By: Cherry Wright, MS, CCC-SLP, Financial Advisory Committee Chair
The Texas Speech-Language-Hearing Association (TSHA) Financial Advisory Committee (FAC) meets twice annually. Responsibilities include reviewing the prior year’s audit, conferring with the TSHA Financial Advisor regarding the investment portfolio, reviewing the current year budget and the proposed budget for the next year, reviewing the investment policy, and making recommendations to the Executive Board.
Members of the FAC included Brad Briscoe (public member), Melinda Corwin, Dalan Gore, Martha McGlothlin, Donise Pearson, Judy Rich, Jennifer Watson, Robyn Martin (President/Ex Officio), Lisa Milliken (President-Elect/Ex Officio), and Katie Strang (Executive Director)
Post-pandemic challenges for the Association continue as we observe the impact of inflation on our operations while attempting to reduce expenses, including those related to Convention, increasing membership, increasing attendance at the Convention, and continuing to provide quality member benefits.
Major sources of revenue include membership and Convention registration. Major expenses include Association management, advocacy, and publications. Following is a summary of the activities of the Committee and a synopsis of the financial status of the Association.
There were no identified discrepancies in the 2022 audit. Net assets at the beginning of 2022 were $2,601,178. Net assets at the end of the year were $2,151,563.
The Association's goal is to maintain at least $1,500,000 in reserves. As of September 21, the Investment portfolio totaled $1,684,024, which reflected an increase of 6.7% year-to-date. In October, $75,000 was transferred from the investment fund to the general operating fund to cover website redesign expenses. The balance of the investment fund on December 11, 2023, was $1,692,678.
The 2023 budget was adopted with a projected deficit of $265,832. In September, with three months remaining, TSHA had total revenue of $1,354,911 and total expenses at $1,501,160. These numbers reflect a net loss of $146,249, less than was projected at the time of the budget's adoption. Although a deficit is still anticipated, the reduction in deficit is attributable to the Convention generating revenue over expenses for the first time since pre-pandemic, the streamlining of operations of the Association, minimal increase in membership and Convention registration fees, and the transfer of funds from the investment account.
Following close analysis of the projected 2024 budget with a deficit of $266,448, the Committee worked closely with Association management to make several recommendations for Board consideration. These included a 3% increase in Convention registration fees, reduction of Convention expenses, conservative estimates for projected membership and Convention attendance, continued streamlining of operational expenses, and suggestions for additional sources of non-dues revenue. The adopted budget includes a $229,923 deficit.
The TSHA Executive Board is cognizant of the fact that we have operated on a deficit budget since 2020 and continues to work diligently to generate revenue and control expenses while withdrawing only $151,302 from our investment portfolio through 2023. The goal continues to be to operate within a balanced budget.