Arts Center Holds Closed "Informational" Meeting
by Russel Mobley
February 3, 2012
The Tullahoma Fine Arts Center's Board of Directors held a closed “informational” meeting on Thursday night to discuss legal matters involving the center's former president and executive director.
The session about Troy McFarland's legal plight followed its regular monthly meeting at 6PM.
According to TFAC treasurer Rhessa Orr, no decision would be made during the closed meeting on whether or not TFAC will pursue civil action against McFarland, who was arraigned last week for an alleged “misappropriation of more than $10,000” of center funds. A court date of March 14 has been set.
Before the closed session, Orr told board members that she had met with a forensic accountant about the matter, but that the members “can't talk about [the information provided] publicly.” She said, “[We] have a ballpark figure” of the amount of money McFarland is alleged to have misappropriated. But, she said board members are not to reveal that also to the public.
This is at least the second time within a year that a TFAC board has met in a session closed to the public. An hour before the election of board members on September 29, 2011, TFAC board members Kevin Farris, Jon Gray, Becky Shelton and Jamie Knight met behind a closed door. Farris later said they were only discussing procedural matters for the election.
According to the center's 990 tax form filed for the last fiscal year, TFAC, under the leadership of McFarland, once again posted a major deficit.
Before McFarland was pushed out of the organization in August of last year, he said that TFAC would break even with its finances for the fiscal year beginning July 1, 2010 and ending June 30, 2011. However, the 990 form filed for that period, shows a deficit of $18,519.
The loss continues the trend begun while Lucy Hollis was at the helm of TFAC. The center had deficits for seven of the last nine fiscal years, ending in 2010, with excess money only for 2004 and 2007. Until this latest filing, records showed the center lost a total of $49,189 since the 2001 fiscal year. Last year's deficit now brings the total to $67,708.
Hollis, who operated the center for four decades, resigned in August, 2010. McFarland gained control of the center with a new board of directors on September, 2010. The ever-optimistic McFarland described TFAC's status as “a phoenix rising out of the ashes.”
But despite the illusion of a turn-around for the center, the phoenix never actually got off the ground.
According to the 990 form, signed by TFAC treasurer Becky Shelton, the center had a total revenue of $24,391. TFAC paid $3,089 in professional fees, $15,242 for utilities and maintenance of the building, and $24,579 in other expenses.
A large portion of TFAC's funding comes from the City of Tullahoma.
The form also showed an outstanding debt of $13,476 to Lucy Hollis for a loan she made to the center to cover operating expenses.
Hollis recently forgave the debt.
According to TFAC treasurer Rhessa Orr, "the Board (represented by Jon Gray and Orr) approached Mrs. Hollis to discuss a repayment plan at which time she generously gifted the center by writing off the loan amount."
Preceding Thursday's board meeting, Orr said that "we are carrying our weight" this fiscal year and "we are operating within our budget.".
"If there is a deficit this [fiscal] year, it will be because we began the year in a hole" due to the loss of money TFAC alleges was misappropriated, said Orr.
She added that TFAC was making strides in recovering financially, and the center is maintaining "good relations with people we owe money to."