Arts Director Loaned TFAC Money To Pay Its Bills
Tullahoma Sought Information About Arts Center A Year Ago
by Russel Mobley, MTA Editor
June 20. 2010
The embattled executive director of the Tullahoma Fine Arts Center loaned money to the center to pay its bills during the last fiscal year.
According to documents and executive director Lucy Hollis, she loaned $13, 476 to the center during the fiscal year beginning July 1, 2008 and ending June 30, 2009. The center's 990 tax return for that year states that the loan, made without a written agreement, was approved by the board of directors. Hollis also leads the board as president, an office she has held for years.
In a previous interview, Hollis said she could not remember what the money was specifically needed for, but that it had been used to help pay the center's bills. Since that time Hollis has obtained a Tullahoma lawyer and accused MiddleTennesseeArts.com editor, Russel Mobley, of “stalking and harassment.” Her lawyer, Robert T. Carter, has not returned a call from MTA seeking comment.
The center has been hemorrhaging money over at least the last eight years, even with a reduction of its programs and compensation paid to the executive director.
The 990 shows a deficit of $14,297 for the last fiscal year. The center had deficits for six of the last eight fiscal years, having excess money only for 2004 and 2007. In all, the center lost $40, 392 since the 2001 fiscal year.
Over the last eight years, membership dues and assessments declined from $10,100 to $5,593. And the center's net assets fell from $208,748 to $158,482.
During the 2001 fiscal year, $24, 626 was paid out for salaries and wages. In 2002, it increased to $35, 164. After that the amount fluctuated until the fiscal year ending in June 2009, during which the center, according to its 990 form, paid $5,458 for salaries, other compensation, and employee benefits.
The City of Tullahoma first made inquiries with the Tennessee Arts Commission about the status of the Tullahoma Arts Center, weeks before approving the city's budget for the fiscal year 2010. The budget included $13,000 for the arts center. TFAC has again requested funds from the city..
On June 18, Tullahoma City Administrator Jody Baltz sent an email to TAC Executive Director Rich Boyd requesting any “good, bad or indifferent” information to help the city finalize its budget.
“Our staff has heard rumors that there were some issues between the State and the Center and we would like to verify including that the [Tennessee Arts Commission] conducted a recent audit of the Tullahoma Fine Arts Center,” wrote Baltz.
Boyd replied by email on June 19, “The Commission is not empowered to conduct audits and your information that one was conducted by this agency is incorrect.” He added, “While I understand your desire to acquire information, it is the policy of the Tennessee Arts Commission not to respond to rumors.”
Baltz responded, “Based on your response I will assume that your sub-grantee for the period FY1971-2008 was in compliance and good standing.”
“The Tullahoma Fine Arts Center has been in compliance with funds awarded by the Commission,” Boyd responded 26 minutes later.
After granting the center $5,500 for operating support in FY2008, and $5,000 in FY2009, the Arts Commission rejected the center's request for more support in FY2010.
