CONTACTS 
0201 - S J Gallina & Company              510 943 1776 fax 1876
020101 - Mr. Edmond E. Traille; Partner

SUBJECTS
Personal, Finance, Taxes, 96
Tax Return 1997

0504 -    ..
0505 - Summary/Objective
0506 -
050601 - Followed work at ref SDS 11 line 71, ref SDS 7 line 57, ref
050602 - 5 line 62.
050603 -
050604 - Submitted ref DIT 1 line 30 including this record, the tax report
050605 - showing income, expenses and obligations, ref OF 4 line 10, and for
050606 - information the scope of services developed by Corps of Engineers for
050607 - Communication Metrics, ref OF 7 line 19.
050608 -
050609 -     [See delivery of documents to Ed's office, ref SDS 14 line 59.]
050610 -
050611 -
050612 -
0507 -
0508 -
0509 - Progress
0510 -
051001 - Segment Check Registers
051002 - ..
051003 - Followed up work at ref SDS 11 line 75.
051004 -
051005 - Transfered check register files to CPU #3 in Concord so Millie can use
051006 - 1997 registers.
051007 -
051008 -
051009 - Prepare Tax Report
051010 - ..
051011 - Posted Account Codes per ref SDS 2 line 57.
051012 -
051013 - Sort accounts to prepare a tax report, ref SDS 3 line 71.
051014 -
051015 - Explained transaction pertaining to Millie's loan to pay MBNA in
051016 - November, due to late payment by COE, per, ref SDS 9 line 31.
051017 -
051018 - Prepared the tax report ref OF 4 line 8.
051019 -
051020 - Millie's checking account is out of balance by .75.  Per notes at ref
051021 - SDS 1 line 85, I examined outstanding checks and #370 dated 960812 in
051022 - the amount of $.75 for some kind of coupon thing, has not been
051023 - reported as cashed. I decided for now to report this check as cashed,
051024 - since it has not been cashed for 8 months.
051025 -
051026 - For some reason cannot open the 95 check register for Welch Company to
051027 - see how we assigned account codes in the 96 register.  I am using
051028 - Lotus 123 97 purchased yesterday, ref SDS 13 line 68, and it is
051029 - returning an error message saying the 95.wk4 file is not a valid file.
051030 - I checked CPU #3 and it shows the tax report file tx95 seems to have
051031 - the check register stuff for 1995, except all of the account codes are
051032 - not posted.  Looks like what happened is that last year I entered the
051033 - account codes for about 80% of the entries going down the file and
051034 - then saved the thing to the tax report file.  I then entered the
051035 - remaining account codes sorted the file and saved it to disk as a
051036 - print file for sending the information to Gallina.  Something like
051037 - this occurred, because we have a file on CPU #9, which came from CPU
051038 - #8 that has the completed tax report stuff.  The result is that I can
051039 - restore the Welch Company check register for 95 by saving the 95 tax
051040 - report file on CPU #3 to the the 95 check register on CPU #9, and then
051041 - copying the 95 tax report on CPU #9 to CPU #3.
051042 -
051043 - First on CPU #3...
051044 -
051045 -      copy g: 08 02 03 01 11 tx95.wk4 f: 02 03 02 02 95.wk4
051046 -
051047 - then transfer...
051048 -
051049 -      f: 02 03 02 02 95w.wk4        CPU #03 ---> 09
051050 -      f: 02 03 02 02 96w.wk4        CPU #09 ---> 03
051051 -      f: 08 02 03 01 01 tx95.wk4    CPU #09 ---> 03
051052 -
051053 -
051054 - Was able to create most of the tax report in the new version of Lotus
051055 - 123.
051056 -
051057 -
051058 -  ..
051059 - UPR Interest Adjustment and Audit
051060 -
051061 - The audit performed last year resulted in understandings for adjusting
051062 - the interest owed based on the demand made by UPR, ref SDS 5 line 94
051063 - and ref SDS 8 line 37,  The obligations and interest owed need to be
051064 - changed by SJ Gallina to properly reflect those adjustments.  I used
051065 - the same figures and formulas this year that have been previously
051066 - applied.  Since the audit revised those valuations, SJ Gallina needs
051067 - to advise of changes that should be made in our obligations report,
051068 - ref OF 3 line 30.  This matter is cited in the transmittal letter to
051069 - Ed at ref DIT 1 line 38.
051070 -
051071 -
051072 -
051073 -  ..
0511 -
0512 -
0513 - Welch Company Review
0514 -
051401 - Follow up analysis from last year at ref SDS 5 line 110.  This
051402 - year the firm generated some revenue at the end of the year performing
051403 - a pilot contract for the US Army Corps of Engineers, San Francisco
051404 - District.  It evolved from the publications and work on the PMI
051405 - Asilomar Conference explained in the report for the 1995 tax return,
051406 - ref SDS 5 line 130.  The contract with the Corps evaluated the methods
051407 - and usefulness of SDS for management support, called "Communication
051408 - Metrics," applied to the Oakland Harbor Deepening project.  The Welch
051409 - contract was for $22K over 6 months.  The $22K was expended in about 6
051410 - weeks.  Modifications were later approved to pay $48K over 3 months.
051411 - ..
051412 - This experience enabled managers who interacted with the Welch
051413 - methods to grasp what "Communication Metrics" means, beyond saying it
051414 - is what "Rod does."   A modification was negotiated to extend the
051415 - Welch contract another 4 months for $100K but it crashed at the last
051416 - minute due to administrative snafus, so official Welch support ended
051417 - oa 961226, although service was actually provided through 970110 as
051418 - part of what I called contract closeout support. This maintained
051419 - visibility and momentum of the Communication Metrics role.
051420 -
051421 - During January - March, 1997 a follow on contract to provide
051422 - Communication Metrics on the Richmond Harbor project and to support
051423 - the COE Construction Services Branch in Sausalito has been negotiated,
051424 - ref SDS 10 0000, which hopefully will materialize within the next 4
051425 - weeks.  A key benefit of this process has been development of a formal
051426 - scope of services for Communication Metrics. ref DRP 1 4929
051427 -
051428 - This could generate revenue of $400K for the year based on providing
051429 - several support people, who have to be trained to use SDS and perform
051430 - Communication Metrics.  The Corps seems to have 4 other projects for
051431 - which they have expressed interest in using Communication Metrics. At
051432 - this time Welch is the only source for this service, so there seems to
051433 - be potential for continued growth.
051434 -
051435 - The Corps is preparing an official evaluation of Communication Metrics
051436 - based on the work for the Oakland Harbor project performed last year.
051437 - A government evaluation of Communication Metrics will provide
051438 - credibilty for others to suspend their judgement long enough to learn
051439 - how to improve management and earnings using Communication Metrics.
051440 - Of course the assignments with the Corps will be major marketing
051441 - assets, as well as generate needed revenue, if this all works.
051442 -
051443 -      [On 970418 received report dated 970328. ref SDS 15 3368]
051444 -
051445 - A second major opportunity may arise with Fluor Daniel from the
051446 - contact with General Hank Hatch, who is lending his name to the
051447 - evaluatin report on Communication Metrics. ref DRP 1 6172  General
051448 - Hatch, is a former commander of the Corps, and is now president of a
051449 - new business unit which won a $7B project in August last year to clean
051450 - up the Hanford nuclear site.
051451 -
051452 -
051453 -
051454 -