No matching fragments found in this document.
[Plaintext version 1.0, 17 September 1999]
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 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 e
personal voyage of discovery into the positive and effective
religion of Scientology.
THE BOARD OF
DIRECTORS
Church of Scientology
This book belongs to _____
Date _____
The
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
California 90026
U.S.A.
The Church of Scientology is a Non-Profit Organization.
Dianetics(R), and Scientology are Registered Names.
Copyright (c) 1970, 1971, 1972, 1973, 1974
1950, 1951, 1952, 1953, 1954, 1955, 1956, 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 8840W33-X
Volume 3 ISBN 0-88404-028-3
The E-Meter is not intended or effective for the diagnosis,
treatment or prevention of any disease.
Dianetics 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 activity that is shared in by
the head of each Division" - LRH, January 1971.
1 May 1958 Financial Management (reissued 15 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 51
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
11 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
1 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. 1961) 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 Program 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 295
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 10%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 1st 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. 1962 HCO WW Form AC 1 154
AC 1 Form 155
vi
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 5%s 158
AC 1 Form 159
13 Feb. 1963 HCO 10%s 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 10%s 168
3 May 1966 Reserve Fund 169
6 Oct. 1966 Addition to HCO Div Account Policy (amplifies 11
May 1965) 170
15 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 1961) 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 207
1966)
11 Oct. 1966 Legal, Tax, Accountant & Solicitor 203
Mail Incoming & Out-going (amends 3 Feb. 1966) 208
13 Oct. 1966 Invoice Routing (cancels 12 Jan. 1966) 209
17 Oct. 1966 Bonuses
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, 111
cancels 22 Aug. 1966) 353
21 Jan. 1968 Chartered Accountants
vii
PES ACCOUNT
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 - 275
7 Nov. 1965 Reception Log-in-the-Org List Vol. 1 - 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. 1959) 226
20 May 1960 Extension Course Prices see - 227
24 May 1960 Extension Course Prices (corrects 20 May 1960) 227
2 Nov. 1960 HPA/HCA Course 227
27 Feb. 1961 Free Courses 228
13 Mar. 1961 Free Courses (revises 27 Feb. 1961) 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 VIIIs 238
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. 1961) 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. 1 - 93
20 Jan. 1970 Class VIII Retread (corrects 28 Nov. 1969 &
15 Nov. 1969) 242
15 July 1970 Retreads 242
20 July 1970 Internships and Case Supervisors 243
CASHIER - 2
MEMBERSHIP
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 151
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. 1961) 251
5 June 1962 Permanent Staff Privilege 251
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
1 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 258
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 - Names 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
26 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
x
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
PAYROLL
5 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 Plan295
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 Sec and HCO Sec 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 1961) 310
23 Nov. 1961 Accounts - 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 Secs and HCO
Exec Secs (revises 24 Mar. 1961) 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 Jan. 1968 Hat Write-Ups and Folders - Inspection of Hat
Folders Vol. 0 - 68
10 Dec. 1968 LRHED 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 1961) see - 343
27 Feb. 1962 Refund of Fee Policy Revised (revises &
replaces 12 Oct. 1961) 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 10%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 1 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 15
19 Jan. 1965 Finance - Org Accounts - Building Fund Account 37
20 Jan. 1965 Currency Regulations and 10%s 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 Scientology Orgs Tax and Balance Sheets 63
21 Jan. 1968 Chartered Accountants 353
xii
SUPPLIES, KEYS, EQUIPMENT
11 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 Vol. 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.
xiii
YOUR POST
A post in a Scientology Organization isn't a job. It's e
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 chart]
ORG
ORG EXEC SEC
DISSEMINATION DIVISION
2 DISSEMINATION SECRETARY
DISSEMINATION SEC. SEC.
UNDERSTANDING ENLIGHTENMENT
Department 5 Department 6
DEPARTMENT OF REGISTRATION
Director of Registration
TREASURY DIVISION 3
TREASURY SECRETARY
TREASURY SEC. SEC.
ENERGY ADJUSTMENT
Department 7 Department 8
DEPARTMENT or DEPARTMENT OF .
INCOME DISBURSEMENT
Director of
Disbursements
TECHNICAL DIVISION
TECHNICAL
SECRETARY
TECHNICAL SEC. SEC
1
ACTIVITY
Department 11
DEPARTMENT OF
TRAINING
Director of
Training
BODY PREDICTION
Department 9 Department 10
DEPARTMENT OF DEPARTMENT NT OF
RECORDS, ASSET TECHNICAL
& MATERIEL SERVICES
Director of Director of
Records, Assets Technical
& Materiel Service
DEPARTMENT OF
PUBLICATIONS
Director of
Publications
Copyright (c) 1965, 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
1
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 AUGUST AD9
CenOCon
[excerpt]
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
figure-figure.) 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 factor 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 (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Excerpted from HCO P/L 26 August AD9, Promotional Functions
of Various Depts. A complete copy is in Volume 7, page 135.]
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 DC]
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 (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
[A complete copy of this Policy Letter is in Volume 7, page 138.]
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
promotional functions of Division 3.
42. DEPARTMENT 7 (Dept of Income) - Persuades payment of cash
or increase in purchase whenever possible.
43a. Collects outstanding notes by monthly statements.
43b. 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
[Excerpt/
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:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Note: A complete copy of this Policy Letter can be found in
Volume 1, page 328.]
3
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 SEPTEMBER 1970
Issue II
Remimeo
Treas Secs
Dir income
SO & Scn
CREDIT COLLECTIONS
DEFINED
CREDIT COLLECTION includes
1. 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 Sec 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.
LRH:VP:sb.ka.rd
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
1. Credit Collected
2. Bills Paid.
Lt. Vicki Polimeni
CS-3 for
L. RON HUBBARD 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
Credit Collected is defined in HCO Policy Letter 30 September
1970, issue II - Credit Collections Defined.
Bills Paid includes all org bills, including materiel. Monies
paid into Reserves do not count as Bills Paid.
LRH:HE:mes.rd
Copyright (c) 1971
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Note: A complete copy of this Policy Letter can be found in the
1971 Year Book.]
4
HCO Aide for L.
RON HUBBARD
Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 12 MARCH 1971
Issue II
Remimeo SO & Scn Orgs
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 Refunds", 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 FSM 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 org, 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".
LRH:LQ:HE:nt.rd
Copyright (c) 1971
by L. Ron Hubbard
ALL RIGHTS RESERVED
5
HCO Aide and
Treasury Aide for
L. RON HUBBARD
Founder
HASI SOUTH AFRICA
HCO BULLETIN OF 9 NOVEMBER 1956
ACCOUNTING &
FINANCIAL Accounting Department. To take care of:
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
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
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.
BASIC FINANCIAL
POLICY
HCO
27 November 1958
6
L. RON HUBBARD
copies to:
Acct Dept
Dist Center
Maxine - invoice Academy
HGC
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.
NOT HCO POLiCY LETTER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
FOUNDING CHURCH OF SCIENTOLOGY
1812 19th Street N.W., Washington, D.C.
FINANCIAL PROCEDURE LETTER OF 11 MARCH 1957
INCOME
REPORTS
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 (c) 1957
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.l
HCO POLICY LETTER OF 6 FEBRUARY 1959
HCO ACCOUNTS
WORLDWIDE
The following will be done to handle Accounting World:
1. 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
7
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF 5 JUNE 1959
Modifies previous directions
Convert
to Sec 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 OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 JANUARY 1960
HCO Secs
Assn Secs
Div 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
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 Org Sec or Assn Sec. 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 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 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.
A statement sheet is also kept in this folder.
A 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.
paper.
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
Invoices are used to sort out banking, reports, statements, etc.
9
voucher.
Disbursement Vouchers
All disbursements, whether by cash or cheque, are written on a
disbursement
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 al] bills).
A copy of the voucher goes to the Project Supervisor most
interested.
A copy goes to Accounts for filing in the folder of the firm or
person.
A 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 Assn Sec or
Org Sec.
Income
Breakdown
Income breakdown is done weekly on appropriate sheets after
separating invoice copies into appropriate piles. A tape 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.rf.cden
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
10
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 FEBRUARY 1961
/Excerpt/
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 item. 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
Headed 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.
owe us.
A similar mimeo sheet is made up of debtors each month and the
amounts they
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.
L. RON HUBBARD
LRH:aecJs.rd
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Note: Excerpted from HCO Policy Letter 14 February 1961,
7.-he Pattern of a Central Organization. A complete copy is in
Volume 7, page 147.]
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.
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 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.
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 addresses for this list are routinely forwarded to
Addresso 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.
Division.
Notice of all bank payments paid in, and all bank statements, go
to the Income
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/F. 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 particular - i.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 Thermofax machine, as this machine will not copy
water based 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 Sec 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 �2 worth of books but sends �3.10.0.
She wants us to retain �1.10.0 for a future purchase. Make out one
invoice for �2.0.0 and one for �1.10.0 but say on each what and why
and that it came out of �3.10.0.
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 (c) 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 functions just as above. LRH)
L. RON HUBBARD
LRH:dr.cden
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
19
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East 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 file 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 (i e., 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.
LRH:jw.oden
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: HCO WW Area Secretary for L. RON HUBBARD
20
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 JANUARY 1966
Remimeo
Exec Sec Hats
Org Division Hats
URGENT
ACCOUNTING POLICES
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 1I 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. Every cheque also has a voucher. A voucher
is like 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 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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
22
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 JANUARY 1966
Issue III
Remimeo
Exec Sec Hat
Org Sec Hat
All Org Div Hats
Org Div
ACCOUNTS
PROCEDURES
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
Corp 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 original records 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 hath 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.cden
Copyright (c) 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
Remimeo
Applies to
Exec Secs,
Secs Treasury
Div and OIC
GRAPH CHANGE
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.
[See also HCO P/L 1 July 1972 "Cash/Bills and Org Reserves", for
expanded definitions of "Cash/Bills" and data on Org Reserves.]
L. RON HUBBARD
LRH:lb-r.rd
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 OCTOBER 1969
Remimeo
HCO ES Hat
OES Hat
E/O Hat
FINANCE COURSE
VITAL ACTION
As of 1 Dec 1969 it shall thereafter be a Comm Ev offense for an
OES or a Treasury Sec 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
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
25
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 MAY 1970
Issue II
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 (c) 1958, 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
SOLVE IT WITH SCIENTOLOGY
[Excerpt from HCO Policy Letter of 24 February 1964
Urgent - Org Programming]
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
combs or fund raising Barbecues.
LRH:dr.rd
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[A complete copy of this Policy Letter appears in
Volume 4, page 367.]
26
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 2 JUNE 1959
Sec ED
one.
A COMMENT ON
FINANCE
The history of finance in Dianetics and Scientology Organizations
is an interesting
But a recent repetition of early financial history in Washington
and London must bear comment.
In 1950 and 1951 I 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 I 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 6 1/2 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 $19,000 into the red from a total
pay up as of January 1, 1959 when I gave over. To go $19,000 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
�18,000 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 �18,000 to
�7,000 in the past 90 days. And this without even having an
accounts department to help. I've also made HASI London pay me back
�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
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 made 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 making 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.oden
28
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 3 JUNE 1959
CenOCon
FINANCIAL MANAGEMENT
The financial management hat of Scientology Organizations has
assumed a great importance now.
Financial management is ordinarily done by the Assoc Sec. the Org
Sec or the Treasurer and possibly, in some cases, the Director of
Accounts, but is always under the direct responsibility of the
Assoc Sec 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 90% 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
Less HCO 10%
90% balance 45% (Exp
and Bldg F.)
180
_.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: �66.12 per week. In calculating the
10% for HCO and
Exp and Bldg F.
Special Fund..
.�200
.20
... 180
.45
. 900
720
.. 81.00 ..
14.4
�66 .6
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 �66 above is the
actual figure. It is not recalculated. It is spent for all
expenses. HCO 10%, Salary Sum, 8% for special Fund ail 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 �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 can 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
�66.0.0 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
4th Jun 59
L. RON HUBBARD
30
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 JULY 1959
CenO HCO Sec for seeing
it gets back to HCO WW
ACCOUNTS INSPECTION
All Assn Secs and Org Secs should inspect their Accts Dept and
answer the
Dir of Accounts - Do you have one?
Are you confident of his or her responsibility with money?_
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? accurate?
(b) Suing all delinquents?
(c) Reassuring all 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 org?_
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.
LRH:brb.cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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
Account.
The Chairman Secretary and Treasurer are the signatories for the
Building Fund
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 also be 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 am 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
cam 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:
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.
I 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. Income is regulated by what an org thinks it has
to have to operate.
8. Income is never regulated in a usual org by desires for a
surplus.
9. To achieve a surplus it must 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 am 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 org 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 Sec and replaces him,
the better it is for the people in that area.
16. The ways to detect a bad Assn/Org Sec are:
(a) Their games condition by any part of the org 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 Sec. the easier the situation will be to
handle and the faster the org will recover.
17. Board efforts to "straighten up am 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 d d 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 (c) 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
follows:
Entirely at the discretion of the International Board, the sums
may be used as
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.
5. The repayment of loans made before January 1, 1965, by the
International 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 10%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 (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
38
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 JANUARY 1965
Remimeo
Int Bd Members
Cont Dirs
HCO Cont Secs
Org/Assn Secs
HCO Secs
Accts Units
ACCOUNTS HATS FINANCE
HOW TO MAINTAIN CREDIT STANDING &
SOLVENCY
(Hat check on Org/Assn Secs 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 good org
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 dissemination 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 org 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:
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.
5. 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 1 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
confidence.
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.
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 1." (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 "Pay
all bills up to August 15". Now we're only 3 1/2 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:
1. 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 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:
1. Non-comprehension 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 (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
42
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 MARCH 1965
Remimeo
Int Bd Members
Cont Dirs
HCO Cont Secs
All Accts Executives
FINANCIAL MANAGEMENT
(ACCOUNTS HATS)
(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 �5,000 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 �5,000 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.
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.
LRH:jw.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
43
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 4 MARCH 1965
Gen Non-
Remimeo Assist
Treasurers Accts
units Sthil
ACCOUNTS HATS
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 POs 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 spindled 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 - $20 aside for a new
jacket, 515 for this week's share of the rent when it falls due.
Add to this $12.50 "for the money Bill says I 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 account" 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.
I 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 (c) 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 Remimeo
Accts & Financial
Management Hats
HCO Sec 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 POs 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 POs 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, "We 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 POs
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. I 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. I 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.
I 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.
LRH:wmc.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 APRIL 1965
Issue II
Gen Non-Remimeo
Saint Hill Execs
Board Members
HCO Policy Letter of January 19, 1965 "Finance - Org Accounts"
is herewith cancelled.
LRH:wmc.eh.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
47
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 NOVEMBER 1965
Gen Non-
Remimeo Ad
Council Hats
Org Div Hats
Executive Division
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:
1. 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
business 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 uncollectible. The
total is added into grand total of Credit Advanced.
It gives the total of payments received during the month past
(the 1st 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 money 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 POs.
Where a Division is in Emergency the Ad Council shuts off all POs
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.
LRH:ep.ca.rd L. RON HUBBARD
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
50
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 DECEMBER 1965
6 copies to
Each Org
Master Files
Org Exec Sec Hat
HCO Exec Sec Hat
Org Sec Hat
Dir Dept S
LRH Communicator
LRH FINANCIAL RELATIONSHIPS TO
ORGS
After a careful review of various tax situations in orgs I 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 LRH 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, an
individual, and any org rebounds to our discredit tax wise;
4. That when sums owing by an org to LRH, an individual, are not
fully accounted for in the books and balance sheets of an org as
due and owing to LRH, 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 them 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 LRH 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 LRH 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 LRH 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 LRH 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 sums
owing to LRH, an individual;
B. All sums owing to LRH, an individual, must be reflected on
yearly balance sheets;
C. Adequate salary and compensation must be allowed for LRH, an
individual by all orgs;
D. The Office of LRH 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 LRH 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 �25 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 (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
52
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-l 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:
LRH, 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 I 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 LRH, an individual. This is a vital point, often missed even by
accountants who then get us involved. If the money were 1. received
by LRH, an individual and then 2. turned over to LRH a trustee
and/or 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 $20
franchise pay to "L. Ron Hubbard". This is always invoiced by an
org as "Franchise payment". Therefore one concludes that "LRH" 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 1 10%s 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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
56
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 MAY 1968
Issue I
(Amendment of HCO Pol Letter of 14 Jan 1966
Issue II)
Gen Non-Remimeo
HCO Exec Sec Hat
Org Exec Sec Hat
Dept 1 Hats
Financial Planning Hats
Org Sec 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 and 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
Council:
The. Personnel Procurement Officer then. when hiring a new
person. sends to Exec
(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 Sec as one of the functions of her office.
DISMISSALS
The Org Exec Sec through the Org Sec and Qual Sec 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 (c) 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 II
Remimeo
Exec Secs Hats
Org Secs 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 Sec 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 Sec WW to the Office of LRH WW to the LRH Communicator
WW to the LRH Communicator Area to the Org Exec Sec of the Area to
the Org Sec of the Area.
The "A" Routing is from the Treasurer WW to the Org Sec Area.
Any orders passed on "A" Routing must be available to the Org
Exec Sec WW and the Org Exec Sec 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
1 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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo
Ad Council
Members
HCO POLICY LETTER OF 15 DECEMBER 1966
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 POs (would constitute maintenance
expenses and rent).
3. Total gross 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 Government payroll deductions
2. Total Building
3. Total Org Expenses
4. FSM Commissions
10% Admin or Research
10% Leeway or Reserve
This gives some sort of a guide.
31%
4%
17%
21%
7%
80%
10%
10%
100%
=
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 POs 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 Jan-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
POs before the beginning of the month for the next month one could
plan successfully (remembering their POs don't include utilities
and many routine bills which must be deducted from the org expense
amount before one signs any POs).
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 31% of 80% with 4%
of 80% for tax. Certainly staff at Saint Hill makes more than staff
in other orgs and 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 (c) 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
SCIENTOLOGY 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 principles 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 I 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, Modern 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 Distribution 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 all 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 $10 dress for nothing one now has $10 worth
more than one had before. If one paid $10 out and took a $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 Nuance, 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 $10,000 as a repayment of debt which it was,
I promptly expand Scn to make it another $100,000. So it goes.
Sometimes, in development, some money gets "wasted". But it always
comes back 10 for 1 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 arid 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
significances 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 stick 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.
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 OT 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" in no 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 (c) 1967
by L. Ron Hubbard
ALL RIGHTS RESERVED
66
HUBBARD COMMUNICATIONS OFFICE,
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 APRIL 1969
Remimeo
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.
FLAG 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
1. 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
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. 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 (c) 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 AOs 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 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, organized as a costing analysis and
so 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 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
FBOs.
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 cover 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
1. 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.
LRH:ei.rd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos CS-3
Material Aide
for
L. RON HUBBARD
Founder
70
It's a PRO world today.
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 NOVEMBER 1969
Remimeo
PES Hat
OES Hat
Accounts Hats
Finance Course Chksht
PRO Course Checksheet
ACCOUNTS AND PRO
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 modern 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 org
actions, giving excellent service and adequate promotion brings m
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 mere "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 its 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. i
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.
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 (c) 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
Remimeo SO & Scn Orgs
and ships COs & Exec
Dirs FBOs & A/GFs &
ECs to activate All Div
Secs Treas Sec Hat Dir
Disbs Hat Purchasing Hat
Accts & 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 Secs 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 FP 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 POs 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 Sec to
retain and use when making actual POs 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 POs may go direct to FP before meeting.
Red POs raised between FP meetings are only against already
approved EPOs.
This gives two possible sequences:
A. I. 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 POs for the coming week or month. The primary
requirement is coverage of all NECESSITIES.
FP members take up EPOs and Red POs in meeting against the gross
amount established as available for PT expenditure.
At the moment when POs and Estimated POs thus presented reach the
established sum the EPO and PO signing is stopped. No further POs
are acceptable except those subsequently raised against the
approved EPOs.
As POs 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 POs may be
signed.
FP approval authority should require rejected POs 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 POs for immediate purchase.
75
B) Approved EPOs to be held awaiting Red POs. C) 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.
PO SIGNERS
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 Sec 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 overage on other EPOs to compensate.
There is no obligation to sign. He may require the EPO held for
next FP and the shortage made up by a second EPO at that time.
EPO AND RED PO MATCHING
EPOs and Red POs 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 POs 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
POs. It is then removed from EPO file as expired.
Red POs 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 Secs
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 (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
77
E .
PR O
H
DIVISION:
ESTIMATED COST:(in US $)_
ITEM:
REASON: (attach CSW)
DATE:
NUMBER:_
FP ESTIMATED P.O.
HAS NO VALUE OR EXCHANGE VALUE
AND HAS NO AUTHORITY TO PURCHASE
(in local currency)-
It is understood that this is an estimated cost and the item
cannot be bight until a fully and exactly priced PO has been
submitted and signed by PO Signing Authority.
ORIGINATOR
DIV HEAD
FP MEMBER
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
not justify value. Therefore it "sort of looked odd" 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 OK 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 deliver 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
non-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 org 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. I 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 FBOs) 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-in-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 "economical 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 rejected...." 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.
(c) hope this helps lead sane Finance bodies out of the jungle
into the sun.
L. RON HUBBARD
Founder
LRH:sb.rd
Copyright (c) 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 II
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
Lawrance, Member for
L. RON HUBBARD
Founder
LRH:BL:PW:DM:sb.rd
Copyright (c) 1971
by L. Ron Hubbard
ALL RIGHTS RESERVED
81
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
82
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 14 MAY 1959
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:
1. 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. �15.0.0./week)
8. Shipping cost of whole package by air + insurance.
Add 100% of above.
LRH:mp.pm.cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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.
LRH:jw.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Exerpted from HCO Policy letter of 10 February 1965, Ad and
Book Policies. A complete copy of this Policy Letter can be
found in Volume 2, page 101.]
83
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
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 JUNE 1962
CenOCon
Franchise
Field Auditors
BPI
L. RON HUBBARD
PROFESSIONAL CHARGES
(Amends and amplifies HCO Pol Ltr
of 10 February 1961, 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
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
84
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 SEPTEMBER 1964
Remimeo
Interested Sthil Staff
/Excerpt/
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 "multitude".
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 (c) 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 41.]
85
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 MAY 1965
Remimeo
Registrar
Tech Sec HAT
Qual Sec HAT
Org Sec HAT
Dir Accts HAT
Cashier's HAT
HAT TECHNICAL & QUALIFICATIONS
DIVISIONS
DIVISION 4 - 5
URGENT
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;
E.
G.
Pcs Paying full rate Cash in Advance with the longest consecutive
auditing period purchased, Where two pcs 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 pass 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. Interne Auditor and any scheduling convenient
to org;
Full public rate pcs requiring up to 75% credit, credit unknown.
Any Interne Auditor, and any scheduling convenient to org;
Professional rate requiring credit.
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 check 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. I 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 (c) 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 (c) 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
Remimeo
Cashiers
Div Ills
Pub Div
Hats Div
II Hats
FSMs
F/Os
Organization Series No. 6
CUTATIVE PRICES
HCO PL of 27 Apt 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 RATE
ITEMS.
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.
5. 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 1 JANUARY 1971.
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
Copyright (c) 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
Remimeo
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 1 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.
LRH:VP:nt.rd
Copyright (c) 1971
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. V. Polimeni CS-3
for L. RON
HUBBARD Founder
90
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 APRIL AD15
Issue II
Remimeo
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
prices.
Had I not found it we would have expanded 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.
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 orgs 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 (c) 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
Franchise
insert separately
in Auditor 8 as
a printed Pol Ltr
BPI
May be mailed to
Scn Mailing Lists
ALL SCIENTOLOGY
PRICES LOWERED BECAUSE OF NEW
ORGANIZATION STREAMLINE
COST OF TRAINING, PROCESSING
AND BOOKS LOWERED BY NEW
DISCOVERIES
Cancels HCO Policy Letters:
19 Oct 1964 Pricing Formulas
30 Oct AD14 Mailing List for Franchise Holders
31 Oct 1964 Issue II: Current Policies, Orgs & Franchise
3 Dec 1964 Pricing Meetings Final Policy
23 Dec 1964 Field and Public Programming
15 Mar 1965 Issue II: 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 like
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 "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 1 could. We must we can
get the show on the road in time.
So let's get the show on the road!
LRH:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
94
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 OCTOBER 1964
General Non-
Remimeo
Assn/Org Sec
HCO Sec
Adcomm
Deputy Assn/Org
Sec
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 months' average income, instead of one month's as the
average price for training and processing. 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:
1. 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 12 1/2 hours or 25 hours in any week in the HGC by
giving up half of their units for a 12 1/2 hour intensive and all
their units for 25 hours which then serve as a general rise in all
the others' units; but staff members may not have more than one 12
1/2 or 25 hour intensive in a month. They may have 12 1/2 hour
intensives over week-ends by directly paying the staff auditor
auditing them the average units for the week before last calculated
for 2 1/2 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 12 1/2 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 Hill 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 Hill at 50% 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 in 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. (c) 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 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 Scientology Library and Research Ltd on each.
INTERNATIONAL AND LIFETIME MEMBERSHIP PRICES
or $30.
14. International Membership shall be uniform at this time for
the world at �10
Lifetime Memberships shall be uniform at this time for the world
at �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 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, 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 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 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 1 1/2 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 Sec 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 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
28. The Continental Director is paid 1/2 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
month.
29. All such bonuses are payable monthly only, computed on the
first of the
NO ADVANCES OR LOANS FROM HCO BOOK ACCOUNT
30. No Demon 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
31. 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 and/or 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 pcs 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 pcs and students, the data in HCO Pol Ltr
of September 23, 1964 and Exec Ltr 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 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 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 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. I hope it does to you.
LRH:jw.cden
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Important. See also HCO P/L 18 April 1965, page 93.]
L RON HUBBARD
[Note: in 34. STAFF REGULATIONS the phrase or any HASI student or
pa has been added per HCO PL 26 November 1964. 7 (h), 38, 39 and
40 have been added per HCO PL 9 November 1964.]
101
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 OCTOBER AD14
Gen. Non-Remimeo
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 Sec. 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:
1. Franchise Holders in good standing may be issued a certain
type of list.
3.
5.
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.
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.
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.
A Central Org which does not cultivate auditors in the field does
badly.
A Central Org has been known to misguidedly suppress field
"competition".
A 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 which 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 mail 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 on 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 can 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.
LRH:jw.rd
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Important. See also HCO P/L 18 April 1965, page 93.]
105
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 OCTOBER 1964
Issue II
Gen Non-Remimeo
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 Franchise Holders.
As of Jan 1, 1966 the teaching of HAS or PE Courses may be done
only by
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 PICA.
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 Sec. (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 Of rices 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 30% 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 �25 Sterling or 375.
An International Membership costs �10 Sterling per year or $30.
Franchise Not Bound By Discounts
Franchise Holders do not have to give discounts because their
book buyers, pcs 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 pc 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 all
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.cden
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Important. See also HCO P/L 18 April 1965, page 93.]
108
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 DECEMBER 1964
Gen Non-Remimeo
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 $100. 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 �15 per week. Meeting in
London recommended �12.10.0. Figure allowed for publication based
on �11.3.4 per week. This gives full price of HQS, HCA, HPA or a 25
hour intensive as �134, 20% �107.4. 0, 30% �93.16.0, 50% �67.0.0.
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 pcs 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 �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 �18 Australian was authorized as this
gives about �25 Australian as the potential average staff member
pay. Full fee for an HQS, HCA, HPA or a 25 hour intensive �216, 20%
�172.16.0, 30% �151.4.0, 50% �108 all pounds Australian.
NEW ZEALAND: Running with different currency and economic
conditions, New Zealand reported �20 New Zealand as the average
weekly income. Using this for staff member pay, the figure �15 New
Zealand was authorized. This gives a full fee for HQS, HCA, HPA or
a 25 hour intensive as �180.0.0, 20% �144.0.0, 30% �126.0.0, 50%
�90.0.0.
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 "COURSE"
In the Gradation Programme, we have pcs 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"
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 PICA. 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 11. 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 II 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
pcs 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. Pro 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.
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 he is already classed for (or in the case of an
HQS, an In Training Class I). With this he may audit for a fee
providing he informs his pcs 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 Sec.
All an org 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
right 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.
111
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.
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 DC applying for auditing higher than his grade should be
smoothly put into the
112
Pcs 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 demand 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: "I 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: "I 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 I 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 0 to 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 org 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 "fastest available transport" fee exceeds $100
round trip, the group must also pay the instructor's travel fare
and travel expenses. The $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 pcs 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.
THE BOOM
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 Sec 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 Sec
and the HCO Sec. 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. Pcs 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
pcs 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 1 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 will 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
org's 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:
1. 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.
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.
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 Sec. Not the despatch pile. How is that
Academy doing? Better look in. Ah! 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 pcs.
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 Sec 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 pcs 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 1 Admin staff to 1 staff auditor is quite
low. As you get to swinging along it may become one technical staff
member to more than 1 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
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Important. See also HCO P/L 18 April 1965, page 93.]
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 'nave been busy with organizational
reorganization, public and field programming all armed 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 programmed 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 �10 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 �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
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 II 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 pc 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, I, II, III, 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 I) 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 pc 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 programing 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 I 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
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Important. See also HCO P/L 18 April 1965, page 93.]
119
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 MARCH 1965
Issue II
Remimeo
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 $1000,
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 (+,30)
on which the discount is 30% making therefore auditing 5700; the
second membership is the Lifetime membership ($75) making a
discount of 20% which would mean auditing would be $800. If
perchance you have both memberships, the discount would then be
$500. (50%.) 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.
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 INTERNATIONAL 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 / �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 pc
grade, 1 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 conceived 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)
Services Offered
Academy Courses
HAS Level 0
HQS Level 1
HCA Level 2
HPA Level 3 etc.
Scientology
Processing 12 1/2 hr
intensive (1/2 week or
week-end)
25 hour intensive (1 week)
(Leading to Preclear Grades
0, I, II, III, IV - more than one
intensive may be required per
Grade).
The third flier is a rate card.
SCIENTOLOGY SERVICES RATE CARD
Full Public Price
(give in your
currency for
each item)
Lifetime Member
Price (Credit)
25% Discount
(Reduce each
item by 25%)
(Full Public Price is your local full price per January price
raises.)
122
International
Member
(cash) price
50% Discount
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:
1. 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.]).
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:
1. 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 1' 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 S 1,000
L.T. discount 250
Charged to Account (c) 750 L.T. Membership No. LMDC 15459 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 1 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 materials. 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 REALITY - READ 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 50% discount on the
books m 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 1 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 not 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 which 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 1/3% 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 over - 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, I 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. I 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
"Testing 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
I, 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 (c) 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.]
126
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 MARCH 1965
Gen Non Remimeo
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 pc'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 ease
and many clear today at only Level II, 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 �275 sterling. This
makes its public price �550, but of course no public applies. This
is about �40 a level, making it a very cheap review course. It must
be bought all at once or �275.
HGC
Intensives are the same price as in the U.S. The 50% cash
discount makes an intensive 5500 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 pc is taken but only the pc's level will be run, of
course. However it will be run very well, usually 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
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Important. See also HCO P/L 18 April 1965, page 93.]
127
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 MARCH 1965
Gen Non Remimeo
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 �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 �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 20% 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
20% 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 HGC 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.
THE NEWCOMER
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 #1 will be out before the end of 1965 by the thousands.
It's already outlined and mostly written. It will probably cost the
public $5 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 1' 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 used 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 II 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.
A person who clears at Level II 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 Sec 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
pcs) 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 carts - the
quicker you'll start making Releases and Clears. Release and Clear
are Honorary not technical awards. Release is simply "Know now I
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 objective.
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 pcs 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 HILL PRICES
Saint Hill is being careful not to undercut anybody and won'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:
1. 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?
1. 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 things 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 (c) 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
STUDENTS: STUDENT & STAFF PROGRAM
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 this. 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 2 1/2 year contract. This contract would include
getting his Power free. This contract requires him to be Staff
Status II.
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.
LRH:jc.cden
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Fred Payer
Sea Org
Approved by -
L. RON
HUBBARD
Founder
[This policy was cancelled by LRH in HCO P/L 27 September 1970,
issue II, Volume 3-page 136, being in direct violation of HCO P/L
27 April 1965, issue II, Price Engram. Volume 3 - page 91; which
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 II
"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 (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
136
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
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 I had to do it all on the cuff. I
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.
I 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 I can up my income for writing, research and living,
we are somewhat slowed down.
My program has gone as far as this: I 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 I 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 I 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. I 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 get the job done.
My book schedule is now
1. 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?
LRH:cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
138
Best,
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF 21 MAY 1959
(Convert to Sec 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. 1
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 20% 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 10% 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 Secs 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 thongs 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 (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
140
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 9 JUNE 1959
HCO 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 8%s.
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%5.
L. RON HUBBARD
LRH:gh.pm.cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
141
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
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 Secs and HCO Volunteer Secs 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 Secs and Volunteer Secs 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 10%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 10%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 Secs in
the US can devote time to personal service for Franchise holders,
and more vitally, promotion.
We are now looking at HCO Secs 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 Secs 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 (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
142
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. l
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:
1. Any Central Organisation 8% checks (such as Founding Church,
Washington DC- 8% is deducted weekly specifically for this Fund).
2. Any HCO 10%s.
3. Any 10% monies from Franchised Auditors.
LRH:hlc:gh.rd
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
Mildred Galusha for
L. RON HUBBARD
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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 10%s are to be sent to HCO WW Saint Hill Manor, East
Grinstead, Sussex. This is directly to Ron and HCO WW who need your
10%s to disseminate Scientology in the field for you.
Do not send any 10%s to your Central Organization-send all 10%s
to HCO WW, Saint Hill, East Grinstead.
HCO Secretary WW
for L. RON HUBBARD
NW:brb.rd Copyright (c)
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 18%.)
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 15%. 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.
LRH FOUNDER CHEQUES
L. RON HUBBARD
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 10%" 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
withdrawal:
All HCO Bank Accounts must carry each of the following signatures
for any
L. Ron Hubbard - singly. Mary Sue
Hubbard - singly. HCO Area Sec
singly or with another.
LRH:cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO BULLETIN OF 9 SEPTEMBER 1959
CenOCon
CBMT ACCOUNT
Peter Hemery
HCO Communicator WW
[This P/L was also reissued from Washington as
HCO B 9 September 1959.]
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
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 based upon
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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
MARY SUE
HUBBARD HCO
Treasurer WW
147
HUBBARD COMMUNICATIONS OFFICE
23 Hancock Street, Joubert Park, Johannesburg
(Issued Saint Hill)
HCO POLICY LETTER OF 14 OCTOBER 1959
HCO 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 10% 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
America.
As the U.K. Continental Office is at Sthil. the same arrangements
apply as for
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 66.2/3rd of ail franchise 10%s. The
remaining 33-1/3rd 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:
-
10% 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 5% 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 m 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 (c) 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 Ace
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 be made.
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 (c) 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 Org's 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 (c) 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 Secs
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,cden
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 APRIL 1961
Central Orgs
All HCOs
City Offices
WW
Do not Remimeo
REMITTANCE OF HCO MONIES TO HCO
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 1/3% 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.
LRH:jl.cden
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
Mary Sue Hubbard
Treasurer for
L. RON HUBBARD
152
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 17 JULY 1962
Accts Depts
HCO Secs
Assoc Secs
ACCOUNTS: BANK CHARGES ON
REMITTANCES
Orgs remitting 10%'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 �100 - which is
equivalent to �80-British Sterling. Bank charges amount to
�1-British Sterling. WW must actually receive �80 - and not �79
(i.e. British Sterling equivalent less charges).
WW must receive the exact equivalent of the Org's 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 (c) 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 Secs
HCO Secs
Accts
HCO WW FORM AC 1
HCO WW Form AC 1 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 1 (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.
LRH:gl.pm.rd
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: H.G. Parkhouse
Treasurer WW
Authorised by:L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 SEPTEMBER 1962
Assoc Secs
HCO Secs
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 1 will be amended as
follows:
Line G. Delete Memberships.
Beneath Line B write Line B1 Memberships.
Line R. Change to read:
Add B. B1, C and D, put total here and on the line to the side.
(Put down twice.)
LRH:lw.rd
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: H.G. Parkhouse
Treasurer WW for L. RON
HUBBARD
154
(Use Green Ink on light-weight pink paper)
HCO WW FORM AC 1 (Org name) ...................(In Capitals)
PROPORTIONATE INCOME BREAKDOWN WORK SHEET WEEK ENDING
..................
I.
A. GROSS INCOME ...............................Put down total.
B. DONATIONS RECEIVED ..Put down total
B1. 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 .........................
ADD B. B1, C, D, E, F. G. H & put down total here &
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. Subtract K from J & put down here
M. SALARY SUM 50% of L. Take 50% of L & put down here .......
N. DISBURSEMENT SUM. Take 30% of L & put down here ........
O. Add E & H & put total here & on the line E
to the side (Put down twice) .......(c)
............ H-
Total ...
P. TOTAL
DISBURSEMENT SUM. Add N & O & put total here ....
Q. BUILDING SUM. Take
15% of L & put down here ..............
R. Add B. B1, C & D, put
total here & on the line ... B
to the side. (Put down twice) ..B I
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) _
II. 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.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
156
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East 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
HASI, (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.
LRH:jw.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: H.G. Parkhouse Treasurer
WW for L. RON
HUBBARD
[Important. See also HCO Policy Letter of 11 April 1963, Memberships,
on page 252.]
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 26 SEPTEMBER 1962
CenOCon
HUBBARD SCIENTOLOGY RESEARCH FOUNDATION
This Foundation is to be formed with the purpose of receiving
donations, gifts, dues, etc. and then 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
LRH:gl.rd
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
for
L. RON HUBBARD
157
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 1 FEBRUARY 1963
Central Orgs
HCO Secs
Assoc Secs
HCO AREA 5%s
(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 1 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 (c) 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 1 (Org name) ...................
PROPORTIONATE INCOME BREAKDOWN WORK SHEET WEEK ENDING
..................
A. GROSS INCOME ........Put down total _
B. DONATIONS RECEIVED ..Put down total
B1. 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 .........................
I. ADD B. B1, C, D, E, F, G, H &putdown total here &
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. Subtract K from J & put down here
M. SALARY SUM 55% of L. Take 55% of L & put down here
N. DISBURSEMENT SUM Take 30% of L & put down here
O. Add E & H & put total here & on the line E
to the side (Put down twice) ...
..........(In Capitals)
........... H
Total ....
P. TOTAL
DISBURSEMENT SUM.
Add N & O & put total here .....
Q. BUILDING SUM. Take 15% of L & put down here
R. Add B. B1, C & D, put total here & on the line ... B
to the side. (Put down twice) ..B I
C
D
Total ....
S. TOTAL BUILDING
SUM. Add Q & R & put total here ..........
T. SUM TO AREA HCO.
Put G down here 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 I' ....... 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 ........
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 FEBRUARY 1963
Australia Only
HCO Exec Sec ANZO
HCO Sec Perth
HCO Sec Sydney
HCO 10%s DUE TO WW
Effective immediately all HCO 10%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.
LRH:dr.cden
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 APRIL 1963
HCO Secs
Assoc Secs
Accts 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.
LRH:gl.cden
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: M.R. Rigby Director of
Accounts for L. RON
HUBBARD
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 (c) 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 Sec and one
other officer, not the Assn/Org Sec. and each cheque should bear
two signatures to be valid. Three persons, the HCO Area Sec. 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 $1), 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 and, the 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 Sec or the HCO Sec 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 Acct 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 (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
163
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 JANUARY 1965
General
Non-Remimeo
Sthil Executives
Franchise
FINANCE 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 cease 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 Sec. 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.
LRH:jw.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
164
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 MAY AD 15
Remimeo
HCO BOOK ACCOUNT POLICY
RECEIPT AND USE OF MEMBERSHIP MONIES
1. 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 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 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
HCO. 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 (c) 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 i/, 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.
THE BOOM
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 Sec 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 Sec and the HCO Sec.
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 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 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. I hope it does to you.
LRH:wmc.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
167
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 DECEMBER 1965
Remimeo
HCO INCOME
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
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
AFRICA ONLY
Applies to
Johannesburg
Cape Town
Durban
Port Elizabeth
Franchise Holders SA
(Info Saint Hill)
South Africa 10%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".
OFFICE OF LRH
27 Hancock Street, Joubert Park
Johannesburg, South Africa
HCO POLICY LETTER OF 26 APRIL 1966
SOUTH AFRICA
10%s
(Effective at once)
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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
168
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 MAY 1966
Gen Non-Remimeo
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 �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.cden
Copyright (c) 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 11 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: -
1. 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.
LRH:lb-r.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
171
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 FEBRUARY 1967
Remimeo
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:
1. 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 AC1 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 Org 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 1: 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
Dalene Regenass
Brian Livingston
Joan McNocher)
Otto Roos
Ken Delderfield
Betty James
Leon Steinberg )
Fred Hare )
Philip Quirino
Mary Sue Hubbard
The Guardian WW
for
L. RON HUBBARD
Founder
LRH:jp.rd
Copyright (c) 1967
by L. Ron Hubbard
ALL RIGHTS RESERVED
173
Qual Sec SH
HCO Area Sec SH
Chairman
Ad Council SH
Exec Council SH
LRH Comm SH
Chairman
Ad Council WW
Exec Council WW
LRH Comm WW
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
B1. DONATIONS RECEIVED A1 . ADVANCE PYMTS
B2. MEMBERSHIPS........._. REC'D
C............................RENT COLLECTED A2. Subtract A1
from A.
D............................LOANS COLLECTED... A3. ADV.
PAYMENTS
E............................PHONE CALLS USED ...
COLLECTED ...............A4. ADD A3 to A2
F. REFUNDS GIVEN .....
FI. REPAYMENTS ....._
F2. FSM COMMISSIONS
PAID ...............
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 ....................
I. ADD B1, B2, C, D, E, F. F1, F2, G. H & put total
here and in right-hand column (put down twice) ..
J. CORRECTED GROSS INCOME Subtract I 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. SALARY SUM: 50% of L Take 50% of L and put down here ...
N. DISBURSEMENT SUM Take 35% of L and put down here ....
O. Put down amount from line E
Put down amount from line H ...........
Add E and H and put total down twice .....
P. TOTAL DISBURSEMENT SUM Add N & O and put total here
Q. BUILDING SUM Take 15% of L and put down here .........
R. Put down amount from line B I
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 F1 ......
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 .......
II. 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 .........
KK. SUBTRACT JJ from AA and put down here (there
should be NO BALANCE) ........
ATTESTED BY
174
(Signature and Title)
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
NonRemimeo
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 brokers recommended and
approved by Legal WW, to confirm our cost assignment to fund. It
should not be less than �5.0.0 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.
LRH:js.rd
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
Proposed by
Lola Rossouw
Denny Gogerly
Kevin Kember
Lenka Marinko
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
: Treasury Liaison Off. WW
: The Treasurer WW
: Qual Sec WW
: HCO Area Sec WW
Mary Sue Hubbard The Guardian WW (Policy Review
Section)
for
L. RON HUBBARD
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
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
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 11 only)
Remimeo
HCO 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
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
176
L. RON HUBBARD
Founder
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 (c) 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 1st, 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 (c) 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.
A statement sheet is also kept.
A 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
179
voucher.
Invoices are used to sort out banking, reports, statements, etc.
DISBURSEMENT VOUCHERS
All disbursements, whether by cash or cheque, are written on a
disbursement
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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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
I 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. Scrounge what 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
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 �4,000 or �5,000
and until I do all economy measures will remain in effect.
LRH:cden
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
181
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 28 JULY 1960
Sthil
LOSSES
HCO WW is receiving about �600 per week and is spending about
�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 �150 per week from the domestic bills and office
supplies, postage and telex.
We will increase our income �200 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 �200.
These improvements and other economy actions are up to the staff
to implement.
LRH:dm.rd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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.
LRH:js.rd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: Peter Hemery HCO
Secretary WW for L. RON HUBBARD
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 stencil. 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, T 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 which 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
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 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, 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. 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 same file drawer but not in the folder.
Cancelled cheques are fled 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 amount
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 �2 worth of books but sends �3,10.0. She wants
us also to retain �1.10.0 for a future purchase. Make out one
invoice for �2.0.0 and one for �1.10.0 but say on each what and
why, and that it came out of �3.10.0. 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".
LRH:imj.cden
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
185
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 JULY 1961
Sthil
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.
LRH:jl.cden
Copyright (c) 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
L. RON HUBBARD
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
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
186
Issued by: Peter Hemery HCO
Sec WW for L.
RON HUBBARD
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 Saint
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 which 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 DCI invoice of a tape shipped or any estimate of tapes
sent if invoices are missing. 1 and 2 are in foreign currencies,
dollars or rands or whatever.
3. 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 Adcomm 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.
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. Current 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 DCI 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:
1. 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:
1. 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 �750 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 "books" 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 (c) 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 you that is workable with the minimum or no upset or
emergencies the following Policy will be in force from Friday, 21
September 1962.
PART-TIME STAFF
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.
OVERTIME
Overtime will not be paid in the week in which it is earned, but
will be paid the following week.
OVERTIME CLAIMS
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.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
190
Sthil
HUBBARD COMMUNICATIONS
OFFICE Saint Hill Manor, East Grinstead,
Sussex
HCO POLICY LETTER OF 4 OCTOBER 1962
SIGNING POs 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
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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.
LRH:dr.rd
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: Saint Hill Administrator
Re-statement of existing policy.
Authorized by: L. RON HUBBARD
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
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
192
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 8 MAY 1964
Sthil Students
Saint Hill.
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
The reason for the charge is the limited transport space
available.
There is no charge for staff members.
LRH:gl.cden
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 MAY 1964
Sthil
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
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. Ron Hubbard
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 ORGANIZATION SECRETARY:
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.
NET PROFIT:
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 CASH 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 cost, so long as the
result shows receipts greater than expenses.
ORGANIZATION 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 will be paid
196
only on the unit staff member 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
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.oden
Copyright (c) 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:
1. 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.
LRH:jw.pm.rd
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 of 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 �11.9.2
subtracted from
�275 equals amount to be credited toward the Solo Audit Course.
LRH:ml.kd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. Ron Hubbard
199
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 JANUARY 1966
Gen Non-Remimeo
Applies to SH only
Registrars
Cashier
Invoicing and
Qual Div
Info other orgs
CREDIT AND DISCOUNTS
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 pcs 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 he signed up for credit hut
only to the sum
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
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. Ron Hubbard
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 JANUARY 1966
Issue II
Gen Non-Remimeo
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.
Orgs do 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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. Ron Hubbard
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 government 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 routed
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 creds, 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 STENO 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.
LRH:ml.rd
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. Ron Hubbard
To be enforced by LEGAL, TAX, ACCOUNTANT AND SOLICITOR
Dir Comm & Ethics MAIL INCOMING AND OUT-GOING
(Amends HCO Policy Letter of 3 February 1966)
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 OCTOBER 1966
Remimeo
SH & WW only
Exec Hats
All HCO Mail
Point Hats
All HCO Phone
Point Hats
IMPORTANT
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:Ib-r.rd
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
203
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
,
HCO 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 �1.
Additionally each HGC completion awards the Case Supervisor, D of
P and Tech Sec 2 shillings each.
Course Supervisors
Every Course completion passed by the Qual Examiner awards the
Course Supervisor under which it was done �1 for each certificate
or class awarded by Qual.
Additionally 5 shillings is awarded the D of T and the Tech Sec
each for every completion, (certificate or classification) awarded
by Qual.
QUAL BONUSES
Pc Examiner
Every pc completion flunked and sent to Review for Review
auditing awards the Preclear Examiner �1.
Additionally the Qual Sec and Director of Review are awarded 5s.
each.
Additionally each pc completion successfully completed by a
Review Auditor awards that auditor �1.
Student Examiner
Every student flunked by the Qual Student Examiner awards that
examiner �1 for every student sent to Cramming.
Additionally the Director of Review and the Qual Sec get 5
shillings each for each student flunk.
Additionally the Cramming Supervisor who completes the student so
that the Examiner will pass him receives �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 Sec 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 Sec. Tech Sec and Qual Sec 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.
LRH:ml.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
205
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 MAY 1966
Gen Non-Remimeo
St Hill Only
BONUSES ADJUSTED
(Correction to Bonuses For service Delivery
HCO Pol Ltr of 10th 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 10/-d for rehabilitating a pc to any
Grade of Release, which is passed by the Examiner.
3. 10/-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
10/-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 - 10/-d.
3. Completing a pc who has flunked a Grade check 0 to IV - 10/-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/-d for each HGC pc flunked and 5/0d 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 Checkout.
Course Supervisor is awarded 2/-d for each Grade VI passed by
Examiner.
Other bonuses are unchanged.
LRH:lb-r.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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:
1. 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.
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.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 22 AUGUST 1966
Issue II
GenNon-Remimeo
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
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 II)
Gen Non-Remimeo
St Hill only
Receptionist
Org Div
All Personnel
INVOICE ROUTING
All Invoicing Stations
Invoice copies are distributed as follows:
WHITE
PINK
YELLOW
To the customer.
To the department concerned with the service or item purchased.
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
GREEN
LRH:rd
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
To the Department of Records, Assets and Materiel for record
purposes.
Consecutive series to be kept in the machine until the end of the
accounting week.
L. RON HUBBARD
Founder
[Note: HCO P/L 12 January 1966, Issue II. invoice Routing,
differed from the above as follows it gave 1 January 1966 as the
starting date for the system, an said "YELLOW - NOT debit or credit
invoices are routed to Address and then CF."3
208
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead,Sussex
HCO POLICY LETTER OF 17 OCTOBER 1966
Issue II
Sthil Only
BONUSES
REVIEW AUDITORS, STAFF AUDITORS AND INTERNED
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, I, II, III, 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.
D OF T
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 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 preclear
and student examinations passed by Qual for the week.
QUAL SEC
The Qual Sec is awarded a bonus of 1/- for each �1/-/- 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 5/- 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 5/- 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
�1/-/- 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.
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 Sec. Tech Sec and Qual Sec 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: -
Thursday 2.00 p.m. to
Thursday 2.00 p.m.
LRH:Ib-r.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
210
L. RON
HUBBARD Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 NOVEMBER 1966
Sthil
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.
LRH:jp.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
Mary Sue Hubbard
The Guardian WW
L. RON HUBBARD
Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 NOVEMBER 1967
Gen Non-Remimeo
WW Only
BONUSES ADJUSTED
(Addition to HCO Policy Letter 17 October 1966
Issue II, 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 II
OT Check-out.
Chief Supervisor Advanced Courses: Janet Guilford Qual Sec SH:
Helen Pollen HCO Area Sec 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
L. RON HUBBARD
Founder
LRH:jp.cden
Copyright (c) 1967
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 Sec SH
Qual Sec SH
HCO Area Sec SH
Advisory Council SH
Executive Council SH
LRH Comm SH
Executive Council WW
LRH Comm WW
D/Guardian WW
LRH:jp.cden
Copyright (c) 1967
by L. Ron Hubbard
ALL RIGHTS RESERVED
212
Mary Sue Hubbard
The Guardian WW
for L. RON
HUBBARD
Founder
: Brian Livingston
: Helen Pollen
: Bene Neal
: Helen Pollen
: Barbara Gentry
J.J. Delance
: Irene Dunleavy
: Tony Dunleavy
Eunice Ford
: Ken Delderfield
: Joan McNocher
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 12 NOVEMBER AD19
Remimeo
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 not passing the 2 Key Questions, 10% of
Org signups made due to a success story and success book sales.
Dept 22 Clearing
5% of signups for every selectee arriving at the Org for
services. Field membership renewal fees, 10% 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. 1/2% goes to the PES Continental. In the case
of an AO the (c) 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 LRH and MSH are made signatories. Jointly the 2nd
Guardian Finance and the PES WW. In the case of AOs, 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 III.
Every month Division III forwards an exact accounting of the PES
Account expenditures and deposits to the PES of the Org. In AOs
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 Sec 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.
LRH:DH:nt.rd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Cmdr. Diana Hubbard
CS-6 for L. RON
HUBBARD Founder
214
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 DECEMBER 1969
Issue III
Remimeo
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 (c) 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
Remimeo
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 (c) 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 Remimeo
WW Only
Franchise WW
PES WW
ACCOUNT
The 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
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 10%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.
The expenditure of this 5% is outside FP. The 5% is included in
FP.
LRH:dz.rd
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
217
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 29 APRIL 1970
Remimeo
Public Divisions
Treasury Division
FBO Hats
PES ACCOUNT REVISED
(Cancels HCO PL 12 November 1969,
"PES Acct vs HCO Book Acct")
The principle of the PES Account is that:
IF THE 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 Acct income with the
disbursement percentiles of orgs, PES Account policy is revised as
follows:
WHAT GOES INTO THE PES ACCOUNT
1. $2.00 for every New Name to CF which has newly bought
something from that org that week.
2.$1.00 for every $10.00 paid that week in FSM commissions
(except Sea Org orgs which get 81.00 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 tour 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 programmed 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 month's total deposits to the PES Account goes as a
bonus to the PES of the org. (c) goes to PES Continental. These
bonuses are not paid in Sea Org orgs, 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 ores, 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-I 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- I 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.
LRH:VP:nt.ei.rd
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
219
Ens. Vicki Polimeni
CS-3
for L. RON HUBBARD
Founder
PES INCOME
BREAKDOWN
W/E_
1. $2 for every New Name to CF 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 $1.00 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
(Cancels HCO PL 12 Nov AD19,
PES vs HCO Book Acct
and HCO PL 29 April 1970,
PES Account Revised)
Remimeo
Pub Divs
TREAS SEC
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 larger 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 (c) 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
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 ores 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 1 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.
LRH:ei.rd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
222
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
BLUE ON GOLD
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 Sec per LRH comments to Tech Dir
223
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
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. 1 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. 1 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 �40 cash
before course beginning. No credit is allowed on retreads and no
student is to be admitted who has not paid �40 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 �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
course must 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 will 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 (c) 1958
by L. Ron Hubbard
ALL RIGHTS RESERVED
224
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W I
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 �7.10.0 per week.
LRH:mp.vmm.cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 11 MAY 1959
(Convert into a Sec'l ED)
HPA/BSCN "RETREADS"
There 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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
225
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 27 OCTOBER 1959
CenOCon
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.fd
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
HCO Secretary WW
for L. RON
HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 29 MARCH 1960
Reissued in Sthil
CenOCon
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:
1. 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 (11th) birthday and not have reached
his/her eighteenth (18th) 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 11 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
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Peter Hemery HCO
Secretary WW for
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)
HCO 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 - �12.0.0 or $34.00 B.Scn/HCS Extension
Course - �12.0.0 or $34.00
This course may be bought in units, one unit at a time. The price
of each unit of each course is �3 or $8.50 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
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Peter Hemery HCO
Secretary WW for
L. RON
HUBBARD
[Note: Revision was change of price from �15 or 542 to �12 or 534,
also addition of second last paragraph.]
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 NOVEMBER 1960
HCOs
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.cden
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
227
Issued by: Peter Hemery
HCO Secretary WW
for
L. RON HUBBARD
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 (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
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, 1961, 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 (c) 1961
by L. Ron Hubbard
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:
4.
LRH:esc.cden
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
1. 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.
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.
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 hand - Joburg/London,
London/Melbourne, London/Washington. Those here have spent 14 weeks
on 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
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 �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
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Note: The amendment is the addition of the last paragraph. - Ed.]
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 graduate the student at the end of twelve weeks.
LRH:jw.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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
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
LRH:dr.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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
LRH:jw.aap
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: Jack Parkhouse
Continental Director Africa
Authorized by: L. RON HUBBARD
231
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East 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 (c) 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 1st
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 �250 Sterling ($700). 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 �250 Sterling ($700) with a �50 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 1st 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.
LRH:dr.rd
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
234
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 1 SEPTEMBER 1965
Issue VI
Gen Non-Remimeo
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 pc'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 get it checked out very readily.
SAINT HILL COURSE
Any part of the Saint Hill Course or retread is �275 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 5500 or �180 public, $250 or �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.
LRH:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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.
LRH:ei.rd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos
CS-3
for
L. RON
HUBBARD
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 (HSDC) remains
as already issued - $500 00 U.S. dollars and �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 3125.00 U.S.
dollars or �30.0.0 in UK sterling.
LRH:ei.kd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
236
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 SEPTEMBER 1969
Remimeo
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 HDC 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, AOs 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
Dianetic Course may have the amount credited to AO levels or AO
reviews on presentation of invoice to AOs.
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:ldm.ei.rd
Copyright (c) 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
Remimeo
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:
1. 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:ldm.ei.kd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 3 SEPTEMBER 1969
Issue II
Remimeo
BPI
SUCCESSFUL CLASS VIIIs
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
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
238
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 NOVEMBER 1969
Remimeo
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) m 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.
LRH:RR:rs.cden
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos CS-3 for
L. RON HUBBARD
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)
Remimeo
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 VIIIs on the other hand who are not active - meaning not
working at any of the above - are charged half price (3750.00) for
retread of the Class VIII Course.
LRH:RR:ldm.ei.rd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos
CS-3
for L. RON
HUBBARD Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 DECEMBER 1969
(Clarifies HCO P/L Dec 7, 1961)
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:
1. 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.
LRH:RR.rs.ei.rd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos CS-3
for L. RON
HUBBARD Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 DECEMBER 1969
Issue II
Remimeo
STUDENT RESCUE INTENSIVE
PRICING
The cost of a five hour Student Rescue Intensive is $225 U.S.
Dollars, or the Sterling equivalent.
LRH:RR.ldm.cden
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos
CS-3
240
for
L. RON HUBBARD
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 Docs, 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.
LRH:RR:rs.cden
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos CS-3
for L. RON
HUBBARD Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 JANUARY 1970
Remimeo
Div 1
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 S 125.00 US or �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 $225 may have the balance in excess of the
new price credited to his account for future services.
LRH:VP.nt.ei.cden
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
241
W/O Vicki Polimeni
CS-3
for L. RON HUBBARD
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)
Remimeo
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 or any Sea Org Unit, Pubs Org or World
Wide.
Class VIIIs who are not active or are working in a Franchise or
independently - meaning not working at any of the above - are
charged half price ($750.00) for retread of the Class VIII Course.
LRH:VP:jz.rd
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
W/O Vicki Polimeni
CS - 3 Materiel Aide
for L. RON
HUBBARD
Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 JULY 1970
Remimeo
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.
LRH:VP:sb.rd
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Vicki Polimeni
CS-3 for L. RON
HUBBARD Founder
242
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo
BPI
Auditors
HCO POLICY LETTER OF 20 JULY 1970
(Amends HCO P/L 13 Nov 1969 by adding Class 0, I, II, III,
IV and VI CS Internships and HCO P/L 18 Apr 1970 Iss II 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 VIII CS - Requires an Internship in an Advanced Org after
completion -of the Class VIII 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: HDG 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 Programs 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 ail
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, I, II, III 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, I,
II, III 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 II Grade II for Class II 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 II 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 $500 �200
CLASS VII C/S INTERNSHIP $500 �200
CLASS VI C/S INTERNSHIP $250 �100
CLASS V C/S INTERNSHIP $125 �50
CLASS 0 - IV INTERNSHIPS (per level)$50 �20
CLASS 0 - IV C/S INTERNSHIPS (package
rate for all 5 level internships)$200 �80
HDC C/S INTERNSHIP $125 �50
DISCOUNTS
All Internships offer 50% discount to contracted staff of
official Scientology orgs.
LRH:JF:rr.aap
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
D/CS - 5 for L. RON HUBBARD
Founder
[See also HCO P/L 6 November 1971, Issue II, Selling Internships,
Volume 5 - page 325.]
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 $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 (c) 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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Executive Director
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 not renewed HCO Area
Sec should then be notified by the memberships clerk. The HCO Area
Sec 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
Sec. 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.
LRH:jsrd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Peter Hemery HCO
Secretary WW for
L. RON
HUBBARD
246
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 6 JULY 1960
Reissued from Sthil
CenOCon
LT 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
coincides 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 30%
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.
LRH:PH.js.gh.rd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Peter Hemery HCO
Secretary WW for
L. RON
HUBBARD
[Note: Paragraph 4 has been amended by the addition of "The 30%
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 5/- ($1.25) 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.
LRH:rf.gh.oden
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Peter Hemery HCO
Secretary WW for L.
RON HUBBARD
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 memberships 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.
LRH:js.rd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 1st, 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:aecJs.rd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
249
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
HCO POLICY LETTER OF 29 DECEMBER 1960
Re-issued from Sthil
Central Orgs
MEMBERSHIP
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.cden
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Mary Sue Hubbard Deputy
Executive Director for
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
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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, 1961,
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 1st 25
hours, never 50% of the 3 or 5 week rate.
LRH:dr.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill 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 N/C 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).
LRH:jw.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
251
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 APRIL 1963
HCO Secs
Assoc Secs
Accts 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
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 APRIL 1965
BPI
Gen Non-Remimeo
MEMBERSHIP
ATTESTATIONS
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.
LRH:wmc.kd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
252
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 1 SEPTEMBER 1965
Gen Non Remimeo
Franchise
CURRENT POLICY - FRANCHISE
(Preserved policy from former Policy Letters
which have been cancelled)
Stable Franchise Centres are 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.
LRH:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
253
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 1 SEPTEMBER 1965
Issue V
Gen Non-Remimeo
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.
LRH:ml.kd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
254
FOUNDING CHURCH OF SCIENTOLOGY
WASHINGTON, D.C.
FC POLICY LETTER OF 1 APRIL 1957
ALWAYS REGISTER AND
INVOICE
All students and pcs 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
1. The Outflow of the Registrar and CF auditors;
2. The expert handling of people by the Registrar and from her
comm 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.
copy to all staff copy
to HCO London
L. RON HUBBARD
FOUNDING CHURCH POLICY LETTER OF 23 MAY 1957
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.1
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 copy 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 pcs 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 m 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 marked "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 Secs see that this line works.
ALL STAFF
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.
LRH:mp.cden
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 27 JUNE 1959
Issue II
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
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
257
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 OCTOBER 1959
Convert
Sec ED
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.
LRH:js.cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
BOOK ORDERS
L. RON HUBBARD
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 DAY THEY
ARE RECEIVED FIVE DAYS PER WEEK. THEREFORE THERE MUST BE RAPIDITY
IN INVOICING AND GETTING THE SLIPS TO BOOK ADMIN FOR SHIPPING 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 ail 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
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
259
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 OCTOBER 1963
HCOs
Central
Orgs
Reception
[Excerpt]
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 Julia 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.
8. 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.
(e) 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 51.25; 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
4.00
1.25
5.25
1.05
4.20
Tax
Total
Mary Reception
AMOUNT
_ (c)
17
4 37
Dianetics, MSMH
Problems of Work
Less 20%
(Tax on this amount)
Delivered: Date (or)
To be mailed:
Received By
2. Processing Invoice. Payment data taken from contract.
QUAN.
PRICE |
700 _
200
__
500
Tax
Total _
MR
DESCRIPTION
25 Hours of Spiritual
Guidance
Cash down
Balance due
AMOUNT
200
200
11 pays $4 1.00
1 pay $49.00
First payment Jan 0, 19XX
Received By_
3. Training Course Invoice. Payment data taken from contract.
QUAN.
_
PRICE AMOUNT
750.00
250.00 250
500.00
Tax
Total 250
DESCRIPTION
PICA Course
Spiritual Training
Cash down
Balance due
11 pays $41.00
1 pay $49.00
f
First payment August X,19XX
00
00
Received By_
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.
MR
(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.
LRH:lr.rd
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: Peter Hemery
HCO Secretary WW
for
L. RON HUBBARD
Authorized by: L. RON HUBBARD
[Excerpted from HCO 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
HCO POLICY LETTER OF 24 SEPTEMBER 1965
Remimeo
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
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 FEBRUARY 1966
Gen Non-
Remimeo
Org Secs
Dissem Secs
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:
1. 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
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 1 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
YELLOW
BLUE
BLUE
To the customer.
To the department concerned with the service or item purchased.
Debit and Credit invoices are kept in the Department of income
for collection purposes.
NOT debit or credit invoices are routed to Address and then CF.
GREEN - To the Department of Records, Assets and Materiel
for record purposes.
Consecutive series to be kept in the machine until
the end of the accounting week.
PINK
LRH:ml.rd
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
264
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 23 DECEMBER 1966
Gen Non-
Remimeo
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 Sec SH
Gareth McCoy HCO Area Sec 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.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
265
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, 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 are, 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 and 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 copy 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 Dir 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 machine 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 check
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
Joe van Staden
Dalene Regenass
Brian Livingston
Otto Roos )
Joan McNocher )
Ken Delderfield
Betty James
Treasurer WW
Qual Sec
HCO Area Sec
Chairman,
Ad Council SH
Exec Council SH
LRH Comm SH
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 (c) 1967
by L. Ron Hubbard
ALL RIGHTS RESERVED
267
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 11 MARCH 1971
Issue I
Remimeo
Exec Dirs
Prod Officers
Org 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 Accts 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 $500 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 7's 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
1. 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.
5. 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.
8. 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 writing 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!
LRH:RR:LQ:mes.rd
Copyright (c) 1971
by L. Ron Hubbard
ALL RIGHTS RESERVED
270
Written by Dissem &
Treas Aides from the notes of
L. RON HUBBARD
Founder
HUBBARD COMMUNICATIONS OFFICE LONDON
HCO BULLETIN OF 3 AUGUST 1956
MAIL LINE
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
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
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
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 mail 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 mail 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 -
1. 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
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-
Remimeo
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
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[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. (c)
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 DECEMBER 1970
(Amends HCO PL 31 Aug 1965, Mail Opening)
(Amends HCO PL 7 Oct 1970, Issue II, Mail Line)
Gen Non-
Remimeo
HCO Hats
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.
LRH:MSH:JK:LW:nt.rd
Copyright (c) 1970
by L. Ron Hubbard
ALL RIGHTS RESERVED
Leif Windle D/G Policy
Knowledge WW for
Jane Kember The
Guardian WW for Mary
Sue Hubbard The
Controller for
L. RON HUBBARD
Founder
274
A 1957 Letter issued by HASI Accounts, London
WHAT YOUR MONEY HAS
BOUGHT
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
A research organisation functions first on intelligence, second
on carefulness and, in this society, third on money.
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 organizations of Dianetics and
Scientology have laboured to give Man a chance. No other man or
organizations on Earth have advanced so far or come so near
completing Man's civilization.
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 organizational debts, has been seriously impeded,
it might startle you. Perhaps you did not realise that these
organizations 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 them, 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 let 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
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HASI FINANCE POLICY LETTER OF 9 DECEMBER 1958
REGARDING ACCOUNTS
RECEIVABLE
1. Find out how much is on Bankers' Orders.
NOT HCO POLICY LETTER ORIGINAL COLOUR FLASH BLUE ON PINK
2. Find out how much is on Bankers' Orders only the person is no
longer having his Bank pay out.
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
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'l ED
for conversion
COLLECTION OF ACCOUNTS
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
(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.
ARC BREAKS
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.
The Assistant Registrar pulls these people into communication and
repairs the breaks by continued correspondence at the time of each
new list submission.
Statements to the people are still sent out each month
independent of the Assistant Registrar.
No further action is taken than the above.
PREMEDITATED FRAUD
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 cut 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 pc, 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
275
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 16 AUGUST 1965
Issue II
[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 1 March 1965) is Step
B(1) 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.
LRH:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Note: The full text of this Policy Letter is found in Volume 1,
page 430.]
276
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 Sec SH
Qual Sec SH
HCO Area Sec SH
Ad Council SH
Exec Council SH
LRH Comm SH
Ad Council WW
Exec Council WW
LRH Comm WW
D/Guardian WW
LRH:jp.rd
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
Brian Livingston: Helen
Pollen: Bene Neal : Helen
Pollen: J.J. Delance : Irene
Dunleavy: Mike Davidson :
Tony Dunleavy Lenka
Marinko: Ken Delderfield :
Joan McNocher Mary Sue
Hubbard The Guardian WW
for L. RON HUBBARD
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 m writing by the other party and signed by him before any
mass purchase is engaged or work is done.
L. RON HUBBARD
LRH:rd
Copyright (c) 1957
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
(Issued at Washington)
ASSOCIATION SECRETARY DIRECTIVE OF 17 JUNE 1957
(Revised for HASI SOUTH AFRICA)
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
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 authorization of the Assistant Secretary will be at the
responsibility of the person so ordering and HASI payments for them
will not be authorised.
Jack Parkhouse
JP:rd Copyright (c) 1957 by
L. Ron Hubbard ALL
RIGHTS RESERVED
281
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
BLUE ON GOLD
HASI LONDON ADMINISTRATIVE DIRECTIVE OF 1 JUNE 1958
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:
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 Sec. 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 Sec and/or the Executive
Director.
These persons are responsible for correct paying of bills for
supplies and services: (1) Assoc/Org Sec (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 Sec 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.
282
LRH
President
CONVERT TO
SEC. E.D.
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 2 JUNE 1959
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 (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 20 DECEMBER 1969
Remimeo
Exec Secs
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 1 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!
LRH:RR:rs.ei.rd
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
Lt. Robin Roos CS-3
for L. RON
HUBBARD Founder
283
Convert to
SEC ED
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 5 JUNE 1959
Issue II
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.cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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.cden
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by: Peter Hemery
HCO Secretary WW
for
L. RON HUBBARD
284
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.
LRH:jw.rd
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
Issued by:HCO Tech Mat Sec WW
for
L. RON HUBBARD
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 full with bulletins and check sheets for Grades
I, II and III for Central organization use. Current basic tapes of
the type that is being shipped are part of this programme.
LRH:jw.cden
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
285
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Gen Non-Remimeo HCO POLICY LETTER OF 21 OCTOBER 1965
HCO Exec Secs (c) --
Org Exec Secs
Org Sec
Dir Disb
Dish Hats
Issue II
Org Division
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 checks 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
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
286
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 NOVEMBER 1965
Gen Non-
Remimeo
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. Checks 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.
I 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.
LRH:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[Note: A typographical error in the original mimeo issue of
this Policy Letter has been corrected per HCO P/L 31
Dec. 1965.]
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 JANUARY 1966
Issue IV
Remimeo
Exec Sec Hats
Org Sec Hat
Org Div Staff
ACCOUNTING
CHEQUE SIGNERS
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.
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 check 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 org 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 I didn't tell you.
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 6 FEBRUARY 1971
Issue I
Remimeo
Exec Dir Hat
Treas Sec Hat
Dir of Disb Hat
Cheque Signer Hat
Guardian Hat
D/A/G 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 (c) 1971
by L. Ron Hubbard
ALL RIGHTS RESERVED
289
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 JULY 1962
Accts Depts
Assn Secs
HCO Secs
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: -
OR: -
OR: -
(a) His or her course fee, in full, must have been paid for in
advance by the organization concerned. (The current fee is
�285.15.0. British Sterling or $800 U.S. or equivalent.)
(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.
(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
LRH:dr.cden
Copyright (c) 1962
by L. Ron Hubbard
ALL RIGHTS RESERVED
290
L. RON HUBBARD
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 III 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 Sec and HCO Area Sec. 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 (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
291
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 MAY AD13
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.
LRH:gl.cden
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
292
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W.1
PROPORTIONATE PAY PLAN
PROPOSAL
5 April 1957
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH NOT
GREEN ON WHITE
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 I would
possibly not be here for this Congress.
I 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 to
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 I 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.
THE PAY PLAN:
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 �10.1.3.
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. 1
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 m 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.
Allocation Sum: is the gross income less the Congress, Books &
Tapes Sum.
The Building Fund: is 12 1/2% of the Allocation Sum.
The Royalty Sum: is 12 1/2% of the Allocated Income plus 12 1/2%
of the Congress, Books & Tapes Sum or 12 1/2% 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 12 1/2% of C.B.T.
The Salary Sum: is 50% 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.
(i)
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.
(e) 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. 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:
ADVISORY COMMITTEE ENDORSEMENT
To: Association Secretary From:
Chairman, Advisory Committee.
Jack,
CHAIRMAN
17 April, 1957
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.
LRH:rs.cden
truth:
L. RON HUBBARD
Agent for Great Britain
L. RON HUBBARD
19 April 1957
Now that the Proportionate Pay Plan is in effect you should
realize the horrible
The Income of the HASI largely depends upon the outflow of
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. l
HASI POLICY LETTER OF 14 MAY 1957
HAT TURNOVER
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 Sec
who then gives it to person taking over the post. The Association
Sec. when he turns over folder, dispatches HCO for Organizational
Board change.
LRH:rd
Copyright (c) 1957
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
LONDON (Issued at Washington)
ORGANIZATION POLICY LETTER OF 10 JANUARY 1958
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 �1.-.- in London or 310 in
the U.S. If the folder is missing entirely, the fine shall be
�2.10- 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.
L. RON HUBBARD
LRH:bt.rd
Copyright (c) 1958
by L. Ron Hubbard
ALL RIGHTS RESERVED
[See also HCO P/L 1 January 1968, Vol. 0 - page 68.]
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
HCO 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
Copyright (c) 1958
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HCO POLICY LETTER OF 27 NOVEMBER 1958
Effective Dec 1, 1958
First Pay Day: Dec 5, 1958
PAY LIST
Unit pay is proportional to HASI Unit for same week that 10% of
gross was
Allowed Units:
Rhona Swinburne, HCO Exec Sec World - 25u
Peter Hemery, HCO Communicator - 18u
Gladys Wichelow - 16u
HCO Steno - 15u
Joan Ferguson- 16u
LRH:mp.rd
Copyright (c) 1958
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
HASI FINANCE POLICY LETTER OF 9 DECEMBER 1958
Dear Department Head,
STAFF LIST
NOTIFICATION TO
PAYROLL
L. RON HUBBARD
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
NOT GREEN ON WHITE
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
Copyright (c) 1958
by L. Ron Hubbard
ALL RIGHTS RESERVED
299
L. RON HUBBARD
Executive Director
HASI London
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 shall 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
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Sthil
Mary Sue Hubbard
Organizational Supervisor
for L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 JULY 1960
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
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
300
Peter Hemery HCO
Secretary WW for
L. RON HUBBARD
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
6 months' service
9 months' service
1 year's service
3 days 5 days 7 days 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.
A full time staff worker is one who works 35 hours or more per
week regularly.
A 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
LRH:js.pm.rd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
HCO Secretary WW
for L. RON
HUBBARD
301
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 19 FEBRUARY 1961
HCO Secs
Assoc Secs
Dir Accts
Master File
Do not remimeo
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
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 contains (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 paper to correct them with and be sure to correct the copy
still in the machine. It is doubtful if more 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, its 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,
sixpenoes, threepences, 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 give the 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 sealed 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 to 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 this 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.
LRH:js.cden
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
305
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 24 MARCH 1961
HCO Sec
Assn Sec
City Office Assn Sec
City Office Area Sec
UNITS FOR ASSN SEC AND HCO SEC
Each City Office Scientology Org shall add the Assn Sec
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 Sec Continental.
Each HCO Area Office of a City Office shall add the HCO
Continental Sec 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 Secs and HCO Secs in the problems and well being of City
Offices.
For the purposes of this directive at this time, Continental Assn
Secs are designated as follows:
FCDC, Washington: Senior Central Organization Assn Sec 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 Sec 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 Sec Africa is paid
also by Durban, Capetown and any other City Of fire in Africa.
HASI Australia, Melbourne: Continental Assn Sec 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 Sec 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 (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
306
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, 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, 1961 )
I desire now to approve of all executives appointed to post in
Central Organizations, before the appointment is given permanent
status.
I 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 Scientology career.
5. A security check 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 Sec.
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 Sec. 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 HASI:
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 be 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 Assn 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 Sec 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 Sec.
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
Sec'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 Sec. The HCO Sec 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 12 1/2 hours, 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 Sec 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
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[This 28 March 1961 reissue of HCO P/L 17 February 1961
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, 1961.
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 fiat on Routine IA by October 1, 1961."
LRH:jl.rd
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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.
LRH:iet.rd
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 APRIL 1963
Assn Sec 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. I hope it
helps.
Issued by: Mike Rigby
HCO Director of Accounts WW
for
L. RON HUBBARD
Authorized by: L. RON HUBBARD
LRH:dr.aap
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
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 Sec. 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.)
NAME
ADDRESS
STAFF MEMBER PAY CARD
CLASSIFICATIONS AND AWARDS-
BASIS FOR PAY COMPUTATION
STARTING DATE ON STAFF 1/1761
STARTING POSTAccts Clk (Admin Clerical!
DATE
RAISE
RECD
7/1/61
10/1/61
1/1/62
4/1/62
7/1/62
10/1/62
7/1/64
DATE OF BIRTH_ SEX _
SIDE I
STARTING UNIT PAY 60
POST
HELD
Accts Clk
Dir of Accts
Dir of Accts
Dir of Admin
Org Sec
Org Sec
Org Sec
TYPE
OF
POST
HELD
Admin, Clerical
Dept Head
Dept Head
Dir of Admin
Org Sec
Org Sec
Org Sec
UNIT
RAISE
RECD
10
10
10
15
15
10
REASON
FOR
RAISE
3 Mos.
Becoming Dept Head
3 Mos.
Becoming Dir Admin
Becoming Org Sec
Bonus - Theta Clear
Service Units - Perm
Staff Eff 7/1/64
TOTAL
UNITS
RECD
70
80
90
105
120
125
135
DATE
RAISE
RECD
POST
HELD
LRH:jw.rd
Copyright (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
TYPE
OF
POST
HELD
UNIT
RAISE
RECD
312
REASON
FOR
RAISE
L. RON HUBBARD
SIDE 2
TOTAL
UNITS
RECD
HUBBARD COMMUNICATIONS OFFICE
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 12 1/2 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
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 12 1/2 hour intensive at his or her election.
EXTRA STAFF
Enough Tech or Review extra staff must be on hand to give every
staff member in the org a 12 1/2 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 12 1/2 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
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
314
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 14 SEPTEMBER 1965
Issue II
GenNon-
Remimeo HCO
Exec Secs Org
Exec Secs
UNITS AND BONUSES FOR ORG EXEC
SECS
AND HCO EXEC SECS
(Revises HCO Policy Letter 24 March 1961:
Units for Assn Sec and HCO Sec)
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 and 8 units in the dollar
area.
This shall be regularly paid to the Org Exec Sec of the
Continental Org.
Each HCO Area Office of a City Office shall add the HCO Exec Sec
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 Sec of the
Continental HCO.
The purpose of this is to increase the interest of the
Continental Org Exec Secs and HCO Exec Secs in the problems and
well being of City Offices.
For the purposes of this directive at this time? Continental Org
Exec Secs are designated as follows:
FCDC, Washington, DC: John Higginbotham, senior Central
Organization Acting Org Exec Sec 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 Sec 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 Sec 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 Sec.
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 Sec Auckland is also
paid if any other City Offices are set up and exist in New Zealand.
HASI, UK, London: The Acting Org Exec Sec. 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 Sec. 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 Sec 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 Sec 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 Sec. is paid also from Perth, Sydney, Adelaide and any
other City Office set up in Australia.
HCO Continental New Zealand, Auckland: The HCO Exec Sec would be
paid if any other City Offices existed in New Zealand.
HCO Continental UK, London: Joan De Veulle, Acting HCO Exec Sec.
when on the post would be paid if any other City Offices existed.
HCO BOOK ACCOUNT POLICY
(Corrects HCO Policy Letter of 11 May
AD15)
HCO EXEC SEC
BONUS
The HCO Exec Sec is granted a bonus of 2 percent of the gross
receipts of the local Book Account.
The HCO Exec Sec of a Continental HCO is paid 1/2 of one percent
of the gross receipts of each Book Account in his or her
continental zone.
ORG EXEC SEC
BONUS
The Org Exec Sec 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 Sec 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 (c) 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 (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
317
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 21 JULY 1966
St Hill Manor
Remimeo
Area Orgs
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:
Executive Director Guardian
Acting Executive Secretary
Acting Secretary Acting Director
(except LRH Communicator)
LRH Communicator Acting
Officer Acting In Charge
Provisional non-executive staff
Temporary staff (any staff prior
to attaining Staff Status I)
Units
200
175
150
120
100
110
85
75
65
60
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 I raises his pay by 5 units. For any current executive
from Officer up who does not have Staff Status I, 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 attained Staff Status 2, has
had continuous service for at least 5 years, and has had Scientology
training to at least Level II Classification. (This would mean the
staff member was a veteran.)
b) Had attended ACCs
c) Has a Level II Classification
d) Has a Level III Classification
e) Has a Level VII Provisional Classification 6
f) Has a Level IV Classification
g) Has a Level VI Provisional Classification
h) Attains Clear
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 number of 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 the next 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 Secs
and Exec Secs by Ad Council) and must also be OK'd 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 1 1/2 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 Sec Acting
Secretary Acting Director (LRH
Communicator) Acting Officer
Acting In-Charge Provisional non-
executive staff Temporary staff
(any staff prior to attaining Staff
Status 1)
50
40
33
36
28
25
22
20
Increase in units may be only on the basis of promotion except
for the following:
1. 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 I, 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:
The above are additive.*
a) Old HDA IF the staff member has attained
Staff Status 2, has worked in a Day or
Foundation for at least 5 years, and has at
least Level II Classification b) Had attended
ACCs c) Has Level II Classification d) Has
Level III Classification e) Has Level IV
Classification f) Has Level VI Provisional
Classification g) Has Level VII Provisional
Classification h) Attains Clear
320
Units
2
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 1 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 overtime pay 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.
(c) 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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
321
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 SEPTEMBER 1967
Issue II
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 I 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 times 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.
LRH:jp.bp.cden
Copyright (c) 1967
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
[See also HCO P/L 2 March 1968, Qual Sec
Must Be Clear, Volume 5 - page 74.]
322
NOT HCO POLICY LETTER
CORRECT COLOUR FLASH
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 orgs save WW, 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 Ltrs amend
[seal]
323
L. RON HUBBARD
Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 DECEMBER 1968
Remimeo
All Staff
Treas Hats
Guardian
Fin. Hats
ADJUSTMENTS
PERCENTAGE ADJUSTMENTS AND FIXED
SALARIES
(Effective 1st 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 am 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 m 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 1st 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 wage for 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
cushion 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 1 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 1st 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 WW, 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 (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
GFC 12
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
BLUE ON PINK
GUARDIAN FINANCIAL ORDER
HCO POLICY LETTER 10 DECEMBER 1968
PERCENTAGE ADJUSTMENTS AND FIXED
SALARIES
31st January 1969
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
[seal]
Jane Kember
The Guardian WW
326
WW Form AC 1 Pol Ltr 10 December
1968 Amends Pol Ltr 15 February 1967
Org ..............
PROPORTIONATE INCOME BREAKDOWN WORK SHEET FOR WEEK ENDING
...........
Put down total
B1. DONATIONS RECEIVED A. GROSS
INCOME
B2 MEMBERSHIPS A 1ADVANCE PAYMTS
C.
D.
E.
F.
F1.
F2.
G.
MEMBERSHIPS
RENT COLLECTED REC'D _
LOANS COLLECTED A2. Subtract Al from A
PHONE CALLS COLLECTED A3. ADV PAYMENTS USED _____
REFUNDS GIVEN A4. ADD A3 to A2
REPAYMENTS
FSM COMMISSIONS PAID _____
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 B1, B2, C,
D, E, F. F2, G, H and put total here and in right-hand
column (put down twice) ......
J. CORRECTED GROSS INCOME Subtract I from A4
and put down here
K. HCO WW 10% of J and put down here .........
L. Subtract K from J and put down here ..........
M. Take ceiling figure for this quarter and put down here
N.
O.
RESERVE AMOUNT - Subtract M from L.
Put down amount from Line B1 ........ Put
down amount from Line C ......... Put down
amount from Line D ......... ADD and put total
down twice .........
P. TOTAL RESERVE SUM Add N and O ....
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. SALARY SUM 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 F1 ....... 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 ... HH. 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 I5
(Revised & Reissued 14 January 1968)
Remimeo
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 sums to 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 the 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 courses, 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 been 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.
LRH:Jwjp.rd
Copyright (c) 1965, 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 30 AUGUST 1966
Addition to HCO Policy Letter of
26 March 1965, Field Auditor
Remimeo
Org Sec
Registrar
Area Cashier
Dist Sec
Dir Clearing
SELECTION REGULATIONS
L. RON HUBBARD
Founder
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 Member
programme was not intended as a means of obtaining a 10% discount
on a cross-selection basis.
LRH:Ib-r.rd
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
[See also the section entitled FSM PROGRAMME-The
Field Staff Member System, Volume 6, pages 304-349.]
333
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 OCTOBER 1965
Remimeo
Dist Div Hats
Registration Hats
Income Hats
Dish Hats
Every Field
Staff Member
FIELD STAFF 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 pc 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 m 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 AdComm 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 from 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
pc 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
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
335
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 10 NOVEMBER 1966
Issue III
Remimeo
FIELD STAFF MEMBER
(Corrects HCO Pol Ltr 26 Mar 1965, Field
Auditors Become Staff, Page 3, 5th 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.
This 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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
[Note: HCO P/L 26 March 1965, corrected by the above, can
be found in the FSM System section of Volume 6.]
336
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 JANUARY 1967
Gen Non-Remimeo
Reg Hats
Income Hats
Dish 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 ding out, when the selectee 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 cheques;
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 (approximate 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 Disbursements.
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 checks 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 approval is needed.
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 effort by 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 to 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
similarly 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 (c) 1967
by L. Ron Hubbard
ALL RIGHTS RESERVED
340
SELECTION ROUTING FORM
for routing documents for FSM Commission payments
A. BODY REGISTRAR
Name of Selectee-
service Selected (each service on a separate form)
Name of FSM
Date of Selection Hour Place
Date signed up for service Hour
Attested (Body Reg)
Selection slip attached not attached-
why not
Selection attested (Selectee)
B. AREA CASHIER
service
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 OF DISBURSEMENTS
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
Is this service fully paid for? _
E. DISBURSEMENTS OFFICER
Cheque Number
Amount of Cheque
Attested
_ Bank Account
Date of Cheque
_ (Disbursements Officer) Date_
F. CHEQUE SIGNER
Cheque Signed Date Initial_
G. DISBURSEMENTS OFFICER
FSM Commission mailed Date _
Dish Voucher attached
Address commission mailed to
Initial _
_ (staple copy for Dir
Clearing to this form)
Copy of blue Invoice routed back to Department of RAM Initial
H. DIRECTOR OF CLEARING
Payment on this service complete Date
Initial
_Attested (Dir of Clearing)
Date
Not double paid _
(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
FSM
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
LRH:MSH:OJR.adv.rd
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
Mary Sue Hubbard
Flag Banking Officer
for
L. RON HUBBARD
Commodore
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 5 JUNE 1968
Issue III
Remimeo
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.
LRH:js.rd
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
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 1961, 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 Sec. 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 refund.
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 (c) 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."
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 lieu of good service.
The new policy then is:
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 (c) 1963
by L. Ron Hubbard
ALL RIGHTS RESERVED
345
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead,Sussex
HCO POLICY LETTER OF 23 MAY 1965
Issue II
Gen Non Remimeo
Tech Div HATS
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.
Pcs 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 335,000 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 $820. 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.
LRH:mh.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
346
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 31 JULY 1966
Gen Non-Remimeo
HCO Exec Sec
Org Exec Sec
HCO Area Sec
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.
Remimeo
Junk all rate cards that do not carry it or stamp or type it on
them while ordering
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 1 AUGUST 1966
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 an 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.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
347
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 2 APRIL 1968
(Cancels HCO Policy Letter 13 June 1966)
Remimeo
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 Sec and the Org Exec Sec.
Continental Exec Secs 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
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
[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 organizations 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 I demand and expect that exact
Scientology Treasury Policy be followed.
LRH:js.rd
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
Founder
348
HUBBARD COMMUNICATIONS OFFICE
37 Fitzroy Street, London W. 1
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 Sec
London HCO Sec
All Personnel
St Hill House
dr 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.
LRH:iet.cden
Copyright (c) 1959
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
350
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 JUNE 1960
Assoc Secs
HCO Secs
Accounts Dept
ACCOUNTS PROCEDURE
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 (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
351
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 9 JANUARY 1966
Issue III
Gen Non-Remimeo
Exec Secs Hats Org
Secs Hats HCO Secs
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.
I 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.
LRH:ml.cden
Copyright (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
352
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
Remimeo
Org Exec Sec
Org Secs
Div 3 Personnel
HCO POLICY LETTER OF 13 JANUARY 1966
Issue II
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 (c) 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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
Copyright (c) 1968
by L. Ron Hubbard
ALL RIGHTS RESERVED
353
L. RON HUBBARD
Founder
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO BULLETIN OF 11 AUGUST 1959
CenOCon
COST OF SUPPLIES
NOT HCO POLICY LETTER
ORIGINAL COLOUR FLASH
GREEN ON GOLD
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
Stationery
Supplies
Blue Mimeo Paper
8 1/2 X 11 sub 20
81/2 x 14 sub 20
81/2 x 11 sub 24
8 1/2 X 14. sub 24
Goldenrod
8 1/2 X 11 sub 20
8 1/2 X 14 sub 20
White
8 1/2 X 11 sub 16
8 1/2 X 11 sub 20
8 1/2 14 sub 20
8 1/2 X 11 sub 24
8 1/2 14 sub 24
Ink (black) one tube
Ink (green)', (c)
Ink (blue)
Stencils
....
one quire (24)
HASI letterhead
HASI envelopes
Dispatch Paper (green,
goldenrod, pink, yellow,
white)
per ream ...
per ream
per ream
2000
1500
1000
500
2000
per ream
354
Staples
File Folders
Typewriter Ribbons
Duplistickers
Typewriter Erasers
Carbon Paper
Paper clips
Wire Baskets
Large
Small (regular size)
Set of 4 Connectors
Window Envelopes
Sealing Tape for packages
2" roll
3" roll
Coloured pencils
Ball Point Pens
Scotch Tape
MSH:brb.rd Copyright (c)
1959 by L. Ron Hubbard
ALL RIGHTS RESERVED
Ltd.
box of 5000
box of 100
each
per box per
dozen per
box per
carton
each each
set of 4 box
of 500
per roll per
roll per
box per
dozen per
roll
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 7 JANUARY 1960
Mary Sue Hubbard
Treasurer WW
HCO
INVENTORIES
Every year on 1st January, or as soon as possible after that
date, the HCO Area Sec 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 1st
January, to reach Saint Hill not later than 31st January.
PH:js.rd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Peter Hemery
HCO Secretary WW
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 m 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:jsrd
Copyright (c) 1960
by L. Ron Hubbard
ALL RIGHTS RESERVED
Peter Hemery HCO
Secretary WW for
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 Sec.
Staff personnel requiring such forms shall obtain them from the
Assn Sec's Sec. or from the Assn Sec if he has no secretary.
The Assn Sec'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
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
356
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 13 SEPTEMBER 1961
Sthil
Hills.
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
POSTAGE
Careless use of postage can cause our postal bill to rise from
�25 a week to �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.
LRH:jl.rd
Copyright (c) 1961
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
357
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 15 FEBRUARY 1964
All Heads of
Organizations HCO
Secs Dir Admin
Administrators and
Supervisors of
Companies.
THE EQUIPMENT OF
ORGANIZATIONS
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 idee 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.
LRH:gl.rd
Copyright (c) 1964
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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 21, will wear white
overalls made of drill material, and also the appropriate
traditional domestic dress.
Outside staff, such as gardeners and constructions workers, etc
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 (c) 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-Remimeo
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, foolscap 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 (c) 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-Remimeo
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.
LRH:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, 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 �5 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.
LRH:ml.rd
Copyright (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
L. RON HUBBARD
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:
1. 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 (c) 1965
by L. Ron Hubbard
ALL RIGHTS RESERVED
364
HUBBARD COMMUNICATIONS OFFICE
Saint Hill Manor, East Grinstead, Sussex
HCO POLICY LETTER OF 18 NOVEMBER 1969
Issue IV
Remimeo
OEC
Finance Course
Chksht
OES Hat
Treas Sec Hat
Dir RAM Hat
Salvage Officer Hat
DISPOSAL OF ORG ASSETS
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 items, 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 Sec 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 m this policy. But
the Org Exec Sec sure better know what is going out.
K. Urquhart CS-7
for L. RON HUBBARD
Founder
LRH:KU.rs.cden
Copyright (c) 1969
by L. Ron Hubbard
ALL RIGHTS RESERVED
365
CHRONOLOGICAL INDEX OF CONTENTS
1956
3 Aug. Mail Line (HCOB) 271
9 Nov. Accounting & Financial (HCOB) 6
1957
What Your Money has Bought
(Letter Issued by HASI Accounts, London) 275
Jan. Mass Purchases and Work Contracts 281
11 Mar. Income Reports (Financial Procedure Letter) 7
1 Apr. Always Register and Invoice 255
5 Apr. Proportionate Pay Plan Proposal 293
17 Apr. Advisory Committee Endorsement 297
18 Apr. Minutes of Staff Meeting 296
19 Apr. Proportionate Pay Plan 295
19 Apr. Trustee Endorsement of 18 April 1957
Staff Meeting Minutes 297
19 Apr. Note on source of Income 297
21 Apr. Income 255
14 May Hat Turnover 298
15 May Method of Opening & Invoicing Mail,
Modified (HCO Procedure Letter) 272
16 May Invoicing Items 255
23 May Ordering People to Processing or Training 255
17 June Authorization Required for all Expenditures
(Association Secretary Directive) 281
3 Sept. Method of Opening & Invoicing Mail Vol. 1 - 173
1955
10 Jan. Inspection of Hat Folders
26 Mar. Salary and Unit Pay
10 Apr. Re: 5th London ACC (Administrative Directive) 223
1 May Financial Management (reissued 15 May 1970) 26
1 June Purchase Orders (HASI London Admin
Directive) (reissued 15 May 1970) 282
9 July All clears on staff ... 300
22 Sept. ACC Accounts and Payments 224
27 Nov. Basic Financial Policy - HCO 6
27 Nov. Pay List 299
9 Dec. Regarding Accounts Receivable
(HASI Finance Policy Letter) 276
9 Dec. Staff List - Notification to Payroll
(HASI Finance Policy Letter) 299
26 Dec. Collection of Accounts
(HCO Secretarial Letter) 277
1959
19 Jan. Extra Weeks on HPA Course 225
6 Feb. HCO Accounts Worldwide 7
16 Apr. Books Cost of 82
23 Apr. Jack Parkhouse Writes from South Africa 349
27 Apr. Why New Books are Few 137
11 May HPA/BScn "Retreads" 225
14 May How to Establish Price of Books and Tapes 3
21 May HCO Monies and Book Stocks 139
28 May Promotional Writing Fund 140
2 June Purchasing Liability of Staff Members 283
3 June Financial Management 29
4 June Invoicing and Collection of Money 256
5 June Income Report Required 8
5 June Handling of Bills 284
9 June HCO Special Fund 141
24 June Status of HCO Offices and HCO Secs
and HCO Volunteer Secs In US 142
27 June Invoicing 257
19 July Accounts Inspection 31
22 July Monies Intended for Scientology
Research & Investigation Fund 143
24 July Handling of Monies 177
25 July Membership Monies 143
10 Aug. Franchise 10%s to WW 144
11 Aug. Cost of Supplies (HCOB) 354
24 Aug. HCO Financial Arrangements Altered 145
25 Aug. Purchase Order System
(reissued 20 June 1961) 178
1959 (cont.)
26 Aug. Promotional Functions of Dept of Accts 2
3 Sept. HCO Book Account 147
25 Sept. Accounting Records and Bills 350
13 Oct. Invoicing, Accounts, Project 12 179
14 Oct. Division of HCO Percentage Revised 148
23 Oct. Recording of Taped Lectures at 1st Melbourne
ACC and Pre-ACC Congress Vol. 2 - 217
23 Oct. Attention Registrars and Book Administrators 258
26 Oct. Memberships 245
27 Oct. Processing sing of Children on the HGC 226
29 Oct. International Membership 150
18 Nov. HCO Central Org Financial Modifications 151
27 Nov. Dept of Accounts (excerpt) 2
28 Dec. Membership Discounts 246
1960
Book Orders (LRH Despatch) 258
7 Jan. HCO Inventories 355
27 Jan. Accounts Policies 9
3 Feb. HCO Keys 356
21 Mar. Economy Wave 181
29 Mar. HGC and Academy Prices for Minors
(cancels & replaces 27 Oct. 1959) 226
31 Mar. Accounts Lines 181
28 Apr. Yearly Salary Increments 300
3 May Keeping Memberships In Force 246
20 May Extension Course Prices see - 227
24 May Extension Course Prices
(corrects 20 May 1960) 227
13 June Accounts Procedure 351
6 July LT Membership Privileges 247
13 July LT Membership Privileges (amends 6 July 1960) 247
13 July Sick Leave 300
28 July Losses 182
28 July International Membership Privileges 248
3 Aug. Purchasing 152
3 Oct. Holiday Pay and Sick Leave 301
25 Oct. Membership Restrictions 249
2 Nov. HPA/HCA Course 227
22 Nov. There will be no professional rates.,,(SA only) 249
29 Dec. Membership Change 250
30 Dec. Revision of HCO Percentages (cancels 14 Oct. 1959) 152
1961
10 Feb. Professional Charges 84
14 Feb. The Pattern of a Central Organization (excerpt: Dept
of Material, Dept of Accounts, Admin Report Forms) 11
19 Feb. Accounts: How to do a Payroll 302
27 Feb. Free Courses 228
12 Mar. Supplies of Central Organization Forms 356
13 Mar. Free Courses (revises 27 Feb. 1961) 228
24 Mar. Units for Assn Sec and HCO Sec 306
25 Mar. Personnel Policies-Staff Post Qualifications
Permanent Executives to be Approved 307
6 Apr. Remittance of HCO Monies to HCO WW 152
4 June Refund of Fee Policy see - 343
20 June Purchase Order System 175
6 July Accounts 183
11 July Purchase Orders 186
22 July Executives' Pay 310
4 Aug. Private Mail and Telephone Calls 186
9 Aug. Book Sales 259
12 Sept. Payment for Materials 284
13 Sept. General Office Orders 357
12 Oct. Refund of Fee Policy Revised
(revises & replaces 4 June 1961) see - 343
16 Oct. Income Records 187
23 Oct. Pay of Executives (modifies 22 July 1961) 310
27 Oct. Professional Rates Restored 250
23 Nov. Accounts 13
7 Dec. Inter-Org Exchange of Students 229
19 Dec. Saint Hill Retreads see - 230
1962
14 Feb. Saint Hill Retreads (amends 19 Dec. 1961) 230
27 Feb. Refund of Fee Policy Revised
(revises & replaces 12 Oct. 1961) 343
29 May Professional Rates (adds to 27 Oct. 1961) 251
5 June Permanent Staff Privilege 251
14 June Professional Charges
(amends & amplifies 10 Feb. 1961) 84
17 July Accounts:- Bank Charges on Remittances 153
24 July Academy Extra Weeks 230
31 July Org Payments for St Hill Students 290
19 Sept. HCO WW Form AC 1 154
20 Sept. Part-Time Staff and Over-Time 190
26 Sept. HCO WW Form AC 1 154
AC 1 Form 155
26 Sept. ACCs and Special Events Courses 156
26 Sept. Hubbard Scientology Research Foundation 157
26 Sept. Memberships 157
4 Oct. Signing POs and Cheques 191
6 Oct. Accounts Irregularities 191
23 Nov. Saint Hill Retread Fee 231
1963
1 Feb. HCO Area 5%s 158
AC 1 Form 159
13 Feb. HCO 10%s Due to WW 160
14 Feb. Saint Hill Special Briefing Course
Reimbursement Arrangements 291
5 Apr. Audit of Organizational Books 311
11 Apr. Memberships (cancels 26 Sept. 1962) 252
16 Apr. Revision of Congress Payments to HCO WW 160
5 May Staff Member Enrolments 292
10 May Student Rates for HGC Auditing In SA Orgs 231
23 July Retreads on Saint Hill Special Briefing Course 232
8 Oct. New Saint Hill Certificates and Course Changes 233
23 Oct. Refund Policy (cancels 12 Oct. 1961 & 27 Feb. 1962) 344
31 Oct. Reception Hat (excerpt: Invoicing) 260
4 Nov. Pay Card 312
1964
7 Jan. Payment of Monies for Overtime and/or Materiel 192
14 Jan. Continental and Area HCO Finance Policies 161
15 Feb. The Equipment of Organizations 358
24 Feb. Org Programming - Solve It with Scientology 26
2 Mar. Contracts and Services 192
10 Apr. Balancing Income Outgo Paper, Postage and
Printing Vol. 2 - 95
21 Apr. Org Payments for Tape-Recorded Lectures 255
6 May Accounts Policies 17
8 May Transport 193
13 May Transport (adds to 8 May 1964) 193
15 May Accounts Policies (Addenda to 6 May 1964) 20
11 June Central Organization & City Office Tape Service 285
26 June Staff Bonuses 194
23 Sept. Policies: Dissemination and Programmes
(excerpt: Cost of Service) 85
19 Oct. Pricing Formulas 95
30 Oct. Mailing Lists for Franchise Holders 102
31 Oct. Current Policies Orgs & Franchise 106
15 Nov. Transport Arrangements Vol. 1 - 293
17 Nov. Bonus 198
30 Nov. HCO Book Account 162
3 Dec. Pricing Meetings Final Policy 109
23 Dec. Field and Public Programming 117
1965
Treasury Division 3 Org Board Outline 1
18 Jan. Financial Management Building Fund Account 32
19 Jan. Finance-Org Accounts Building Fund Account 37
20 Jan. Currency Regulations and 10%s 164
28 Jan. How to Maintain Credit Standing & Solvency 39
1965 (cont.)
10 Feb. Ad & Book Policies (excerpt: Book Pricing Formula) 83
2 Mar. Purchase Order Filing 43
4 Mar. Reserved Payment Account 44
15 Mar. Only Accounts Talks Money 120
22 Mar. Saint Hill Services, Prices and Discounts 127
22 Mar. Current Promotion and Org Programme Summary 128
28 Mar. Emergencies and Account Personnel 46
29 Mar. Staff Member Loans Vol. 0 - 53, Vol. 1 - 587
2 Apr. Heed Heavy Traffic Warnings Vol. 0 - 111
18 Apr. Prices Lowered Because of New Organization Streamline 93
21 Apr. Membership-Attestations 252
26 Apr. Cancellation of 19 Jan. 1965 47
27 Apr. Price Engram 91
29 Apr. Bonuses 313
9 May Auditing Fees-Preferential Treatment of
Preclears-Scale of Preference 56
9 May Field Auditors Become Staff (revised & reissued 14
Jan. 1968, cancels 26 Mar. 1965 & 30 Mar. 1965) 328
11 May HCO Book Account Policy 165
23 May Rebates 346
21 June Orgs are SH FSMs Vol. 2 - 325, Vol. 6 - 325
6 July Releases234
16 Aug. Collection from SPs and PTSs 279
20 Aug. Scientology Org Uniforms Saint Hill 360
31 Aug. Mail Opening 274
1 Sept. Saint Hill Services and Prices 235
1 Sept. Current: Policy-Franchise 253
1 Sept. Membership Policies 254
8 Sept. Supply Officer 362
14 Sept. Units and Bonuses for Org Exec Secs and
HCO Exec Secs (revises 24 Mar. 1961) 315
15 Sept. Only Accounts Talks Money Vol. 0 - 275
22 Sept. Keys 363
24 Sept. Free Release Check 263
30 Sept. Statistics for Divisions (excerpt: Org Division 3) 3
12 Oct. Advisory Committees 317
15 Oct. Field Staff Member Selection Papers and Commissions 334
21 Oct. Bills Payments 286
3 Nov. Equipment 363
7 Nov. Reception Log-In the Org List Vol. 1 - 73
12 Nov. Transfers from SHSBC to Solo Audit Course 199
15 Nov. Reporting of Theft and Action to be Taken 364
20 Nov. The Promotional Actions of an Organization
(excerpt: Treasury Division 3) 3
21 Nov. Cheque Signing 287
26 Nov. Financial Planning 48
9 Dec. HCO Income Memberships-Congresses-Tape Plays 168
21 Dec. LRH Financial Relationships to Orgs 51
30 Dec. PTS Auditing and Routing (S & D price)
Vol. 1 - 439, Vol. 4 - 578
1966
4 Jan. LRH Relationships to Orgs 53
6 Jan. Credit and Discounts 200
7 Jan. Leaving Post - Writing Your Hat Vol. 0 - 70
7 Jan. Credit (modifies 6 Jan. 1966) 201
9 Jan. Accounts, Invalidating 352
13 Jan. Records of Bank Deposits 353
14 Jan. Hiring Personnel-Line for (amended 22 May 1968) 57
15 Jan. Office of the Treasurer 59
23 Jan. Accounting Policies of Scientology Companies 21
30 Jan. Accounts Procedures 23
30 Jan. Cheque Signing Procedure 288
3 Feb. Legal, Tax, Accountant & Solicitor, Mail and Legal
Officer 202
10 Feb. Bonuses for Service Delivery 204
11 Feb. Shipping Charges 263
16 Feb. Invoice Routing 264
3 Apr. Dianetic Auditors Course Vol. 2 - 120, Vol. 4 - 228
26 Apr. South Africa 10%s 168
3 May Reserve Fund 169
1966 (cont.)
9 May Bonuses Adjusted (correction to 10 Feb. 1966) 206
13 June Signatories on Bank Accounts see - 348
14 July Dismissal of Staff 207
21 July Proportional Pay Plan 1966 318
31 July Refund Notice 347
1 Aug. sign Ups and Discounts Vol. 2 - 280, Vol. 5 - 198
1 Aug. Refund Addition (adds to 31 July 1966) 347
2 Aug. Graph Change-Ad Council Statistic 25
3 Aug. Correction to HCO Policy Letter see - 348
5 Aug. Registered Mail Vol. 1 - 178
22 Aug. Bonuses Adjusted (amendment & addition to 9 May 1966) 207
30 Aug. Selection Regulations (addition to 26 Mar. 1965) 333
6 Oct. Addition to HCO Div Account Policy (amplifies 11
May 1965) 170
11 Oct. Legal, Tax, Accountant & Solicitor-Mail
Incoming & Out-going (amends 3 Feb. 1966) 203
13 Oct. Invoice Routing (cancels 12 Jan. 1966) 208
17 Oct. Bonuses 209
10 Nov. Field Staff Member (corrects 26 Mar. 1965) 336
21 Nov. Addendum to HCO Policy Letter of 17 October 1966
"Bonuses" 211
15 Dec. Financial Planning 61
23 Dec. Accounts Invoices - Names on Invoices 265
1967
9 Jan. FSM System Administration In Organizations
(modifies 9 May 1965 & 15 Oct. 1965) 337
15 Feb. Allocation of Income 172
20 Feb. Security of Invoices 266
25 June Scientology Orgs Tax and Balance Sheets 63
15 Sept. Examiner Bonuses 322
12 Oct. Charges 88
18 Nov. Blue and Green Accounts Invoices (amends 13 Oct. 1966) 212
27 Nov. Bonuses Adjusted (addition to 17 Oct. 1966 cancels
22 Aug. 1966) 211
1968
1 Jan. Hat Write Ups and Folders Inspection of
Hat Folders Vol. 0 - 58
14 Jan. Field Auditors Become Staff 328
21 Jan. Chartered Accountants 353
13 Feb. Collections Letters 280
17 Feb. Field Staff Member Commissions 342
15 Mar. Student & Staff Program 135
2 Apr. Signatories on Bank Accounts (cancels 13 June 1966) 345
15 May Reserve Fund (reissue & amendment to 3 May 1966) 175
22 May Hiring Personnel - Line for (amendment of 14 Jan. 1966) 57
28 May Books 176
5 June FSM Commissions 342
17 June HCO Book Account 176
20 June Commodore and Founder as Signatory on Every Bank
Account (modifies 1 Sept. 1966 & 2 Apr. 1965) 348
10 Dec. LRH ED 64 INT (concerns P/L 10 Dec. 1968) 323
10 Dec. Percentage Adjustments and Fixed Salaries 324
1969
18 Jan. Advanced Org Awards 236
31 Jan. Percentage Adjustments and Fixed Salaries
3 Feb. Legal Standard Waiver Vol. 1 - 582
18 Apl. Org Division - Income Dept 222
20 Apr. AO-SH Financial Control 67
19 May Hubbard Standard Dianetics Course Policy
Vol. 2 - 286, Vol. 4 - 241
23 May Dianetic Contract Vol. 2 - 287, Vol. 4 - 247
3 June Dianetic Course Pricing 236
16 June AO-SH Finance Control (amends 20 April 1969) 69
10 July Org Personnel Recruitment Vol. 1 - 88
2 Sept. Old ACC Students 237
1969 (cont.)
3 Sept. Former HDAs, HPAs 235
3 Sept. Successful Class VIIIs 238
9 Oct. Publications Depts and Orgs How to
Straighten Out Vol. 2 - 210
16 Oct. Finance Course - Vital Action 25
11 Nov. Accounts and PRO 71
12 Nov. PES Account versus HCO Book Account 213
15 Nov. Class VIII Retread 239
18 Nov. Disposal of Org Assets 365
28 Nov. Class VIII Retread (corrects 15 Nov. 1969) 239
6 Dec. Inter-Org Exchange of Students 240
10 Dec. PES WW Account 215
10 Dec. Student Rescue Intensive Pricing 240
14 Dec. Org Protection 241
20 Dec. Trading Prohibited 283
24 Dec. PES Account Amended 216
1970
11 Jan. Pricing - Rescue Intensive (cancels 10 Dec. 1969) 241
13 Jan. Org Personnel Recruitment (Revised) Vol. 1- 93
20 Jan. Class VIII Retread (corrects 28 Nov. 1969 & 15
Nov. 1969) 242
5 Feb. Scientology Refunds Writ of Expulsion and
Waiver Vol. 1 - 553
19 Apr. PES UAV Account (cancels 10 Dec. 1969) 217
29 Apr. PES Account Revised (cancels 12 Nov. 1969) 218
15 May Financial Management (reissued 1 May 1958) 26
15 may Purchase Orders see - 282
12 June PES Account (cancels 12 Nov. 1969 & 29 Apr. 1970) 221
15 July Retreads 242
20 July Internships and Case Supervisors 243
27 Sept Cutative Prices 89
30 Sept. Credit Collections Defined 4
4 Nov. Estimated Purchase Orders 73
1971
31 Jan. FSM Contest Awards (modifies 27 Sept. 1970) 90
5 Feb. Org Gross Divisional Statistics Revised
(excerpt: Treasury Division 3) 4
6 Feb. Transferring Funds 259
13 Feb. Financial Planning Tips 79
27 Feb. First Financial Policy 81
11 Mar. Registrar Invoicing Line 265
12 Mar. Treasury Divisions GDSes - All Orgs 5
HCOBs AND ISSUES OTHER THAN POLICY LETTERS IN THIS VOLUME
3 Aug. 1956 Mail Line (HCOB) 271
9 Nov. 1956 Accounting & Financial (HCOB) 6
1957 What Your Money has Bought (Letter issued
by HASI Accounts, London) 275
11 Mar. 1957 Income Reports (Financial Procedure Letter) 7
5 Apr. 1957 Proportionate Pay Plan Proposal 293
15 May 1957 Method of Opening & Invoicing Mail,
Modified (HCO Procedure Letter) 272
17 June 1957 Authorization Required for all Expenditures
(Association Secretary Directive) 281
10 Apr. 1958 Re: 5th London ACC (Administrative Directive) 223
1 June 1958 Purchase Orders (HASI London Admin
Directive (reissued 15 May 1970) 252
27 Nov. 1955 Basic Financial Policy - HCO 6
26 Dec. 1955 Collection of Accounts (HCO Secretarial Letter) 277
11 Aug. 1959 Cost of Supplies (HCOB) 354
1960 Book Orders (LRH Despatch) 255
1965 Treasury Division 3 Org Board Outline 1
10 Dec. 1968 LRH ED 64 INT
(concerns HCO P/L 10 Dee. 1968) 323
31 Jan. 1969 Percentage Adjustments and Fixed
Salaries (Guardian Finance Order 12) 326
HUBBARD SCIENTOLOGY ORGANIZATIONS
THE CHURCHES OF SCIENTOLOGY
ADVANCED ORGANIZATIONS
Church of Scientology of California
Advanced Organization
of LOS Angeles
916 South Westlake Street
Los Angeles, California 90006
Church of Scientology
Advanced Organization United Kingdom
Saint Hill Manor
East Grinstead, Sussex, England
Church of Scientology
Advanced Organization Denmark
Jernbanegade 6
1608 Copenhagen V
Denmark
HUBBARD COLLEGES OF SCIENTOLOGY
Church of Scientology of California
American Saint Hill Organization
2723 West Temple Street
Los Angeles, California 90026
Church of Scientology
Hubbard College of Scientology
Saint Hill Manor
East Grinstead, Sussex, England
Church of Scientology
Saint Hill Denmark
Jernbanegade 6
1608 Copenhagen V
Denmark
CONTINENTAL AND AREA ORGANIZATIONS
UNITED STATES
PUBLICATIONS ORGANIZATION
Church of Scientology of California
Publications Organization
C/O ASHO
2723 West Temple Street
Los Angeles, California 90926
CELEBRITY CENTRES
Church of Scientology of California
Celebrity Centre
1661 North La Brea Avenue
Hollywood, California 90026
Church of Scientology
Celebrity Centre New York
65 East 82nd Street
New York, New York 10028
LOCAL CHURCHES
WASHINGTON, D.C.
Founding Church of Scientology
2125 S Street, N.W.
Washington, D.C. 20008
AUSTIN
Church of Scientology
2504 Rio Grande
Austin, Texas 78705
HAWAII
Church of Scientology
143 Nenue Street
Honolulu, Hawaii 96821
SAN DIEGO
Church of Scientology
926 "C" Street
San Diego, California 92102
SAN FRANCISCO
Church of Scientology of California
414 Mason Street
San Francisco, California 94102
LAS VEGAS
Church of Scientology
2108 Industrial Road
Las Vegas, Nevada 89102
LOS ANGELES
Church of Scientology of California
2005 West 9th Street
Los Angeles, California 90006
PORTLAND
Church of Scientology
1607 N.E. 41st Street
Portland, Oregon 97232
SEATTLE
Church of Scientology
1531 4th Avenue
Seattle, Washington 98101
ST. LOUIS
Church of Scientology
3730 Lindell Boulevard
St. Louis, Missouri 63108
TWIN CITIES
Church of Scientology
730 Hennepin Avenue
Minneapolis, Minnesota 55403
BOSTON
Church of Scientology
448 Beacon Street
Boston, Massachusetts 02115
BUFFALO
Church of Scientology
1116 Elmwood Avenue
Buffalo, New York 14222
DETROIT
Church of Scientology
19 Clifford Street
Detroit, Michigan 48226
MIAMI
Church of Scientology
1235 Brickell Avenue
Miami, Florida 33131
NEW YORK
Church of Scientology of New York
25-30 West 74th Street
New York, New York 10023
PHILADELPHIA
Church of Scientology
8 West Lancaster Avenue
Ardmore, Pennsylvania 19003
SACRAMENTO
Church of Scientology of California
819 19th Street
Sacramento, California 95814
CHICAGO
Church of Scientology
1555 Maple Street
Evanston, Illinois 60201
CANADA
TORONTO
Church of Scientology
124 Avenue Road
Toronto 180, Ontario
VANCOUVER
Church of Scientology
4857 Main Street
Vancouver 10.
British Columbia
OTTAWA
Church of Scientology
292 Somerset Street, West
Ottawa
MONTREAL
Church of Scientology
1168 St. Catherine Street, W.101
Montreal, Quebec H2Y 1B5
UNITED KINGDOM
LOCAL CHURCHES
Saint Hill Foundation
Saint Hill Manor
East Grinstead, Sussex
PLYMOUTH
Hubbard Scientology Organization
39, Portland Square
Sherwell
Plymouth, Devon
MANCHESTER
Hubbard Scientology Organization
43 Faulkner Street
Manchester
LONDON
Hubbard Scientology Organization
68, Tottenham Court Road
London W.1.
SCOTLAND
HAPI
Fleet House
20 South Bridge
Edinburgh Scotland
AUSTRALIA/NEW ZEALAND
ADELAIDE
Church of the New Faith
57 Pulteney Street
Fullarton, Adelaide 5000
South Australia
MELBOURNE
Church of the New Faith
724 Inkerman Road
North Caulfield 3161
Melbourne, Victoria, Australia
PERTH
Church of the New Faith
Pastoral House
St. George's Terrace
Perth 5000
Western Australia
SYDNEY
Church of the New Faith
1 Lee Street
Sydney 2000
New South Wales Australia
AUCKLAND
Church of Scientology
New Imperial Buildings
44 Queen Street
Auckland, New Zealand
EUROPE
PUBLICATIONS ORGANIZATION
Church of Scientology
Publications Organization
C/O SH Denmark
Jernbanegade 6
1608 Copenhagen V
Denmark
LOCAL CHURCHES
COPENHAGEN
Church of Scientology
Hovedvagispade 6
1103 Copenhagen K
Denmark
Church of Scientology
Frederiksborgvej 5
2400 Copenhagen V
Denmark
PARIS
Church of Scientology
12, rue de la Montagne Ste Genevieve
75005 Paris, France
VIENNA
Scientology-Osterreich
A-1070 Wien
Marlahilferstrasse 88A/Stg. 3/1/9
Vienna, Austria
BRUSSELS
Church of Scientology
45A, Rue de l'Ecuyer
1000 Brussels, Belgium
AMSTERDAM
Church of Scientology
Singel 261
Amsterdam, Netherlands
BERLIN
Church of Scientology
1000 Berlin 12
Giesebrechstrasse 10
Berlin, Germany
MUNICH
Church of Scientology
8000 Munich 2
Lindwurmstrasse 29
West Germany
GOTEBORG
Church of Scientology
Magasinsgatan 12
S-411 18 Goteborg, Sweden
STOCKHOLM
Scientology Kyrkan
Kammakaregatan 46
S-111 60 Stockholm, Sweden
MALMO
Church of Scientology
Skomakaregatan 12
S-211 34 Malmo, Sweden
AFRICA
JOHANNESBURG
Church of Scientology
99 Polly Street
Johannesburg, South Africa
CAPE TOWN
Church of Scientology
3rd Floor, Garmour House
127 Plein Street
Cape Town, South Africa
PORT ELIZABETH
Church of Scientology
2 St Christopher's
27 Westbourne Road
Port Elizabeth, South Africa 6001
DURBAN
Church of Scientology
57 College Lane
Durban, South Africa
PRETORIA
Church of Scientology
224 Central House
Cnr Central & Pretorious Streets
Pretoria, South Africa
BULAWAYO
Church of Scientology
508 Kirrie Bldgs.
Abercorn Street
Bulawayo Rhodesia