Treasurer’s Report to Membership
The 2015 Financial Statements have been posted in the File Cabinet on the TETA website. The 2015 Financial Statements are for the year January 1, 2015 – December 31, 2015. The 2015 Financial Statements were prepared on the accrual basis of accounting, rather than the cash basis as in years past. The accrual basis is the industry preferred method of presenting the most accurate information regarding the financial position and results of the Association.
The 2015 IRS Form 990 is in process and will be timely filed.
After disregarding one-time non-recurring revenue items of approximately $121,000.00, the “normalized” net income for 2015 was approximately $48,000.00. Regarding expenses, the 2015 calendar year included higher than usual outside consulting expenses considered necessary to finish the process of getting our financial books and records in order.
It is considered that, after considerable effort and expense, the TETA books and records are now accurately and completely reflecting all financial transactions of the Association. Financial information is regularly provided for review to the Board of Directors who has ongoing access to all the books and records at any time. There is also a standing Finance Committee appointed by the Board of Directors that periodically reviews the integrity of the bookkeeping for the financial transactions of the Association. Although not really a part of this report, it is also noted that working with the Board and other members of the Association, the budget process of the Association has been greatly improved and made more collaborative.
Moving forward, TETA, Inc. will be requesting a fiscal year change to better match our operating year. If approved, our new full fiscal year will be September 1 to August 31. TETA will initially have a one-time short year of 1/1/16-8/31/16. It is anticipated that TETA will commission on an ongoing basis, at a minimum, a review of its financial statements by a CPA firm to further enhance our goal of proper recordkeeping and good stewardship.
As of December 31, 2015, TETA was in a sound financial position. As a result of a review of its cash balances and other issues, the Board of Directors has approved the following:
- Maintaining approximately $250,000.00 of working capital
- Establishing a Reserve Fund of $320,000.00
- Established a Texas Educational Theatre Association TILF Endowed Scholarship of $25,000.00 (paid 5/16)
- Undertaking a review of how best to utilize the remaining cash surplus to benefit the programs and sections of the association to best fulfill our Mission (committee has been formed)
If there are any questions, please feel free to submit them through the TETA website. As has been stated previously, the financial books and records of the Association will be made available for review by any member upon reasonable request.
Respectfully submitted,
Rachel Mattox, Treasurer
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