Financial Dark Cloud Hangs Over Tullahoma Fine Arts
October 3, 2011
A new Tullahoma Fine Arts Center board of directors prepares to grapple with the center's dire financial situation as the organization attempts to move forward.
According to the latest report by outgoing treasurer Becky Shelton, TFAC has $1,400 in the bank, with several more bills to be paid, including $550 for a half-page ad in the August edition of Nashville Arts magazine, and $300 for an ad in the Chattanooga Times Free Press.
Recently, the Tullahoma Board of Mayor and Aldermen stepped in to cover the cost of TFAC's American Watercolor Society show at $1,400, and paid the center's utility bill of $1,200 to prevent the power from being turned off.
And TFAC has yet to tackle whether or not former executive director Lucy Hollis is owed $13, 476.
The previous board, led by Troy McFarland, failed to take action on the matter. It was McFarland's opinion that the center did not owe her the money.
Garth Segroves, who took the center's helm as president on Monday, said since he had not yet examined the documents involved, he could not comment on whether or not TFAC would honor the debt to Hollis.
"I've known her since I was a kid. And she's a great lady," said Segroves. "We want to be fair to her."
According to the center's 990 tax return for the fiscal year beginning July 1, 2008 and ending June 30, 2009, and previous statements by Hollis, she loaned the money to help pay the center's bills. The 990 form states that the loan, made without a written agreement, was approved by the board of directors. Hollis was also president of the board at that time.
The other officers elected by the board on Monday include Brian Seiber, vice-president; Karen Ingle, secretary; Rhessa Orr, treasurer; and Anita Zacardi, membership chairman. Also serving on the board are Jimmye Lou Smith and Jon Gray. Only Gray served on the previous board.
The board also approved final revisions to new bylaws, which were adopted by the general membership on September 29.
REVISED TFAC BYLAWS pdf format
Among the changes, the position of corresponding secretary was replaced by membership chairman. A controversial clause that allowed the board to expel any member was also removed.
Segroves, who also serves as TFAC's lawyer, said the first priorities of the board will be to make sure the fine arts center is operating on a secure financial footing and to create an environment where "the members can trust the board."
Former TFAC president and executive director McFarland was charged last month by the Tullahoma Police with “theft of property” from the arts center, amounting to around $2,200.
The next board meeting will be held at 6pm on October 17.
(update)
Tullahoma Fine Arts Center’s Board of Directors finally resolved a large debt hanging over the organization.
According to minutes of the November board meeting, Lucy Hollis is not requiring that the center repay a $13,476 loan she made to TFAC, while serving as its executive director and president.
According to the center’s 990 tax return for the fiscal year beginning July 1, 2008 and ending June 30, 2009, and previous statements by Hollis, she loaned the money to help pay the center’s bills. The 990 form states that the loan, made without a written agreement, was approved by the board of directors.
At the October board meeting, members discussed approaching Hollis and asking that the money be considered a gift to TFAC.
However, according to email sent to MTA on January 12, by 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."
The previous board, led by Troy McFarland, failed to take action on the matter. It was McFarland’s opinion that the center did not owe her the money
