Pages Navigation Menu

ON-LINE MAGAZINE & WEB SITE - SCROLL DOWN FOR NEWS

☛ NCHA has received $5.2 million from State in past two years 9-26-18

NCHA HAS ACTUALLY RECEIVED OVER $5.2 MILLION FROM THE STATE OF TEXAS IN PAST TWO YEARS

 

A TOTAL OF $530,300 HAS ALSO BEEN RECEIVED THIS YEAR

 

By Glory Ann Kurtz
Sept. 26, 2018
On Sept. 24,  I sent out a newsletter regarding the money NCHA was receiving from the State of Texas. The last two paragraphs of the article were wrong and for that I apologize. THE NCHA HAS BEEN GETTING MONEY FROM THE STATE OF TEXAS FOR THE PAST THREE YEARS.

 

For several years, I haven’t looked up State of Texas funds that repay associations for their events that bring people into the city of Fort Worth and State of Texas. I didn’t realize that they had renamed the METF to the MERP (Major Event Repayment Program) and it is no longer on the same document that most of the other non-profits are located. A couple of my readers realized what had happened and directed me to the MERP page published by the State.  I really appreciate their help.

 

Before I published the article, I called the Governor’s office yesterday to find out the reason why the NCHA wasn’t listed on the METF list; however, to date, they still haven’t returned my call. I also placed a call to Lewis Wray, but he also has ignored my request for a call.

 

THE MERP AND NCHA:

According to the MERP charts, over the past three years, the NCHA has received over $5.2 million from the MERP program of the State of Texas for their three major events: The NCHA Futurity that is held with the NCHA World Finals, the NCHA Summer Spectacular and the NCHA Super Stakes.

 

During 2016, they received $2,562,928 for the 2015 NCHA Summer Spectacular and NCHA Futurity, as well as the 2016 NCHA Summer Spectacular and NCHA Super Stakes.

 

In 2017, they received a total of $2,169,640 for the 2017 NCHA Super Stakes ($725,650) and $1,383,989 for the 2016 Futurity and World Show.

 

So far in 2018, they have received $530,300 for the 2017 NCHA Summer Spectacular. In total for the past three years, they have received $5,262,868 from the MERP program from the State of Texas.

MERP money 2017-2018

 

 

 

468 ad

One Comment

  1. Hi Glory: I am not an accountant as you know, but I have to deal with financial statements in litigation from time to time so I have had to learn. Accrual accounting is basically a short term forecast. If you buy something to re-sell , without paying at the time, you accrue the expense and you have it already sold, but no cash yet, you accrue the income. This shows a (forecasted) profit, but totally unrealized. In a business with these non-cash activities accounted for, it may give the owner a god look at the condition of the business. However, if you purchase something for re-sale, haven’t paid the bill yet, but haven’t got a sale for it yet, and accrue the expense and the income, and it is never sold, the result is a false picture since you eventually pay for it but may never sell it, and no profit is ever made. This is ok for a small business owner, as he probably knows the true status regardless of accounting. It is more complex than the Cash method for reasons I will skip for now. However, Accrual accounting also allows the additions of expected income or revenue items, although not received, even when the owner truly knows it may never be received, giving a false picture. Of course, tax liability can also accrue for a net accrued profit not realized. However, for NCHA, so that the Exec Comm., the Directors, and the membership can understand the true financial status, the Cash method should be used. Obviously, if a loss appears on the Operating Statement using the Cash method since money wasn’t received timely, if it will be received, that can be shown and explained as not being a loss, showing it in the Accounts Receivable column of the Balance Sheet. Because of the problems you highlight the Exec Comm. should change the method to Cash. In addition, this gives a better picture of each major event, which should have an individual Cash accounting for it, with a proper allocation of certain fixed expenses that are spread and divided among them, such as office staff. Accrual accounting is not serving the NCHA well as demonstrated by the Texas state money not received and may never be received, allowing the Exec. Comm. to report a false picture (hopefully not intentionally.) There may be other factors involved in the accounting choice, but otherwise the E Comm. should ACCRUE some good advice on whether a change should be made, or the Directors may pass a motion at the convention to do so anyway. We have members who are accountants; hope they will speak up, eh? Maurice Tynes, NCHA #3135; past Exec. Comm., past Director.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.