By: Cherry Wright, MS, CCC-SLP, Financial Advisory Committee Chair
Members of the Texas Speech-Language-Hearing Association (TSHA) Financial Advisory Committee (FAC) include: Hayden Grahm (Public Member), Melinda Corwin, Dalan Gore, Brittany Hall, Donise Pearson, Judy Rich, Jennifer Watson, Lisa Milliken (President/Ex Officio), Robyn Martin (Past-President/Ex Officio), and Katie Strang (Executive Director/Advisory).
The FAC met twice in 2024. The Committee reviewed the 2023 audit, conferred with the TSHA Financial Advisor regarding the investment portfolio, reviewed and monitored the 2024 budget, reviewed the proposed budget for 2025, reviewed the investment policy, and made recommendations to the Executive Board.
The Association continues to experience the impact of the pandemic, specifically in reference to declining membership and registration for Convention, and increases in operating expenses, especially related to Convention.
There were no identified discrepancies in the 2023 audit. Net assets at the end of 2022 were $2,151,565. Net assets at the end of 2023 were $2,256,494.
The cost of operating the Association is approximately $1,600,000 annually. Historically, the Convention and membership dues generate approximately 90% of the revenue. In the years since the pandemic, the Convention basically broke even one year and has not covered expenses in the remaining three years. This, in addition to declining membership, has resulted in the Executive Board adopting deficit budgets to continue to operate. The projected deficit for 2024 is $229,923. The 2025 budget was approved with an anticipated deficit of $216,000.
The goal of the Association is to maintain a minimum of $1,500,000 in reserves. This is the approximate amount needed to operate the Association for one year at the current level. As of September 30, the investment portfolio totaled $1,760,294, which reflected an increase of 12.8% year to date, as compared to 20% for the S&P 500. During the year, $200,000 was transferred from the investment fund to the general operating fund to address the projected deficit. It is anticipated that an additional $100,000 will be transferred before the end of 2024 to cover the remaining 2024 deficit and to initially address the projected 2025 deficit. Due to the losses realized on an annual basis since 2021, no funding has been added to the investment portfolio.
The Board’s goal is to develop and operate on a balanced budget. They continue to work, upon recommendations of the FAC and in cooperation with the management company (Smith Bucklin), to generate revenue and control expenses. Although operational modifications have been made, the changes have not yet been sufficiently substantial to address the discrepancy between revenue and expenses.