBRUARY 1968
Gen Non-Remimeo
Income Hats
COLLECTIONS LETTERS
An important function of the Income Department is to write letters
encouraging payments. The Department of Income must not depend entirely on
the Dissemination Division to promote income. Dissem gets the person
reaching for services, Treasury collects the fees and Tech Services then
get the person in to take the services. The Dept of Income writes letters
as follows:
1 . After Dissem have interested a person in taking service and have sent
an advance registration packet, the name and address is sent to Income
Dept. The Director of Income writes to the person establishing the post
as a terminal for receipt of the fees, offering to answer any queries
the person may have concerning fees, payments, or discounts, and
expressing pleasure at the prospect of soon seeing the person at the Org
taking services on their route to Clear.
If the person has not paid within a few weeks, then send another letter
telling the person to pay so that they may commence services. Keep the
letters light and with high ARC. Remember that by collecting their money
you are enabling them to advance on the only route to freedom.
2. When a person makes a deposit payment in advance always send a letter
out with the white copy of the invoice thanking them for the payment and
encouraging further payments at an increased rate; again establishing
Dir of Income as a personal friendly terminal who is there to help the
person get Clear.
3. When sending out monthly statements send a personal letter with the
debit statements but do not delay monthly statements by the action. The
letter can be quite short but provides a terminal to which money can
flow. If the person does not reply after several statements have been
sent, then look through the correspondence in the CF and accounts files,
check that you have the correct address and pick up the dropped comm.
(The question the person asked that was never answered.) If there is no
dropped comm and the address is correct, then inform the ARC Break Reg
and send the account for FSM collection.
The important thing is for the Dir of Income to establish the post as a
terminal with
(a) Affinity-a safe helpful terminal that does not make the person
wrong for owing money.
(b) Reality-correct account and data concerning payments. Give
prices for courses that are within the person's reach and reality.
(c) Communicate-write to the person and invite them to write to you.
Establish the comm line then have them put money on that line. Keep
your communication TRs well in.
Treas See SH Brian Livingston
Qual See SH Helen Pollen
HCO Area See SH Bene Neal
Ad Council SH Helen Pollen
Exec Council SH J.J. Delance
LRH Comm SH Irene Dunleavy
Ad Council WW Mike Davidson
Exec Council WW Tony Dunleavy
Lenka Marinkc,
LRH Comm WW Ken Delderfield
D/Guardian WW Joan McNocher
Mary Sue Hubbard
LRH:jp.rd The Guardian WW
Copyright (D 1968 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Founder
280
FOUNDING CHURCH OF SCIENTOLOGY
1812 19th Street N.W., Washington, D.C.
FOUNDING CHURCH POLICY LETTER OF JANUARY 1957
MASS PURCHASES AND WORK CONTRACTS
Any and all mass purchases or contracts for work should be submitted in
writing by the other party and signed by him before any mass purchase is
engaged or work is done.
L RON HUBBARD
LRH:rd Copyfight@ 1957 by L. Ron Hubbard ALL RIGHTS RESERVED
NOT HCO POLICY LETTER ORtGINAL COLOUR
FLASH
NOT GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
(Issued at Washington)
ASSOCIATION SECRETARY DIRECTIVE OF 17 JUNE 1957
(Revised for HASI SOUTH AFRICA)
AUTHORIZATION REQUIRED FOR ALL EXPENDITURES
No purchases may be made or orders given for materials, or equipment, or
supplies, or paid overtime on behalf of the HASI without prior written
authorisation being obtained from the Assistant Secretary.
Should the Assistant Secretary doubt the. necessity of any item or
service
requested the Department Head will be required to demonstrate the need. Any
purchase made, or orders placed, without the prior authorisation of the
Assistant
Secretary will be at the responsibility of the person so ordering and HASI
payments for
them will not be authorised. 1
Jack Parkhouse
JP:rd Copyright (D 1957 by L. Ron HubbaTd ALL RIGHTS RESERVED
281
NOT HCO POLICY LETTER ORIGINAL
COLOUR FLASH
HUBBARD COMMUNICATIONS OFFICE BLUE ON GOLD
37 Fitzroy Street, London W. I
HASI LONDON ADMINISTRATIVE DIRECTIVE OF I JUNE 195 8
PURCHASE ORDERS
Effective 20 June 1958
There are instances of foolish expenditures and bad accounting in the
organization's past. This hurts the survival of Scientology. No Bill may be
paid by Disbursement without the following checkup:
1. Is the bill correct and not composed of bills already paid?
2. Was the work actually ordered by an executive? Purchase or
authorization record must come to hands of Disbursement Clerk before
cheque may be written. Action to be taken if expenditure not
authorized-deduction from pay of offender.
3. Were the goods received or the work done? No bill can be paid
without a slip from an inspecting executive certifying the goods are
on hand or the work completed and satisfactory.
4. In a circumstance of fund shortage, is payment of the bill
necessary in order to continue an organization project-do we need
further services of firm? If not, backlog bill behind more urgent
bills.
A check sheet should be made out at once by the Dir Admin, giving all
above points. It originates as a Purchase and Service Order from any
department, to which these slips are made available. It must then be okayed
by head of that department requiring the goods or services. It must be
okayed and ordered by Dir Admin. It must be inspected by the executive of
the ordering department and/or the Dir Admin or the Org/Assoc See, or the
Treasurer or the Executive Director. It must be certified as a proper
billing by the Accountant or Disbursement Clerk. This slip, properly
initialed in all places must accompany the made-out cheque for signature
and must be inspected before signed. This applies as well to routine bills.
It does not apply to salaries. These cannot be paid without the okay of the
payroll by the Assoc/Org See and/or the Executive Director.
These persons are responsible for correct paying of bills for supplies
and services: (1) Assoc/Org See (2) Treasurer (3) Dir Admin (4)
Disbursement Clerk or Accountant (5) Head of dept ordering goods or
service. Any of these may have his pay checked if the goods or services are
not considered needful and are ordered on a by-pass of the routine herein
laid down. The person whose pay is checked must have been responsible for
the irregularity.
This directive applies to all purchases, demands for service and repairs
and applies as well to goods or services ordered from businesses with which
Organization has an account. This means oil, office supplies, long-distance
phone, gasoline, furniture, et al and all services required. The only
routine bills which can be run up without authorization at this time are
local phone, already contracted, and rents, lights. New rents are by
purchase order. The regular Comm lines of the org must be used for
transmission of such authorizations.
The HCO See will check from time to time to see if this system remains
in use and is to report to me at once if it does not.
An additional form is provided for requisition of materials from Dir
Admin. This is not a purchase order and is for use internally in the
organization. Purchase Orders are external.
LRH
President
282
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 2 JUNE 195 9
CONVERTTO SEC. E.D.
PURCHASING LIABILITY OF STAFF MEMBERS
All purchases by a Scientology organization must be done by purchase
order, duly agreed upon and signed by those in authority before any
purchase or contract may be binding upon the organization.
Should a purchase be made or a contract entered into for the
organization by a staff member with no purchase order, the Association
Secretary, Organization Secretary, HCO Secretary or person in overall
charge of that organization may refute the purchase or contract and may
require the offending staff member to pay for the purchase or contract out
of his own pocket as a personally entered into arrangement.
L. RON HUBBARD
LRH:gh.rd Copyright (D 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 DECEMBER 1969
Rernimeo
Exec Sea
Asst Guardians
Finance
TRADING PROHIBITED
Reports received from Mission Finance US have brought to light some orgs
have been trading Dianetic and Scientology services in return for mest, or
services from the business world.
Up until now there has been no Policy regarding the above-hence the
reason for this Policy Letter.
RULE: EXCHANGING DIANETIC OR SCIENTOLOGY SERVICES IN RETURN FOR MEST OR
SERVICES FROM THE BUSINESS WORLD IS STRICTLY FORBIDDEN.
REASON: The income of an org is allocated to cover the expenses of the
Org as per the AC I form. By trading Scientology or Dianetics for other
services, you not only violate the allocation set-up, but put the whole
income of the org into its own pocket book, and rob WW of their 10% plus
the Building Fund Account.
Really amounts to over-spending!
Lt. Robin Roos
CS-3
LRH:RR:rs.ei.rd for
Copyright (K) 1969 L. RON HUBBARD
by L. Ron Hubbard Founder
ALL RIGHTS RESERVED
283
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 5 JUNE 1959
Issue Il
Convert to
SEC ED HANDLING OF BILLS
When a bill is received it is the property of the Accounts Dept.
The bill is instantly that moment recorded in the current bills book
under the firm or person's name submitting and is filed "waiting payment".
The bill must be reviewed against payments already made to that firm or
person by the organization.
Payment cheques on bills are made out from the current Bills Book only
when verified and the cheque number and amount is entered on the firm or
person's page in the current bills book and also on the Ledger Sheet.
At once enter on the actual bill the amount paid and cheque number and
date and send bill to Business Files.
Business Files files it under the firm name for the year it is paid.
Penalty.
LRH:gh.pm.eden L. RON HUBBARD
Copyright (D 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 12 SEPTEMBER 1961
CenOCon
PAYMENT FOR MATERIALS
It is a stable datum that the Central Org (HASI, FC, etc) pays for all
materials which are used in or for the benefit of the Central Org, even
though they may be supplied to the HCO and the HCO then forwards or takes
care of them.
At present, tapes are being copied and sent to the HCOs by the DCI in
Washington D.C. These tapes are being invoiced to the HCO, since all books,
tapes, and other such materials are always invoiced to HCO. All such
invoices should be passed at once to the Central Org accounts dept for
prompt payment. In the Commonwealth and Sterling area, all such payments
should be made to HCO WW, who will pass the credit on to DCI in Washington
D.C.
In future, all such invoices will be marked "for the HASI". All past and
future transactions which come into this category will be recorded on a
separate sheet in the Central Org's title at HCO WW, so as to provide an up
to date check on the payments.
LRH.jl.cderi Issued by Peter Hemery
Copyright@ 1961 HCO Secretary WW
by L. Ron Hubbard for
ALL RIGHTS RESERVED 284 L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 APRIL 1964
Central Orgs
ORG PAYMENTS FOR TAPE-RECORDED LECTURES
As certain Scientology Organizations owe large sums of money to HCO at
Saint Hill for tapes previously supplied, such Orgs will, as from this
date, be levied an additional 5% of their corrected gross income until this
debt is paid in full.
Further, in order that this debt does not increase, all tapes to Orgs
will henceforth be sent on a CASH ON DELIVERY basis.
Issued by: HCO Tech Mat Sec WW
LRH:jw.rd for
Copyright @ 1964 L. RON HUBBARD
by L. Ron Hubbard
ALL RIGHTS RESERVED Authorized by: L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 JUNE 1964
CenOCon
CENTRAL ORGANIZATION & CITY OFFICE
TAPE SERVICE
Those organizations which have complied with HCO Pol Ltr of April 21,
1964, which required 5% of the Disbursement fund applied to old tape bills,
and are paying cash for current tapes, will continue to receive their tape
lectures.
Those organizations and offices which have not complied may not receive
further tapes until satisfactory arrangements have been made with Saint
Hill's Scientology Library and Research.
Only those lectures which apply directly to general auditing and can be
used by an organization will be sent as at this time Level VI materials are
of no direct use to an organization. This reduces the cost of tapes by
reducing the number sent.
No Central Organization or Continental Headquarters may now recopy tapes
and send them to smaller offices. All offices must procure their tapes
directly from Saint Hill. The reason for this is tape quality. Only Saint
Hill uses one-for one speed Ampex professional copying.
Current basic tapes are of great interest to HGCs and Academies,
particularly since up to Grade III Saint Hill materials are now being
written up in fun with bulletins and check sheets for Grades 1, 11 and III
for Central grganization use. Current basic tapes of the type that is being
shipped are part of this programme.
LRH:jw.cden L. RON HUBBARD
Copyright @ 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
285
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Gen Non-Reinimeo HCO POLICY LETTER OF 21 OCTOBER 1965
HCO Exce Secs Issue 11
Org Exce Secs
Org Sec Org Division
Dir Disb
Disb Hats BILLS PAYMENTS
(This is a summary of existing policy and has nothing new in it except
penalty.) No executive May sign any cheque unless:
1 All cheques for a period are presented en masse;
2. The cheques are accompanied by a tape showing their amounts and total
amounts;
3. The current bank statement of the account on which the cheques are
being
drawn;
4. The current monthly bills statement;
5. Each cheque bearing on its face a brief description of what it's paying;
6. Each cheque accompanied by a Disbursement Invoice giving everything
known
about the transaction.
ISOLATED CHEQUES
No accounts personnel may present isolated cheques for signature to
executives for in this action all financial planning is thrown out.
CONSEQUENCES
Where the above steps are avoided, endless memory is demanded of the
cheque signer even up to 3 years after. What was it for? Why?
Credit standing evaporates on such accounts omissions. Bank accounts get
overdrawn. Bills get overpaid. People you don't have to pay get paid and
people you should have paid are neglected.
The final penalty is destruction of credit and invalidation of the
cheque signer's integrity.
ROUTINE OF PAYING BILLS
A monthly bills statement for that month only is prepared by
Disbursement. To it is attached all earlier monthly bills statements which
contain unpaid accounts.
All unpaid bills are totalled.
A total of monies in banks is listed at date of the Bills statement.
These are sent to the Financial Planning Hat who then designates what is
to be paid. Financial Planning sends this to any cheque co-signer for
agreement.
It then goes to Disbursement who prepares the cheques. These are
prepared as per the first part of this Policy Letter.
Each cheque signer sees that steps 1 to 6 above are in order and then
cheeks off the cheques against the tape to be sure they are all there and
no extra cheques are present (extra cheques to the tape can cause fatal
errors).
Only then does one sign the cheques.
WEEKLY CHEQUES
There are some bills that run weekly.
These are prepared for payment exactly as above but handed in with the
past monthly statement.
There is no difference of procedure. There must be no rush cheques.
PENALTIES
Personnel avoiding this procedure are liable to Ethics actions which can
order losses incurred by avoidance be paid by the offender.
LRH:ml.rd L. RON HUBBARD
Copyright @ 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED 286
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 NOVEMBER 1965
Gen Non-Rernimeo Executive Division
Org Division
CHEQUE SIGNING
(Modifies existing policy)
. Effective at Once
No cheque of any kind for any purpose no matter how reasonable or rush
may be signed in any org without the following data before the eyes of the
signing person each time any cheque is signed, for each cheque or any batch
of cheques.
1 . The Total debts of the Org, every one listed;
2. The total cash ' in bank;
3. The total cheques being signed in that week from accounts;
4. A tape giving the total of the cheques being presented for signature
in the batch.
The signer of the cheques:
1. Cheeks to see what the total owed is and if all debts are on it and
how many are already overdue;
2. Looks over the bank statements and cash statement to see what the
ratio of indebtedness and money assets really is at the moment;
3. Counts the number of cheques listed on the tape and compares it to
the number and amounts of the cheques submitted.
Then and only then may one sign a cheque.
This does not cancel the monthly bills statement or any other
proceeding. It does not cancel dateline paying of bills.
It does cancel and forbid any practice of putting before a cheque signer
isolated batches of cheques or single cheques because they are "routine" or
"rush".
An org cannot conduct its business sensibly if its financial authorities
do not know the above data every time a cheque is signed.
It is a bit more trouble for Disbursement but it is a lot less trouble
for the org.
Did you know you could become insolvent by too sweepingly retiring
debts?
Do you know how fast small cheques add up to huge sums?
And do you realize that the cheque you may be signing for Jiggs & Co is
spending money which if paid to Gosh & Co would prevent suit?
Credit and solvency depend upon sensible money handling. One can't
handle money sensibly unless he knows how much he owes, what he has got,
what he is paying and the correctness of the cheques.
1 saw London go �22,000 in the red in 1959, Washington $20,000 in debt
in 1959, and Saint Hill go �18,000 in the red in 1963 all because the
policy laid down herein was constantly violated by cheque signers. The
accountants in every case had a
practice of dropping casual cheques before cheque signers. And those
cheques when signed and sent were in excess of income or any sensible
procedure. Economy in each case should have started long before. But for
lack of continual advices and because of casually presented and casually
signed cheques the affairs of the org were suddenly exposed as in terrible
condition, long after ordinary means would have salvaged them.
It took in every case nearly a year and a half of furious work to save
the above orgs.
We must not keep repeating the error.
We must be sensible.
L. RON HUBBARD
LRH:ml.rd
Copyright (g) 1965
by L. Ron Hubbard [Note: A typographical error in the original mirneo
issue of this
ALL RIGHTS RESERVED Policy Letter has been corrected per HCO PIL 31 Dec.
196S.)
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 JANUARY 1966
Issue IV
Remimeo ACCOUNTING
Exce Sec Hats
Org See Hat CHEQUE SIGNERS
Org Div Staff CHEQUE SIGNING PROCEDURE
(Modifies all earlier Pol Ltrs and
SEC EDs on the subject of cheque signing)
An executive with the authority to sign cheques must for his own
protection and that of the org, know and have the following BEFORE SIGNING
ANY CHEQUE OF ANY KIND FOR ANYTHING:
1 Amount of bills owed by the org, total and since when;
2. Amount of cash in the bank by bank statement (not by adjustment
of outstanding cheques);
3. The adding machine tape of the cheques being presented;
4. A disbursement voucher white clipped to each cheque.
With these data one can see whether or not it is safe to sign a cheque
or whether instead one must carefully plan one's way out of an impasse and
preserve credit.
Accounts presentations can be so complex the executive does not know
what he is signing.
q
Bank statements, huge folders, etc, are not needed by the executive. He
or she only wants 1 to 4 above and in a very concise form.
The totals of dateline paying sheets to date (monthly bills mimeo
sheets) show the gross amount owed.
A written list of bank accounts and the amount in each as per last
statement is adequate. Adjusted or reconciled statements down to an hour
ago are a waste of time-it all averages out if one always takes the sums on
the statements with no adjustment for "outstanding cheques". "Adjustments"
are often inaccurate and are a lot of needless work.
The tape of the cheques to be signed should always be counted by the
executive for the number of cheques on it and then the cheques should be
counted before signing. The number should be the same. If one wishes one
can also cheek the amounts on the cheque and the tape. By comparing the
total to be signed to the amount in the bank one can see if it's safe to
sign.
By requiring that the white disbursement voucher be clipped to each
cheque one cures any tendency to omit writing vouchers and fouling up
audits of accounts (missing vouchers raise the mischief in an audit).
Voided cheques should always be shown to the cheque signers so they can
tear off the signature line and send the cheque back. One doesn't otherwise
deface the cheque but Accounts personnel should write VOIDED across it.
Every voided cheque is accompanied by a MINUS VOUCHER white copy showing
a voucher has been written to subtract it. This is not the original
disbursement voucher but a new one, called a MINUS VOUCHER which clearly
has MINUS printed on it in caps.
288
Anyone who has a cheque signing power has his or her neck away out
anyway, so be careful to adhere to the above.
The skill of handling money to make an org solvent and its credit good
are covered in Pol Ltrs of 1965. Anyone who signs cheques should know those
Pol Ltrs. Dateline paying, how to bring about assets, these are very
important.
Money is a symbol. It represents success when you have it and defeat
when you don't, no matter who is putting out propaganda to the contrary.
Any cheque signer should be alert for rumours that "the accounts system
is no good" or "everything is in a muddle" or "we need real books" Or "we
can't comply
with policy because for right away the cheque signer's neck is
away away out.
Somebody is making big errors and.trying to cover them up. Or somebody is
stealing.
Or some nutty accounts firm is trying to make a million from the orga by
installing
needless complexities the cheque signer won't ever grasp and so can't
manage.
When you can't get your cheque signing line in, promptly call in Ethics
and start investigating. You won't ever be wrong.
As in the old Chinese Proverb:
He who sign cheque is person who hang, not clerk. Clerk, he always
innocent. Cheque signer bad man even if just plain stupid.
So don't say 1 didn't tell you. L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 FEBRUARY 1971
Rernitneo Issue 1
Exec Dir Hat
Treas See Hat
Dir of Disb Hat
Cheque Signer Hat
Guardian Hat
D/A1G Fin Hat
FBO Hat TRANSFERRING FUNDS
In transferring monies from one account to another account or from one
organization to another organization, all such cheques must either be made
out to the organization or to the account concerned.
NEVER ARE SUCH CHEQUES MADE OUT AS PAYABLE TO ANY INDIVIDUAL WHETHER A
STAFF MEMBER OR A NON-STAFF MEMBER.
The reasons for this policy are:
1 . A cheque made out to an individual, if lost, can more easily be
cashed,
2. A cheque made. out to an individual can legally be cashed by
that individual and the sums lost to the organization.
Therefore, this policy must be applied by anyone on cheque lines.
L. RON HUBBARD
LRH:sb.rd Founder
Copyright (D 1971
by L. Ron Hubbard 289
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 JULY 1962
Accts Depts
Assn Sees
HCO Sees
ORG PAYMENTS FOR ST HILL STUDENTS
Before a prospective student, sent by a Central Organization or City
Office at organization expense, can be enrolled on the St Hill Special
Briefing Course, one of the following financial arrangements must be made.
EITHER:-
(4) His or her course fee, in full, must have been paid for in
advance by the organization concerned. (The current fee is
f285.15.0. British Sterling or $800 U.S. or equivalent.)
OR:-
(b) The prospective student must bring the full course fee with
him/her (in the form of cheque, bank draft or other suitable means),
and pay this amount to Accounts WW before enrolling.
OR:-
(c) The organization concerned may make special arrangements for
payment at the discretion of L. Ron Hubbard or Mary Sue Hubbard,
before the prospective student is sent. These arrangements may only
be made through L. Ron Hubbard or Mary Sue Hubbard and are rarely
granted.
Failure to comply with this policy will result in the prospective
student being debarred from the course until one of the above arrangements
have been completed.
We, by turning out St Hill graduates, are supplying you with fresh
lifeblood and raised incomes. You will benefit from the increased
prosperity brought by St Hill graduates.
Then, do not force us to be debt-collectors from our friends.
Issued by Mike Rigby
Director of Accounts WW for
L. RON HUBBARD
LRH:dr.cden Copyright @ 1962 by L. Ron Hubbard ALL RIGHTS RESERVED
290
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex.
HCO POLICY LETTER OF 14 FEBRUARY 1963
CenOCon Franchise
SAINT HILL SPECIAL BRIEFING COURSE
REIMBURSEMENT ARRANGEMENTS
Any Saint Hill Special Briefing Course Graduate, who has been classified
minimally Class Ill after 30th June, 1962, and who paid for the Course,
fares, etc., at his own expense, may apply for a reimbursement of these
costs from his Area Org on the following conditions :-
1 . That all arrangements are at the discretion of the HCO Area Secretary
and the Association/Org Secretary of the applicant's Area Org.
2. That he is a full-time Staff Member of that Org at the time of
application for reimbursement.
3. That he signs a 2-year Staff contract with that Org from the date of
acceptance of
application for reimbursement.
4. That he receives reimbursement for Course expenses exactly similar as
though he had attended the Course as a Staff Member from that Org, i.e.
(a) Fares costing same as usual method for sending Staff students
from that Org, providing that the applicant was resident in that
area when he took the SHSBC. (Fares to another country made after
completion of the SHSBC do not come under this agreement.)
(b) Course fees at actual cost to student.
(c) Expenses during Course at the standard Staff student pay
allowance of � 10 p.w., or as arranged between the applicant and
Assoc/Org See and HCO Area See, but for a maximum period of sixteen
weeks only.
5. That reimbursement is made over a period of time at a fixed weekly rate,
this amount being debited to the disbursement account. The rate of
reimbursement to be at the discretion of the Assoc/Org Sec who, whilst
every endeavour is made to maintain a fixed rate of reimbursement, has the
right to temporarily stop payments should he consider it necessary owing to
disbursement fund levels. However, this should not be found necessary
except very infrequently if at all.
6. That, if the applicant is unacceptable to his Area Org, or if that Org
has no vacancy, or it deems that it is not in any position to reimburse the
applicant in question, the applicant may then apply to another Org for
acceptance on Staff and Course reimbursement.
L. RON HUBBARD
LRH:dr.cden Copyright @ 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
291
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 MAY AD 13
Orgs only
Not Students
or Franchise SEC ED
STAFF MEMBER ENROLMENTS
Issue the following Secretarial Executive Director. It expands a cable
already sent.
Staff Member Enrolments on Saint Hill Special
Briefing Course
Under the general direction of the Association (Organization) Secretary
and the immediate supervision of the Letter Registrar, and with the help of
the Director of Training and the Director of Processing, the following
programme is instituted.
In that it is desirable to increase the number of Saint Hill graduates
in any organization and area, and in that Saint Hill training costs for
staff members should be less of a strain on an organization:
For every four paying students sent by an organization from the public
or field in the organization's geographical area, one staff member of that
organization may be enrolled on the Saint Hill Course without course fee.
Field or public prospective students who have already signified their
purpose of enrolling on the Saint Hill Course to the Saint Hill Course
Administrator are not to be included in the required number of students.
This does not mean that for every four staff members sent to Saint Hill,
one may be sent without fee. This does not mean that an organization may
not send additional staff members and pay their fee.
It does mean that if an organization is instrumental in enrolling four
non-organization auditors on the Saint Hill Course, one staff member may
also be enrolled from the organization without fee.
Evidence of enrolment will be course fee received at Saint Hill.
The staff member so enrolled may have his expenses paid, including any
small salary for maintenance here, from the building fund, thus relieving
the salary sum and disbursement account of any expense.
Other staff members sent with fee paid will have their travel expenses
taken from Disbursement Account and their salary (which includes their
expenses at Saint Hill) taken from the salary sum.
This has been instituted not because Saint Hill enrolments would not
remain up, but to increase the number of Saint Hill graduates in each area
and to make it easier on orgs to get trained staff. I also feel this may
end any possibility of a games condition building up whereby individuation
occurs.
In getting people to enroll in the Saint Hill Course, remember that an
HPA/HCA/HDA is a necessary requirement. However, there are not other
burning rules such as age or field experience. People aren't too old or too
inexperienced as auditors to enroll. The Course has gotten easier and is
making excellent auditors out of its students regardless of age or
experience.
In selecting an organization staff member to come to Saint Hill, pick
your better auditors, please. They finish faster. However, give priority to
any staff member who overtly finds four enrolments for Saint Hill on his or
her own. It is however to the benefit of all staff members to promote this
programme as it means no loss of pay and a technical boost for the
organization. This is my own training programme for raising technical and
clearing people.
L. RON HUBBARD LRH:gl.cden
Copyright @ 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
292
NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
3 7 Fitzroy Street, London W. I
PROPORTIONATE PAY PLAN PROPOSAL
5 April 1957
THE SITUATION:
The Board cannot raise wages as such since it is also afraid that in
some slack period, the payroll would swamp the Association. Thus even in a
good period it cannot raise wages. All management is in this situation-
hence its attitude on wages.
WAGES:
Working for a wage is one of the deadlier control mechanisms since it
brings about an irresponsibility in the person for his job. Fixed wage is a
means of suppressing a person into a slavery class, pegging him at no hope.
This mechanism is one of the best modern society has for keeping people
down. It is artificial and arbitrary and denies a person the fruits of his
labour.
THE ASSOCIATION:
Since the publication of two new books and after a year and a half of
hard work by myself and council and staff, the Association is a new
organization. Its earning potential has not been realized yet. It is not
the old Association. Its income is already rising above old levels.
However the Association is stable. It has been here and functioning for
5 years without a falter and it is winning all the time.
SCIENTOLOGY:
While we have for years been far ahead of any of Man's earlier
technology on the mind, new certainty and ease of auditing have been added
in the past three months which eclipses earlier strides. That is why I am
here. Had I not had so much to impart 1 would possibly not be here for this
Congress.
1 am confident as never before concerning lower level and higher level
cases. With what we know we can expect a soaring climb of Association
business which has always been just as good as the subject worked. Today we
have four times the preclears we had in this period last year. We're doing
four times better.
ORGANIZATION:
With the proper organization of a procurement section, Association
business is expected to rise.
PAYROLL:
As the Association books will show, wages comprise an average of about
44.89% of the Association's gross income.
As the book sales of the Association are a minor part of its income,
these can be and would be omitted from the gross on which this is based.
With book sales omitted from income, the figure could be estimated at
around 48% of the whole gross.
With this pay plan proposal 1 am prepared to make the amount to be spent
on wages 50% of the gross income less books and tapes. This would prove
considerably more than it has been.
THEPAYPLAN:
Pegging salaries in proportion where they are and then using this as a
unit value, we could divide these units into 50% of the gross income less
books and tapes each week and pay on that basis the following week. This
would then give each staff member or employee the benefit of any increases
in income as are expected. There is no reason for the Association to pay it
to Inland Revenue in profit tax.
293
In this way the Board would not be worried about salary increases. And
the salaries would increase to the degree that the Association earned.
Further, this is not a firm or corporation run for the profit of a small
group at the top. What it earns should be shared since it is the product of
the effort of all of us.
PROPORTION OF PAY
Of the gross income less books and tapes, we would use all of 50% always
for pay purposes. This would never be cut into for any other purpose or
changed from "50% for pay".
We would take 25% and pay from it the bills of the Association-
utilities, building costs, supplies, phone. payments on property, etc as
well as old bills of all kinds including books and printing. (Books, a
small income factor, are really advertising.)
We would take the remaining 25% of the gross and use it as an
accumulating fund for new quarters outside London, for royalties and a
sinking fund.
All these percentiles are on the gross less books and tapes.
The Book and Tape income we would set aside and out of it buy new book
stocks, pay old printing bills and, in general, use it as though it were
part of the expense 25% to which it would be weekly added.
EXAMPLE
We would take the pound as par. If one were now getting �8 a week, he
would have 8 units. If one were getting �6.10.0 he would have 6.5 units,
etc.
We take all the pay for a week in terms of units. Let us say we have a
gross of 250 units. Let us say we have a week's income of �500. 50% of �500
would be �250. We divide the units 250 into the 50% 250 and we have pay for
that week of par-unit is one pound.
Now let us say we have an income of �630 for one week. We would take 50%
of this and we would have �315. Divide 250 units into �315 and we have a
unit value of 1.26. This gives us a pay unit of �1.26. Multiply this times
8 units for a person getting 8 units of pay and we have a pay for that week
for that person of �10, 13.
What Pay Would Be Under This Plan
We would hold staff units of pay between 200 and 225 (see staff meeting
minutes on pay plan), this being the margin necessary for management to
operate.
We would convene regular staff meetings and change the number of units
only on staff majority vote-a necessary restriction on management which
could not be permitted to rearrange pay units so as to compensate for
increased income. Management would only have power to adjust units within
the 200 to 225 but not to go above or below without a majority vote.
HISTORY OF THIS PLAN
This exact plan has gone into use in Washington. The staff there voted
to go all out on this. They have been paid about 10% better for the first
few weeks of the plan but income is just now beginning to rise.
RECOMMENDATION
I recommend that you study this well.
You should realise your pay could go down as well as up.
The primary reason this plan is advanced by me is to raise pay.
However, a great change of operating could take place by reason of this
plan.
Think well. Then we'll have a staff meeting and vote on it.
I've made my bid here to better things. Hope you see it that way too.
RON
294
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HASI POLICY LETTER OF 19 APRIL 1957
PROPORTIONATE PAY PLAN
The staff of the organization except for "Part time" staff is paid in
units under the following system.
Staff is paid 50% of the gross income less Congress fees, books and
tapes, of the organization.
A Staff member is assigned units of pay. The value of the unit varies
from week to week but is par at one pound.
This system was proposed by the Agent for Great Britain, and accepted by
a regular staff meeting on April 18, 1957, was endorsed by the Advisory
Committee, and the staff minutes were legalized by the Agent for Great
Britain.
This system means in fact that an employee for the duration of his
employment only is actually, with his fellow staff members, a proprietor of
half a �500,000 organization, a gift from the Agent for Great Britain in
recognition of the fine work done by HASI staff.
The Computation, minutes and endorsements follow.
PROPORTIONATE DISBURSEMENT PLAN COMPUTATION
We compute the following figures to be called the Gross Income, the
Building Fund, the Royalty Sum, the Congress Books & Tapes Sum, the Expense
Sum, the Salary Sum, the Emergency Sum, and the Allocation Sum.
DEFINITIONS:
Gross Income: is the complete income for any given week for the HASI less
repayment of loans to HASI.
AllocationSum: is the gross income less the Congress, Books &Tapes Sum. The
Building Fund: is 121/kToof the Allocation Sum.
The Royalty Sum: is 121/217o of the Allocated Income plus 121/2Yo of the
Congress, Books & Tapes Sum or 121/29o of the Gross Income.
The Congress Books & Tapes Sum (The C.B.T.): is the total receipts of
Congresses, Book and Tape sales before any expense deduction is made.
The Expense Sum.. is 25% of the Allocation Sum plus the C.B.T. Sum less
121/2yo of C.B.T.
The Salary Sum: is 509o of the Allocation Sum (which is Gross Income less
C.B.T.). This is calculated by first deducting part time staff and then
proportioning balance to staff by units.
The Emergency Sum: is 5% of the Expense Sum.
PROCEDURE
(a) Deposit all sums received from whatever source into Account No.
1.
(b) Deposit Building Fund into new Building Fund Account.
(c) Deposit Royalty Sum into Royalty Account (Account No. 2).
(d) Transfer entirety of remainder less loans repaid to Account No.
3 Disbursement Account.
(c) Transfer 5% of Expense Sum to Emergency Account.
(f) Calculate the Salary Sum which is 50%of the Gross Income less
C.B.T.
(g) Deduct Part Time payroll from Salary Sum.
(h) Add up the total of units for week.
(i) Divide remainder by this unit number to find unit value.
G) Multiply unit value by number of units to which staff member is
entitled to get his gross individual pay for week.
295
(k) Deduct National Insurance and P.A.Y.E. from gross individual pay and
this gives him his check and the government its hogshead of blood.
MINUTES OF STAFF MEETING, 18 APRIL, 1957
The Staff Meeting scheduled for April 18, 1957 convened at 5 p.m.
Whereas the Association Secretary is normally Chairman, the chair was
taken on this occasion by the Agent for Great Britain, L. Ron Hubbard, at
the Association Secretary's request and with the approval of all members.
The purpose of the meeting was given, which was:
To discuss the Proportionate Pay Plan, the acceptance or rejection of
it, to discuss the number of units permitted to operate without the further
consent of staff and whereafter there would have to be a staff meeting if
the number is to be exceeded; and to discuss the point "What is a permanent
staff member" and "What is a temporary staff member".
The meeting was informed that each week the following would be posted:
The number of units for the week,
Gross Income for the week,
Allocation Sum, etc, as laid out in the "Computation",
and that when these were returned to Accounting they would be there for
Inspection by any staff member.
Question: Are the amounts to be posted on the public board?
Answer: They should be posted where the staff can see them.
After due discussion a motion was then called for on the acceptance or
rejection of the Pay Plan.
It was proposed by Dr. Herbie Parkhouse and seconded by Dr. Johann
Tempelhoff that the Proportionate Pay Plan as advanced, posted and
discussed, be accepted. The motion was unanimously passed.
A motion was called for regarding the maximum and minimum number of
units to be maintained. Two figures of 200 minimum and 280 maximum were
suggested.
It was proposed by George Gallifant and seconded by Rhona Swinburne that
these figures be approved with the understanding that we try for at least
the minimum figure. This was unanimously passed.
A proposal was then made by Michael Pernetta that the plan go into
operation starting 2 p.m. today. It was seconded by John Swinburne and
passed unanimously.
The status of the three types of staff member: "permanent", "temporary"
and "part time" were then defined as such:
A "part time" staff member is one who is brought on for a short period
and who will be paid in pounds.
A "temporary" staff member is one who is brought on and is going to be
or has been here for some time and will be paid in units. He or she
would be dismissible by the Association Secretary.
A "permanent" staff member is paid in units and will be in the future
taken on only at a staff meeting by majority vote. It was agreed that
the Association Secretary in the first instance should designate which
members of staff are to be regarded as permanent at this time and that
thereafter the status of permanent staff member shall be granted only
upon majority vote at a staff meeting and is then dismissible only upon
majority vote at a staff meeting or by a unanimous vote of the Advisory
Committee, both subject to further appeal and approval by the
Association Secretary and the Agent for Great Britain.
It was proposed by Eileen Hibberson that the above definitions be
accepted. This was seconded by Bob Davies and passed unanimously.
Shirley Marks nominated Jack Parkhouse as permanent Chairman of the
Staff Meeting. This was seconded by John Swinburne and unanimously passed.
A proposal that the Association Secretary be permitted to adjust unit
pay comparable with the development of the position and the individual,
subject to
296
ratification by the Agent for Great Britain or the Treasurer, but without
prejudice to the right of the staff to recommend further consideration, was
then made. It was moved by Patsy Dooley that this proposal be accepted.
This was seconded by Mike Pernetta and unanimously passed.
The matter of the proportionate pay plan then being settled to the great
satisfaction of all present, Shirley Marks proposed that the, staff meeting
be brought to a close. This was seconded by Patsy Dooley and passed
unanimously.
The staff meeting was brought to a very successful conclusion at 7 p.m.
Signed:
CHAIRMAN
ADVISORY COMMITTEE ENDORSEMENT
17 April, 1957
To: Association Secretary From: Chairman, Advisory Committee.
Jack,
The Advisory Committee wholeheartedly endorse L. Ron Hubbard's
proportionate pay plan.
Best,
Chairman
(signed) John Northwood
HASI POLICY LETTER OF 19 APRIL 1957
I, the Agent for Great Britain, custodian and trustee of the HASI do
hereby ratify for the Treasurer and myself the minutes of the Staff Meeting
of April 18, 1957 and do pronounce them valid and in full force.
The Treasurer and the Association Secretary are directed herewith to
take these measures and continue them.
L. RON HUBBARD
Agent for Great Britain
LRH:rs.cden
L. RON HUBBARD
19 April 1957
Now that the Proportionate Pay Plan is in effect you should realize the
horrible truth:
The Income of the HASI largely depends upon the outflow of letters from
the
Department of the Registrar and accurate, skilled handling of returns
and
the highest possible level of service by the Training and Processing
Departments.
L RON HUBBARD
297
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HASI POLICY LETTER OF 14 MAY 1957
HATTURNOVER.
When you change or leave a post, your HAT FOLDER must be turned over by
you to Accountant. He only then will give you your current or final cheque.
Accountant turns folder over to Association See who then gives it to person
taking over the post. The Association See, when he turns over folder,
dispatches HCO for Organizational Board change.
LRH:rd L. RON HUBBARD
Copyright @ 1957
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
LONDON (Issued at Washington)
ORGANIZATION POLICY LETTER OF 10 JANUARY 1958
1
INSPECTION OF HAT FOLDERS
Any trustee or Organization Secretary or Assistant Secretary may call
upon any staff member at any time to deliver up his hat folder in person at
once for inspection.
If the hat folder does not completely describe the post it covers and
the duties and procedures thereof or if it is incomplete, or if it is in
gross error, the officer inspecting the hat may direct the accountant to
debit the offender's pay f I.-.- in London or S 10 in the U.S. If the
folder is missing entirely, the fine shall be E2. 10.- in London or $25
from the U~S.
There is no limit to the number of times a folder may be called for or
the number of fines save only that only one fine may be levied for each
offense. Recentness of appointment shall be no excuse.
The Accountant is authorized herewith to so deduct funds from pay on
order of the fining officer.
Any funds so derived shall be made part of the Building Fund after being
deducted from the pay check of the person fined.
Definition: A "hat" is a permanent folder, in the possession of a staff
member, which describes his duties on that post in full and which contains
general organization orders. The folder must be complete and up to date.
Scientology Organizations are complicated structures. The know-how is
contained in its hats. The structure becomes unworkable when posts and
duties become lost.
LRH:bt.rd L. RON HUBBARD
Copyright@ 195 8
by L. Ron Hubbard
ALL RIGHTS RESERVED (See also HCO P/L 1 January 1968, Vol. 0-page 68.1
298
THE FOUNDING CHURCH OF SCIENTOLOGY
1812 19th Street, N.W., Washington, D.C.
D of M FOUNDING CHURCH POLICY LETTER OF 26 MARCH 1958
D of Accts
D of P
D of T
D of PrR & Registrar
Disbursements
Mo info SALARY AND UNIT PAY
Hereinafter only maids, janitors and maintenance and part time
accounting may be paid salary-all others are on unit pay.
Policy-"Outside people" and Scientologists are paid alike.
LRH:bt.rd LRH
Copyright (D 19 5 8
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 27 NOVEMBER 1958
Effective Dee 1, 1958
First Pay Day: Dec 5, 195 8
PAY LIST
Unit pay is proportional to HASI Unit for same week that 10% of gross
was issued.
Allowed Units:
Rhona Swinburne, HCO Exec See World-25u Peter Hemery, HCO Communicator-
I 8u Gladys Wichelow- I 6u HCO Steno- 15 u Joan Ferguson- l6u
LRH:mp.rd L. RON HUBBARD
Copyright (j) 1958
by L. Ron Hubbard
ALL RIGHTS RESERVED
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
3 7 Fitzroy Street, London W. 1
HASI FINANCE POLICY LETTER OF 9 DECEMBER 1958
STAFF LIST
NOTIFICATION TO PAYROLL
Dear Department Head,
You are responsible for seeing that notification of all persons on staff
under you is sent promptly to the Accounting Department.
There have been several mistakes lately when notice was not received
that someone was put on the payroll and that someone was not on payroll,
the latter having occurred more frequently.
As failure to send notification of your weekly staff can affect the
cheques of all, plus or minus, please see that you do not neglect this.
LRH:rd L. RON HUBBARD
Copyright @ 1958 Executive Director
by L. Ron Hubbard HASI London
ALL RIGHTS RESERVED 299
FOUNDING CHURCH OF SCIENTOLOGY
WASHINGTON, D.C.
FOUNDING CHURCH POLICY LETTER OF 9 JULY 1958
All clears on staff will draw an extra one-half unit in addition to
regular units. Pay starts on receipt of clear bracelet by staff member.
LRH:bt.rd L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 APRIL 1960
CenOCon
YEARLY SALARY INCREMENTS
It has been proposed and is now to be policy that the yearly increment
of salary units for consecutive service in the Central Organization and HCO
Office $hall be limited to five yearly increments only.
It is assumed by the end of a period of five years work with the
Organizations that an individual staff member should have obtained adequate
promotion because of his capabilities and thusly, no further increases in
salary are necessary.
LRH:js.rd Mary Sue Hubbard
Copyright @ 1960 Organizational Supervisor
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE . Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 JULY 1960
sthil
SICK LEAVE
Staff members who are paid on a weekly basis are entitled to 2 days sick
leave with pay each month.
Sick leave is not cumulative from month to month.
To qualify for sick leave, a doctor's certificate should be produced.
LRH:js.rd Peter Hemery
Copyright@ 1960 HCO Secretary WW
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
300
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 OCTOBER 1960
sthil
HOLIDAY PAY AND SICK LEAVE
(Reissued)
This Policy Letter is intended to summarize and clarify the schemes for
holiday pay and sick leave in operation at Saint Hill. Both schemes are in
line with similar schemes which apply in other Scientology Organizations
all over the world.
HOLIDAY PAY
Holiday pay is allowed to all staff who work full time on a weekly wage,
on the following scale:
3 months' service 3 days
6 months' service 5 days
9 months' service 7 days
I year's service 10 days
The "days" referred to are working days. For each year of continuous
service, therefore, a staff member would receive two full weeks' holiday
pay. Each day's pay for lesser periods would be estimated as one-fifth of
the gross weekly wage.
. full time staff worker is one who works 35 hours or more per week
regularly.
. part time staff worker is one who works less than 35 hours per week
regularly.
Part time workers, or those who work on an hourly rate, do not normally
receive any holiday pay.
Holiday pay is not normally granted unless the staff member has been
employed continuously for at least a year, even though a holiday may be
taken by permission. In all such cases, special permission must be obtained
before any holiday pay is granted. On leaving the organization, a staff
member is not entitled to any holiday pay unless he has been employed
continuously for at least a year.
When taking a holiday, staff members who normally work Saturdays or
Sundays should do so before starting on holiday, or have their pay docked
for the time lost.
SICK LEAVE
Sick leave with pay is allowed to full time staff members at the rate of
2 days in every calendar month. Sick leave is not cumulative from one month
to another. Such
pay is granted upon the presentation of a Doctor's certificate.
Issued by: Peter Hemery
HCO Secretary WW
for
LRH:js.pm.rd L. RON HUBBARD
Copyright @ 1960 by L. Ron Hubbard ALL RIGHTS RESERVED
301
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 FEBRUARY 1961
HCO Sees
Assoc Sees
Dir Accts
Master File
Do not remuneo
ACCOUNTS: HOW TO DO A PAYROLL
Under the four-file accounts system, all monies received are invoiced.
Every sum expended including petty cash is put on the Disbursement Voucher
Machine. This means that payroll goes through the Disbursement Machine.
There are two maxims that regulate this: One: The less copying from one
piece of paper to another that an accountant does, the greater the
resulting accuracy-entering or cross-entering of figures should be
abolished as far as possible. Two: If you want to speed up a Communication
Line you take MEST out of it. Thus in accounts, the use of long sheets of
payroll computations and lists should be minimized.
VOUCHER COMPUTATION
The Accountant knows the number of people he will have to pay, their
names and pay rate.
In a small organization he has a list. In a large organization he
obtains it from the weekly departmental report (which arrives in his hand
TUESDAY after Ad Comm) which lists personnel in each dept and their pay
(Part of the One Departmental Report per week system).
The Accountant has in the back of his creditor file a file for every
active staff
member. This file contai , ns (in the Commonwealth) all the government
books for the
person as well as all papers and invoice copies relating to pay plus his
staff application
sheet.
The first action in preparing a payroll is to take these folders out of
the file cabinet and make sure that one has a folder for every active staff
member to be paid and that any departed staff member file has been
relegated to Inactive and is not included. This is done by checking them
off against the personnel list of last week's Departmental Reports.
Lay this mass of folders on a table and make up a folder for any new
staff member and put in Inactive files any folder for a departed staff
member. Add up the number of units by going through the folders and
complete salary sum calculations, obtaining the value of the unit.
Carefully cross-check unit value to make sure it is absolutely right and
that units x unit value equals salary sum before you go further.
Take the Disbursement Voucher machine and place it to your right,
leaving a blank area between machine and folders.
Take file number one. Open it. Knowing the units of the person, the unit
value and having any deductions to hand in the folder on the voucher in the
machine do any and all calculation. If a calculator is used, put down its
results on the voucher. Do not use scrap paper. Use the Disbursement
Voucher in the Machine.
Make any Govt calculation from any government tables and put the results
down on the Voucher and in any Govt book from the person's folder.
302
Add up the pay and deductions on the voucher in the machine arriving at
any amount the Govt gets, any amount deducted for the organization, and the
actual money now coming to the person.
Pull the machine handle. Bunch up the three vouchers to begin a pile
away from the folders and machine. Put the folder that has been calculated
furthest from you.
Take the next folder and repeat the operation with it, again making all
calculations on the new voucher in the machine. Even scribbles must be put
on the voucher since we want accuracy and legibility not neatness.
Crank the second three out of the machine and lay them on the first
voucher crosswise. Put the second folder at the back of the pile.
Repeat this operation throughout the folders.
When all folders are so calculated and completed, put all the folders
back in the file cabinet and close it. There are now no folders or books on
the table, only the machine and the criss-crossed pile of vouchers. Take
your data from the white. Do not separate other copies.
Remove the Disbursement Machine.
Put an adding machine in its place.
Clear the adding machine.
Take up the pile of vouchers. First add up the total of monies, if any,
to be paid to the Govt by going through the vouchers. Get this or these
final figures on a tape. Mark what the tape is on the tape with a pen. Put
the tape aside for later reference.
Go through the vouchers again, putting any Organization Deduction for
each person on the adding machine.
Total the figure. Extract the tape from the machine and mark it as Org
Deduction.
Lay the tape aside.
Take the voucher pile again, and again from each white, put the pay of
each person on the adding machine.
Total and remove the tape. Mark it Pay.
Total the three tapes and see if they compare with the salary sum you
started with.
If they do not, count the number of vouchers and the number of figures
on the tape. Count the Org Deductions and the number of vouchers with Org
Deductions. Count the number of Govt deductions and the number on that
tape. If the error is not found by reason of an.omission, start at the
beginning as above. pulling out the folders and once more re-calculating
the number of units and pay and the amount of a unit. Continue on through
all calculations until error is located.
If error means correction of a voucher have loose pieces of carbon pater
to correct them with and be sure to correct the copy still in the machine.
It is doubtful if move than one or two vouchers would have to be so
corrected as they do not accumulate the error, each one being a separate
computation.
Take the three machine tapes, add them carefully.
Make out a cheque to this sum only. Enter cheque, ib description and
purpose on
303
the Disbursement Machine, giving on the voucher any Govt: sum, Org sum and
actual pay.
Make out a separate cheque for any petty cash. Put its full description
and purpose on the voucher.
Take these two cheques and these two vouchers AND ALL VOUCHERS FOR PAY
to cheque signing persons for their inspection.
To get the exact right change for a payroll make a table before going to
bank. Write down left to right across a sheet of plain paper pounds, ten
shilling notes, two shilling coins, one shilling, sixpences, thicepences,
pennies, or in U.S., Ten Dollar Bills, Five Dollar Bills. One Dollar Bills,
fifty Cent pieces, quarters, dimes, nickels, cents. Take the vouchers and
do a sight breakdown of each pay sum to be paid in cash. Put down the
number of pound notes etc it will take to pay that person and mark each
monetary piece under the appropriate column. Then add up each column, which
will give the exact number of each monetary piece required from the bank.
Needless to say, addition across the bottom should add up to the amount of
the gross pay cheque. As you will also have coins in your petty cash cheque
errors in pay-out can be remedied.
Cash cheque at the bank, making sure you obtain enough change. Do not
get the money in packets for each person. Just get a lump sum.
Buy Govt stamps or postal order to givelhe Govt the amount it has coming
from the cash you have in hand.
The Org deductions are now invoiced on the invoice machine as loans or
income. The money for this sum is taken from the cash you received at the
bank and placed in the usual income cash box.
PAY DAY
All Disbursement copies and cash are laid out on a table.
Persons to be paid come in person to the accountant or cashier.
The person is given his white Disbursement voucher for inspection.
By use of a carbon between them he signs the yellow and blue copies.
The person is paid the pay sum from the Disbursement copy.
The person retains the white.
The accounts officer tosses the yellow and blue into his file basket as
soon as that payment is done.
All persons are paid. Anyone not there to be paid has the three vouchers
and the cash placed in an envelope. It is scaled and left in cash box until
picked up, at which time the yellow and blue must be signed as before.
FILING
The signed yellow copy is filed in the creditor folder of the staff
member.
The signed blue copy is filed in the weekly pay breakdown envelope.
PAYING BY CHEQUE
No staff member may be paid by cheque.
304
HOLDING PAY
No staff member may leave his pay to accumulate on the books of the Org.
If he is saving pay for something in the Org, he hands the amount he
requires held back to Accts who at once invoices it saying exactly what it
is on the invoice and gives the staff member the invoice white. Such a
staff member should also be given a Debtor Folder at once. A copy of the
invoice is then filed in it, since debtor folders may be plus or minus with
the Org.
U.S. MODIFICATION
As in the U.S. some Orgs may not pay the government anything, go over
the above with a pencil and score out all references to Govt payments.
COMMONWEALTH ACTION
The Govt stamps bought as above should be posted in the books when the
yellow is filed.
Any Govt sums should be postal ordered as we don't want the amount going
back through our system. The receipt for the order is filed in the creditor
file marked Govt with all other bills, the Govt being only a creditor after
all.
ADDITIVES
Additional files to handle pay other than those mentioned above are not
allowed. Paybooks are not kept. Only pay folders, themselves complete.
REPORTS
If a payroll report person by person is required by an executive other
than the departmental reports that come to accounts it is not made by
copying or typing. The weekly pay blue vouchers, signed, are enveloped and
sent to the executive who sends them back.
A much better executive report is the weekly large envelope that
contains the financial breakdown sheet for the week. (This does not exist
in fixed pay Organizations. The blues should be sent instead.)
FIXED PAY ORGANIZATIONS
Any Organization not on units but paid on fixed pay should go over the
above and pencil out all references to unit calculation to simplify the use-
of tl-ds directive.
COMPLIANCE
This system is effective at once upon receipt. Make up creditor folders
for staff members, obtain any of the above mentioned equipment and get this
system in because it will save you time.
If you are keeping pay books, etc, etc, drop them and file them in an
extra folder at the back of the staff creditor folders so that they can be
used for staff that wants yearly summations. All such summations should
come in the future from the folder of the staff member since that will now
contain all future data.
Please realize it is easier to do this and that this is more accurate
than the system you are using and get it in action now.
L. RON HUBBARD LRH.js.cden
Copyright @ 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
305
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 24 MARCH 1961
HOO See Assri Sec City Office Assri Sec City Office Area See
UNITS FOR ASSN SEC AND HCO SEC
Each City Office Scientology Org shall add the Assn See Continental to
its payroll to the sum of 2 units in the Commonwealth Area and 8 units in
the dollar area.
This shall be regularly paid to the Assn See Continental.
Each HCO Area Office of a City Office shall add the HCO Continental See
to its payroll to the sum of 2 units for the Commonwealth area and 8 units
in the dollar area.
This shall be paid regularly to the HCO Continental Secretary.
The purpose of this is to increase the interest of Continental Assn Sees
and HCO Sees in the problems and well being of City Offices.
For the purposes of this directive at this time, Continental Assn Sees
are designated as follows:
FCDC, Washington: Senior Central Organization Assn See in the US is paid
also from New York, Chicago when set up and any other City Office East of
the Mississippi.
C of S, California, Los Angeles: Continental Assn See West Coast is paid
also from San Diego, Seattle and any other City Office set up West of the
Mississippi.
HASI Africa, Johannesburg: Continental Assn See Africa is paid also by
Durban, Capetown and any other City Office in Africa.
HASI Australia, Melbourne: Continental Assn See Australia, New Zealand
and Oceania, is paid also from Perth, Sydney and Auckland and any other
City Office that is set up.
HASI U.K., London: Assn See would also be paid if any other City Offices
existed in its Continental Zone.
For the purposes of this directive at this time HCO Continental Offices
are designated as follows:
HCO Continental US Washington DC: Senior US executive, HCO Continental
Executive Secretary, is paid also from New York and Chicago when it exists
and from any other east of the Mississippi City Office that is set up.
HCO Continental West Coast: HCO Continental Secretary, West Coast, is
paid also from Seattle and San Diego and any other West Coast City Office
that is set up.
HCO Continental Africa, Johannesburg: HCO Continental Secretary Africa
is paid also from any City Office existing or to be set up in Africa.
HCO Continental Australia, New Zealand and Oceania, Melbourne: HCO
Continental Executive Secretary, is paid also from Perth, Sydney, Auckland,
and any other City Office set up in this Zone.
HCO Continental England, Wales and Scotland would be paid if any other
City Offices existed.
Effective on the week after receipt.
L. RON HUBBARD
LRH.jl.cden Copyright (D 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
306
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Orinstead, Sussex
HCO POLICY LETTER OF 28 MARCH 1961
CenOCon
PERSONNEL POLICIES
STAFF POST QUALIFICATIONS
PERMANENT EXECUTIVES TO BE APPROVED
(Modifying HCO Pol Ltr of Feb 17, 196 1)
I desire now to approve of all executives appointed to post in Central
Organizations, before the appointment is given permanent status.
1 desire a full report from HASI attendant to the dismissal of any
permanent executive before the dismissal occurs.
The data to be submitted to me, to qualify a department head as a
permanent holder of post includes:
1 . A minimum of 45 days successful performance of duty on post.
2. A statement from the D of P taken from pc graphs of the Auditor
quality and ability of the person being appointed.
3. The appointee's own graph and IQ.
4. A summary of his Selentology career.
5. A security cheek sheet on the person.
6. An E-Meter assessment, particularly on Help and Control.
7. His exam results for permanent Staff Member.
8. Report on Hat Check of post by HCO See.
9. SOP Goals procedure fully flattened.
No new executive, not approved by myself on the above basis, may draw
the salary of his executive post, but only the salary formerly drawn on a
non-executive post until my approval is received by the Assn See, effective
on receipt of the letter.
No executive may continue as an executive on permanent status, unless
approved by myself, on or after 1 August 1961, and if not approved will
revert to pay as a leading auditor even while retaining post.
For the purpose of this Policy Letter the following posts are defined as
Executive Posts:
In HA ST.
Association (or Organization) Secretary
PE Director
Director of Training
Director of Processing
Director of Promotion and Registration
Chief Registrar (Body)
Letter Registrar
Director of Material
Director of Accounts.
In HCO:
HCO Continental Secretary
HCO Area Secretary.
All persons permanently so appointed by myself shall be given a small
certificate to that effect.
The assembly of the materials required, 1 to 9 above, is solely the
responsibility of the person being appointed.
307
Temporary Executive Appointments to he Passed by HCO
The HCO Continental Secretary must pass upon any temporary appointment
of an executive, before the person is given post. This does not mean such
temporary appointment may receive the pay of the post.
The authorization to appoint a temporary executive may be refused only
on the following grounds:
1 . Past unsuccessful experience with the appointee on that post.
2. Graph points lower than centre.
3. IQ less than 120.
4. Security check not passed.
5. Control and help buttons get very bad reaction on E-Meter.
6. Examination of staff profiles and longevity show other persons
better qualified for post.
If no person can be found who qualifies for the temporary executive
post, it may not be filled.
In event of abuse or confusion of this section the Assr, Secretary may
stop any action in Progress and send full details to me for decision.
Temporary and Permanent Defined
A Temporary Executive fills the post on a temporary basis, using the
word Temporary in the post title. He or she does not draw the executive
post's units, but draws former units or the units of a leading auditor,
whichever is higher. He or she may be removed from post with or without
cause by the Assn Sec at any time. or a qualified HCO See during the time
that HCO Sec is handling a State of Emergency.
A Permanent Executive uses the full title of and draws the full units of
a post.
He or she may be transferred to a similar post by the Assn, See, or by
the HCO Sec who is handling a state of emergency that applies to that
department. He or she may be suspended for no longer than two weeks in any
three months from post without pay, to be processed in event of a
consistent failure in that department. He or she may be removed from post
only by myself after due investigation, and reports are received by me.
Appointment to Staff Posts
No appointment may be made to any post on staff until the following
procedure has been followed.
An application form (green ink on pink since it belongs to Accounts and
affects pay) is made available at the office of the Assn Sec's Secretary.
People desiring employment are directed by Reception to the Assn See's
Secretary (or a small stock of forms may be left with Reception).
The application form is self-directing. The person fills in his own
various qualifications and vital statistics. It then sends the person
directly to Test in Charge to be given a test or (as is more likely) to
receive the test from his files. The person then goes to the HCO See. The
HCO See marks the application form in spaces to review the test, makes a
brief security check and marks in that result and then states either (a)
The person is employable on staff or (b) This person cannot be employed on
staff until processed or (c) This person cannot be employed.
If the results are (b) or (c) the person is so told at once. If the
results are (a) the person is sent to the Assn Sec (or his Secretary) for
interview and results of interview are marked. The person is then told when
to come to work or that he or she will be informed if there is an opening.
If the person is employed (now or later), the application has the units
or pay marked on it by the Assn, Sec's Sec and is sent to the Accts Dept,
when employment is begun.
The Accounts Dept makes a folder for the person in the creditor file.
Accounts may not pay out a cheque until the form is in the Accounts
Dept, and is initialled OK, throughout.
308
The routing of the form is written on the left margin in each case.
Important: After August 1, 1961 the Accounts Dept may not pay out pay
even to old staff unless an application form is in the Accounts file.
Termination of Employment
When employment is terminated, the person terminating, to receive his or
her final pay, must be routed on a similar form.
The form is obtained from the Assn Sec's Sec, who is custodian of all
forms, by the Dept Head of the leaving person's department or by the Assn
Sec.
The form is self-routing on the left-hand margin. It is green ink on
pink paper.
The form is headed:
Termination Form
Without this form you cannot receive your final pay
or any recommendation to future employers.
The leaving person fills in name and date and writes his given reason
for leaving. He gives the form to Dept Head for his or her remarks.
The leaving person then reports to HCO and gets checked out for ARC
breaks and withholds, and may be ordered to processing at Organization
expense, but not longer than 12Y2hours, preferably 5 hours.
If the leaving person then changes his or her mind about leaving the
form is destroyed by the Dept Head.
The person reports again to Dept Head for the form to be continued, or
destroyed in event of person staying, and then takes the form to Director
of Material to turn in his supplies and any equipment, and get an initial.
This includes E-Meter and any such and in the case of a Dept Head or an
Assn Sec may require a full inventory by a paid company if the amount is
great.
The person now goes to Accounts with the form and receives with the form
his or her final pay.
Accounts, while keeping the creditor folder of the person in a "dead
file" at the back of creditors file, until the year's storage of files is
made, places the person's original application for employment and the
termination form (stapled, termination at the back) into Comm lines to the
Assn Sec's Sec who files.
The person's final pay cheque is sent to HCO by Accounts and may not be
paid directly by Accounts to the person. HCO hands over the final cheque
when the person has been checked out by HCO or has received any auditing
recommended.
Seeking Personnel
Dept Heads seeking personnel may procure it wherever they wish, and
however they wish, but must first look in the job application file of the
Assn Sec's See in order to save time.
To keep the file straight, the Assn Sec's Sec should divide the file
into live (with 3 months) and inactive segments.
In times of expansion a mailing can be sent to the whole list. This
would serve to freshen the file and the replies can be filed with the
original applications. Until they lose a body, these applicant people do
not get "dead filed".
Keeping this application file up prevents the randomity of Emergency
Hiring and by-passes of security.
The most fruitful sources of new personnel are the PE and Academy, and
permanent help wanted notices should be posted in each.
LRH:ph.cden L. RON HUBBARD
Copyright @ 1961
by L. Ron Hubbard [This 28 March 1961 reissue of HCO P/L 17 February
1961
ALL RIGHTS RESERVED added the parts shown in this type style.]
309
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 JULY 1961
EXECUTIVES' PAY
HCO Policy Letter of March 28, 1961 is modified as follows:
All permanent Executives (who were to meet the August 1, 1961 deadline
or have their pay revert) are extended to October 1, 196 1.
SOP GOALS CLAUSE
The qualification of persons having to be flat on SOP Goals by August 1,
1961 as per HCO Policy Letter March 28, 1961, is changed to "Must be flat
on Routine I A by October 1, 1961."
L. RON HUBBARD
LRH:jl.rd Copyright @ 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 OCTOBER 1961
CenOCon
PAY OF EXECUTIVES
(Modifies HCO Policy Letter of 22 July 1961)
The deadline of executive pay is extended to February 1, 1962.
The process to be flattened now is "Problems Intensive" as per Saint
Hill data of October, 1961.
L. RON HUBBARD
LRH:iet.rd Copyright@ 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 APRIL 1963
Assn See To be passed by full staff meeting before implementation
AUDIT OF ORGANIZATIONAL BOOKS
Here is a suggestion to help out those Orgs that get into deep water
over the paying of their auditor's (book-keeping) annual fees. It is only a
suggestion and carries no weight unless it is approved by a full staff
meeting.
Let's take a look at the situation. Our accounting system is
ridiculously simple-it has to be or we'd need highly trained and very
expensive personnel to keep it going. It is not our policy to do this. Much
better to have a simple system that any reasonably intelligent person can
operate efficiently and easily. This way we cut hundreds, even thousands,
of pounds off the payroll each year by doing away with the necessity of
having to employ highly skilled personnel.
However, our system has this drawback-we have to (by law) in all
countries, have balance sheets drawn up, audits done etc, for the Org.
These balance sheets can also be of considerable help to ourselves by
providing useful information, and to have these things done, we must employ
professional accountants, who cost money (probably the equivalent of six or
seven hundred pounds sterling per year). Now as these accountants are-in
effect-taking the place of staff we should otherwise have to employ, I
suggest that we, in effect, put them on the payroll!
In other words, say the average annual audit fee is �520 we put aside
each week �10 from the salary sum, to accumulate in the salary account
until such time as the accountants present their bill, at which time a
cheque is drawn on the salary account for the amount involved (�10 x 52 =
�520). Alternatively, if the account is to be paid by instalments, cheques
could be drawn once a month or as necessary.
Alternatively we hire as regular staff a permanent accountant.
This Policy Letter is offered as a possible solution to a problem that
has been upsetting some orgs for quite a while. 1 hope it helps.
Issued by: Mike Rigby
HCO Director of Accounts WW
for
L. RON HUB13ARD
Authorized by: L. RON HU13BARD
LRH:dr.aap Copyright @ 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
311
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 4 NOVEMBER 1963
Central Org
Accounts
PAY CARD
The following pay card developed by HCO Area See, New York, is
recommended for accounts use in Scientology Organizations. (Note: Card as
used in New York is about 8 inches by 5 inches, made of light card, and is
printed or mimeoed on two sides, as below.)
STAFF MEMBER PA Y CA RD SIDE I
NAME DATE OF BIRTH
ADDRESS SEX
CLASSIFICATIONS AND AWARDS
BASIS FOR 1A Y COMPUTA TION
STARTING DATE ON STAFF I/l/61 STARTING UNIT PAY 60
STARTING POST. Aects Clk (Admin Clerical)
DATE POST TYPE UNIT REASON TOTA
RAISE HELD OF RAISE FOR UNITS
RECD POST RECD RAISE RECD
HELD
7/1/61 Acets Clk Admin, Clerical 10 3 Mos. 70
10/1/61 Dir of Accts Dept Head 10 Becoming Dept Head 80
I/l/62 Dir of Acets Dept Head 10 3 Mos. 90
4/1/62 Dir of Admin Dir of Admin 15 Becoming Dir Admin
105
7/1/62 Org See Org See is Becoming Org See 120
10/1/62 Org See Org See 5 Bonus-Theta Clear 125
7/1/64 Org See Org See 10 Service Units-Perm 135
Staff Eff 7/1/64
SIDE 2
DATE POST TYPE UNIT REASON TOTAL
RAISE HELD OF RAISE FOR UNITS
RECD POST RECD RAISE RECD
HELD
LRH:jw.rd
Copyright Q 1963 L. RON HUBBARD
by L. Ron Hubbard
ALL RIGHTS RESERVED
312
HUBBARD COMMUNICATIONS 0 FFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 29 APRIL 1965
Remimeo
Staff Hats
ALL DIVISIONS
BONUSES
The only bonuses which may be awarded staff members shall consist of
courses and intensives.
Courses awarded will consist of one course under the Academy system
employed after this date.
Intensives shall consist of 12Vz hour or 25 hour intensives according to
the bonus awarded.
STAFF CO-AUDIT
All routinely scheduled staff co-auditing is cancelled effective 1 July
1965, except for assists including ARC Break, PTP and Missed W/H assists.
Solo auditing successfully carried out, but subject to D of P
supervision, is permitted, and solo auditors are permitted to do auditing
by list to give each other assists.
REVIEW
Bonus auditing award may include Department Review auditing to handle
various case types and ease scheduling.
GRADES
Staff Members must be audited up through the Grades properly in the HGC
or in Review.
The additional processes of a Grade may also be run.
POWER PROCESSES
No staff member may be run on a Power Process except by an auditor
properly qualified in the Review Case Cracking Unit.
EMERGENCY
No staff member or executive of a section, department or division or org
under Emergency Condition may have auditing.
AFFLUENCE
Staff members in a section, department, or division designated as in
Affluent Condition are favoured in bonus awards.
FIELD STAFF MEMBERS
A Field Staff Member who has sent twenty persons into the org may have a
course or a 121/2hour intensive at his or her election.
EXTRASTAFF
Enough Tech or Review extra staff must be on hand to give every staff
member in the org a 121/2 hour intensive every 6 weeks.
But this staff may not be counted in computing the tech-admin ratio.
These are the staff staff auditors.
This balance may not be cancelled out by overload. But other auditors
may be used, such as Review Auditors in this programme.
QUALITY
Staff members should have fully qualified auditors in their auditing.
To qualify additionally as a staff staff auditor, a staff auditor must
also have an
313
excellent record of personal case gains and good T.A.
STAFF STAFF AUDITORS DURING EMERGENCY
When an entire org is under Emergency, staff staff auditors are assigned
to promotion duties such as mailings, etc.
COURSES
A staff member awarded a course instead of an intensive may have only
one course and may be only on quarter pay or units for that period.
SAINT HILL COURSE AWARD
Only the higher status staff member may be sent to the Saint Hill Course
as an award and only for a very praiseworthy accomplishment.
The Saint Hill Course is awarded a staff member only by the Office of
LRH.
This does not prevent staff members from undertaking their own training
at Saint Hill with some org assistance on expenses.
SAINT HILL AUDITING
A staff member of very high status in any org may be awarded auditing at
Saint Hill, but only for praiseworthy accomplishments.
This award is only at the personal orders of LRH.
LIMITED AMOUNTS
A staff member may only have 121/2 hours at a time in the HGC from staff
staff auditors of the HGC or, in Review, only to a result, which may vary
from 8 hours to 50. But unless specified no staff member may be awarded
Review auditing more than once in an org which has a Case Cracking Section.
There are no Review staff staff auditors. Auditing there is done only by
the regular Review staff.
PARTIALITY
Aside from Emergency and Affluent Conditions the bonus of auditing and
courses should be spread evenly.
No executive has any right to order a staff member to auditing for
several intensives at the expense of other staff.
Staff of portions of an org in other Conditions than Emergency and
Affluence should be treated fairly.
STAFF MEMBER FAMILIES
No members of families of staff may have staff staff auditing. They may
however, as a special favour, be given professional rates. An org does not
owe auditing to a staff member's family.
The Hardship Section of the Department of Certificates and Awards often
will have auditors on list for the auditing of the staff members' families.
Comm EV
No Comm Ev or Court or executive may after this date sentence anyone to
auditing.
Such Ethics bodies may, however, deprive a person of auditing or
training or technical communication or any communication.
RECORDS
All records of course and auditing awards and rotation thereof amongst
staff are kept by the Department of Certificates and Awards.
AUTHORITY OF AWARDS
All authorities for bonuses for intensives or courses must stem only
from the Office of LRH in the org.
LRH:jw.rd L. RON HUBBARD
Copyright @ 1965
by L. Ron Hubbard 314
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 SEPTEMBER 1965
Issue 11
Gen Non-Rernimeo
HCO Exec Secs
Oxg Exec Sees
UNITS AND BONUSES FOR ORG EXEC SECS
AND HCO EXEC SECS
(Revises HCO Policy Letter 24 March 1961:
Units for Assn See and HCO See)
Each City Office Scientology Org shall add the Org Executive Secretary
of the Continental Org of the zone to its payroll to the sum of 2 units in
the Commonwealth area arid 8 units in the dollar area.
This shall be regularly paid to the Org Exec See of the Continental Org.
Each HCO Area Office of a City Office shall add the HCO Exec See of the
Continental HCO of the zone to its payroll to the sum of 2 units for the
Commonwealth area and 8 units in the dollar area.
This shall be paid regularly to the HCO Exec See of the Continental HCO.
The purpose of this is to increase the interest of the Continental Org
Exec Sees and HCO Exec Sees in the problems and well being of City Offices.
For the purposes of this directive at this time, Continental Org Exec
Sees are designated as follows:
FCDC, Washington, DC: John Higginbotham, senior Central Organization
Acting Org Exec See in the US, is paid also from New York, Miami, Twin
Cities, Detroit, Chicago (when set up) and any other City Office East of
the Mississippi.
C of S, California, Los Angeles, Org Exec See West Coast is paid also
from Hawaii, Portland and any other City Office set up West of the
Mississippi.
HASI, Africa, Johannesburg: The Org Exec See is paid also by Durban,
Cape Town, Port Elizabeth and any other City Office set up in Africa.
HASI, Australia, Melbourne: Denny Gogerly, Acting Org Exec See, is also
paid from Perth, Sydney, Adelaide and any other City Office that is set up
in continental Australia.
HASI, New Zealand, Auckland: The Org Exec See Auckland is also paid if
any other City Offices are set up and exist in New Zealand.
HASI, UK, London: The Acting Org Exec See, Ray Thacker, would also be
paid if any City Offices existed in its continental zone.
For the purposes of this directive at this time HCO Continental Offices
are designated as follows:
HCO Continental US, Washington, DC, Donna Fisk Reeve, Acting HCO Exec
See, is paid also from New York, Miami, Twin Cities, Detroit and any other
East of the Mississippi City Office that is set up.
HCO Continental West Coast: The HCO Exec See of Los Angeles is paid also
from Hawaii, Portland and any other City Office that is set up West of the
Mississippi.
315
HCO Continental Africa, Johannesburg: The HCO Exec See is paid also from
Cape Town, Durban, Port Elizabeth and any other City Office set up in
Africa.
HCO Continental Australia, Melbourne: Catherine Layton, Acting HCO Exec
See, is paid also from Perth, Sydney, Adelaide and any other City Office
set up in Australia.
HCO Continental New Zealand, Auckland: The HCO Exec See would be paid if
any other City Offices existed in New Zealand.
HCO Continental UK, London: Joan De Veulle, Acting HCO Exec See, when on
the post would be paid if any other City Offices existed.
HCO BOOK ACCOUNT POLICY
(Corrects HCO Policy Letter of I I May ADIS)
HCO EXEC SEC BONUS
The HCO Exec See is granted a bonus of 2 percent of the gross receipts
of the local Book Account.
The HCO Exec See of a Continental HCO is paid 1/2of one percent of the
gross receipts of each Book Account in his or her continental zone.
ORG EXEC SEC BONUS
The Org Exec See is granted 2 percent of the gross receipts of the HCO
Book Account, but may not be a signatory to that account.
The Org Exec See of a Continental Org is paid 1/2 of one percent of the
gross receipts of each Book Account in his or her continental zone.
L. RON HUBBARD
LRH:ml.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
316
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 12 OCTOBER 1965
Remimeo
ADVISORY COMMITTEES
It is up to AdComms to assign conditions of Emergency to Departments.
If the ADVISORY COUNCIL discovers an even slightly down statistic in the
Gross Divisional Statistic and finds that that AdComm in its meeting the
previous Friday did not locate the cause and assign..an emergency to it,
the Advisory Council may assign a Condition of Emergency to the entire
division regardless of the slightness of the gross drop.
AdComms must establish and assign statistics for their departments and
sections or units and individuals.
An AdComm may assign a personal state of emergency to any person in that
division.
PAY ADJUSTMENTS
Applies to all orgs on Unit Pay
An individual, unit, section, department or Division will, effective 15
November 1965, have a unit pay reduction of 20% of its units if it is
assigned a 'state of emergency.
An individual, unit, section, department or division, effective 15
November 1965, will receive an increase of 20% of its units if assigned a
state of affluence.
STATES ASSIGNMENT TABLE
Exec Division -States assigned for the whole Exec Division by Saint Hill
only in accordance with gross income.
Divisions - States assigned by the local Advisory Council on the basis
of the Gross Divisional Statistic.
Departments - States assigned by the Advisory Committee of that
Division, by the Advisory Council or the HCO Secretary.
Sections: - States assigned by the AdComm of that Division or by the
Advisory Council or by the HCO Secretary.
Units - Same as sections.
Individuals - Same as sections.
POLICY
No org, portion or individual in an org may be without an assigned
state. No states may be assigned anything or anyone save on the basis of a
graphable statistic.
LRH:ml.rd
Copyright Q 1965 L. RON HUBBARD
by L. Ron Hubbard
ALL RIGHTS RESERVED
317
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo
Area Orgs HCO POLICY LETTER OF 21 JULY 1966
Pay Roll
Preparation
Dir Disbursement
Org Sec
Org Area Sec
All Staff except
SH PROPORTIONAL PAY PLAN 1966
The basic basis of pay in terms of units shall be by post, on the basis
of the post held being 'Acting'. A Deputy retains the pay of his former
post, (or his last post held just prior to his most recent promotion if he
is promoted to Deputy before being confirmed as Acting on a post), and
receives an increase in units appropriate to the post when and if he is
confirmed in the post as 'Acting'.
The basic units shall be as follows:
Units
Executive Director 200
Guardian 175
Acting Executive Secretary 150
Acting Secretary 120
Acting Director (except
LRH Communicator) 100
LRH Communicator 110
Acting Officer 85
Acting In Charge 75
Provisional non-executive staff 65
Temporary staff (any staff prior 60
to attaining Staff Status 1 )
Increase in a staff member's units may only be by his having been
promoted, with the exception of the following:
1 . For being in continuous service on staff-5 units for each year up to
five years. To receive service units the staff member must have Staff
Status 2.
After a staff member has been in continuous service for 10 years he
receives an additional bonus of 10 units. However, he must have Staff
Status 2.
A leave of absence, if granted by the area Advisory Council and
confirmed by the Advisory Council WW for a specific period, does not break
the continuity of service IF such leave of absence has been granted "with
no loss of seniority".
By continuous service is meant CONSECUTIVE SERVICE OVER A PERIOD OF TIME
in any Scientology official organization-i.e. City Office, Central Org (Day
or Foundation) or Saint Hill. In other words, if a staff member transfers
to another org, his service time in the previous org does count.
2. For Staff Status. For a non-executive post, attainment of Staff
Status 1 raises his pay by 5 units. For any current executive from Officer
up who does not have Staff Status 1, his pay is to be reduced by 5 units
until he achieves it.
For attainment of Staff Status 2, the staff member's units are raised by
receiving his service units for whatever period he has served on staff
continuously.
As other Staff Status check sheets are issued, attainment of those
status numbers will draw additional units, the amount to be stated when the
check sheet is issued.
3. Staff who are trained in Scientology will receive additional
units as follows:
318
a) Old HDA, IF the staff member has Units
attained Staff Status 2, has had continu
ous service for at least 5 years, and has
had Scientology training to at least Level
Il Classification. (This would mean the
staff member was a veteran.) 2
b) Had attended ACCs 2
C) Has a Level 11 Classification 2
d) Has a Level III Classification 2
e) Has a Level IV Classification 2
I) Hasa Level VI Provisional Classification 4
g) Has a Level VII Provisional Classification 6
h) Attains Clear 10
The above are additive.' The intention here is to reflect in the units
of staff members their experience in Scientology.
TECH AND QUAL PERSONNEL
Staff auditors, the Case Supervisor, the D of P, Course Supervisors, the
D of T and the Tech Sec, the Qual Sec, D of Review, D of Examinations, Pc
and Student Examiner(s), Review Case Officer, Review Auditors and Cramming
Supervisors are to receive an additional 5 units for being in Tech and
Qual. These additional 5 units are per personnel and are not additive in
the event 2 or more posts mentioned are held by one person.
In the event that an Exec post held as 'Acting' is confirmed at the end
of a year's successful service, the staff member holding the post in full
(would have to have the Staff Status numberof the post to qualify), is
granted an additional 5 units with the confirmation, which must be
confirmed by the HCO Exec Sec at WW.
LEAVES AND VACATION PAY
A staff member is eligible for vacation after he or she has worked one
year on staff. After he or she has worked one full (continuous) year a
vacation with pay of 2 working weeks is allowed. This is non-accumulative
(i.e., a staff member may not skip vacation one year and..be granted 4
weeks thenext year). No vacation time is collectible except in the one year
period. However, after the year is worked, the vacation itself may be split-
one week taken separately from the other week, but may not be further split
than one week at a time. A staff member may be granted an advance against
his vacation pay just prior to his leaving for his vacation and at no other
time. Such'an advance is based on the unit value of the last week before
his vacation and is to be adjusted up or down according to the units of the
following week, or two weeks, such adjustments to be immediate and not long
and drawn out. He may not otherwise draw against vacation pay. No staff
member may be paid double for two weeks in lieu of vacation. If he or she
doesn't take it, he or she merely loses out.
All vacation time (as to dates of vacation) must be okayed by the staff
member's seniors up to Secretary (Secretaries by Exec Sees and Exec Secs by
Ad Council) and must also be OWd by HCO Personnel Control, who is
responsible for scheduling the times of vacation granted so as not to
endanger the org through having insufficient personnel on post to handle
the org functions and activities.
PART TIME STAFF
Part time staff are paid on the basis of 11/2 units an hour or 2 units
an hour for Tech and Qual personnel. Orgs should not be heavily staffed by
part time staff.
FIXED PAY
Only the following posts may be paid on the basis of fixed pay and this
should be discouraged. However, sometimes it is hard to fill these posts
except on the basis of fixed pay.
319,
1. Janitors or Cleaners.
2. Typists for Letter Reg. It is often more expedient to pay
typists at a fixed rate per letter, rather than by time.
3. Construction personnel, in the event buildings are being built.
4. Accountant, if the org is okayed to have one.
A Staff member does not receive multiple basic units if he holds more
than one post. He receives the basic units of the highest post held.
FOUNDATION UNITS
If a Foundation is in FULLY-i.e. nights and weekends, (the same staff
working both nights and weekends), then the pay is the same as in the Day
org.
If a Foundation is evenings only, or weekends only, or if the staff of
evenings and weekends are different, then the units are as follows:
Acting Exec See 50
Acting Secretary 40
Acting Director 33
(LRH Communicator) 36
Acting Officer 28
Acting In-Charge 25
Provisional non-executive staff 22
Temporary staff (any staff prior
to attaining Staff Status 1) 20
Increase in units may be only on the basis of promotion except for the
following:
I . Continuous service (only if the staff member is Staff Status 2)-2
units per year. By continuous service here is meant continuous service in
the Foundation only since the staff member working also in the Day Org is
paid his service units for such in his Day pay.
2. Staff Status. For a non-executive post, attainment of Staff Status I
raises his pay by 2 units. For any current Exec from Officer up who does
not have Staff Status 1, his pay is to be reduced by 2 units until he
achieves it,
Staff Status achieved in the Day Org, of course, counts in the
Foundation.
As other Staff Status check sheets are issued, attainment of these
status numbers will draw additional units as announced with issuance of
check sheets.
3. Staff trained in Scientology will receive additional units as
follows:
a) Old HDA IF the staff member has Units
attained Staff Status 2, has worked in a
Day or Foundation for at least 5 years,
and has at least Level 11 Classification I
b) Had attended ACCs I
C) Has Level 11 Classification I
d) Has Level III Classification I
e) Has Level IV Classification 1
f) Has Level VI Provisional Classification 2
g) Has Level VII Provisional Classification 3
h) Attains Clear 5
The above are additive.*
320
The Introductory Lecturer receives an additional 5 units.
For having an Exec post held as 'Acting' confirmed as in full (same
requirements as Day Org apply)-2 units additionally.
For staff to work only part time in the Foundation seems an unlikely
situation. However, if there is such, they would receive an hourly rate of
I unit.
There is no fixed pay in the Foundation except, if necessary, Letter
Reg Typists.
Vacation and leave rules are the same as for the Day org.
NO DAY ORG PERSONNEL, EXEC OR OTHERWISE, MAY BE PAID AS FOUNDATION, WHO
ARE DOING THEIR DAY WORK DURING THESE HOURS. TO BE PAID ON THE
FOUNDATION, THE STAFF MEMBER MUST WORK ON FOUNDATION DUTIES
EXCLUSIVELY. THIS INCLUDES EXEC SECS.
Scientology executives do not receive overtimepay for extra hours
worked on ,their posts, as they are paid for being responsible for the
duties of the post, which includes management of work loads and management
of posts and lines under them. Any Exec having to work overtime for many
hours routinely should analyze his lines for Dev-T, or off-line work, or he
should shed some hats. When one has to work late and long, it means that
the lines at that point are jamming or that the work is being handled
inefficiently and ineffectively. This should serve as an indicator for
investigation.
The intention of the system outlined here, in addition to paying for
the responsibilities entailed in the rank of the post, is to pay staff on
the basis of experience in the org and experience in Scientology. As this
is the Day of Expansion for Scientology, it is conceived that persons new
on staff will be Promoted (and hence increase their pay) on the basis of
their statistics and will improve their level of training in Scientology
both technically and administratively through taking courses at night and
through the attainment of staff status.
(* In the event training took place in the period that lower levels
were not being classified, or the SHSBC-only the top level achieved, a VI
or VII, is understood to include the lower levels and these are to be added
in as per above.)
L RON HUBBARD
LRH:lb-r.cden Copyright f--" 1966 by L Ron bbard ALL RIGHTS RESERVED
321
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 SEPTEMBER 1967
Issue 11
Remimeo
Div 3 Dept 8
Div 5 Dept 13
EXAMINER BONUSES
(Effective 15 Oct 67)
(Cancels any and all local or Pol Ltr or ED Examiner Bonuses)
The Clear who is chosen as an Examiner in the Pol Ltr Issue 1 of this
date is entitled to the following bonuses on preclears only (not Academy
students study awards):
For every Correct examination for grade for any grade of release or
Clear, whether passed or failed by the pc, the Examiner shall receive
personally the sum of �1 or $2.50 US or similar sum in other currencies of
an even amount.
If at any time within 90 days after -examination the examination is
found to be incorrect the Examiner shall pay the org �5 or $12.50 or
similar sum but always 5 iirnes the examination fee received.
The sum is paid by the Org not the pc and is paid for any declaration
examination including multiple declares. The 5 times fine is paid to the
org not to any person.
The examination fee is paid even when the org offers free examination.
It is free to the public but the org pays the Examiner.
The fee is paid (or 5 times it is forfeited) on re-examinations also.
The Examiner receives the fee regardless of whether the result is a
declare or a flunk. If the pc passes and is certified in grade or if the pc
does not pass and is not certified makes no difference-the fee is still
paid.
The forfeit for a misdeclare or failure to declare is paid by the
Examiner if he declares a pc to have made it who has not or who fails to
declare a pc who has made it. Either one is an INCORRECT examination.
The way an Examination is found to be incorrect is if the pc, within 90
days:
1. Becomes the subject of an Ethics Order of any kind; or
2. Fails to carry on with further processing or fails to signify he
is going to; or
3. Does not signify his intention to get training or further
training; or
4. Becomes the subject of a review for case; or
5. Is found by a board to have been the subject of an examination
leading to an incorrect result; or
6. Goes out of comm with the org.
If the pc by any subsequent Examiner at the next or higher grade or
grades is found to have been incorrectly declared or incorrectly denied a
declare, at ANY FUTURE DATE, the Examiner who did the incorrect examination
shall pay the forfeit to the org. The Examiner threatened with such a
penalty by reason of this paragraph only, may ask for a Board of
Investigation on the matter.
The full intent of this policy letter is to make it worthwhile for an
Examiner to make a completely honest examination without regard to anyone's
statistic and to be immune from any pressure to declare or not declare, the
whole repute of Scientology depending as it does in HONEST examination.
This system is also aimed to make it worthwhile for a Clear to be an
Examiner and provide adequate reward for same.
L. RON HUBBARD
LRH:jp.bp.eden Founder
Copyright @ 1967
by L. Ron Hubbard (See also HCO P/L 2 Much 1968, Qual Sec
ALL RIGHTS RESERVED Must Be Clear, Volume 5-page 74.1
322
NOT HCO POLICY LETTER
CORRECT COLOUR FI-MH
BLUE ON WHITE
EXECUTIVE DIRECTIVE FROM L. RON HUBBARD
LRH ED 64 INT Date 10 December 1968
The attached is a Proposed Policy Letter. It is for staff examination
and discussion all org5 save WW1 SH and Asho which are already more or less
doing it.
Staffs should be given this data and it should be
(a) found acceptable
(b) amended by specific suggestions or
(c) rejected.
All in open staff meeting which only staff members may attend.
The EC should then advise the Deputy Guardian for Finance WW via EC WW.
If a majority of orgs. favour this, it will then be implemented as an
actual Policy Letter by WW and other Pol Ltis amended.
L. RON HUBBARD
Founder
. . -,U
c
11 f7C4
J
-5- >
323
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 DECEMBER 1968
Rernimeo
AD Staff
Treas Hats
Guardian
Fin. Hats
PERCENTAGE ADJUSTMENTS AND FIXED SALARIES
(Effective Ist January 1969)
(Cancels HCO Pol Ltr 3 May 1966 Reserve Fund)
(Cancels HCO Pol Ltr 21 July 1966 Prop Pay Plan)
(Cancels HCO Pol Ltr 15 Feb 1967 Allocation of Income)
The current financial structure of outer orgs has been partly successful
but on an overall basis, has failed to:
1. accumulate a large reserve to handle unexpected financial needs
and ensure solvency;
2. provide staff with a reliable and stable source of personal
income;
3. permit long range financial planning with any degree of
certainty.
Saint Hill and the Sea Organization on the other hand have succeeded
very well in all three of the above, and upon inspection the most
successful aspects of financial procedures in these orgs were found to be:
1. fixed salaries as opposed to proportionate pay;
2. a disbursement sum well below the gross income of the
organization.
To bring outer org finance in line with the above the following changes
are made, effective Ist January, 1969.
All orgs are required to operate on a fixed sum.
This sum is derived from a percentage of past quarterly Corrected Gross
Income of the organization. This figure is then set as a ceiling for
expenditure for the coming quarter and is obtained as follows:
(a) Add the Corrected Gross Income each week for the past quarter
Day and Foundation combined.
(b) Divide this figure by the number of weeks in this period.
(c) 70% of the figure in (b) above establishes the ceiling for
expenditure in the coming quarter.
THE TERM "CEILING" IS DEFINED AS THE SET FIGURE ON WHICH AN ORGANIZATION
OPERATES WEEKLY, REGARDLESS OF THE INCOME.
The day org being the senior org handles the Financial Planning for both
Orgs (Day and Fdn) based on the allocated amount.
The ceiling figure once established, would normally remain the same
throughout the quarter but, in actual practice, a major increase or
decrease in average income during the quarter could warrant a change of the
ceiling amount if the established figure proved unworkable. Any proposal
for such a change would be approved at the discretion of the Deputy
Guardian for Finance WW.
324
While the ceiling establishes how much can be spent it would be wise for
the Executive Council to bear in mind that the corrected Gross Income for
any week may go below the allowed amount. Provision for this is made by
always spending less than the allocated amount.
FIXED SALARIES
In an org which pays wages on a unit system (proportionate pay) the
wages vary wildly from one week to the next, a factor which in itself
discourages expansion-while at the same time a large percentage of weekly
income is consumed by payroll.
Fixed salaries, as currently paid by Saint Hill and the Sea
Organization, provide a stable wagefor staff,members, while consuming a
smaller portion of gross income, thereby permitting the accumulation of a
substantial reserve.
It is the function of the Executive Council to set the basic salary for
each staff member within the allotted percentage. This is then approved by
the Assistant Guardian for the org or the Continental Assistant Guardian
for Finance.
No wage scale will be approved which consumes the entire salary amount
thereby leaving no room for expansion.
RESERVE ACCOUNT
This account replaces the General Liability Fund and Building Fund
Accounts.
The Reserve Account has a purpose similar to the General Liability Fund
and Building Fund Accounts, and is established for organizations to put
aside monies for Legal Fees, new buildings, Mission Payments to Sea Org,
etc. It is also designed to provide a cusl-don of cash for organizations to
fall back on if ever needed.
This account is set-up to be a Trustee Account for the outer orgs which
is controlled by the Guardian's Office WW and the Sea Organization. The
weekly deposits are considered disbursements to the Sea Org but the money,
in actual fact, still belongs to the org for the purpose of its Cash-Bills
statistic.
As will be seen from the new AC I Form, the weekly deposit to reserve
consists of the difference between the established ceiling figure and the
week's Corrected Gross Income less the WW 10%. This figure will vary
considerably from week to week.
Orgs which are not restricted by Exchange Control remit their weekly
cheque made payable to the OTS Service Account, to the Reserve Liaison
Officer Sea Org for deposit.
The Reserve Account for South Africa orgs is situated in Johannesburg,
for Australian orgs in Sydney, and New Zealand org in Auckland. Cheques for
deposit to the Reserve Account of these orgs are forwarded to the
respective Assistant Guardians for Finance for banking, who forwards a copy
of the weekly deposit slips and vouchers to the Reserve Liaison Officer. It
is the responsibility of the Assistant Guardians for Finance of the above
mentioned orgs to open such a bank account.
As of I�t January, 1969 the General Liability Fund and Building Fund
Accounts will be closed and the monies transferred by cheque to the
respective Reserve Accounts via the Reserve Liaison Officer.
Monthly rent payments for those orgs which currently pay their rent from
the Building Fund Account will be handled exactly as before except the rent
payments will come from the Reserve Account.
SIGNATORIES
The signatories for the Reserve Accounts are L. Ron Hubbard, Mary Sue
Hubbard, singly, or CS-3 Material Aide with anyone of the following-2nd
Deputy Guardian for Finance WWI Treasurer WW and the Reserve Liaison
Officer.
THE LRH GOODWILL PAYMENT ACCOUNT
The weekly deposit to this account (which comes from the allocated
disbursement sum) is a set figure determined by the org's Executive Council
and approved by the Assistant Guardian for Finance of the org, or by the
Assistant Guardian for Finance of the Continental Office.
The 10% routinely sent by orgs to WW remains unchanged.
It is the intention of this Policy Letter to bring about a substantial
reserve for Scientology organizations which is controlled by the Guardian's
Office and the Sea Organization, and secondly to establish in the outer
orgs a financial structure similar to that which has proved successful at
Saint Hill and WW.
L. RON HUBBARD
Founder
LRH:ei.rd Copyright (D 1968 by L. Ron Hubbard ALL RIGHTS RESERVED
NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH
BLUE ON PINK
GUARDIAN FINANCIAL ORDER
GFO 12 3 Ist January 1969
HCO POLICY LETTER 10 DECEMBER 1968
PERCENTAGE ADJUSTMENTS AND FIXED SALARIES
Following the non acceptance by the Majority of Orgs at Staff meetings
of the above Policy Letter all Orgs will retain the Proportionate Pay Plan
as before with the exception of WW, SH, ASHO and Pubs who remain on fixed
pay.
H.G. Parkhouse Second
Dep/Guard F WW for Jane Kember
The Guardian WW
0 L
0
A,
441 TON
FOQ 01
... ...... I
326
WW Form AC I Pol Ltr 10 December 1968
Amends Pol Ltr 15 February 1967
Org ........................
PROPORTIONATE INCOME BREAKDOWN WORK SHEET FOR WEEK ENDING ...........
Put down total
Bl. DONATIONS RECEIVED - A. GROSS INCOME
B2. MEMBERSHIPS Al. ADVANCE PAYMTS
C. RENT COLLECTED REC'D
D. LOANS COLLECTED A2. Subtract AI from A
E. PHONE CALLS COLLECTED- A3. ADV PAYMENTS USED
F. REFUNDS GIVEN A4. ADD A3 to A2
Fl. REPAYMENTS
F2. FSM COMMISSIONS PAID-
G. Put down the total of all Congresses, books, tapes, monies, and
special event monies if any were invoiced by the org
for HCO .............................
H. Put down total others -
I. ADD B 1, B2, G, D, E, F ' F2, G, H and put total here and in right-
hand column (put down twice) ......
J. CORRECTED GROSS INCOME Subtract 1 from A4 and put down here
.......................
K. HCO WW10% of J and putdown here .........
L. Subtract K from J and put down here ..........
M. Take ceiling figure for this quarter and put down here
N. RESERVE AMOUNT - Subtract M from L ......
0. Put down amount from Line B 1 * * * ' ' * ' '
Put down amount from Line C *
Put down amount from Line D * ' * * *
ADD and put total down twice *
P. TOTAL RESERVE SUM Add Nand 0 . * .......
Q. Put down amount from Line M ..............
R. DISBURSEMENT SUM Take 45% of Q and put
down here ............................
S. Put down amount from Line E .............. Put down amount from Line
H .............. ADD E and H and put total down twice ........
T. TOTAL DISBURSEMENT SUM Add R and S and put down here
.........................
U. SALARYSUM Take 55% of Q and put down here .
V. SUM TO AREA HCO Put down amount from Line
G ...................................
Put down amount from Line B2 ... : * * ' * * ' * * '
ADD G and B2 and put total down twice .......
BALANCE CHECK
AA. Put down Gross Income corrected for Advance Payments from Line A4
....................
BB. Put down total refunds from Line F ...........
CC. Put down total repayments from Line F 1 .......
DD. Put down FSM Comms paid from Line F2 .......
EE. Put down HCO WW 10% from Line K ..........
FF. Put down Reserve sum from Line P ...........
GG. Put down total Disbursement sum from Line T . . .
HE. Put down total Salary Sum from Line U ........
II. Put down total sum to Area HCO from Line V ....
JJ. Add BB, CC, DD, EE, FF, GG, HH & II and put
down total here and at right-hand side .........
KK. SUBTRACT JJ from AA and put down here (there should be NO BALANCE)
.................
ATTESTED BY .............. (Signature and Title)
327
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER -OF 9 MAY AD 15
Rernimeo (Revised & Reissued 14 January 1968)
Franchise
Saint Hill Students
Post Public B. Board
FIELD AUDITORS BECOME STAFF
(Cancels HCO Pol Ltrs March 26 '65 & March 30 '65)
All field auditors of the level of HBA and above are appointed herewith
FIELD STAFF MEMBERS of their nearest Scientology organization.
Their rank is FIELD STAFF MEMBER (Provisional).
They come directly under the Department of Clearing, Director of
Clearing of their nearest org.
The Purpose of the Field Staff Member is:-
TO HELP LRH CONTACT, HANDLE, SALVAGE AND BRING TO UNDERSTANDING THE
INDIVIDUAL AND THUS THE PEOPLES OF EARTH.
Their pay shall be in terms of commissions and therefore should be equal
to that of general staff members in the orgs themselves, depending only on
the activity of the Field Staff Member. The Field Staff Member is not on
proportionate pay and is not on payroll for tax purposes.
The situation is this: the idea ~of the practitioner setting up a
practice to audit preclears must be wrong because it is used with poor
success by new doctors and psychiatrists; it also has worked poorly for
doctors as groups as they more and more require government subsidy,
personally require large borrowed sumsto set up new practices and depend
for affluence on laws passed to protect them and give them a monopoly; a
monopoly held in place by force alone soon vanishes. Further, their system
took over 700 years to establish them to a point where they could demand
the legislation needed to protect them-proof: examine the status of a
medical man in the centuries between the Great Plague and today century by
century and see the tiny progress each century in the standing of their
profession and their security.
We neither have nor need 700 years.
Civilization is successful only because it is a team. The individual in
our present society has a rough time.
We are a team. We have a big job to do. We need every one aboard. Hence
the appointment.
This appointment should come as no surprise as we were waiting only for
the completion of technology to press the boom buttons. And one of them was
to reclaim and enrol as staff members everyone we have ever trained.
COMMISSIONS
The official Scientology Organization to which the Field Staff Member is
attached will pay the Field Staff Member a Percentage of all training and
processing fees received by that organization through its Field Staff
Members.
This system has already been piloted some years ago and its
administration design is now smoothed out. However it must be followed
closely.
The Field Staff Member selects the person to be trained or processed
after direct personal contact with the person and issues to that person a
paper stating the contacted person has been selected. This paper bears the
HOUR, DATE and PLACE of the selection.
The paper is in quadruplicate. The original goes to the person selected
(selectee), the second copy is sent promptly to the Field Staff Member's
org's Advanced Booking Registrar, the third to the Director of Clearing and
the fourth copy is held by the Field Staff Member.
328
If the selectee appears at the org, presents the SELECTION PAPER to the
Cashier and enrols for training and processing, and pays, the org sends at
once a commission of 10% for total cash. There is no waiting in sending the
commission. The org sends the sum at once. 10% is also paid in memberships
bought by the selectee if accompanied by another selection paper marked
Membership also issued by the Field Staff Member.
Example of Commission: A selectee presents the Selection Paper at the
Org Accounts Office and pays for the services bought totally in cash. The
org promptly sends the Field Staff Member 10% of the whole payment.
Example: A selectee presents the Selection Paper of the Field Staff Member
at the org accounts office and pays for the service in cash. The org
promptly sends the Field Staff Member 10% of the total sum. These both end
the transaction. There is no later amount owing the Field Staff Member when
the credit extended is paid off. If any Field Staff Member gave the
selectee another later paper the selectee then used, again commission would
be paid by the org.
The person selected is directed by the Field Staff Member to Reception
at the nearest organization, the name and address of which is given to the
selectee.
No cash for memberships may be taken by the Field Staff Member as
Memberships must be paid for only to the org Accounts Cashier.
The preclear or student may be selected as often or as many times as the
Field Staff Member can do so.
If the person is not, however, selected again by the Field Staff Member
after training or processing, the org may select the person once more and
no commission is paid. The org does not have to have a selection paper to
train or process a person.
The org will honour and pay commission on the selection papers presented
to Accounts by the selectee. It is the responsibility of the Field Staff
Member to inform the selectee to present his or her selection paper.
EXISTING CENTRES
Existing Scientology Centres are not official orgs. The Field Staff
Member is not attached to unofficial orgs. However, a centre or group or
group of auditors may send a selectee as a student or PC providing it is a
Field Staff Member that signs the selection form. Centres may not have
Field Staff Members of their own unless the Centre is owned and operated by
Scientology, and Field Staff Members may not send PCs or students to any
but official orgs. To do so constitutes suppression of Scientology official
orgs as this is a Scientology org activity, not designed for centres or
franchise holders to use until they are officialized and their service can
be supervised. Remember, to use this system all a centre has to do to use
the Field Staff Member system is become official and meet requirements for
a new org.
FORMS '
Where no forms exist the Field Staff Member can write on plain paper,
preferably pink (the org flash colour for Accounts matters) and using
carbon or hand copying can make the forms himself.
The form must bear th6 HOUR, DATE and PLACE, the block printed name and
address of the selectee and the block printed name and address and
certificate initials and certificate number of ~the Field Staff Member and
what the selectee is selected for (membership, training or processing) and
some approximation of arrival date at the org.
Orgs may care to furnish forms, but this is all-they contain.
MEMBERSHIP AND RATE CARDS
The Field Staff Member should be supplied with book lists, membership
descriptions and the org rate card. He or she should give copies of these
to the selectee if the Field Staff Member has:them.
BOOKS
The Field Staff Member may buy books from an org and sell them for his
own profit. Any discounts are arranged with the org and regulated by the
Director of Publications, Saint Hill.
329
ORG MEMBERS
Other org staff members may not use this system as they are general, not
field, staff members but where they have had personal PCs before taking org
employment they may handle the matter as a Field Staff Member would if done
within the first three months of Org employment and the selection was done
before org employment.
CERTIFICATE REQUIRED
Any auditor who has any certificate including Hubbard Book Auditor may
become a Field Staff Member.
No classification is required.
No other stipulations may be locally made.
PITFALL
This is all taken from my own experience when I was the only field
auditor there Was.
I was hammered at by many to process them and became quite overworked. I
was only saved by org formation to Which I could turn over my traffic.
The moment a field auditor starts individual processing he becomes too
pinned down to promote and in a year or so fails therefore or has to turn
to other activities.
I got my PCs by casual personal contact and by letting a book circulate
(the Original Thesis) and by local personal promotion. I ran a PE type
course (not as high as an HAS) and at one time had even psychiatrists
demanding I process their wives after they had heard one lecture.
The demand for my own processing cut back my time and nearly stopped
everything until I turned everyone over to the org and got on with my local
public promotion.
I refused to process people myself and therein lies the secret of
expansion. Only an org, with its organization and facilities and teamwork
can handle PCs and students. Even a very small org doesn't dare process PCs
or train students. It does best when it only promotes. And it should send
its PCs to a bigger org. It should limit itself as I did after orgs took my
PCs over, to short assists, PE courses and small co-audits.
DISSEMINATION FORMULA
I've now discovered the Dissemination Formula we've wanted so long and
it's easy. Central orgs have it and train Field Staff Members on it in the
staff training programme. Being tech it has no part of this Policy Letter.
It takes four or five hours to learn, theory and practical. The org will
have all such programmes of staff training.
PAYMENT OF COMMISSION
Accounts receives the selectee's Selection Paper from the selectee when
that person arrives at the Accounts window. Accounts must write on the
Invoice the auditor's name who did the selection.
Accounts will at once (or within a week of registration) make out a
cheque for 10% of the cash payment made to the Field Staff Member and mail
it to him or her.
When the commission is paid, Accounts sends an invoice copy of the
payment and of the PC or student's training, processing or membership
payment to the Dept of Clearing. The department staples these to the Field
Staff Member's copy and files it under the Field Staff Member's name.
The commission is only given on the actual amount the selectee paid. In
intensives this should be for at least one intensive. However if at that
appearance the selectee bought several grades worth of intensives or
several couyses, the commission is also given for those.
TIME
There is no time stipulation as to how often selectees may be selected
and the org has no period of grace wherein a person may only be selected by
the org itself. If an org procures a PC or student however, directly, the
org, not one of its general staff members, gets the commission.
330
PROFESSIONAL RATES
Commission is also paid on professional rates but not to the auditor
himself or a "friend" who will refund the commission. The professional rate
applies only to auditing. There is no professional rate for training or
courses.
DISPUTES
Where one Field Staff Member claims he or she sent in a PC or student
and another also claims it, the Director of Clearing should be appealed to
to settle the dispute.
The org always pays on'the selection paper handed in by the selectee,
not on the earliest contact.
At least one of the claims must be paid. Two commissions may not be paid
on the same matter to settle a dispute.
A Field Staff Member who feels an error has be en made can write the
Director of Inspections and Reports in his nearest Org who will handle it.
DISPUTES BETWEEN FIELD STAFF MEMBERS
In any disputes between two Field Staff Members, either may appeal to
the Chaplain's Court, Department of Success, in their nearest org, which
may "hear" the matter by mail and render a decision. Such an action does
not make any Scientologist liable to further action.
FORMING ORGS
As official orgs are now on the lookout to form orgs, and as distant
service is not as easy as close service, the HCO Area Sec should be
approached concerning the formation of a new local org. Such an org would
be owned and operated by Scientology from Saint Hill. The HCO Area Sec'will
base decision upon the amount of traffic coming from that area and the
successfulness of the Field Staff Members there. Final permission for a new
Org must come from Saint Hill. The new org will be only a Class Zero org at
first with very limited services but all orgs grow. Such an org must be
formed and conducted like any other official org. It is prohibited for an
old org to finance a new org in any way.
The new org pays a percentage of its gross to the founding official org.
And the new org pays 10% commissions as above to the Field Staff Members on
its staff but only if it is fully official and only when authorized to have
an HGC. Until it has an official HGC it continues to operate on commissions
and pays no percentage to the forming org, but still receives them. Its PE
and Co-audit activities and commissions paid, in students and PCs sent into
the founding org, support it.
HGCs AND ACADEMIES
Hubbard Guidance Centres of official orgs only may be sent PCs and
Academies of Scientology only may be sent students by Field Staff Members
as long and arduous experience has determined that great quantities of
trouble can come from courses and clinics which are unofficial and usually
official orgs have to clean the resulting mess up. Notable examples were
Sydney, and the US Pacific North West in '54. There have been dozens of
such instances with many people hurt. The names Hubbard Guidance Centres
and Academies of Scientology are protected by law. Only their service is
supervised by Saint Hill or myself.
FIELD STAFF MEMBER REGULATION
A Field Staff Member comes under the same discipline as any other org
staff member and is subject to the same codes of ethics. Auditing org PCs
or students is forbidden to all staff members.
ACCEPTANCE
The field auditor should write his or her nearest official Organization
addressing his letter to the Director of Clearing, who would be his
superior in an org, giving his acceptance of appointment or declining it.
In return he will receive his credentials as a Field Staff Member
(Provisional) which consist of a letter signed by the HCO Secretary
signifying his or her appointment, to be followed after a year by more
formal credentials. In writing the Director of Clearing head the letter "Re
Field Staff Member
331
Appointment" and give current address and any other particulars. If there
are any questions or hitch, write to me at Saint Hill.
PROVISIONAL
The first appointment is PROVISIONAL-meaning "not permanent". At the end
of one year, the appointment expires unless renewed. On being confirmed at
the end of one year, the "Provisional" is removed and more extensive
credentials are issued.
When a Field Staff Member (Provisional) has been one for ten months, he
or she should write the Director of Field Activities requesting the full
appointment be made and giving any evidence of good work. At that time the
Director of Clearing will cause to be issued a new set of credentials to
the Field Staff Member, declaring him or her to be a Field Staff Member.
Activity is the criteria of issuing full credentials. If any difficulty
develops in obtaining full credentials, contact me at Saint Hill.
The names or short lists sent to the Field Staff Member for selection or
collection are considered to be org prospects. The Field Staff Member may
only select them to the org or collect from them for the org, and if the
Field Staff Member processes or trains for his own fee prospect names sent
by the org he is subject to discipline by the Distribution Secretary.
PRIVATE PRACTICE
Any field auditor with a private practice who wishes to retain it should
advise his Organization or Association Secretary of the nearest official
org and explain why.
CENTRES
Any Centres wishing to become. Class Zero orgs should advise the HCO
Area Sec of their nearest org. They are accepted when authorized by the
Office of LRH and when the earlier mentioned conditions for a new org are
met. Meanwhile they operate in relation to their nearest org as a,group of
Field Staff Members if they accept appointment as Field Staff Members. .
FRANCHISE HOLDERS
Existing Franchise Holders may retain their franchise and status so long
as they remain in good standing at Saint Hill.
NEW COURSES AND PROCESSING
Field Staff Members HCA and above may have the professional rate now for
HGC intensives if International Members in good standing.
Courses for Field Staff Members are given at the same fees as for any
other International Member or Staff Member. There is no professional rate
for courses, only for intensives. They are however given short briefings on
pertinent subjects at such times as the secretary of their org makes it
available. However, the better trained a Field Staff Member is, the better
he will succeed and therefore this appointment should not interrupt
training plans.
DEBTS
Field Staff Members may be requested by the Department of Accounts to
collect overdue accounts on which 10% commission of any sums collected will
be paid by the org. But they may not be ordered to do this.
Accounts may release to Field Staff Members in an area lists of overdue
accounts in that area. By using ARC Break technology and assists the Field
Staff Member may collect the sums in cheque form only payable to the org
and forward it with any details to Accounts in the org. Accounts must
inform Inspections and Reports of any such issue of lists or any
collections received by this method. All such assists are given at the
Field Staff Member's own discretion without org reimbursement.
GENERAL AND EXECUTIVE STAFF MEMBER SELECTIONS
The general staff member of any org may select students or PCs or
memberships applicants by issuing them Selection Papers to their own orgs.
In this case any commission is paid to the staff member's own org and the
Selection Paper is of a different appearance. The general or Executive
staff member receives any benefit through org pay along with the rest of
staff.
332
SAINT HILL FIELD STAFF MEMBERS
Any auditor trained to any level at Saint Hill is similarly appointed by
this Policy Letter. All "Saint Hillers" are therefore appointed FIELD STAFF
MEMBERS SAINT HILL. When working as a general staff member or executive for
an org, the 10% is paid to that org, not the staff member personally so
that all its staff may benefit. They may select to the Saint Hill Course or
HGC.
The same stipulations and procedures as for other orgs (as above in this
Policy Letter) apply to Saint Hill Field Staff Members.
Commissions are paid on the Saint Hill Briefing Course and Saint Hill
HGC if the student or PC sent is sent expressly to Saint Hill as above.
Acceptance of appointment from Saint Hill does not prohibit being as
well a Field Staff Member of a local org.
SENIOR ORG PREFERENCE
A Field Staff Member trained and certified at a senior org may be a
Field Staff Member of that org even while employed on staff by a junior org
but the commission is paid to the junior org. The junior org is paid the
commission on any PC or student he sends to the senior org (not his own).
Memberships alone are denied commission in such a case as the junior org
can also sell them.
Such a Field Staff Member for a senior org employed in a junior-org must
not distract students or PCs already selected by a Field Staff Member of
the junior org before they can present selection papers.
BEING ON TWO STAFFS
Any field auditor can be a Field Staff Member to more than one org but
is actually on the staff of the nearest org to his address and may not use
another appointment to another org or Saint Hill to set aside the nearer
org's requirements of him or her. In changing location the Field Staff
Member must inform the Director of Clearing of the Org he has been nearest
to and inform the Director of Clearing of the Org he will now be nearest
to. In case he is a Field Staff Member Saint Hill also he should inform the
Director of Clearing Saint Hill.
LRE.jwjp.rd L. RON HUBBARD
Copyright @ 1965, 1968 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo
Org See HCO POLICY LETTER OF 30 AUGUST 1966
Registrar
Area Cashier
Dir Disbursements Addition to HCO Policy Letter of
Dist Sec 26 March 1965, "Field Auditor"
Dir Clearing SELECTION REGULATIONS
The following regulations are laid down as regards the payment of
commissions in the Field Staff Member programme:
1. A husband and wife cannot cross-select each other for
commission purposes.
2. Once a student or preclear arrives in an.organization for a
service or services, no other student or preclear may select him or
her for commission purposes.
The reason for such regulations is that the Field Staff Membef programme
was not intended as a means of obtaining a 10% discount on a cross-
selection basis.
LRH:lb-r.rd L. RON HUBBARD
Copyright Q 1966
by L. Ron Hubbard (See also the section entitled FSM PROGRAMME-The
ALL RIGHTS RESERVED Field Staff Member System, Volume 6, pages 304-349.1
333
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo HCO POLICY LETTER OF 15 OCTOBER 1965
Dist Div Hats
Registration Hats
income Hats
Disb Hats FIELD STAFF MEMBER
Every Field
Member SELECTION PAPERS AND COMMISSIONS
The Field Staff Member gives a selection paper to prospective students
and preclears he or she selects to go into a Central Org or Saint Hill.
Previously the Selectee was supposed to present this paper to the
Cashier of the org when signing up and only then was a Commission paid.
I now find the selectee seldom remembers to present the paper in the
hurly-burly of arrival at an org.
Therefore policy on this is modified as follows:
The preclear or student may, but need not, present the selection paper
personally to the cashier of the org for a commission to be paid. The Field
Staff Member's commission will be paid anyway. In the event of two Field
Staff Members selecting the same person, the paper the selectee acted upon
will be credited. In case of disputes Ethics is to settle the matter
equitably between Field Staff Members involved.
The procedure is changed only as follows:
The Commission of the Field Staff Member is paid when the selectee signs
up. Payment is on the same terms as before. But the responsibility for the
payment of commission lies with the Director of Clearing.
FIELD STAFF MEMBERS MUST SEND AN ADDITIONAL COPY OF THE SELECTION PAPER
TO THE ADVANCE SCHEDULE REGISTRAR, DEPT OF REGISTRATION, DEPARTMENT 6,
DIVISION 2.
The Advance Schedule Registrar notes it in her Advance Schedule book and
gives the Selection Paper Copy to the Body Registrar. These copies of the
Selection Paper are kept by the Body Reg in a file alphabetically arranged.
This is the SELECTEE FILE.
When any person comes to sign up who might be a selectee, the Body
Registrar looks for the person's name in the Selectee File and if it is
there marks the conditions of sign up on the Selection Paper from the file
and sends it to the Disbursement Dept for commission to be paid.
Disbursement pays the commission on the basis of this copy.
The Field Staff Member also sends his usual copy of the Selection Paper
to the Director of Clearing, Dept 17, Division 6, Distribution Division.
This means then that the Field Staff Member selects a student or
preclear to an org, the Field Staff member must also send two copies of the
selection paper to the org, one to the Advance Schedule Registrar and one
to the Director of Clearing.
In this way there is a cross check possible and none will lose out on
commissions.
An org, as a Field Staff Member, selecting to another org or Saint Hill
follows the same procedure-original to the selectee, a copy to the Advance
Schedule Registrar and a copy to the Director of Clearing of the org to
which the person is selected.
DIRECTOR OF CLEARING
Each week, on Friday before attending his divisional AdComm meeting in
the last hours of that day, the Director of Clearing must obtain a list of
every student and pe signed up that week and compare these to his complete
file of selection papers and find if they have been selected. He notes
which ones have and sends this list to Disbursement for guidance.
DISBURSEMENT ACTION
Disbursement checks off the commissions it is paying and how much and
sends the list back to the Director of Clearing. This is used in the AdComm
of the Dist Div to quote as a statistic.
334
RECONCILIATION
If there is a difference in the lists Disbursement receives from the
Registrar, the amount of money received by Income or the list submitted by
the Director of Clearing, Disbursement informs the Director of Clearing
during the following week.
Whether informed or not, the Director of Clearing must make sure that
there is no error or omission in paying commissions.
If Disbursement does not pay commissions properly owed Field Staff
Members the Director of Clearing makes a statement to that effect in his
Dist Div AdComin meeting for inclusion in the minutes and also reports it
to Inspection and Reports and does not rest on the matter until he is sure
his Field Staff Members have all been paid.
If it comes to anyone's. attention that a selectee is in the org taking
service on whom no commission has been paid, then it must be reported at
once to the Director of Clearing. The Director of Clearing must then follow
through to make sure that a commission is paid.
Policy is: No Field Staff Member who selects a person for training or
processing may remain unpaid.
The Field Staff Member is responsible for sending in two copies of any
Selection Paper to the org and giving one to the selectee. He may keep a
copy for himself. Any pieces of paper serve so long as they have the
selectee's name and address and date of selection, for what selected and
the name of the Field Staff Member.
Proper forms may be furnished, proper routings on them, by the Director
of Clearing to the Field Staff Members.
UNPAID FIELD STAFF MEMBERS
If a Field Staff Member finds a person he or she selected has actually
entered an org for service and no commission has been received within three
weeks, the Field Staff Member must report the omission to the Ethics
Officer of the org who should investigate and see that the matter is cared
for. The Ethics Officer must report the matter and its final disposition to
the AdCouncil as soon as findings and actions are complete.
Errors in payment must also be so reported by the Field Staff Member to
the Ethics Officer.
The gravest possible view will be taken of any irregularities in Field
Staff Member commissions resulting in incorrect or non-existent payment of
Field Staff Member Commissions and should the Registrars, Disbursement or
the Director of Clearing especially become lax in this matter Ethics action
must be taken and reported as well to the Office of LRH, Saint Hill.
FIELD STAFF MEMBER APPOINTMENTS
Any eligible person may become a Field Staff Member. A Provisional
Appointment must be sent promptly to any eligible person applying.
Furthermore, as some auditors being eligible take their appointment for
granted and simply send in selection papers, the Director of Clearing on
receiving a selection paper ftorn a person not on his list must at once
establish the eligibility of the person and if eligible must send an
appointment as Provisional Field Staff Member to the person at once,
although no application was made.
SUMMARY
Field Staff Members' Commissions do not depend upon administrative facts
but upon the actual presence of a student or pe in an org taking service
and directed there by the Field Staff Member.
To guarantee speed and smoothness in receiving commissions the Field
Staff Member should do all possible to help by sending in two legible
copies of a selection paper to the org and giving one to the selectee and
keeping a record himself.
The proof of an owed commission is however the presence in the org,
taking service, of a selectee sent by a Field Staff Member.
LRH:ml.bp.rd L. RON HUBBARD
Copyright (Z) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
335
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 NOVEM13ER 1966
Issue III
Remirneo
FIELD STAFF MEMBER
(Corrects HCO Pol Ltr 26 Mar 1965, Field
Auditors Become Staff, Page 3, Sth Para
from top of page.)
The paragraph which reads "The Commission is only given on the actual
amount the selectee paid or obtained credit for on his first appearance at
the org-" and the remainder of this paragraph is cancelled.
It is changed to read as follows:
The commission paid the Field Staff Member will be paid on all services
consecutively bought during one appearance at the org. This means that
after reporting in to an org and signing up for and paying one service or
more, if the selectee on the completion of that service buys another
service, the FSM Commission will be paid on the second service and so on.
If, however, there is no re-sign and the selectee departs from the org as a
completion, he or she must again be selected with a fresh selection slip
and must come to the org again and sign up before another commission can be
paid the FSM.
Thds does not include Review services, books or meters or insignia. It
does apply to memberships bought. An FSM may, however, send a person to an
org for an S & D and receive a commission thereon. This means that an FSM's
selection slips of a selectee become out dated and invalid after the
departure of the selectee from an org after buying service. The selectee
may then at once be re-selected for his next or additional services.
L. RON HUBBARD
Founder
LRH:jp.cden
Copyright @ 1966
by L. Ron Hubbard (Note: HCO P/L 26 March 1965, corrected by the
above,
ALL RIGHTS RESERVED can be found in the FSM System section of Volume 6.1
336
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 JANUARY 1967
Gen Non-Remimeo Reg Hats Income Hats Disb Hats Dept Clearing Hats
FSM SYSTEM ADMINISTRATION IN ORGANIZATIONS
(Modifies the following HCO Pol Ltrs:
9 May '65 Field Auditors Become Staff
15 Oct '65 FSM Selection Papers and Commissions)
COMMISSIONS
The important points to be covered in administration of the FSM system
within an org, as regards Commissions, are: -
1. The Registrar having selection slips to hand when the selectee
appears at the org, and signing the person up for as many services as
possible;
2. The Registrar finding out, when the se lectee has been selected by
more than one FSM for services, which FSM the selectee considers
selected him or her;
3. The Registrar informing the Area Cashier as to whether the person
signed up was selected by an FSM;
4. The Area Cashier writing invoices clearly showing whether a service
has been fully paid for;
5. The Director of Tech Services noting that the person has started
taking services in the org;
6. The Director of Disbursements getting written attestations from the
Registrar as to what was signed. up for and when, and whether the
service was selected and when and by whom; from the Area Cashier that
the service was fully paid for or (exceptionally) that proper credit
arrangements were made; and from Tech Services that the person has
started taking services in the org, and when;
7. The Dir of Clearing and the Dir of Disbursements each independently
keeping a record of all FSM payments made, so that there is a double
check on possible double or incorrect payments of commission;
8., Full CSW including attestations as above being available to the
Cheque Signers who sign the FSM Commission cheqves;
9. The Dir of Clearing being vigilant that no valid FSM Commission
remains unpaid.
RESERVATIONS I/C
The Reservations I/C notes the selection in his Advance Reservations
book and thus reserves for the person an appropriate date.
He has the Letter Registrar write to the selectee a personal letter (not
a form letter) on the lines that he is "pleased to hear that you have been
selected by
.......... (FSM) for (services selected) on about (approx-
imate date given on the selection slip)", and that he has provisionally
scheduled the
person for (service) starting on (date). The Letter
Registrar
asks for confirmation of the reserved date and adds that Reservations I/C
will be
shortly sending a packet of information material (which is later done).
The Reservations I/C acknowledges the selectee for setting a date but
encourages him to come earlier. The Reservations I/C should drive in as
much business as possible on the Tech Division as soon as possible without
regard to overloading the Tech Division.
337
The Reservations I/C then initials the selection slip, with date, and
routes it to the Body Registrar.
BODY REGISTRAR
The Body Registrar keeps a file of all selection slips received from the
Reservations I/C, filed alphabetically for easy access.
When a person comes to him to sign up for a service, the Body Registrar
takes from the file all selection slips relating to that person and uses
them as a guide to the person's interests. But of course the Body Registrar
from her interview with the person and her knowledge of org services
decides what services the person should take, always encouraging the person
to sign up for many services.
When the person has signed up, if there are selections by more than one
FSM, the Body Registrar asks the person whom he considers selected him or
her.
SELECTION ROUTING FORM
The Body Registrar initiates a Selection Routing Form, which is a
document routing form, not a body routing form. A separate form is used for
each service signed
UP.
The form has spaces to be filled in by the Body Registrar as to person's
name; service signed up for; hour and date of sign up; name of FSM who
selected the person for that service; date service is to start; and
initials of the Body Registrar attesting to these data.
The Body Registrar staples the selection slip to the appropriate
Selection Routing Form and hands it to the Area Cashier when passing the
person on for him to pay for the services signed up.
When there is only one selection slip and more than one service signed
up, the Body Registrar attaches the slip to the Selection Routing Form for
the first service to be taken, and notes on the other Selection Routing
Forms that this has been done. Thus later recipients of the Form know where
to find the slip if needed.
If there are no selection slips to hand, the Body Registrar asks the
person if he has been selected by a Field Staff Member, and if so, gets
details and writes these on the Selection Routing Form, noting on it that
there was no selection slip and getting the selectee to attest on the form
in the space provided that the details given are correct.
The Body Registar keeps a record of all sign ups, Selection Routing
Forms started, and whether a selection slip was attached. Thus when the
person comes back for re-sign up, Body Registrar has a; record of what was
done at previous sign ups.
AREA CASHIER
The Area Cashier gets the person to pay in full for all the services
signed up for. If an Advance Payment has partly paid for the services, this
is of course taken into account.
Any service must be fully paid for before the person starts taking it,
unless credit is specifically permitted by Policy and proper arrangements
(note signed) have been made for payment, or unless it is Review auditing.
If the Area Cashier fails to persuade the person to pay for the other
services signed up, he tries to get a partial payment in advance. But FSM
COMMISSION IS NOT PAYABLE UNTIL THE SERVICE IS SIGNED UP AND FULLY PAID
FOR, AND THE PRECLEAR OR STUDENT IS IN THE ORG TAKING A SERVICE.
The Selection Routing Form for each service has a space for the Area
Cashier to write the date, amount paid, invoice number, and "Yes" to the
question, "Is this service fully paid for?", and to attest with initial and
date.
If the service is one for which credit is permitted by Policy, the Area
Cashier, having made the necessary arrangements, writes "Credit" in answer
to the above question. If credit is not permitted for the service, the Area
Cashier does not write on the form but tells the person that the service
cannot start until payment is complete. In
338
such a case the Area Cashier files the form in the person's Advance Payment
folder or in his Collections folder.
If the service is fully paid for or if credit has been allowed, the Area
Cashier routes the Selection Routing Form with the blue copy of the invoice
to Tech Services. If more than one service has been signed up and paid for,
all the relevant Selection Routing Forms are routed to Tech Services.
TECH SERVICES
The Director of Tech Services attests on the Selection Routing Form that
the person has started taking a service in the org. This is done on each
form that has been received from the Area Cashier at that time, even though
only one service is being taken and the other forms relate to services to
be taken later (but before the person leaves the org as a completion).
If the person is delayed in starting taking service, the Director of
Tech Services holds the Selection Routing Forms pending, but completes the
attestation immediately the person starts taking service, and ensures that
the Forms do not get overlooked.
The Director of Tech Services routes the completed forms to the Director
of DisbuTsements.
DIRECTOR OF DISBURSEMENTS
The Director of Disbursements checks from the selection slip and the
Selection Routing Form that the Commission to the FSM is valid as per
current Policy, and that there is a complete set of attestations on the
form.
He also cheeks from a record kept by the Disbursements Officer of all
payments made to FSMs, filed alphabetically under names of persons taking
service, that no previous payment has been made in respect of the service
detailed on the Selection Routing Form. He attests on the Form that this is
all in order.
He then passes the documents to the Disbursements Officer.
DISBURSEMENTS OFFICER
The Disbursements Officer prepares a cheque for presentation to the
Cheque Signers and attaches it to the documents, having entered on a space
provided on the form the amount of the commission, cheque number and date,
name of bank and bank account, and having attested to these with initial
and date.
Since FSM Commissions may not be budgeted but must be permitted to rise
to any level as long as the commissions are valid, no Purchase Order or
Financial Planning approvalisneeded.
All the prerequisites as set, in in HCO Pol Ltr of 30 Jan 1966, Issue
IV, "Cheque Signing Procedure", must be provided to the Cheque Signers with
any FSM Commission cheques.
When the Disbursements Officer receives the signed cheque, he
immediately mails the cheque to the FSM, and the Selection Routing Form and
attached selection slip are routed to the Director of Clearing, together
with the second copy of the Disbursement Voucher.
The Director of Disbursements must report via the Treasury Sec to
Inspections and Reports and to the Advisory Council for inclusion in their
minutes any effortly the Director of Clearing to falsely pay any commission
not allowed by Policy or which may appear contrary to Policy~
DIRECTOR OF CLEARING
Whether informed or not. the Director of Clearing must make sure that
there is no error or omission in paying commissions.
If it comes to anyone's attention that a selectee is in the org taking
service on whom no commission has been paid, then it must be reported at
once to the Director of Clearing. The Director of Clearing must then follow
through to make sure that any commission, validly due according to Policy,
is paid. This is done by originating the
339
Selection Routing Form, clearly marked "Originated by Dir of Clearing",
with the Director of Clearing's copy of the selection slip to the Body
Registrar, who must fill in the details, and siniflarly for all the other
terminals indicated on the Selection Routing Form. Some students and
preclears may not have been selected. It is not the job of the Director of
Clearing to force selection upon them.
If Disbursements does not pay commissions properly owed FSMs, the
Director of Clearing makes a statement to that effect in writing to his
Secretary, who must report it at the next Ad Council meeting for inclusion
in the minutes. The Director of Clearing also reports the matter to
Inspections and Reports and does not rest on the matter until he is sure
his Field Staff Members have all been properly paid. Likewise, the Director
of Clearing must be sure no false commission or commission contrary to
Policy is paid.
The Director of Clearing is also responsible for seeing that the line as
described above flows smoothly and that papers are not backlogged anywhere.
However, he is not to abuse this authority and Dev-T personnel solely to
obtain inclusion of any FSM payment in an earlier week's statistic. But he
must certainly see that there is no tardiness in payment of FSM
Commissions.
WEEKLY LISTS
In order to assist the Director of Clearing in this duty, the Body
Registrar prepares each week a list of all students and pcs signed up
during the week, and routes it to the Director of Clearing as soon as
possible after 2.00 p.m. Thursday.
Certs and Awards similarly prepare a weekly list of all Memberships sold
and route it to Director of Clearing each Thursday.
The Director of Clearing compares these lists with the second copies of
selection slips, which have been routed to him by FSMs, and if it appears
that commissions properly due have not been paid he follows the matter up.
The Director of Clearing also gets the Selection Routing Forms after the
cheques have been mailed, and files them alphabetically by name of FSM.
He uses the file of Selection Routing Forms as a record of FSM activity
and in answering queries from FSMs.
The following Selection Routing Form is to be mimeoed with black ink on
pink paper and one copy used for every FSM Commission to be paid.
Written by a Board of Investigation
Monica Quirino
Graham McNamee
Ralph Pearcy
George Galpin Qual Sec SH
Gareth McCoy HCO Area Sec SH
Ken Delderfield LRH Comm SH
Ad Council SH
Philip Quirino LRH Comm WW
Ad Council WW
Sheena Fairchild Guardian Comm WW Mary Sue
Hubbard The Guardian WW for L. RON
HUBBARD Founder
LRH:jp.rd Copyright @ 1967 by L. Ron Hubbard ALL RIGHTS RESERVED
340
SELECTION ROUTING FORM
for routing documents for FSM Commission payments
A. BODYREGISTRAR
Name of Selecte
Service Selected (each service on a separate form)
NameofFSM
Date of Selection - - - Hour---------Place
Date signed up for Service our -
Attested (Body Reg)
Selection slip attached not attached
why not
Selection attested (Selectee)
B. AREA CASHIER
Service Is this Service fully paid for?
Invoice Number(s)
AND date(s)
Amount paid for this service
Attested (Area Cashier) Date
C. DIRECTOR OF TECH SERVICES
Date Selectee started taking a service
(First service of current appearance at org)
Attested (Dir Tech Services) Date
D. DIRECTOR 0FDISBURSEMENTS
FSM Commission valid on current Policy
Above attestations in order No previous FSM Commission
paid for this service
Blue copy of Income Invoice attached in proof of money having been received
Initial
Attested (Dir Disbursements) Date
E. DISBURSEMENTS OFFICER
Cheque Number Bank - Account
Amount of Cheque Date of Cheque
Attested (Disbursements Officer) Date
F. CHEQUE SIGNER
Cheque Signed - Date Initial -
G. DISBURSEMENTS OFFICER
FSM Commission mailed - Date Initial -
Disb Voucher attached (staple copy for Dir
Clearing to this form)
Address commission mailed to
Copy of blue Invoice routed back to Department of RAM Initial
H. DIRECTOR OF CLEARING
Payment on this Service complete Date
Initial
Not double paid -Attested (Dir of Clearing)
Date
(Form to be filed by Director of Clearing under name of FSM)
341
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 17 FEBRUARY 1968
Execs
Distr
Treas
Franchise
PSM FIELD STAFF MEMBER COMMISSIONS
Advanced Org FSM commissions can on application be credited towards the
account of the FSM.
Treasury in such case sends the white invoice copy to the FSM as a
receipt, clearly showing the credit transfer to account.
O.J. Roos, Org Exec Sec AO for
Mary Sue Hubbard
LRH:MSH:OJR.adv.rd Flag Banking Officer
Copyright @ 1968 for
by L. Ron Hubbard L. RON HUBBARD
ALL RIGHTS RESERVED Commodore
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 JUNE 1968
Issue III
Remirneo
F.S.M. COMMISSIONS
F.S.M. percentages are corrected and established as follows.
15% will be paid for any selectee routed on for auditor training.
10% will be paid for any selectee routed on the solo line.
Auditors route has not been promoted heavily enough and thus this
additional award is made.
Auditors are needed.
The planet needs Clears.
The 4th Dynamic needs auditing.
Get auditors in.
L. RON HUBBARD
LRH:js.rd Founder
Copyright @ 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
342
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 FEBRUARY 1962
Franchise
CenOCon
REFUND OF FEE POLICY REVISED
(Revised from HCO Policy Letter of 12 October 196 1, which it replaces)
-A Central Organization is bound by the Code of a Scientologist. If a
person has not received any results from processing, his fees, as paid, may
be refunded.
The following STRICT POLICIES govern fee refunds and must be followed
implicitly by HCO, the Assn See, the D of P and the Chief Registrar on all
such cases. I will make no exceptions.
Policy 1: Processing refunds may never be given until the person has
completed all the hours for which he is signed up, even if he has not paid
for them.
Policy 2: Anyone asking for money back who has no more hours signed for
may have his money back.
Policy 3: No person who refuses a Processing Check devised by the Tech
Director during processing or before refund may have his or her money
returned as processing is thereby refused.
Policy 4: Persons buying processing and then refusing processing may
not have a 'Tefund.
Policy 5: The organization may give any past failed case a Processing
Check, standard processes only, at organization expense but not more than
25 hours.
Policy 6: All organization release forms and contracts must contain
these clauses above signature.
L. RON HUBBARD
LRH:sf.rd Copyright @ 1962 by L. Ron Hubbard ALL RIGHTS RESERVED
[Note: The above HCO Pol Ltr was originally issued on 4 June 1961 and
revised on 12 October 1961.
Policy 3 in both the 4 June and 12 October issues stated, "No person who
refuses a Joburg Security Check during processing or before refund may have
his or her money returned as processing is thereby refused."
Policy 5 in the original stated, "The organization may give any past failed
case a Joburg Security Check HCO WW Form 3 (or higher form number as
issued) at organization expense." This was changed in 12 October 1961
revision to, "The organization may give any past failed case a Problems
Intensive, HCO Auditing Form type only, at organization expense but not
more than 25 hours."I
343
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 OCTOBER 1963
Franchise
CenOCon
REFUND POLICY
(Cancels HCO Pol Ltrs of October 12, 1961
and February 27, 1962)
REFUNDED MONIES
In a careful review of refunds and in the light of my own experience
with persons demanding refunds, and due to two recent upsets in
organizations (Australia and London) regarding refunds, the following data
may be of assistance.
In 13 years involving hundreds of thousands of hours of processing and
millions of dollars of income, in any organization where I was assuming
direct command I have always promptly and immediately caused to be refunded
every penny of the money paid by any person who was dissatisfied with his
or her processing. This has been the consistent policy I myself have worked
with.
In all that time I have only refunded about $3,500.
This is due in part to ensuring a certainty of results in any HGC and
working hard to make sure the pc gets results, regardless of the current
style or mode of processing.
This low amount of refund is also due in part to my firm policy that
persons who demand refunds may have them exactly according to the Code of a
Scientologist, but that any person demanding or accepting refunds
thereafter shall be refused as an HGC preclear and posted for the
information of field auditors.
I have only worked then with these three policies:
1. Refund at once in full any refund demanded;
2. Work hard with tech staff to ensure good results;
3. Forbid the sale of further processing to anyone receiving a
refund and make the case known to Scientologists.
It is notable that all but one refund were made to persons with
histories of insanity who had been accepted unwittingly for processing.
Recently Australia was sufficiently remiss in following the Code of a
Scientologist as to incur potential legal action. I did not understand why
and investigated. The facts resulted in my sending a cable to the
Continental Director requesting that he do the usual-Refund the money and
locate the by-passed charge. The case promptly resolved. What was shocking
to me is that he had not immediately refunded, whatever else he did. Of
course he was absent when the incident occurred, but still his first
thought on finding the matter out should have been to refund the money, not
because of threatened legal action, but because AN ORGANIZATION IS BOUND BY
THE CODE OF A SCIENTOLOGIST.
A Central Organization is as successful as it gives good technical
service.
A tough refund policy injects aberrated stable data against the
confusion of bad or poor technical service. A mild refund policy keeps
technical on its toes.
344
The world of Scientology is based on ARC and held together with ARC. Bad
technical and tough attitudes concerning the remedy of poor service break
down this world.
My own often repeated policy to my personal staff is "Give them what
they want and keep them happy." That sounds like a very indefinite policy
indeed. But it makes people face up to and handle individual confusions as
they occur, each on its own merits, it presupposes people are basically
good and it is successful.
The more thetan you have present, the less policy you need and the
better things run. Only a thetan can handle a post or a pc. All he needs is
the. know-how of minds as contained in Scientology. That was all he ever
lacked. So, given that, sheer policy is poor stuff as it seeks to make a
datum stand where a being should be. That's the whole story of the GPM's.
So why not have live orgs?
Policy is only vital where agreement must exist between two or more
thetans working together. Beyond that it fails. A needful policy is "We'll
start work on time" since without it the org goes ragged. A useless policy
would be "The registrar must always smile at an applicant" for that puts a
datum where a person should be.
So there are two kinds of policies-those needed to obtain work-together
ease and those which seek to put a datum instead of a being in a position.
The less you have of the latter the better things will get. The more
reasonable the former, the more work will be done.
A refund policy is an agreement type policy. Needful. But it must be
very mild indeed or it will stand in fieu of good service.
The new policy then is:
1. Refund any fees when and as demanded whether for training or for
processing;
2. Refuse further and all future training or processing to anyone
demanding a refund as the condition of refund;
3. If (2) is not acceptable to the person demanding the refund,
then do all possible to smooth out the case or training
situation;
4. Count only on high technical results in the HGC and Academy to
inhibit or reduce demands for refunds.
L. RON HUBBARD
LRH:jw.rd Copyright (D 1963 by L. Ron Hubbard ALL RIGHTS RESERVED
345
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Gen Non Rernimeo
Qual Div HATS HCO POLICY LETTER OF 23 MAY 1965
Tech Div HATS Issue II
Registrar HATS
ACCTS HATS REBATES
No rebate may be given any preclear for any reason on his or her
processing.
Some cases are more difficult than others and give auditors more
trouble.
A case can be sufficiently enturbulative that an auditor can be diverted
from his task and commit minor errors resulting in an apparent loss of
time.
The more resistive case also causes a D of P to fumble on occasion.
The auditors and case supervisors try their best and do the best
possible under the circumstances.
To claim a pc "lost time" in auditing because of an error in choosing
processes or having to reflatten one, is highly fallacious.
The usual pc does not lose such time under the same auditors and D of
Ps.
We do our job as best we possibly can and when we know more we do more.
We are already the only agency anywhere that can increase IQ and resolve
human problems.
We handle a living thing-life.
We do our best.
Sometimes a pc throws us a curve with a rough case, bad between session
behaviour, roughing up auditors and D of Ps. It is natural that goofs occur
on such cases.
We retrain auditors who are routinely erring and we do all we can to
ensure good case gains. We don't permit squirreling. Our Ethics are
stronger than any other organization's.
Pes who claim "lost time" or ask for rebates of part of their auditing
time for any reason except no auditing whatever (meaning no session of any
kind, no auditor or pc in the room) should be turned over to Ethics. They
are rough cases and tend to be suppressive.
We are selling hours of auditing and what that is is for us to judge.
Further, no auditor may rebate any part of a pc's fee personally or be
made to rebate it, as to do so is to shatter any possibility of delivering
auditing at all.
Auditing is already the cheapest form of treatment there is. It is
cheaper without any argument in favour of time taken to get a result-that
is bonus. Medicos, surgeons, psychiatrists, psycho-analysts charge the Moon
for nothing or even for damage. We are not in their line of business. But
fees can be compared. It is nothing for a psycho-analyst to charge �9,000
for a course of treatment! A US surgeon thinks nothing of a $5,000 bill.
The Mayo Clinic doesn't think twice to send a bill for $35,000 or more to
the widow of their patient.
The government pays in some countries. And that too is high.
By rights our minimum fee for a 25 Hour Intensive should, be �250 or in
the US S820. If we only processed, we would have to charge that. It takes
several people to deliver real auditing to a preclear. The field auditor
usually goes broke even on high fees. He just doesn't pay out the salary
needed to give the pc proper service.
How much is a man's life worth to him? How much is it worth not to die
at all? I'm afraid it has no price tag.
We are selling actual salvage from Death itself.
Rebate. How silly. The person was lucky we were around at all and took
an interest. We don't have to do anything for anybody. Remember that. We
can lose interest in certain people, too, you know.
No org has to accept anyone it doesn't want to for training or
processing.
No Auditor has to accept a pc he doesn't honestly want to help.
No Supervisor has to train any student he doesn't want to train.
We sell pearls for pennies already. L. RON HUBBARD
LRffirnh.rd
Copyright (D 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED 346
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinst6ad, Sussex
Gen
Non-Rernimeo HCO POLICY LETTER OF 31 JULY 1966
HCO Exec See
Org Exec See
HCO Area See
REFUND NOTICE
It is IMPORTANT that every posted scale of fees and every rate card bear
the following notice prominently displayed at the bottom:
FEES PROMPTLY REFUNDED TO
ANY DISSATISFIED STUDENT
OR PRECLEAR
The full regulation of this is not varied except that no Grade VI or VII
fee will be refunded as this is the student as his own auditor and is his
own responsibility which is somewhat beyond our control in some cases.
The person requesting refund must sign a guarantee that he will not
further undertake or apply for training or processing from any org or
auditor and even if later reinstated may not ever enroll for Grades VI and
VII.
The reason for this is that our rate cards and boards attract attention
from the press and by adding this line their story goes sour on them.
We only refund the current fee paid and orgs never refund private
auditor fees but may help recover them from private auditors.
DO NOT OMIT THIS ACTION.
Junk all rate cards that do not carry it or stamp or type it on them
while ordering new.
L RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF I AUGUST 1966
Rernitnec,
REFUND ADDITION
(Adds to HCO Policy Ltr of
31 July 1966, Refund Notice)
TIME LIMITATION
No refund may be applied for successfully after three months from the
end of the last service rendered.
This means that a refund applied for three months after the end of all
intensive's last auditing session or last day of attendance on a course may
NOT be granted.
MEMBERSHIP REFUNDS
There are no membership refunds of any kind as refund policy applies to
service and as membership holders usually have already realized discounts.
LRH:lb-r.oden L. RON HUBBARD
Copyright 1966
by L. RonWubbard
ALL RIGHTS RESERVED
347
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 APRIL 1968
Remimeo (Cancels HCO Policy Letter 13 June 1966)
SIGNATORIES ON BANK ACCOUNTS
(Modified. The second paragraph has been added
to the original. Cancels ED 16 US and 1075 WW.)
As Financial Planning is the Exec Council, all bank accounts except
those on which only the Guardian and Treasurer WW sign, must have the Exec
Council as check signatories. These accounts are: The Main Account, The
Salary Account, The Disbursement Account, The Reserved Payment Account and
the HCO Div Account. The signatories for these Accounts are Mary Sue
Hubbard and The Treasurer WW singly, and jointly the HCO Exec See and the
Org Exec See.
Continental Exec Sees are jointly signatories on all accounts in orgs in
that Continental Area. Only the Guardian WW and Treasurer WW are
signatories in the Building Fund Account and the LRH Goodwill Payment
Account.
Although signatories, in the event of the absence of one of the above,
are the Treasury Sec and HCO Area Sec (these being deputies to the Org Exec
Sec and HCO Exec Sec), the alternates would only sign in the absence of the
Exec Sec they are a Deputy to, i.e. while they were acting as Deputy.
In any org whose bank signatories are not as outlined in this Policy
Letter, the Exec Council is to take immediate action to put this Policy
Letter into effect.
LRH:jc.rd L. RON HUBBARD
Copyright Q 1968 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Note: The Disbursement Account is added in the first paragraph per
correction in HCO PL 3 August 1966.]
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 JUNE 1968
Issue III
(Modifies HCO Pol. 1 September 1966,
HCO Pol. 2 April 1968)
Remimeo
COMMODORE AND FOUNDER AS
SIGNATORY ON EVERY BANK ACCOUNT
As the omission of including me as a signatory on an account has
resulted in unnecessary Dev-T, I have decided to remain as signatory on
every account which exists in the organisations in order to assist
directors when signatories are otherwise unavailable as has recently
occurred.
The Treasury Secretary, Director or Officer as the case may be is to
immediately on receipt of this Policy Letter obtain the necessary forms
making me a signatory and to submit these to CO OTL WW. The Banking
Officers of the Advanced Organisations and Sea Organisation are to take
similar action as per FO 916.
As signatory of the Account 1 demand and expect that exact Scientology
Treasury Policy be followed.
LRH:js.rd L. RON HUBBARD
Copyright (D 1968 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
348
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. I
HCO POLICY LETTER OF 23 APRIL 1959
JACK PARKHOUSE WRITES FROM SOUTH AFRICA
"In letter from our Insurance Broker he mentioned possibility of 'hidden
costs' which could be involved in re-writing records, etc in the event of
fire. This made me think as I don't know what we would re-write such
records from if the originals were destroyed by fire.
"I think the two main lines we should afford ourselves protection on
are:
1 . Names and addresses (in addition to Membership lists)
2. Financial Records.
"For instance on item 2. HASI SA has about �5,000 in Bills Receivable
and HASI US has I believe about $100,000 on record and London about �8,000.
No doubt other offices have large amounts owing to them also. The system I
advise for a modicum of protection on this would be merely that when the
monthly statements are prepared we should prepare them with 2 carbon copies-
one copy to remain with the Accountant the other set of copies to be
shipped by registered mail to the nearest HASI office for safe keeping.
This set of copies to be destroyed on receipt of the following month's set.
"In this manner the most we could lose record of would be the current
month's business and most of that would be sufficiently fresh in staff's
minds that most of it would be remembered.
"On item 1. when Addresses is preparing the sticky labels of new
addresses they merely make one extra copy and ship all the new ones off
weekly to another HASI office. This would not involve much work as there
would be no expiries as in Memberships.
"Then should the records of any office be destroyed, the other office
could immediately post all labels and make up a mailing list from them-send
out a mailing to everyone on the list giving any necessary information such
as new temporary address of the unlucky office, etc. Love. Jack."
I approve of this.
L RON HUBBARD
LRH:mp.cden
349
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 25 SEPTEMBER 1959
HCO WW
London Accts &
Assn See
London HCO Sec
All Personnel
St Hill House
& Office
ACCOUNTING RECORDS AND BILLS
Any and all items that may be considered to be Accounts Records, meaning:-
Bills
Cancelled cheques
Invoices
Receipts
Chits
Lists
Record Books
and any other item that may be considered by you to have to do with
accounts:
MUST BE GIVEN IN AS
SOON AS RECEIVED
TO THE ACCOUNTANT.
Any records you have on hand at this moment should be turned over to
Accounts. Any cancelled cheques should be turned over to Accounts. Any bank
statements that have anything to do with HCO or LRH should be turned over
to Accounts.
Our whole accounts system is based on the collection and compilation of
records. Therefore we must take the first step of pulling all accounts data
together in one pile at HCO WW.
This has nothing to do with HASI Accounts Records; these belong to the
Dept of Accounts HASI. This has to do with Accounts HCO, and anything with
HCO on it belongs at Saint Hill.
Only if we all co-operate in giving Accounts all our records when we
receive them, as well as records we are now holding, can we the rest of us
be relieved of accounts problems.
If you know of any accounts records send them to Accounts HCO.
There will be a project supervisor income and disbursement reporting
system, but even these go to Accounts when complete.
L. RON HUBBARD
LRH:iet.cden Copyright @ 1959 by L. Ron Hubbard ALL RIGHTS RESERVED
350
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 JUNE 1960
Assoc Secs
HCO Secs
Accounts Dept
ACCOUNTSPROCEDURE
The Hubbard Communications Office is considered, as far as tax purposes
is concerned, to be part of the organization to which it is attached;
therefore, for example, the income, expenditures, the assets, and the
liabilities of the HCO Office in Melbourne, would be reported as part of
the income, assets, and the liabilities of the Hubbard Association of
Scientologists, International, Melbourne in the latter's report to the tax
authorities. It has been considered so in London by Inland Revenue, and as
such, has set the pattern for the Commonwealth, which can not be escaped,
at least not until HASI, Ltd. and HCO Ltd. have been completely
established.
As to the matter of reporting the payments of 10% to HCO WW, it should
be reported as an expenditure for overseas administrative costs and
management. From a tax viewpoint and factually, HCO WW is the office of the
governing Directors of the Hubbard Association of Scientologists,
International.
All taxation matters and queries should be addressed to me, as
Treasurer.
Mary Sue Hubbard Treasurer for
L. RON HUBBARD
LRH:js.rd Copyright @ 1960 by L. Ron Hubbard ALL RIGHTS RESERVED
351
HUBBARD COMMUNICATIONS OF
Saint Hill Manor, East Grinstead, Sus
HCO POLICY LETTER OF 9 JANUAR
Issue III
Gen Non-Rernimeo
Exec Sees Hats
Org Sees Hats
HCO Sees Hats
Ethics Hats ACCOUNTS, INVALIDATING
I have just noted an accountant racket that may have injured your org.
The accountant or firm declares your records are "unauditable" unless
very expensive bookkeeping is done.
The harm of this is that they excite tax people and our attorneys
against us by making us look poor as record keepers and all because they
want work or a fee or an award from the government by forcing us to pay
illegal tax assessments "because our records are bad".
Beware of any person invalidating your accounts records or saying they
or your system is bad.
This is only done for three reasons:
1 . When done internally, to cover pilfering or mistakes by
convincing
executives they haven't any good accounts records that will detect
them;
2. When done externally, to drive us into expensive useless
bookkeeping actions and collect large fees;
3. To prevent us from making up tax accounts and get a portion of
the penalty and fine or assessment from the government that results
from our failure to file.
All three have the common denominator "to make money by slandering our
records system".
Ours is the most basic system. It can be audited easily if properly
kept. We bank all our money and we pay everything by cheque. We invoice all
we get. We file all our bills. Out of this we can make up any record or
balance sheet required quickly.
1 will not manage an org that "keeps books" only such as "double entry"
as such systems can be "fiddled".
Our system is so easily investigated the dishonest hate it. So do it.
Keep good records. Adhere efficiently to our system.
And act fast and hard if anyone is invalidating your accounts records or
saying they cannot be made up into balance sheets. That statement, if you
use our system, will uncover one of the ulterior motives listed above.
Instances of the above have occurred in Washington DC and England that
had far reaching consequences.
L. RON HUBBARD
LRH:ml.cden Copyright Q 1966 by L Ron Hubbard ALL RIGHTS RESERVED
352
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo HCO POLICY LETTER OF 13 JANUARY 1966
Org Exec Sec Issue 11
Org Secs
Div 3 Personnel
RECORDS OF BANK DEPOSITS
As the importance of keeping proper records is so vital for accounting
purposes, it will be a crime for personnel responsible to fail to keep in
consecutive date order duplicate deposit slips of all weekly deposits of
money into any organizational bank account and to fail to keep a copy of
such deposit slips along with the weekly invoices and adding machine tapes
of these invoices in envelopes for the week.
PROCEDURE FOR RECORDS OF SUCH
A. 1. All the invoices for the week in consecutive numerical order are
placed in brown envelopes for the week.
2. Put into brown envelopes all adding machine tapes of such
invoices for the week.
3. Put into the brown envelopes a duplicate of all deposit slips for all
accounts for the week. Duplicates of such deposit slips can easily be made
by placing a piece of carbon paper and a pink slip of paper under the bank
deposit slips in the bank deposit books or bank deposit slip forms (for
countries where banks do not supply bank deposit books).
Be sure that all pertinent information goes on to the pink slip:
(a) Date of deposit
(b) W/E date for the accounts period
(c) The name of the account into which the deposit is made
(d) The full record of cash, postal orders and cheques being
deposited.
B. Always have in the bank deposit book the original deposit slip and keep
these books as a full record of weekly deposits for all accounts, a
separate deposit book for each account.
If your bank supplies no bank deposit book, keep the weekly bank deposit
slips provided by the bank in consecutive order, either pasted into a note
book or kept in a
ringed note book for each account.
LRH:ml.cden
Copyright @ 1966 L. RON HUBBARD
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 JANUARY 1968
CHARTERED ACCOUNTANTS
THE USE OF OUTSIDE CHARTERED ACCOUNTANTS IS FORBIDDEN IN
ENGLAND. SIXTEEN YEARS OF PANICS AND CATASTROPHES IS ENOUGH.
LRH:jp.cden L. RON HUBBARD
Copyright(D 1968 Founder
by L. Ron Hubbard
ALL RIGHTS RESERVED
353
NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH
GREEN ON GOLD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO BULLETIN OF I I AUGUST 19S9
CenOCon
COST OF SUPPLIES
In Washington, a price list of the most necessary supplies was drawn up
for issue to all staff, giving supplier and the price of each item.
This was done in an effort to give everyone a better reality on supplies
and their cost and to cut down supply requisite from people who "need"
things in order to do.
People who "need" supplies are those people who waste a lot and require
reams of paper in their desk, ten boxes of paper clips, and so forth. It is
a certainty that Directors of Materiel in organisations are continually
surprised at how fast supplies disappear and how upon the removal of people
from different posts, supplies en masse are returned to him for his stocks.
Each Central Organisation should prepare such a list for their staffs.
The following should be filled in by the Director of Materiel of each
organization and submitted to the Sec'l ED to make out and route to all
staff members:
PRICE LIST OF SUPPLIES
Mimeo Paper and Supplies:
Company Supplies Price
Blue Mimeo Paper
81/2x I I sub 20 per ream
81/2x 14 sub 20
81/2 x I I sub 24
81/2 x 14, sub 24
Goldenrod
8'/2 X I I sub 20 per ream
81/2x 14 sub 20
White
81/2 X 11 sub 16 per ream
81/2 X I I sub 20
81/2x 14 sub 20
81/2. x I I sub 24
81/2x 14 sub 24
Ink (black) one tube
Ink (green)
Ink (blue)
Stencils one quire (24)
Stationery
HASI letterhead 2000
1500
1000
500
HASI envelopes 2000
Dispatch Paper per ream
(green, goldenrod, pink,
yellow, white)
354
Staples box of 5000
File Folders box of 100
Typewriter Ribbons each
Duplistickers perbox
Typewriter Erasers per dozen
Carbon Paper per box
Paper clips per carton
Wire Baskets
Large each
Small (regular size) each
Set of 4 Connectors set of 4
Window Envelopes box of 500
Sealing Tape for packages
2" roll per roll
3" roll per roll
Coloured pencils per box
Ball Point Pens per dozen
Scotch Tape per roll
MSH:brb.rd Mary Sue Hubbard
Copyright (D 1959 Treasurer WW
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 JANUARY 1960
Ltd.
HCO INVENTORIES
Every year on Ist January, or as soon as possible after that date, the
HCO Area See should make up a complete inventory of HCO furniture and
equipment. This includes furniture, office equipment, approximate
stationery stocks, every MEST article which the HCO owns, including LRH
office equipment.
Keep one copy of the HCO Inventory in the HCO Area files, and send
another copy to HCO WW, Saint Hill.
Make up your own inventory this year as soon as you receive this Policy
Letter. Thereafter it should be made every year on I st January, to reach
Saint Hill not later than 3 1 st January.
PH:js.rd Peter Hemery
Copyright Q 1960 HCO Secretary WW
by L. Ron Hubbard
ALL RIGHTS RESERVED
355
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 FEBRUARY 1960
CenOCon
HCO KEYS
HCO keys of whatever kind are issued only to HCO personnel. A Central
Organization does not issue or list HCO keys. The HCO Secretary issues HCO
keys to HCO personnel. HCO Secretary keeps a list of HCO keys and has the
person sign for them. If a personnel leaves HCO he must turn over his keys
to the HCO Secretary, who then records this. HCO Secretary may keep a key
list in HCO files.
HCO door keys are issued to all HCO personnel. Keys to Petty Cash Box
are issued only to person handling petty cash. Keys to LRH personal office
are issued only to LRH, LRH Personal Secretary, HCO Communicator and HCO
Secretary. File keys are issued only to HCO Communicator and anyone else
designated by the HCO Secretary.
LRH:js.rd Peter Hemery
Copyright @ 1960 HCO Secretary WW
by L. Ron Hubbard for
ALL RIGHTS RESERVED L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO, POLICY LETTER OF 12 MARCH 1961
Issue II
CenOCon
SUPPLIES OF
CENTRAL ORGANIZATION FORMS
All supplies of organizational forms shall be kept and stored ready for
issue by the Assn Sec's Secretary, or if such post is vacant, by the Assn
See.
Staff personnel requiring such forms shall obtain them from the Assn
See's See, or from the Assn Sec if he has no secretary.
The Assn See's Sec, or in his or her absence, the Assn Sec, is
responsible for getting such forms run off and replaced when about to be
out of supply.
A list of available forms should be posted on the staff bulletin board.
LRH:ph.rd L. RON HUBBARD
Copyright (D 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
356
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 SEPTEMBER 1961
Sthil
GENERAL OFFICE ORDERS
PHOTOSTATS
All use of the Polyprint Photostat machine should be done by only one
person.
The machine should be kept clean.
The fluid must be emptied out after every use, into the plastic bottles.
Do not remove thin tubes from the plastic bottles. It is air that causes
colour of fluid to darken.
If a fair copy is not obtained, or if figures are dim, or finished
photostat is pink, it is operator error. Study the instruction book. If
it's missing, get a new one.
Check all lamps when leaving room. Do not leave a safelight on by error.
They are hard to see in a lighted room.
Don't splash fluid on yourself, table or floor. It leaves very dark
stains.
Do not waste paper. It is very costly.
BOXES AND CARDBOARD
Do not throw away boxes and cardboard or brown paper.
Turn it all over to Shipping.
Shipping is to use as much used paper and cardboard as possible to reduce
paper
bills.
POSTAGE
Careless use of postage can cause our postal bill to rise from f 25 a
week to f 75 a week, all on the same volume.
Know your postal rates. Post airmail and surface rates prominently.
Use SECOND CLASS AIRMAIL wherever possible despite earlier orders.
Don't ever send a parcel by air unless you can collect back the postage.
Send heavy packets by surface mail only, cheapest rate.
SUPPLIES
Keep supply costs down by not losing ball points, by conserving paper
and by making do.
Our stationer bills are fantastic. Cut them down.
L. RON HUBBARD LRH:jl.rd
Copyright @ 1961 by L. Ron Hubbard ALL RIGHTS RESERVED
357
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 FEBRUARY 1964
All Heads of
Organizations
HOD Secs
Dir Admin
Administrators and
Supervisors of THE EQUIPMENT OF ORGANIZATIONS
Companies.
The person in possession of organization equipment is responsible for
the equipment. On its loss or damage through carelessness or neglect the
person in whose charge it had been placed, not only the person who damaged
or neglected it, is liable to have to recompense the company or myself for
the cost of the repairs or loss of the equipment or some portion thereof.
Stock cards for all equipment possession or issue in organizations shall
be prepared by the administrative head of the organization. If equipment is
not so accounted for and is lost or damaged the administrator of the
company, not having a stock card of issue on it, becomes liable financially
to the organization or myself for its repair or replacement.
The idea of "company property" is both stupid and dangerous. That which
is "owned by everyone" is actually owned by no one and falls apart. A
company, corporation or state does not live or breathe and so it cannot
care for anything. The doubtless noble experiments of totalitarian communal
states such as Cuba or Russia starve and fail because of this one id6e
fixe: only the state owns. That leaves nobody to have or take care of
anything. Their enormous five year plans never materialize because their
tractors will not run. Their tractors won't run because they belong to
nobody. Saying they belong to the state is a way of abandoning them. A
company can't really own anything since it has no concept of ownership. And
you see how "company property" falls apart.
Look at it this way: You own those things that are in your charge. When
you take over a position you become richer by the things that go with it.
You stay rich as long as you keep them in good shape. You get poor to the
degree they go bad or won't work or get abused because you incautiously
lent them to a careless fellow worker. Righteous indignation because "you
messed up my typewriter" or "you scarred up my auditing table" is not
peculiar, it's quite in order.
Look around you and see what you own in your position. If two people use
it, only one, even so, can own it.
It is curious that around orgs my own personal possessions are given
good care. I never worry about my Mest being in org hands. And a lot of it
is. If it's Ron's, it's taken care of. That's a long standing observation.
But "company property" gets badly abused at times. If you figure that I own
everything in Scientology and you own the things that go with your
position, we'll have more and have it longer.
There are three kinds of possessions in Scientology organizations.
TITLE A: These are permanent installations, buildings, walls, radiators,
anything fixed in place.
TITLE B: Valuable equipment which is not expendable. These are desks,
typewriters, mimeo machines, blackboards, chairs, furniture, rugs,
decorations, cars, etc.
TITLE C: These are expendables. Office supplies, paper, chalk, stencils,
dust rags, mops, etc. They are issued on the understanding they will get
used up.
358
In inventorying and making up cards of issue to persons in charge, Title
A is issued to the head of the organization or department exclusively using
them. Title B is made up to the head of the department or the person who is
actually using them. Title C is issued to the person using the material.
Stock cards are kept on Title A and Title B. The administrative head has
to have a signature for Title A and Title B as having given it to somebody
who then signs for it.
No stock cards may be written or "Issued to Training Dept" or "Director
of Training". They are issued to Richard Roe, the person himself. The main
building is not issued to "Organization Secretary". It is issued to George
George, a person who happens also to be organization secretary. A car is
not issued to "Department of Materiel". It is issued to John John, who
happens also to be Director of Materiel.
When a person is transferred, his possessions are signed for by the
person, as a person, who takes over that position. And so long as the
person who owned them has failed to transfer them to the new person, he or
she can be charged up for them. Regardless of post transfers, the person on
the Stock Card remains the owner and is liable for any loss or abuse until
the possessions are actually signed for by somebody else.
If it exists somebody owns it and has signed for it. And until a new
person signs for it the old owner is liable for it regardless of his
whereabouts or new post.
Until it is signed for initially it is owned by the administrative head
and if anything happens to it or it is lost, the administrative head is
liable for it.
The stock cards should be stiff cards of good size kept in a box that
fits them. There is only one card per piece of equipment. The card says
where it is and what it is and when bought and has ample area for owning
and transferring signatures.
Cards are prepared from Inventory and are checked by Accounts records.
A new acquisition brings about a new card which is then signed for.
The head of the organization is accountable personally for any losses up
to July 1, 1964, which occurred during his term of office.
To dispose of Title A or Title B, or account for its loss, it is
necessary to survey it. This is done by a board of three executives of
departments who must see the equipment being disposed of or certify it as
lost. A Survey Board is liable for any falsification of records.
In organizations that have no Director of Administration, the head of
the organization acts in his capacity and is responsible for having Stock
Cards.
We are pretty good withal on the subject of equipment. Its loss or
damage is not one of our major problems. Only one organization,
Johannesburg, has gone mad on the subject where one Senogles, temporary
head of it, had a passion for "losing tapes and tape recorders".
However, we are expanding. Expansion needs some orderly ownership. There
is not very much Title A and Title B about so it is not a very heavy task
to organize it. If we straighten this out now, we'll save ourselves a mess
later.
Further, at this time inventories for corporation transfers have to be
done anyway, so we may as well get it all done at once.
L. RON HUBBARD LRH:gl.rd
Copyright (D 1964 by L. Ron Hubbard ALL RIGHTS RESERVED
359
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 AUGUST 1965
Gen Non-Remimeo Applies to Saint Hill Specifications apply to all orgs
SCIENTOLOGY ORG UNIFORMS
SAINT HILL
(Other orgs may follow, if and when their income warrants it.
Only the specifications below may be used.)
Every permanent staff member is to wear a uniform.
For Male staff members the uniform is grey trousers, Scientology ties
and a navy blue blazer with preferably a white shirt and black shoes with
dark socks.
The Ladies' uniform is a grey straight skirt with a box pleat at the
back and a box jacket loosely cut in navy blue with lapels. The buttons the
same as on the men's blazers. There are no pockets.
The men will wear a badge on the breast pocket and the ladies will wear
a badge on the top left hand side of the jacket. Badges will be for HCO
personnel (Divisions 7, 1 and 2) the HCO badge. For the org personnel
(Divisions 3, 4, 5 and 6) the HASI badge.
All executives have the word "Executive" matching the badge set in a
curved bar under the badge.
On the left sleeve of both jackets and blazers appears the number of the
division in the division colour. The numbers are made in felt about an inch
in height and are worn on the outside of the sleeve and about three inches
above the cuff. These numbers have no background material but are sewn on
just as themselves.
Division 2 staff members in charge of the Mimeo machine and also in
charge of the actual packing for shipping will wear a khaki overall made of
drill material.
All household staff in Division 7, Department 2 1, will wear white
overalls made of drill material, and also the appropriate traditional
domestic dress.
Outside staff, such as gardeners and constructions workers, ete will
wear a bib and brace of blue drill material. This outfit is comprised of
over-trousers and a bib attachment which continues up from the trousers to
cover the chest, and is kept in place by straps which are attached to the
back of the over-trousers. With this is a short coat in the same material.
Any photographic staff wear an overall of blue drill material.
ISSUANCE
Permanent staff members will be issued an outfit.
The clothing remains the property of the org and is turned in on
leaving. It may not be sold or pawned or loaned. Loss of items will require
reimbursement. Ordinary wear and tear is excepted.
The khaki, blue, and white working uniforms are turned in weekly to the
Supply Officer for fresh issue. Failure to turn in such working clothes
weekly as scheduled can result in being docked for their value.
360
QUANTITY
The standard blazer and trouser uniform will have two pairs of trousers.
One should be more carefully guarded than the other to save it for "best".
This also applies to skirts, two of which will be issued each girl.
The working uniforms will be issued one set each week on the turn in of
the other set. Two sets may not be held by a staff member and all spares
will be kept under lock by the Supply Officer.
If things go well, a yearly issue of a blazer or a jacket and another
pair of trousers or a skirt will be made.
CHARGES
No charges may be laid against a permanent staff member for his or her
uniform on its original issue. Pay may be withheld on failure to turn in
one's uniform if leaving or on failure to turn in one's working clothes
weekly for a fresh set.
ALL CLOTHING ISSUED MUST BE SIGNED FOR BY THE STAFF MEMBER and the
receipt carefully preserved in Valuable Documents.
Each staff member to whom a uniform or clothes are issued is responsible
for their good care and upkeep. Except for working clothes, cleaning and
pressing of uniforms is borne by the staff member as well as any repair. If
a staff member severely damages any clothing issued he must pay for a new
issue himself and must obtain it. If the damage was unavoidable and in the
line of duty, the matter, investigated and attested by Ethics, may be
adjusted and new clothing replacing the lost or damaged items may be
issued.
L. RON HUBBARD
LRH:ml.rd Copyright (D 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
361
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 8 SEPTEMBER 1965
Gen Non-Rernimeo
SUPPLY OFFICER
All divisions should have a quantity of Internal Requisition Forms to be
filled in whenever supplies are needed.
The person who requests the goods, signs his name at the bottom of the
form and so does his department head. The exact reason why these goods are
required should also be included on the Internal Requisition Form.
Only one type of requirement should be asked for on one form, e.g. "A
Black Biro and a Red Biro". This would be OK as it is just on the subject
of pens. But "A Black Biro and a ream of foolscap paper" should be entered
on two forms. This shows how many items each division orders per week.
Do not order extravagantly-you can only write with one pen at a time;
otherwise the Supply Officer has to do the cutting down of requirements and
this can lead to unnecessary ARC breaks.
All Internal Requisition Forms should be in the Supply Officer's basket
by 12.00 p.m. each day. If you have ordered goods since 12.00 p.m. the
previous day, then you or a representative should go to the place appointed
by the Supply Officer between 1.00 p.m. and 1.30 p.m., where the Supply
Officer will issue the requirements.
The Supplies that are available at short notice are such items as:
Folders of each division colour, paper of each division colour, black, red,
green Biro pens, felt pens for poster work and make-up department, most
envelopes, paper clips, drawing pins, typewriter ribbons, Sellotape,
foolseap paper, ink for stamp pads, rubber bands, gummed labels and carbon
paper.
However, if in doubt, present yourself at the appointed place between
1.00 and 1.30 p.m. The Supply Officer will then inform you if the
requirement is in stock or if it has had to be ordered.
When a requirement has to be ordered, the Supply Officer will inform you
when it arrives at Saint Hill. If it is a rush item, it can be issued as
soon as it arrives, otherwise it is collected at the correct time.
L. RON HUBBARD
LRH:ml.rd Copyright Q 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
362
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 SEPTEMBER 1965
Gen Non-Rernimeo
KEYS
When a person receives a key from the Key Officer, he or she must
immediately sign for it in the key book.
If at any time a person leaves that space for which he or she has a key,
then sometime during that same day, that person MUST take the key back to,
the Key Officer, who will then give the key to the new occupier who then
signs for it.
If the Key Officer finds that a space has been taken over by someone and
that he or she has a key which has not been signed for in the key book,
then the previous owner of that space gets fined 10/- as he did not return
the key to the proper source.
The new owner also gets fined 10/- as he is using the space illegally.
A person is also fined 10/- if he or she loses a key.
L. RON HUBBARD LRH:ml.rd
Copyright (g) 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Gr~nstead, Sussex
HCO POLICY LETTER OF 3 NOVEMBER 1965
EQUIPMENT
Equipment of all types in HCO and the Org must be specifically assigned
to divisions and departments and the Inventory Officer must have a
signature for every piece of equipment in the organization.
No single piece of equipment may be across two or more divisions. Each
piece must be wholly in one.
By equipment is meant any item costing more than E5 or $10.
If a piece of equipment is lost or damaged or neglected there must be a
division, department and a person that can be named.
L. RON HUBBARD
LRH:ml.rd Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
363
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 NOVEMBER 1965
Remimeo
All Staff
REPORTING OF THEFT AND ACTION
TO BE TAKEN
When a theft occurs in the Organisation, a routine set of actions should
occur. These actions are as follows:
I . The person discovering the theft goes immediately to the Ethics
Officer and makes a full verbal report of the article/articles stolen, when
they were last there-who was responsible for their safety-and any further
data that he has on it.
2. The Ethics Officer writes down all details of the theft and the
articles stolen.
In the cases where large objects such as a machine, car, or the building
has been broken into and something taken, he calls the Police immediately
giving full details of the theft.
3. The Ethics Officer then makes a Xerox copy of the details of the
theft and takes it to the Insurance Officer, Dept of Records, Assets and
Materiel, Org Division.
4. The Insurance Officer takes the Report and immediately notifies
the Insurance Company with which the article was insured.
These actions should be done speedily as in some cases unless a theft is
reported immediately to the Police and the Insurance Company, the Insurance
is not collectable.
It is the responsibility of the Insurance Officer to see that all
articles of value are insured.
L. RON HUBBARD
LRH:ml.cden Copyright @ 1965 by L. Ron Hubbard ALL RIGHTS RESERVED
364
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East , Grinstead, Sussex
Rernimeo
OEC HCO POLICY LETTER OF 18 NOVEMBER 1969
Finance Course Issue IV
chksht
OES Hat
Treas Sec Hat DISPOSAL OF ORG ASSETS
Dir RAM Hat
Salvage Officer Hat
It should never be possible for the property of the organization to be
disposed of with consequent loss to the org, without the knowledge of Dept
9, Treasury Sec or Org Exec Sec.
Items which are routinely intended for sale or distribution (bookstore
ite6, mailings, info packs, etc) are not subject to this policy inasmuch as
such are issued against an invoice. Publications items are issued to other
departments for distribution against a No Charge Invoice authorized by a
signed PO for the items concerned, and Bookstore Sales are made against
cash invoices.
But where actual property belonging to the organization and property
kept within the organization's premises for use, such as equipment, tools,
furnishings, fixtures and fittings, are to be removed from the org premises
for sale or transfer elsewhere, it MUST be made known to and AUTHORIZED by
Dept 9 and FP.
Where an item is to be sold, Dept 9 arranges the sale. The sale is made
against a PO which (a) authorizes the sale, (b) gives an okay on the
selling price before any action is taken.
Where an item is to be transferred elsewhere (a CF file for example),
Dept 9 raises a PO stating what is going where and why, and its value,
which MUST be okayed by FP before the item is removed.
PC Folders are logged out in Tech Services, so an inspection point
already exists for them. Ethics folders do not get moved out-summaries or
copies are sent as required.
Items paid for out of the PES Account remain under the PES, subject to
this same policy.
The Org Exec See of every org is well advised to check on and make a
list of every article except communication particles such as dispatches,
authorized Mimeo items, which each department is selling or giving away,
and to see how many of such are listed in the Department's inventory.
It will surprise him to find out how many of his assets can disappear
without his knowledge.
CF folders, for example, could have been stopped from leaving the org
had proper note been taken of such action.
No legitimate outflow from the org is included in this policy. But the
Org Exec
See sure better know what is going out.
K. Urquhart
CS-7
for
L. RON HUBBARD
LRH:KU.rs.oden Founder
Copyright @ 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
365
CHRONOLOGICAL INDEX OF CONTENTS
1956 1959 (cont.)
3 Aug. Mail Line (HCOB) 271 20 Aug. Promotional Functions of Dept of
Accra 2
9 Nov. Accounting & Financial (HCOB) 6 3 Sept. HCO Book Account
147
25 Sept. Accounting Records and Bills 350
1957 13 Oct. Invoicing, Accounts, Project 12 179
14 Oct. Division of HCO Percentage Revised 148
What Your Money has Bought 23 Oct.Recording of Taped Lectures
at Ist Melbourne
(Letter issued by HASI Accounts, London) 275 ACC and Pre-ACC
Congress Vol. 2-217
Jan. Mass Purchases and Work Contracts 281 23 Oct.
Attention Registrars and Book Administrators 258
11 Mar. Income Reports (Financial Procedure Letter) 7 26 Oct.
Memberships 245
1 Apr. Always Register and Invoice 255 27 Oct. Processing of
Children on the HGC 226
5 Apr. Proportionate Pay Plan Proposal 293 29 Oct. International
Membership 150
17 Apr. Advisory Committee Endorsement 297 18 Nov. HCO C~fttral
Org Financial Modifications 151
18 Apr. Minutes of Staff Meeting ~96 27 Nov. Dept of Accounts
(excerpt) 2
19 Apr. Proportionate Pay Plan 295 28 Dec. Membership
Discounts 246
19 Apr. Trustee Endorsement of 18 April 1957
Staff Meeting Minutes 297 1960
19 Apr. Note on source of income 297
21 Apr. Income 255 Book Orden (LRH Despatch) 258
14 May Hat Turnover 29li 7 Jan. HCO Inventories 355
15 May Method of Opening & Invoicing Mail, 27 Jan.
Accounts Policies 9
Modified (HCO Procedure Letter) 272 3 Feb. HCO Keys 356
16 May Invoicing Items 255 21 Mar. Economy Wave 181
23 May Ordering People to Processing or Training 255 29 Mar.
HOC and Academy Prices for Minors
17 June Authorization Required for all Expenditures
(cancels & replaces 27 Oct. 1959) 226
(Association Secretary Directive) 281 31 Mar. Accounts Lines
181
3 Sept. Method of Opening & Invoicing Mail Vol. 1- 173 28 Apr. Yearly
Salary Increments 300
3 May Keeping Memberships in Force 246
1958 20 May Extension Course Prices see-227
24 May Extension Course Prices
10 Jan. Inspection of Hat Folders 298 (corrects 20 May 1960)
227
26 Mar. Salary and Unit Pay 299 13 June Accounts Procedure
351
10 Apr. Re: 5th London ACC 6 July LT Membership Privileges
247
(Administrative Directive) 223 13 July LT Membership Privileges
I May Financial Management (reissued IS May 1970) 26 (amends 6 July
1960) 247
1 June Purchase Orders (HASI London Admin 13 July Sick
Leave 300
Directive) (reissued IS May 1970) 282 28 July Losses 182
9 July All clears on staff 300 28 July International
Membership Privileges 248
22 Sept. ACC Accounts and Payments 224 3 Aug. Purchasing
182
27 Nov. Basic Financial Policy-HCO 6 3 Oct. Holiday Pay
and Sick Leave 301
27 Nov. Pay List 299 25 Oct. Membership Restrictions
249
9 Dec. Regarding Accounts Receivable 2 Nov. HPA/HCA
Course 227
(HASI Finance Policy Letter) 276 22 Nov. There will be no
professional rates
9 Dec. Staff List-Notification to Payroll (SA only)
249
(HASI Finance Policy Letter) 299 29 Dec. Membership Change
250
26 Dec. Collection of Accounts 30 Dec. Revision of HCO
Percentages
(HCO Secretarial Letter) 277 (cancels 14 Oct. 1959) 152
1959 1961
19 Jan. Extra Weeks on HPA Course 225 10 Feb. Professional
Charges 84
6 Feb. HCO Accounts Worldwide 7 14 Feb. The Pattern of a
Central Organization
16 Apr. Books, Cost of 82 (excerpt; Dept of Material, Dept of
Accounts,
23 Apr. Jack Parkhouse Writes from South Africa 349 Admin
Report Forms) 11
27 Apr. Why New Books are Few 137 19 Feb. Accounts: How to do a
Payroll 302
11 May HPA/BScn "Retreads" 225 27 Feb. Free Courses 228
14 May How to Establish Price of Books and Tapes 83 12 Mar.
Supplies of Central Organization Forms 356
21 May HCO Monies and Book Stocks 139 13 Mar. Free Courses
(revises 27 Feb. 1961) 228
28 May Promotional Writing Fund 140 24 Mar. Units for Assn See
and HCO See 306
2 June A Comment on Finance 27 28 Mar.Personnel Policies-Staff Post
Qualifications
2 June Purchasing Liability of Staff Members 283 Permanent
Executives to be Approved 307
3 June Financial Management 29 6 Apr. Remittance of HCO Monies
to HCO WW 152
4 June Invoicing and Collection of Money 256 4 June Refund
of Fee Policy see-343
5 June Income Report Required 8 20June Purchase Order
System 178
5 June Handling of Bills 284 6 July Accounts 183
9 June HCO Special Fund 141 11 July Purchase Orden 186
24 June Status of HCO Offices and HCO Sees 22 July
Executives'Pay 310
and HCO Volunteer Sees in US 142 4 Aug. Private Mail and
Telephone Calls 186
27 June Invoicing 257 9 Aug. Book Sales 259
19 July Accounts Inspection 31 12 Sept. Payment for Materials
284
22 July Monies intended for Sclentology 13 Sept. General
Office Orden 357
Research & Investigation Fund 143 12 Oct. Refund of Fee
Policy Revised
24 July Handling of Monies 177 (revises& replaces 4 June 196
1) see-343
25 July Membership Monies 143 10 Oct. Income Records 187
JOAug. Franchise I 05n to WV 144 23 Oct. Pay of Executives
(modifies 22 July 1961) 310
11 Aug. Cost Of Supplies (HCOB) 354 27 Oct. Professional Rates
Restored 250
24 Aug. HCO Financial Arrangements Altered 145 23 Nov.
Accounts 13
25 Aug. Purchase Order System 7 Dec. Inter-Org Exchange of
Students 229
(reissued 20 June 196 1) 178 19 Dec. Saint Hill Retreads see-230
366
1962 196S(com)
14 Feb. Saint Hill Retreads (amends 19 Dec. 196 1) 230 10 Feb.
Ad & Book Policies
27 Feb. Refund of Fee Policy Revised (excerpt: Book
Pricing Formula) 83
(revises& replaces 12 Oct. 196 1) 343 2 Mar. Purchase Order
Filing 43
29 May Professional Rates (adds to 27 Oct. 1961) 251 4 Mar.
Reserved Payment Amount 44
5 June Permanent Staff Privilege 251 15 Mar. Only Accounts
Talks Money 120
14 June Professional Charges 22 Mar. Saint Hill Services,
Prices and Discounts 127
(amends & amplifies 10 Feb. 196 1) 84 22 Mar. Current
Promotion and Ong
17 July Accounts:- Bank Charges on Remittances 153 Programme
Summary 128
24 July Academy Extra Weeks 230 28 Mar. Emergencies and Account
Personnel 46
31 July Org: Payments for St Hill Students 290 29 Mar. Staff Member
Loans Vol. 0-53, Vol. 1-587
19 Sept. HCO WW Form AC 1 154 2 Apr. Heed Heavy Traffic Warnings
Vol. 0- 111
20 Sept. Part-Time Staff and Over-Time 190 18 Apr. Prices
Lowered Because of New
26 Sept. HCO WW Form AC 1 154 Organization Streamline 93
AC I Form 155 21 Apr. Membership-Attestations 252
26 Sept. ACCs and Special Events Courses 156 26 Apr. Cancellation
of 19 Jan. 1965 47
26 Sept. Hubbard Scientology Research Foundation 157 27 Apr.
Prim Engram 91
26 Sept. Memberships 157 29 Apr. Bonuses 313
4 Oct. Signing POs and Cheques 191 9 May Auditing Fee&-
Proferential Treatment of
6 Oct. Accounts Irregularities 191 Preclears-Scade of
Preference 86
23 Nov. Saint Hill Retread Fee 231 9 May Field Auditors Become
Staff
(revised & reissued 14 Jan. 1968,
cancels 26 Mar. 1965 & 30 Mar. 1965) 328
1963 11 May HCO Book Account Policy 165
23 May Rebates 346
1 Feb. HCO Area 5%s 158 21 June Orgs are SH FSMs Vol. 2-325, Vol. 6-
325
AC I Form 159 6 July Releases 234
13 Feb. HCO I O%s Due to WW 160 10 Avg. Collection from SPs and
PTSs 279
14 Feb. Saint Hill Special Briefing Course 20 Aug.
Scientology Org Uniforms Saint Hill 360
Reimbursement Arrangements 291 31 Aug. Mail Opening 274
5 Apr. Audit of Organizational Books 311 1 Sept. Saint Hill
Services and Prices 235
11 Apr. Memberships (cancels 26 Sept. 1962) 252 1 Sept. Current
Policy-Franchise 253
16 Apr. Revision of Congress Payments to HCO WW 160 1 Sept.
Membership Policies 254
5 May Staff Member Enrolments, 292 8 Sept. Supply Officer 362
10 May Student Rates for HGC Auditing in SA Orgs 231 14 Sept.Units
and Bonuses for Org Exec Sees and
23 July Retreads on Saint Hill Special Briefing Course 232 HCO Exec Sees
(revises 24 Mar. 196 1) 315
8 Oct. New Saint Hill Certificates and IS Sept. Only Accounts Talks Money
Vol. 0-275
Course Changes 233 22 Sept. Keys 363
23 Oct. Refund Policy (cancels 12 Oct. 1961 24 Sept. Free
Release Check 263
& 27 Feb. 1962) 344 30 Sept. Statistics for Divisions
31 Oct. Reception Hat (excerpt: Invoicing) 260 (excerpt: Org
Division 3) 3
4 Nov. Pay Card 312 12 Oct. Advisory Committees M7
15 Oct. Field Staff Member Selection Papers
1964 and Commissions 334
21 Oct. Bills Payments 286
3 Nov. Equipment 363
7 Jan. Payment of Monies for Overtime 7 Nov. Reception Log-In-the-Org List
Vol. 1- 73
and/or Materiel 192 12 Nov. Transfers from SHSBC to Solo Audit
Course199
14 Jan. Continental and Area HCO Finance Policies 161 15 Nov.
Reporting of Theft and Action to be Taken 364
15 Feb. The Equipment of Organizations 358 20 Nov. The Promotional
Actions of an Organization
24 Feb. Org Programming-Solve it with Scientology 26 (excerpt:
Treasury Division 3) 3
2 Mar. Contracts and Services 192 21 Nov. Cheque Signing 287
10 Apr. Balancing Income-Outgo 26 Nov. Financial Planning 48
Paper, Postage and Printing Vol. 2- 98 9 Dec.HCO Income
21 Apr. Org Payments for Tape-Recorded Lectures 285 Memberships-
Congresses-Tape Plays 168
6 May Accounts Policies 17 21 Dec. LRH Financial Relationships to
Orgs 51
8 May Transport 193 30 Dec. PTS Auditing and Routing
13 May Transport (adds to 8 May 1964) 193 (S & D price)
Vol. 1-439, Vol. 4-578
15 May Accounts Policies (Addenda to 6 May 1964) 20
11 June Central Organization & City Office
Tape Service 285 1966
26 June Staff Bonuses 194
23 Sept. Policies: Dissemination and Programmes 4 Jan. LRH
Relationships to Orgs 53
(excerpt: Cost of Service) 85 6 Jan. Credit and Discounts 200
19 Oct. Pricing Formulas 95 7 Jan. Leaving Post-Writing Your Hat
Vol. 0- 70
30 Oct. Mailing Lists for Franchise Holden 102 7 J~n. Credit
(modifies 6 Jan. 1966) 201
31 Oct. Current Policies Orgs & Franchise 106 9 Jan. Accounts,
Invalidating 352
15 Nov. Transport Arrangements Vol. 1-293 13 Jan. Records of Bank
Deposits 353
17 Nov. Bonus 198 14 Jan. Hiring Personnel-Line for
30 Nov. HCO , Book Account 162 (amended 22 May 1968) 57
3 Dec. Pricing Meetings Final Policy 109 15 Jan. Office of the
Treasurer 59
23 Dec. Field and Public Programming 117 23 Jan. Accounting
Policies of
Scientology Companies 21
30 Jan. Accounts Procedures 23
1965 30 Jan. Cheque Signing Procedure 288
3 Feb. Legal, Tax, Accountant & Solicitor,
Treasury Division 3 Org Board Outline I Mail and Legal Officer
202
18 Jan. Financial Management 10 Feb. Bonuses for Service Delivery
204
Building Fund Account 32 11 Feb. Shipping Charges 263
19 Jan. Finance-Org Accounts 16 Feb. Invoice Routing 264
Building Fund Account 37 3 Apr. DianeticAuditonCoune Vol.2-
120,Vol.4-228
20 Jan. Currency Regulations and 109a 164 26 Apr. South Africa 10V~
168
28 Jan. How to Maintain Credit Standing & Solvency 39 3 May Reserve
Fund 169
367
1966 (cort.) 1969 (cont.)
9 May Bonuses Adjusted 3 Sept. Former HDAs, HPAs 238
(correction to 10 Feb. 1966) 206 3 Sept. Successful Class Ville
238
13 June Signatories on Bank Accounts see-348 9 Oct.Publications
Depts and Orgs
14 July Dismissal of Staff 207 How to Straighten Out Vol. 2-
210
21 July Proportional Pay Plan 1966 318 16 Oct. Finance Course-
Vital Action 25
31 July Refund Notice 347 11 Nov. Accounts and PRO 71
1 Aug. Sign Ups and Discounts Vol. 2-280, Vol. 5- 198 12 Nov. PES
Account versus HCO Book Account 213
1 Aug. Refund Addition (adds to 31 July 1966) 347 15 Nov. Class Vill
Retread 239
2 Aug. Graph Change-Ad Council Statistic 25 18 Nov. Disposal
of Org Assets 365
3 Aug. Correction to HCO Policy Letter 28 Nov. Class Vill
Retread (corrects 15 Nov. 1969) 239
of 13 June 1966 see-548 6 Dec.Inter-Org Exchange of Students
5 Aug. Registered Mail Vol. 1-178 (clarifies 7 Dec. 196 1) 240
22 Aug. Bonuses Adjusted (amendment & addition 10 Dec. PES WW
Account 215
to 9 May 1966) 207 10 Dec. Student Rescue Intensive Pricing
240
30 Aug. Selection Regulations 14 Dec. Org Protection
241
(addition to 26 Mar. 1965) 333 20 Dec.~ Trading Prohibited
283
6 Oct. Addition to HCO Div Account Policy 24 Dec. PES
Account Amended 216
(amplifies I I May 1965) 170
11 Oct. Legal, Tax, Accountant & Solicitor-Mail
1970
Incoming & Out-going (amends 3 Feb. 1966) 203
13 Oct. Invoice Routing (cancels 12 Jan. 1966) 208 11 Jan. Pricing-
Rescue Intensive
17 Oct. Bonuses 209 (cancels 10 Dec. 1969) 241
10 Nov. Field Staff Member (corrects 26 Mar. 1965) 336 13 Jan.
Org Personnel Recruitment (Revised) Vol. 1- 93
21 Nov. Addendum to HCO Policy Letter of 20 Jan. Class Vill
Retread (corrects 28 Nov. 1969
17 October 1966 "Bonuses" 211 & IS Nov. 1969) 242
15 Dec. Financial Planning 61 5 Feb. Scientology Refunds
23 Dec. Accounts Invoices-Nanues on Invoices 265 Writ of Expulsion
and Waiver Vol. 1-583
19 Apr. PES WAV Account (cancels 10 Dec. 1969) 217
1967 29 Apr. PES Account Revised (cancels 12 Nov. 1969) 218
15 May Financial Management(reinueof I May 1958) 26
9 Jan. FSM System Administration in Organizations 15 May
Purchase Orders sec-282
(modifies 9 May 1965 & 15 Oct. 1965) 337 12 June PES Account
(cancels 12 Nov. 1969
IS Feb. Allocation of Income 172 & 29 Apr. 1970) 221
20 Feb. Security of Invoices 266 15 July Retreads 242
25 June Scientology Orgs Tax and Balance Sheets 63 20 July
Internships and Case Supervisors 243
15 Sept. Examiner Bonuses 322 27 Sept. Cutative Prices 89
12 Oct. Charges 88 27 Sept. Cancellation (of 15 Mar. 1968)
136
18 Nov. Blue and Green Accounts Invoices 30 Sept. Credit Collections
Defined 4
(amends 13 Oct. 1966) 212 4 Nov. Estimated Purchase Orders 73
27 Nov. Bonuses Adjusted (addition to 17 Oct. 1906,
cancels 22 Aug, 1966) 211 1971
1968 31 Jan. FSM Contest Awards (modifies 27 Sept.
1970) 90
5 Feb. Org Gross Divisional Statistics Revised
I Jan. Hat Write-Ups and Folders (excerpt; Treasury Division 3)
4
Inspection of Hat Folders Vol. 0- 68 6 Feb. Transferring Funds
289
14 Jan. Field Auditors Become Staff 328 13 Feb. Financial Plinining
Tips 79
21 Jan. Chartered Accountants 353 27 Feb. First Financial Policy
81
13 Feb. Collections Letters 280 11 Mar. Registrar Invoicing Line
268
17 Feb. Field Staff Member Commissions 342 12 Mar. Treasury
Divisions GDSes-AII Orgs 5
15 Mar. Student & Staff Program 135
2 Apr. Signatories on Bank Accounts HCOBsAND
(cancels 13 June 1966) 348 ISSUES OTHERTHAN
15 May Reserve Fund (reissue & amendment to POLICY
LETTERS
3 May 1966) 175 IN THIS VOLUME
22 May Hiring Pemormel-Line for
(amendment of 14 Jan. 1966) 57 3 Aug. 1956 Mail Line (HCOB)
271
28 May Books 176 9 Nov. 1956 Accounting & Financial (HCOB)
6
5 June FSM Commissions 342 1957 What Your Money has Bought (Letter
17 June HCO Book Account 176 issued by HASI Accounts, London)
275
20 June Commodore and Founder as Signatory I I Mar. 1957
Income Reports
on Every Bank Account (Financial Procedure Letter) 7
(modifies I Sept. 1966 & 2 Apr. 1968) 348 5 Apr. 1957
Proportionate Pay Plan Proposal 293
10 Dec. LRH ED 64 INT(conoemsP/L 10 Dec. 1968) 323 15 May 1957 Method
of Opening & Invoicing Mail,
10 Dec. Percentage Adjustments and Fixed Salaries 324
Modified (HCO Procedure Letter) 272
17 June 1957 Authorization Required for all
1969 Expenditures
(Association Secretary Directive) 281
18 Jan. Advanced Org Awards 236 10 Apr. 1958 Re: 5th London ACC
31 Jan. Percentage Adjustments and Fixed Salaries
(Administrative Directive) 223
(Guardian Finance Order 12) 326 1 June 1958 Purchase Orden
(HASI London Admin
3 Feb. Legal Standard Waiver Vol. 1-582 Directive) (reissued 15
May 1970) 282
18 Apr. Org Division-Income Dept 222 27 Nov. 1958 Basic
Financial Policy-HCO 6
20 Apr. AO-SH Financial Control 67 26 Dec. 1958 Collection of
Accounts
19 May Hubbard Standard Dianetics Course (HCO
Secretarial Letter) 277
Policy Vol. 2-286, Vol. 4-241 11 Aug. 1959 Cost of
Supplies (HCOB) 354
23 May Dianctic Contract Vol. 2-287, Vol. 4-247 1960 Book Orden
(LRH Despatch) 258
3 June Dianetic Course Pricing 236 1965 Treasury Division 3 Org
Board Outline 1
16 June AO-SH Finance Control 10 Dec. 1968 LRH ED 64 INT
(amends 20 April 1969) 69 (concerns HCO P/L 10 Dec. 1968)
323
10 July Ong Personnel Recruitment Vol. I - 88 31 Jani, 1969
Percentage Adjustments and Fixed
2 Sept. Old ACC Students 237 Salaries (Guardian Finance Order
12)326
368
HUBBARD SCEENTOLOGY ORGANIZATIONS
THE CHURCHES OF SCIENTOLOGY
ADVANCED ORGANIZATIONS
Church of Sclentology of California Church of Sclentology Church of
Scantology
Advanced Organization Advanced Organization United Kingdom Advanced
Organization Denmark
of Los Angeles Saint Hill Manor Jernbanegade 6
916 South Westlake Street Ent Grinslead, Sussex, England 1608
Copenhagen V
Los Angeles, California 9M Denmark
HUBBARD COLLEGES OF SCIENTOLOGY
Church of Sclentology of California Church of Sclentology Church of
Sclentology
American Saint Hill Organization Hubbard College of Sclantology Saint
Hill Denmark
2723 West Temple Street Saint Hill Manor Jernbanegade 6
Los Angeles, California 90026 East GrInstead, Sussex, England 1608
Copenhagen V
Denmark
CONTINENTAL AND AREA ORGANIZATIONS
UNITED STATES ST. LOUIS MONTREAL
PUBLICATIONS ORGANIZATION Chu roll of Scientology Church of
Scientology
3730 Lindell Boulevard 1168 St. Catherine Street, W. 101
Church of Solentology of California St. Louis, Missouri 63108
Montreal, Quebec H2Y iSS
Publications Organization
010 ASHO TWIN CITIES UNITED KINGDOM
2723 West Temple Street Church of ScientOlOgy LOCALCHURCHES
Los Angeles, California 9W26 730 Hennepin Avenue
CELEBRITY CENTRES Minneapolis, Minnesota 55403 Saint Hill
Foundation
Saint Hill Manor
Church of Sclentology of California BOSTON East Grinstead, Sussex
CelebrltyCentre Church of Sclentology PLYMOUTH
1551 North La Brea Avenue 448 Beacon Street
Hollywood, California 90028 Boston, Massachusetts 02115 Hubbard Scantology
Organization
Church of Sclentology 39, Portland Square
Celebrity Centre Now York BUFFALO Sherwell
65 East 82nd Street Church of Scleatology Plymouth, Devon
Now York, New York 10028 1116 Elmwood Avenue MANCHESTER
LOCALCHURCHES Buffalo, Now York 14222 Hubbard Sclentology
Organization
DETROIT 48 Faulkner Street
WASHINGTON, D.C. Church of Solentology Manchester
Founding Church of Sclentology 19 Clifford Street LONDON
2125 S Street, N.W. Detroit, Michigan 48226
Washington, D.C. 20DOS Hubbard Sclentology Organization
AUSTIN MIAMI 68, Tottenham Court Road
Church of Scientology London W.l.
Church of Solentology 1235 Brickell Avenue SCOTLAND
2804 Rio Grande Miami, Florida33131
Austin, Texas 78705 HAPI
HAWAII NEWYORK Fleet House
Church of Sclentology of New York 20 South Bridge
Church of Sclentology 28-30 West 74th Stint Edinburgh, Scotland
143 Nenue Street New York, Now York 10023 AUSTRALIA/NEW ZEALAND
Honolulu, Hawaii 96821
SAN DIEGO PHILADELPHIA ADELAIDE
Church of Scientology Church of Scientology Church of the Now Faith
926 "C" Street 8 West Lancaster Avenue 57 Pulteney Street
San Diego, California 92102 Ardmore, Pennsylvania 19003 Fullerton,
Adelaide 5000
SAN FRANCISCO SACRAMENTO South Australia
Church of Scientology of California Church of Sclentology of California
MELBOURNE
414 Mason Street 819 19th Street Church of the New Faith
San Francisco, California 94102 Sacramento, California 95814 724
Inkerman Road
CHICAGO North Onifield 3161
LASVEGAS Church of Scientology Melbourne, Victoria, Australia
Church of Sclentology 1555 Maple Street PERTH
2108 Industrial Road Evanston, Illinois t10201 Church of the Now Faith
Las Vegas, Nevada 89102
CANADA Pastoral House
LOS ANGELES St. George's Terrace
Church of Sclentology of California TORONTO Perth 5000
2005 West 91% Street Church of Scientology Western Austral Is
Los Angeles, California 90006 124 Avenue Road SYDNEY
PORTLAND Toronto 180, Ontario Church of the Now Faith
Church of Sclentology VANCOUVER 1 Lee Street
1607 N.E. 41st Street Church of Scientology Sydney 2000
Portland, Oregon 97232 4857 Main Street New South Wales, Australia
SEATTLE Vancouver 10, AUCKLAND
British Columbia
Church of Scientology Church of Scientology
1531 4th Avenue OTTAWA Now Imperial Buildings
Seattle, Washington 98101 Church of Sclentology 44 Queen Street
292 Somerset Street, West Auckland, Now Zealand
Ottawa
EUROPE AMSTERDAM AFRICA
PUBLICATIONS ORGANIZATION Church of Sciontoiogy JOHANNESBURG
Church of Scientology Singei 261
Amsterdam, Netherlands Church of Scientology
Publications Organization 99 Polly Street
CIO SH Denmark BERLIN Johannesburg, South Africa
Jornbanegade 6 Church of Scientology CAPETOWN
1608 Copenhagen V 1000 Berlin 12
Denmark Giesebrechstrasse 10 Church of Scientotogy
LOCALCHURCHES Berlin, Germany 3rd Floor, Gar.our House
127 Plain Street
COPENHAGEN MUNICH Cape Town, South Africa
Church of Scientology Church of Scientology PORT ELIZABETH
Hovedvagtsgade 6 8000 Munich 2
1103 Copenhagen K Lindwurmstrasse 29 Church of Screntology
Denmark West Germany 2 St. Christopher's
27 Westbourne Road
Church of Scientology GOTEBORG POrt Elizabeth, South Africa 6001
Froderiksborgvej 5 Church of Scientology DURBAN
2400 Copenhagen V Magasinsgatan 12
Denmark S411 18 Goteborg, Sweden Church of Sciontology
PARIS 57 College Lane
STOCKHOLM Durban, South Africa
Church of Scientology Scientology Kyrkan PRETORIA
12, rue us Is Montagne Ste Genevieve Kammakaregatan 46
7SOOS Paris, France S-11 160 Stockholm, Sweden Church of Scientology
VIENNA 224 Central House
MALMO Cnr Central & Pfetorious Streets
Sclentology-Ostermich Church of Sclentology Pretoria, South Africa
A-107OWlen Skornalvaregatan 12 BULAWAYO
Marialrilferstrasso 88A/Stg. 3/119 S-211 34 Malm6, Sweden
Vienna, Austria Church of Solentology
BRUSSELS 508 Kirrie Bldgs.
Athercorn Street
Church of Scientotogy Bulawayo, Rhodesia
45A, Rue de I'Ecuyer
1000 Brussels, Belgium
'~l ~ ~ --?,