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☛ NCHA Suspension and Appeal Guidelines Getting An Overhaul 9-21-18

Posted by on Sep 21, 2018 in BREAKING NEWS, COW HORSE NEWS, CUTTING NEWS, FROM THE EDITOR, HORSE LAWSUITS, HORSE ORGANIZATIONS, INDUSTRY NEWS, LAWSUITS & INDICTMENTS, WHO, WHAT & WHERE | 11 comments

NCHA SUSPENSION AND APPEAL GUIDELINES GETTING AN OVERHAUL

 

STANDING RULE 37 AND 38 UPDATED FOLLOWING DUFURRENA/VOGEL CASE

 

By Glory Ann Kurtz
Sept. 21, 2018

According to an interesting e-mail that I received, following the Dufurrena/Vogel situation I previously wrote about, the NCHA is revising Standing Rule 37 and 38, which cover members who have done something that places them on probation or suspends them from the NCHA by the Grievance Committee, Amateur, Non-Pro Review Committee, Medication Review Committee or any other committee authorized by NCHA for violating any rule.

 

Following are the major parts of the new suspension and appeal guidelines:

 

Rule 37: Non-members involved in NCHA rule violations may also be denied privileges of the Association for “violation of or assisting in the violation of NCHA rules.”  When the NCHA rule in question contains specific provisions concerning disciplinary actions or burdens of proof, any disciplinary action taken by an initial Hearing Committee, the Executive Committee or an Appeal Committee should be consistent with that provision.

 

Any member can file a complaint regarding any alleged violation of NCHA rules by submitting the complaint in writing to the NCHA Executive Director (ED), signed or identified by the person filing the complaint, and sent with a check or credit card payment for $50, payable to the NCHA, unless the person filing the complaint is an NCHA Director, a class representative, show management or a judge. Anonymous complaints will not be accepted, investigated or acted on by the NCHA, with the exception if a complaint is reporting a violation of the Zero Tolerance policy or for a complaint submitted by an NCHA Director, a class representative, show management or a judge. Anonymous complaints will not be accepted, investigated or acted on by the NCHA.

 

A complaint must be filed, postmarked, faxed, emailed or hand-delivered within seven (7) days of the closing date of the show involved or within seven (7) days of the alleged rule violations. The timing for filing a complaint alleging a violation of the Zero Tolerance Policy is contained in Standing Rule 35.6. No complaint is required regarding a member’s competitive status (non-pro or amateur rules) or for violation of the NCHA Medication and Drug Rules.

 

The ED will refer complaints to (1) Grievance, (2) Medication Review, (3) Non-Pro Amateur, (4) or any other hearing or review committee. A quorum of an initial hearing committee will consist of three members with one being elected chairman.

 

The NCHA will notify the alleged violator in writing of the complaint and alleged action being investigated, each NCHA rule(s) potentially violated, the disciplinary actions applicable to the alleged violation and request that the violator file a written election with the ED to contest or not contest the alleged violation within 10 business days. If not received in that timeframe the case will be deemed not contested.

 

Initial Hearing:

The initial Hearing Committee shall schedule a hearing not less than 15 days‘ notice of the hearing date but not less than five business days notice of the hearing date. The alleged violator and NCHA shall exchange all proposed documents and evidence to be considered in the hearing no less than three days prior to the hearing. Legal counsel for NCHA and the alleged violator may appear and participate in the evidentiary position of the hearing. The hearing committee shall deliberate in private and shall render a decision in contested matters by majority vote and shall notify the EC of the decision in writing. The initial Hearing Committee will only be required to note in its report the NCHA rule(s) violated and will not be required to provide a detailed reason or opinion for its decision.

 

The Medication Review Committee shall consider potential violations of the Medication and Drug Rules and guidelines. Potential disciplinary actions for proceedings relating to alleged violations are contained in Rule 35A.7. The alleged violator bears the burden of proof to establish that he or she has NOT administered any drug or medication in violation of the NCHA Medication and Drug rules.

 

The Non-Professional Amateur Review Committee shall initially consider all violations of the NP and Amateur rules. The potential disciplinary actions for proceedings relating to alleged violations are in rules 50-51. The alleged violator bears the burden to establish entitlement to hold NP and/or Amateur status.

 

The Grievance Committee (GC) shall initially consider all violations of rules relating to alleged violations of NCHA Zero Tolerance Policy (35A) alleging improper conduct toward judges and monitors (35B), alleged improper conduct by and between members (35C) and alleged violations of other rules that are not considered by the Medication Review Committee, the Non-Pro Amateur Review Committee or Executive Committee.

 

For matters for which the rule allegedly violated contains suggested disciplinary action, the GC should consult those provisions in connection with discipline to be assessed for such rule violations. In cases where the rule allegedly violated does not contain suggested disciplinary action, the GC should consult the following general guidelines:  (i) First Offense: fine, probation or both. A first offense will be removed from a member’s record if that member has no further infractions for two years after the first offense is committed. (ii) Second offense within 2 years of first offense (a) increased fine (b) increased probation, (c) suspension or all of the foregoing. (iii) Additional offenses within 2 years will be dealt with severely, including heavy fines, lengthy probation and suspension will be increased as deemed appropriate by the committee.

 

Effects of Membership Probation and Suspension: Probation will be for a length of time decided by appropriate committee and also set a term of suspension imposed in the event the probation is violated. The term of suspension shall only become effective upon the probated member’s violation of the terms of his probation. In the event suspension is imposed for subsequent rule violation(s), the balance of the probated suspension shall begin on the day after the suspension for the subsequent rule violation s completely served.

Any membership Suspension that went into effect on or before Aug. 21, 2018 will not be allowed to participate in any way (owner, agent of horse, contestant, helper mounted  or on foot, in an NCHA approved or sponsored cutting horse contest. A suspended person can only attend an NCHA approved or sponsored cutting horse contest as a spectator seated in the stands. Any horse owned or controlled in whole or part by a suspended person will not be allowed to enter or compete in an NCHA approved or sponsored cutting. In the event a suspended person violates this rule, an additional six months will be added to his suspension. The rider of any horse ineligible to enter or compete in an NCHA-approved or sponsored cutting horse contest under this rule will be subject to a six-month membership suspension.

 

Membership Suspensions that went into effect after August 21, 2018:

Any person who has had their membership suspended, where suspension commences after August 21, 2018, will not be allowed in the premises of an NCHA approved or sponsored cutting contest. “Premises” include all show arenas, practice pens, loping arenas, sales barns, exhibit halls, trade shows and all other parts of the show grounds.

Any horse owned or controlled in whole or part by a suspended person or in which the suspended person holds any future rights of any kind, will not be allowed to enter, compete or transfer existing entries in an NCHA-approved or sponsored cutting horse contest. This includes horses owned by a corporation, partnership or any entity in which the suspended member has any ownership interest. If a suspended person violates this rule, an additional six (6) months will be added to his suspension. The rider of any horse in any NCHA approved or sponsored horse contest which is ineligible to enter or compete under this rule will be subject to six-month membership suspension.

 

Failure to timely pay fine:  When a member is assed a fine in addition to a suspension and/or probation, as a result of a committee finding made after Aug. 21, 2018, such fine must be paid in full within 15 days after the fine is assessed. In the event the fine is not paid in full in that timeframe, the corresponding suspension and/or probation will be extended by a period equal to the number of days over 15 that it takes for the member to pay to fine in full.

 

Transfer of horses owned by suspended member: This applies to all membership suspensions that went into effect after Aug. 21, 2018. A horse owned by a suspended member at the time of his/her suspension that is sold, gifted or for which ownership is otherwise transferred to an immediate family member, or that is sold, gifted or for which ownership is otherwise transferred to any corporation, partnership or any other entity of any kind in which the suspended member has any present or future ownership interest will not be allowed to show in any NCHA approved or produced event during the term of that member’s suspension. In the event the NCHA questions the legitimacy of a transfer made by a suspended person during his/her suspension, the suspended person shall bear the burden of proof to establish the legitimacy of the transfer.

 

Suspension by other associations: Every person suspended by the AQHA or APHA for unsportsmanlike conduct at a show or contest or for inhumane treatment of horses, shall stand suspended by the NCA upon official notification to this Ass’n from the AQHA or the APHA of any such disciplinary action which has become final and  non-appealable. The NCHA may honor the disciplinary actions of its affiliate organizations when supplied with satisfactory evidence that the person so disciplined has been given a full and impartial hearing by the affiliate organization involved; however, any action taken by an affiliate will not limit any authority of jurisdiction of the NCHA.

 

Publication of Findings:When disciplinary action is taken the results will be published in the Cutting Horse Chatter. Also, all decisions a final and binding unless subsequently overturned by an appeal committee under NCHA Standing Rule 38.

 

Rule 38: Appeal Guidelines:

Appeal Prerequisites: (a) Anyone found in violation of any NCHA rule by an Initial Hearing Committee, is entitled to appeal so long as (1) written notice of such request for appeal by each person appealing the ruling is received by the NCHA ED within 21 days of the date of the letter notifying the person of such action taken by the Initial hearing Committee and (2) an appeal fee as required by section (b) below is also received by the NCHA ED within the 21-day period.

 

(b) The appeal fee is $6,000 per person appealing that decision. For cases in which the Initial Hearing Committee has assessed a suspension of membership or competitive status, the appealing party shall have the right to request an expedited appeal as described in section (c) below. The appeal fee for an expedited appeal is $10,000 for each person filing an expedited appeal of the decision of an Initial hearing Committee. Appeal fees will not be refunded unless all findings of the initial Hearing Committee are completely overturned by an Appeal Committee.

 

(c) In the case of a non-expedited appeal, the appealing member(s) shall be given not less than 15 days notice of a time and place for appeal hearing to be heard by the EC or by an Appeal Committee appointed by the NCHA President. In cases of an expedited appeal, the appealing member(s) shall be entitled to an appeal hearing no more than five business days after the expedited appeal is perfected.

 

Appeal Proceedings: (a) An appeal is a “de  novo” proceeding that could result in a new finding concerning whether or not there was a violation of any NCHA rule(s) and either an affirmation, enhancement or decrease in the disciplinary action taken by the Initial Hearing Committee. (b) Eight members of the Executive Committee shall constitute a quorum. (c) The NCHA President may appoint a Special Appeal Hearing Committee  (the “Appeal Committee”) to conduct any appeal hearing or disciplinary actions. This Committee shall have a minimum of five members and a maximum of nine. Each member must be a member in good standing of the NCHA. Five members of the Appeal Committee members shall constitute a quorum for hearing an appeal. (d) No continuance of an appeal hearing shall be granted unless a written request is received by the ED at least 7 days prior to the hearing and good cause is shown as determined at the sole discretion of the President or Chairman of the Appeal Committee. (e) At the hearing the appealing member shall have the opportunity to be heard, be represented by legal counsel, present evidence in his/her own behalf and to hear and refute any evidence offered against them. (g) The decision of the EC or Appeal Committee in an appeal proceeding under this rule shall be final and binding on all parties. The committee hearing an appeal shall only be required to note in its report the NCHA rule(s) it found were violated and shall not be required to provide a detailed reasoned option for its decision. (h) When disciplinary action is taken, the results in probation or suspension, the person’s name, the rule violated, and the disciplinary action taken will be published in the Cutting Horse Chatter.

 

From the Editor:

As a member of the NCHA for close to 20 years, I was sued at one time by the NCHA for asking for Rick Ivey’s salary and refusing to sign a non-disclosure form to prevent my dissemination of the information I was provided. (They dropped the suit when I told them I didn’t need his salary, I found it out another way.) As an investigative journalist and the owner of this website, my only remark about the above Guidelines is that they should include: “Any NCHA member who loses a lawsuit filed by another NCHA member regarding the other member’s actions, including taking advantage of the elderly, providing false or erroneous invoices to an NCHA member by a trainer, running an illegal business or training operation within the confines of the NCHA as defined by the State of Organization or Operation, providing false documentation to an NCHA committee during an appeal or suspension committee hearing, the loss of a customer’s horse due to abuse by the trainer or the trainer’s agent or assign including, but not limited to, employees, contractors or subcontractors, or charging exorbitant fees for other services, such as double dipping customers for travel or hauling expenses, should receive a lifetime suspension, without preferential treatment or exception.”

 

The trainers are basically unregulated by the above problems.  I hear these complaints all the time and instigating these rules could bring back some of the many well-heeled members who have left the NCHA…..and get rid of some the bad actors or unscrupulous trainers contributing to the demise of the membership numbers.

Glory Ann Kurtz

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☛ From the Editor 9-19-18

Posted by on Sep 19, 2018 in BREAKING NEWS, CUTTING NEWS, HORSE ORGANIZATIONS, INDUSTRY NEWS, RICK'S CORNER, WHO, WHAT & WHERE | 0 comments

FROM THE EDITOR:

I received the following letter from Allen (Skeeter) Bird, an NCHA member, regarding an article by Rick Dennis and am posting the letter here, with the response from Mr. Dennis.

 

LETTER FROM ALLEN (SKEETER) BIRD:

Bird, Allen (Skeeter) <AEBird@nwosu.edu>

Sep 14, 2018, 9:55 AM

Mrs. Kurtz,

Since I am pretty new to the NCHA and not involved in the politics, I
may be missing something that you are trying to communicate.   I hope
that I don’t offend you; but, I feel there were a couple of things
that I think your analyst incorrectly stated or ignored.

·         Rick Dennis states in his analysis that the NCHA is a 501
(c) (3) organization.  If he carefully read the 990, he would see on
page one that the NCHA is a 501 (c) (5) organization which is not the
same as a 501 (c) (3).   Maybe it is not that important to the
numbers; but, it immediately lends suspect to his competence to
perform an accurate and/or thorough analysis.

·         I also feel Mr. Dennis completely ignores the positive trend
from the previous year (2014 vs 2015).  If one were to compare the
previous year figures which are stated right next to the current year
numbers one would notice a positive increase in the income less
expenses from $90,054 to $1,084,769.  That is a positive increase of
over 1204% in one year.

·         Additionally, the net assets increased from $5,806,940 to
$7,117,395 from 2014 to 2015.  This is an increase of 22.6% which
looks like a decent move in the right direction.

I read through the 990 myself.   Based on what I saw, I think there
would be many things I think I would do differently if I were running
the company that would influence the bottom line of the organization.
At a minimum, several things warrant questions.

I don’t know what the current numbers look like and this 990 is almost
2 years old.  I just don’t think Mr. Dennis’s analysis is accurate or
provides a legitimate case for current mismanagement or insolvency of
the organization.

Respectfully,

Skeeter
Allen E. Bird (Skeeter)
Class of ‘85
Chief Executive Officer
Northwestern Oklahoma State University Foundation and Alumni Association
Direct line:  580-327-8599
Cell:  580-732-0565

 

THE FOLLOWING IS THE RESPONSE FROM RICK DENNIS:

 

Mr. Allen E. Bird (Skeeter)
Class of 85
Chief Executive Officer
Northwestern Oklahoma State University
Foundation and Alumni Association

 

Dear Mr. Bird:

I’m in receipt of your electronic transmittal (email) to Mrs. Kurtz, pertaining to my cursory analysis of the NCHA 2015 – 2016 IRS 990 for the National Cutting Horse Association. I agree with your first paragraph, pertaining to the 501 C (3) nonprofit designation and for clarification purposes, it was merely an over site by the editor.  However, since you state that you’re new to the NCHA please allow me to enlighten you. If you had performed a little research you would have learned, in a previous time, the NCHA use to be a 501 C (3) up and until they decided to change the (3); which is a charitable organization, to a (5) which is an agriculture designation.  In fact, the NCHA Charities Foundation moniker is still in use today, by the organization. The primary requirement for the change was Politics.  A (3) doesn’t allow for the engagement in political activity while the (5) designation does.

 

At this time the NCHA does engage in political activity.  However, the main focus of your rebuttal should be limited to the IRS 501 (C) designation in the prefix which stipulates an organization’s nonprofit status.  This moniker was and is the main focus of the cursory audit.  As an FBI and IRS trained Forensic Auditor, the correct numerical designation is only relevant when an audit is made of the Chart of Accounts for an organization, which wasn’t possible.  Further, I don’t visualize, associate, or comprehend any relevance to your statement, “Maybe it is not that important to the numbers; but, it immediately lends suspect to his competence to perform an accurate and/or thorough analysis.  To set the record straight, an error by an editor has absolutely nothing to do with the competency of an analyst, or didn’t they teach you that in college? Especially, since you so proudly tout yourself as a Chief Executive Officer!

 

To provide you with a little nomenclature in financial audit, audit terminology, and descriptive phraseology please be advised of the following: There are only a few key points to be made during a cursory inspection or cursory audit of an organization’s IRS 990  tax return and, i.e., income versus expenses, accounting method utilization, e.g., accrual or cash accounting methods, assets versus liabilities, income versus expenses, bottom-line profits versus income, bottom-line-profit percentage, and upper management salary percentages versus overall accrued employee salaries.

 

If you were an experienced auditor, which apparently you’re not, you would know that the accrual method is a misleading barometer of the overall health of an organization, simply due to the fact it’s a projection of available – but not received cash on hand, versus the cash method which is a statement of actual cash on hand, or money in the bank so-to-speak. The accrual method becomes problematic for an organization when spending is based on money owed rather than cash-on-hand which provides an actual cash to expenses spending ratios.  In simplicity, if you spend money before you receive it, then, if the projection of outstanding receivables never materializes this develops into a cash flow problem for the nonprofit which the NCHA is apparently having at this time.

 

Another problem with your rebuttal is your comment, pertaining to the age of the 990, which also shows inexperience on your part.  If you had engaged your brain prior to engaging your computer key pad to attempt a feeble character assassination which is actually laughable, and performed due diligent research about the NCHA’s latest 990 filing, you would have learned; as I did, that this is the last IRS 990 on record for the NCHA. Their 2016 – 2017 IRS 990 and tax return hasn’t been filed as of either the article release or it hasn’t been posted by the IRS on Guidestar.org. Since the NCHA has a history of running the organization in a shroud of secrecy, perhaps you should contact them directly and inquire about if and when they intend to file another tax return.

 

Lastly, my cursory inspection and audit of the latest NCHA financials wasn’t intended to show anything other than what it it is: To point out areas within the organization that needs scrutiny, adjustment, and change in order for the NCHA to remain a fixture within the industry, that a myriad of individuals count on to support their families. Nothing more or less.  As a side note, please be advised that I was at a Fortune 500 Board of Directors meeting, during a Personal Protection Detail,  and I personally witnessed the Chairman of the Board fire an Executive Vice President simply due to him salting his food before he tasted it.  Later I learned, that the Chairman’s ideology correlated to the fact that if he salts his food before he tastes it, then he would spend his money before he justified the expenditure.  Perhaps this is a lesson for your to learn before you are fired for incompetency.

 

Richard E. “Rick” Dennis CPP

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☛ Is NCHA Acting as a Non-Profit? 9-17-18

Posted by on Sep 17, 2018 in BREAKING NEWS, CUTTING NEWS, FROM THE EDITOR, HORSE ORGANIZATIONS, LAWSUITS & INDICTMENTS, WHO, WHAT & WHERE | 2 comments

 

IS THE NCHA ACTING AS A NON-PROFIT?

 

KEY ASPECTS OF A NON PROFIT ARE ACCOUNTABILITY, TRUSTWORTHINESS, HONESTY AND OPENNESS

 

By Glory Ann Kurtz
Sept. 18, 2018

A non-profit organization, also known as a non-business entity or non-profit institution, is dedicated to furthering a particular social cause or advocating for a shared point of view. In economic terms, it is an organization that uses its surplus of the revenues to further achieve its ultimate objective, rather than distributing its income to the organization’s shareholders, leaders, or members. Non-profits are tax exempt or charitable, meaning they do not pay income tax on the money that they receive for their organization. They can operate in religious, scientific, research or educational settings.

The key aspects of nonprofits are: accountability, trustworthiness, honesty, and openness to every person who has invested time, money, and faith into the organization.

 

Nonprofit organizations are accountable to the donors, funders, volunteers, program recipients, and the public community. Public confidence is a factor in the amount of money that a nonprofit organization is able to raise. The more nonprofits focus on their mission, the more public confidence they will have, and as a result, more money for the organization. The activities a nonprofit is partaking in can help build the public’s confidence in nonprofits, as well as how ethical the standards and practices are.

 

Nonprofits are required to submit their financial statements and other information — including the salaries of directors, officers, and key employees — to the IRS. (For information on who is considered a key employee, see IRS Form 990 and its instructions.)

 

The IRS and nonprofits themselves are required to disclose the information on Form 990 to anyone who asks.Nonprofits must allow public inspection of these records during regular business hours at theirprincipal offices. However, many people won’t even need to ask — a number of websites make Forms 990 available for the searching, including the Foundation Center at http://fdncenter.org and GuideStar at www.guidestar.org.

 

People can also request information from the IRS by writing a letter, including the name of the organization, the year, and the type of tax return requested, and send it to:

Commissioner of Internal Revenue
Attn: Freedom of Information Reading Room
1111 Constitution Avenue, NW
Washington, DC 20224

 

NCHA FINANCES:

Even though the NCHA is a non-profit, their finances seem to be headed downhill, which is requiring the association to try to raise more money, of course from the members. They are currently raising their membership dues to $145 per year. Unfortunately this is not how you balance the books. This only runs  people out of the horse industry!  In other words, the members suffer because of mismanagement.

 

During their Aug. 6-8 Executive Committee meeting, it was pointed out that they need to get a better handle on cash flow; accounts receivables are solid but the timing of payment needs to be recognized in order that there are no cash flow shortfalls. For example, NCHA is still awaiting the reimbursement from the MERP fund for the 2017 Futurity. There isn’t a question of whether NCHA will receive the funds, it’s simply a matter of when the funds will be disbursed by MERP (Texas’ Major Event Reimbursement Program).

 

A discussion ensued regarding a method for NCHA to fund the current cash flow shortage citing three options: the liquidation of investments, requesting from our bankers, Frost Bank, a margin loan against our investments or opening a line of credit.

 

Cutting down on their internal costs was not a choice! Rather charging the members and their employees more for their services was their choice!

 

As a part of this cash shortage, the NCHA passed a motion to charge the box seat holders from last year $1,890.00, to this year $5,000.00 for same seats, boxes with 8 seats to $5,500. This increase would include box seats for all three Triple Crown events: Futurity, Super Stakes and Summer Spectacular.

 

It was also passed that all vendors currently outside the Will Rogers Coliseum for all Triple Crown events, be moved inside the John Justin Building with the exception of horse spas and cleaning trailers.

 

The NCHA is also exploring methods to reduce the amount of money NCHA spends on very costly benefits on an annual basis for employees by a change of the insurance plan design, change of carriers, wellness incentives, cost-sharing plans, etc.

 

Also it was passed that there would be increases in the various levels of NCHA membership. Life Membership will no longer to offered as of August 7, 2018. For 2019 memberships, all members will pay $145 and will include Amateur and non-pro members but that amount will not include trainer’s fees. Amateur and Non-Pro fees will be $25. Trainer fees will be $125 with PAC, $25 without PAC in addition to membership fee.  It was later passed that a fee of $145 would include the cost of the trainer’s card or non-pro/amateur card. Existing life members with amateur and non-pro fee will be $25 annually. Existing Life Non-Pro fee will be $400.

 

All new memberships are free for one year and include online Chatter only. All former members who have been members for 3 years will also receive a one-year free membership that includes the Chatter online only. It was later reviewed and when the numbers were run, it would mean approximately $30,000 to $35,000 NCHA would not recognize on an annual basis. My question: “Had the numbers never been run before?”

 

As of 2019, one printed Chatter will be sent per household and printed rulebooks will be sent to current affiliates trainers, judges, certified secretaries and amateurs/non-pros, the goal being to print fewer copies. All others can request a copy. My question is: How will the members know and adhere to the rules if they don’t get a rulebook? How about putting a copy on their website for members to copy.

 

A discussion ensued regarding a method for NCHA to fund the current cash flow shortage citing three options: the liquidation of investments, requesting from our bankers, Frost Bank, a margin loan against our investments or opening a line of credit.

 

Discussion for other ways to save money was to reduce the number of Chatter issues published, as well as immediately reducing the number of issues of the Chatter sent to each household. Moving the payment of fees by members and vendors by ACH, i.e., the direct debiting of a member’s checking account. James V. Burris advised the Executive Committee that there are both positive and negatives to ACH payment methods.

 

Reducing the NCHA staff was also brought up; however, a it was stated that a thorough audit must be made by the various departments in the NCHA business office to identify items that can be eliminated immediately thereby reducing expenses as well as explore areas in the budget that may be reducing going forward. My question: “Why did they wait so long?”

 

Finance committee member, Steve Smith, said he would take the message back to the Finance Committee that they need to have a better handle on cash flow and structured budgeting process.

 

However, when it came to lowering costs of the events, which included the costs of the number of awards provided for NCHA events, they produced several options: (ie) reducing the number of buckles awarded, only giving them to the Top 10 and allow other finishers to purchase a buckle from Gist at the NCHA negotiated reduced rate; reducing the number of cattle per cutter by ¼ of cows in a go-round, bringing the total to a ½ cow reduction, which would reduce cattle costs by $200,624 (it was moved to reduce the cattle in each go round by an additional ¼ cow; thereby bringing the total reduction to ½ cow per go-round). The discussion was tabled until the Limited Age Event Committee had an opportunity to discuss this matter with the Executive Committee later.

 

Some additional costs were discussed, with some passing. The Amateur Committee recommended that there be a 5/6-year-old gelding Unlimited and Amateur classes at $535, with $450 going to the jackpot, $50 to office charge and $35 for processing fee. Motion passed.

 

The motion was passed recommending adding a gelding class to the 5/6 at ALL NCHA Triple Crown events, as a class within a class – no prizes or buckles, CASH ONLY.

 

The cost of the Rulebook was brought up and passed, with the cost of the 2018 edition being $11,461 for printing 10,000 and mailing out 8,183. Of that amount  $2,965 was for postage. NCHA copies to affiliates, amateurs, non-pros and judges, 4,500 amateurs, 1,000 affiliates, secretaries and judges total approximately 2,600. It was moved that effective with the 2019 rulebook year, 2,500 rulebooks be printed for distribution only to secretaries, judges and affiliates and they review how many are left at the end of the year, with the stipulation that if anyone calls NCHA requesting a copy, the staff will print off a copy and mail it to them.

As I mentioned previously, how about putting rulebook on their website so they can be downloaded by members?

 

John Rutherford agreed to Chair a Subcommittee on NCHA management, operations and financial efficiency. The subcommittee will be comprised of Kevin Knight, Joan Hayworth, Jan Gandy and Alvin ?  to help facilitate the completion of this study. The EC agreed to table taking further action regarding the proposed sub-committee until a new Executive Director was in place.

 

In closing, I would like to inform my readership that I’m currently waiting for the NCHA’s 2016 to 2017 IRS tax filing which is currently missing on GuideStar.org. As soon as I receive this document I’ll resume my audit of the NCHA as well as its income versus their operating expenses.

 

My question is, “Is the NCHA really acting as a Non-Profit?”

 

To read complete results of the NCHA Executive Committee, click below:

1-ec-meeting-minutes-august-8-18

Click below for “What Is A Non-Profit?”

2-What is a Non Profit_

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☛ NCHA Tax Return Analysis 9-10-18

Posted by on Sep 10, 2018 in BREAKING NEWS, COW HORSE NEWS, CUTTING NEWS, HORSE ORGANIZATIONS, INDUSTRY NEWS, REINING NEWS, RICK'S CORNER, WHO, WHAT & WHERE | 0 comments

NCHA Tax Return Analysis

Clarification and Risk Analysis

 By Rick Dennis
Sept. 10, 2018

NCHA Tax Return Analysis

 

Clarification and Risk Analysis

 

The following Risk Analysis was performed by the WIND RIVER COMPANY LLC, Richard E. “Rick” Dennis, Analyst at the request of Mrs. Glory Kurtz Ann Kurtz, allaboutcutting.com, and encompasses the latest IRS 990 tax filings for the National Cutting Horse Association.

 

The National Cutting Horse Association is a 501 (C) (3) Nonprofit organization, organized in the State of Texas.  Therefore, the following Risk Analysis should apply whether the company is a for profit or nonprofit with the exception that a for profit pays corporate business taxes and the nonprofit doesn’t pay corporate business taxes. Any profits made by a nonprofit are kept to forward the vision and mission statement of its State business organization and bylaws.

 

What Is A Good Profit Margin?

 

Typically, an operating profit margin of a company should be compared to its industry or a benchmark index like the S&P 500.  For example, the averageoperating profit margin for the S&P was roughly 11% for 2017.  A company that has an operating profit margin higher than 11% would have outperformed the overall market. The National Cutting Horse Associations latest IRS 990 filing’s states on page 12 of their latest tax filing that total revenue is $24,026,610. Total expenses for this specific tax period is $22,941,841.  During this specific tax reporting period, the NCHA’s Income less Expenses is $1,084,769. A quick percentage ratio calculation revealed the NCHA’s Income less Expenses is approximately (4.5%).  This mathematical calculation revealed the NCHAis operating below S&P 500, or below market standards for operating efficiency, e.g., :

 

What Is Considered A Healthy Operating Profit Margin?

 

Operating profit margin is one of the key profitability ratiosthat investors and analysts consider when evaluating a company.  Operating margin is considered to be a good indicator of how efficiently a company manages expenses because it reveals the amount of revenue returned to a company once it has covered virtually all of both its fixed and variable expenses except for taxes and interest. Typically, a healthy operating profit margins ranges from 11% to 20%.

 

What Does Operating Profit Margin Tell Investors and Business Owners?

 

The operating profit margin informs both business owners and investors about a company’s ability to turn a dollar of revenue into a dollar of profit after accounting for all the expenses required to run the business.  This profitability metric is calculated by dividing the company’s income by its total revenue.  There are two components that go into calculating operating profit margins: revenue and operating profit. This metric was used in the forgoing to establish the (4.5%) NCHA Income less Expenses mathematical ratio.

 

Revenue is the top line on a company’s income statement.  Revenue, which is sometimes referred to as net sales, reflects the total amount of income generated by the sale of goods or services.  Revenue refers only to positive cash flow directly attributable to primary operations without withdrawing from a company’s savings or investment programs or loans to sustain operations.  When revenue ratios are low it can indicate a company that’s not very well run.  In a worst case scenario, it’s headed for a disastrous conclusion.

 

The Bottom Line.

A consistently healthy bottom line depends on rising operating profits over time.  Companies use operating profit margin not only to spot trends in growth, but also to pinpoint unnecessary expenses to determine where cost-cutting measures can boost their bottom line.  To gauge a companies performance relative to its peers, investors can compare its finances to other companies within the same industry.  However, this metric is also useful in the development of an effective business strategy as well as serving as a comparative metric for investors.  To learn more financial analysis, please confer with a certified public accountant, economist, or learn“How the Income Statement and Balance Sheet Differ?”

 

NCHA 990 RECAP

There’s a few important elements of this 990 tax return that requires explanation, e.g., :

 

NCHA IRS 990 TAX PERIOD:

 For the 2015 tax year, or tax year beginning 10/01/2015 and ending 09/30/2016.

 

PART IX STATEMENT OF FUNCTIONAL EXPENSES

 Number (7) Other Salaries and Wages:

$2,087,139.00

 

Program Services Expenses

$1,137,015.00

 

Management and General Expenses

$950,124.00

 

The key element to this category is that Management Expenses are calculated at the rate of (45.5%) of total salaries.  I don’t believe these salary quotes takes into consideration of perks to include, but not limited to retirement contribution, insurance, tax contributions, etc. If the foregoing Program services expenses are representative of the 42 employees then the average salary paid to the (42) excluding the management team would calculate to the average salary of being approximately $27,071.78 each.  Check with the NCHA for clarification of the computations.

 

Number (11) Fees for services (non employees)

b – Legal
$140,100.00

c – Accounting
$93,651.00

d – Lobbying

$150,000.00

 

SCHEDULE (O)

 The organizations board of directors has vested all powers of the board of directors in the Executive Committee, except the power to amend by laws and except as otherwise limited by the board of directors or by statute the Executive Committee manages the affairs of the organization between meetings of the board of directors at all times, the Executive Committee is subject to the direction of the board of directors.

 

Essentially, what this clause means is that the NCHA Executive Committee has total control of the NCHA – at all times, except when a meeting of the board of directors is called to order.  Their power is ONLY limited by statue or a majority vote of the board of directors.

Click below for NCHA 990 from Oct. 1, 2015  to Oct. 30, 2016

NCHA 990 for 2015-2016

 

 

 

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☛ Was it a magnificent con job or just bad attendance? 9-9-18

Posted by on Sep 9, 2018 in BREAKING NEWS, COW HORSE NEWS, HORSE NEWS, HORSE ORGANIZATIONS, WHO, WHAT & WHERE | 0 comments

WAS IT A MAGNIFICENT CON JOB OR JUST BAD ATTENDANCE

 

MAGNIFICENT 7 INVITATIONAL STOCK HORSE CHAMPIONSHIP TURNS OUT TO BE A “NO PAY”

 

By Glory Ann Kurtz
Sept. 9, 2018

 

Are horse events getting a bad name, with some associations running short of cash and others increasing entry fees, adding little or no money, cancelling events and now – not paying the winners?

 

An exciting cowhorse event called the “Magnificent 7 All-Around Stock Horse Championship,” held June 8, 2018 at Cal Expo in Sacramento, Calif., seems to be attempting to solve their insolvency by not paying the winners of the competition.

 

The Magnificent 7 all-Around Stock Horse Championship is an exciting four-event competition based on an event originally called the World’s Championship All-Around Stock Horse contest crafted by Bobby Ingersoll in the 1970s and was actively supported by Pro Rodeo Hall of Fame members Cotton Rosser and Walt Rodman. The contest was held periodically over the years until Western States Horse Expo CEO and founder Miki Nelsen, Bill Lefty and others resurrected and revitalized the event, giving it a “forever home” at the Cal Expo.

 

The competition, that was invitational for the seven entries, included four events: herd work, rein work, steer stopping and fence work.

 

The total purse wasn’t a huge amount of cash, $29,908.35, but the seven entries paid a total of $2,060, which included a $1,500 entry fee, a $200 cattle fee, $180 stall fee for show the horse and $180 for a turn-back horse  last May to try their chances for an advertised “hefty cash prize, a great buckle and the title of Magnificent 7 all-Around Stock Horse Champion.”

 

When all was said and done, Call Me Mitch, owned by Estelle Roitblat and ridden by Phillip Ralls, won the event with a total score of 295, giving Roitblat a $8,372.00 paycheck (that hasn’t yet arrived).  The reserve title, Very Smart Choice, owned by Rocking BS Ranch, ridden by Lance Johnston, scored a 291 and should have pocketed $6,578.00.

 

Ken and Ramona Wold owned Real Smooth Cat, ridden by Ken to a 287.50 and third place, good enough for a $5,083.00 paycheck, if it would have arrived.

 

Fourth, taken by Very Smart Cowhorse, owned and ridden by Aaron Brookshire to a 266.50, and would have been owed a $3,588.00 paycheck; fifth was Short N Catt, owned by Sarah Davis and ridden by Phillip Ralls to a 284, for $2,691; sixth was Overabarrel, owned and ridden by Darrell Norcutt to a 214 for $2,093 and seventh was Tomcatontheprowl, owned and ridden by Justin Jones to a 201.50 and $1,503.35.

 

However, according to Ramona Wold, it’s now been close to four months and the winners haven’t received their checks from Miki Nelson, owner of Horse Expo and Magnificent 7. Her excuse: “The sponsors hadn’t paid her so she couldn’t pay the exhibitors.”  However, the announcer, the judge and the cattle providers have been paid.

 

“I called Ernie at Western Horsemanmagazine, who was advertised as one of the sponsors, and I was informed that they were not sponsors as they were advertised,” said Ramona.”

 

For this article, I also called Miki Nelson and asked her about the missing payout. She said, “We’ve had this event going since year 2000. We started when the NRCHA cancelled the “World’s Greatest Horseman.” It used to be well-attended event but then the economy hit a downturn. We kept it going in 2015 (with Horse Expo funds) but the people just weren’t coming to watch. This was its 20thAnniversary, so we said, ‘Let’s get on a roll and get people excited.’ But only one sponsor –  RAM Trucks. But they are taking six months to pay us. Attendance at the Expo was down 30 percent and you could count the number people in the bleachers.

 

“The facility holds all of our admission funds and controls all the income. They were contracted to pay us in 30 days but they paid out in 60 days. We got the money a month ago. It has put us in a cash strap but we should be out of it in 30 more days.

 

“I realize we are 60 days late today and we never meant not to pay anyone. We’ve been in business 21 years and we’re not going to start not paying out now.  We are as horrified as the seven contestants. We love this sport but the reined cow horse seems to be dying in California – it’s going to Texas.”

 

The 21stanniversary annual event will occur next year; however, it will be held at the Murieta Equestrian Center in Rancho Murieta, Calif.

 

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☛ Bob Mayfield, NCHA Hall of Famer, passes away – 9-6-18

Posted by on Sep 6, 2018 in BREAKING NEWS, CUTTING NEWS, WHO, WHAT & WHERE | 0 comments

BOB MAYFIELD, NCHA PRESIDENT AND HALL OF FAMER PASSES AWAY

 


Sept. 6, 2018

 

NCHA cutters, not only lost a great friend, a 35-year member of the NCHA, as well as their President in 2007; a cutting horse breeder; a AAAA judge and NCHA Members Hall of Fame member in 2016 when they lost Bob Mayfield, Wills Point, Texas, on Thursday, July 26, 2018 – only seven days after his 79thbirthday, following a lengthy illness.  He was also a lifetime member of Cutters in Action and an advocate for grass-root cutters.

 

Bob was born on July 19, 1939 in Commerce, Texas, graduated from Wills Point High School and joined the Navy in 1956.  After being honorably discharged in 1962, he worked for the Garland Fire Department and was also a member of the Wills Point Volunteer Fire Department.  He was named Wills Point Citizen of the Year in 1995 and Van Zandt County Man of the Year in 2005.

 

He bought a concrete business in 1978 and grew it from four trucks and three employees to 50 trucks and 50 employees. He sold that business after 20 years and focused on breeding and raising cutting horses.

 

Mayfield had never been on a horse before he became a ranch manager in Canton, Texas, in the late 1960s. He introduced cattle to the operation and paid a trainer in hay to turn his unregistered buckskin mare into a useful ranch horse.

 

But at the age of 45, he fell in love … with cutting horses … winning the Non-Pro Big Country Futurity on SR Lady Tari in 1987. In 1990, he was ranked in the top 5 in the NCHA World Standings in the $10,000 Amateur class.  In 1990, he was ranked in the Top 5 in the NCHA World Standings in the $10,000 Amateur class. He won a total of $95,839 during his cutting career.

 

Survivors include his wife LaJuan and two sons, Steve and Chris, as well as a stepdaughter, Jennifer.

 

Funeral services were held on July 31 at the First Baptist Church of Wills Point. In lieu of flowers, the family asked for donations for the Wills Point ISD Education Foundation, c/o wills Point ISD Administration, 38 w.  N. Commerce, Wills Point, Texas 75169.

 

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