Posted on February 7, 2009 - by Russell

Facts Not Emails and Rumors

Featured Straight Talk

Over the last couple of weeks a number of TLBAA members have received messages from Joe Graddy (who served on the Board under Don L. King) which leads us to believe that the TLBAA is going broke.  That is NOT the case.  Below is his most recent email, with a very misleading title; it includes a letter from Ben Gravett. 

______________________________________________________________________________

 

TLBAA Investigation

 

Dear TLBAA Member, 

 

I received the following letter from Ben Gravett, former Chairman of the Board of the TLBAA and a long-time Longhorn Breeder.  Ben is very concerned about the viability of the TLBAA and feels that the members have been kept in the dark.  After much consideration, I have decided to share this letter with the TLBAA members, and let them draw their own conclusions.

 

Joe Graddy

 

TLBAA Member

 (I feel it should be noted that he is a TLMA Member) rh

 

_______________________________________________________________________

 

Dear Joe,

 

 

 

I am very shocked and troubled about the information I received regarding the current financial condition of the TLBAA.  I have been reading the repeated statements from Fritz Moeller claiming the association is in great shape financially.  In fact, Moeller has claimed the TLBAA is in better shape today than when he took over as Chairman.

 

The reality is that the TLBAA was in very good shape financially when I resigned my position as Chairman only 18 months ago.  Per my recollection we had over $165,000 in the bank and were completely current on all liabilities.  I have compared the last financial that was available when I resigned to the most recent financial statement, and the following shocking information stood out:

 

Current Assets (7/31/07)…………………………….. $333,945

Current Assets (12/31/08)…………………………….. $11,231

Variance…………………………………………………   ($322,714)

 

Total Capital (7/31/07)……………………………….. $216,374

Total Capital (12/31/08)…………………………….. ($104,447)

Variance………………………………………………..    ($320,821)

 

I understand the TLBAA Board of Directors’ plans to “borrow” funds from the Foundation to cover their monthly overheads, something we never had to do during my term as Chairman.  I am very puzzled how we can be in the condition we find ourselves in today.  It appears to me that the members of the TLBAA have been misled about the financial condition of the association.

 

This situation is very troublesome to me both as a former Chairman and as a long-time member of the TLBAA.  I stand with you in your concern and I intend to personally conduct an investigation and audit of the association to determine how we could possibly be in this financial condition today.

Sincerely,

Ben Gravett

______________________________________________________________________________

 

Now here are some facts that will give you a better understanding of the REAL situation.

 

Since both Ben Gravett and Joe Graddy served on the TLBAA board they should know that the cash flow of the organization is not earned evenly throughout the year.  Membership dues all come in around July.  It’s convenient that the latest slam tries to compare July 2007 (right after dues have been received) with December 2008 (at the end of the slowest month of the year for advertising and registrations).  Comparing apples to oranges is not a fair assessment.

 

Let’s take a REAL look at the numbers. 

 

The Statement of Cash Flows was taken from the Association’s financial statements from the latest audit. 

Texas Longhorn Breeders Association of America

Statement of Cash Flows

For the Years Ended June 30, 2008 and 2007

 

Cash Flows From Operating Activities                                                    2008                                      2007                       

                Decrease in net assets                                                   $        (147,376)             $              (287,745)

                Adjustments to reconcile the increase in net

                Assets to net cash provided by operating activities

                     Depreciation                                                                            32,606                               142,185

                     Receivables (increase) decrease                                         (127,973)                              149,041

                     Inventory (increase) decrease                                                     -                                         8,838

                     Prepaid expenses (increase) decrease                                  (55,165)                                  7,955

                     Accounts payable increase (decrease)                                  (16,860)                               (37,004)

                     Accrued expenses increase (decrease)                                     8,990                                   6,684

                     Deferred revenues increase (decrease)                                317,307                               (83,501)               

 

NET CASH (USED) PROVIDED BY OPERATING ACTIVITY                            11,529                                (93,547)

 

CASH FLOWS FROM INVESTING ACTIVITY

                Investments (increase) decrease, net                                           -                                          63,279

                Purchase of property and equipment, net                                  (31,747)                                 (2,000)

 

NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES                         (31,747)                                 61,279

 

NET INCREASE (DECREASE) IN CASH                                                        (20,218)                                (32,268)

 

CASH, Beginning of the year                                                                     88,830                                 121,098

 

CASH, End of year                                                                  $                  68,612                 $                 88,830

 

 

This shows that during the period from July 1, 2006 through June 30, 2007 (Mr. Gravett’s tenure) the Association had a DECREASE in cash of $32,268 [Net Increase (Decrease) In Cash entry].  For the period from July 1, 2007 through June 30, 2008, the Association had a smaller decrease in cash of $20,218 indicating that last year’s board started the Association in the right direction. 

 

Even more telling is the Statement of Activities (shown below), also taken from the Association’s latest audited financial statements.

Texas Longhorn Breeders Association of America

Statement of Activities

For the Years Ended June 30, 2008 and 2007

UNRESTRICED NET ASSETS                                                                           2008                          2007

                SUPPORT AND REVENUES

                     Member services                                                        $              731,248                 721,843

                     Trails                                                                                           529,039                 485,009

                     Cattle sales management                                                       1,390,043               2,583,601

                     Events                                                                                         102,017                  367,018

                     Investment income                                                                        3,625                       4,315

 

TOTAL SUPPORT & REVENUES                                                                   2,755,972                4,161,786

               

                EXPENSES

                     Member services                                                                        694,222                   978,988

                     Trails                                                                                           589,781                   524,252

                     Cattle sales management                                                        1,445,695                2,592,374

                     Events                                                                                          173,650                   353,917

 

TOTAL EXPENSES                                                                                          2,903,348                4,449,531

 

DECREASE IN UNRESTRICTED ASSETS                                                           (147,376)                 (287,745)

 

NET ASSETS, Beginning of Year                                                                      111,330                    399,075

 

NET ASSETS, End of Year                                                                 $              (36,046)      $           111,330

 

 

 For the period from July 1, 2006 through June 30, 2007, the Association had a LOSS of $287,745.  If I were a leader of the Association during that time, I would not be calling that “in very good shape financially”. 

 

It takes time to turn an organization around and last year’s activities did still show a loss; HOWEVER, it was about half that of the previous year.  The TLBAA, it’s Directors and Members will face some challenges over the next few months and even possibly over the next year.  I firmly believe that the TLBAA, just like the cattle that they represent will survive.

 

I would encourage every TLBAA member to hold strong in their support of the TLBAA.  Do not let the email rumor mill get you down.  Before you assume that all the emails that are flying around are true I would ask you to stop and think about these points….

 

·         Why are almost all the negative emails coming from TLMA members? Is this just a coincidence, I think not.

 

·         Why are almost all the negative emails coming from the same server that sends out the TLMA emails?  Is this just another coincidence, I think not.

 

·         Why are almost all the negative emails coming from people that have turned their backs on TLBAA?  Now they suddenly care about TLBAA?  Is this just another coincidence, I think not.

 

·         Why do we receive these attack emails within seconds of receiving an email from TLMA about something they are promoting?  Is this just another coincidence, I think not.

 

·         Why are they passing around an unaudited financial that was noted to be in need of several corrections before being approved?  Could they be trying to scare TLBAA members into turning to the TLMA?  Is this just another coincidence, I think not.   

 

·         Do these people have the best interest of the TLBAA at heart?  I think not.

 

Lastly if you want to know what is going on contact your TLBAA Board Members and visit with them about your questions or concerns.  If you would like to see the audited financials contact the TLBAA office and make arrangements to do so.

 

Do not buy into these scare tactic emails.  I will do my best to keep you informed with the facts as I get them.

Share and Enjoy:
  • Print this article!
  • StumbleUpon
  • Digg
  • del.icio.us
  • Google
  • YahooMyWeb
This entry was posted on Saturday, February 7th, 2009 at 12:22 pm and is filed under Featured, Straight Talk. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

6 Comments

We'd love to hear yours!



  1. Visit My Website

    February 8, 2009

    Permalink

    David L Harcrow said:

    I was glad to recieve your e-mail post
    I just recently replyed to Mr Graddy and told him the same thing you laid out in your mail Russell. Thank you for this site.
    Many Blessings
    David Harcrow



  2. Visit My Website

    February 9, 2009

    Permalink

    Carole Reardon said:

    Mr. Hooks, Thank you for taking the time to research all the information and put it out there for everyone to read. Both my husband and I are very concerned about these private meetings with the TLMA and the TLBAA. The mear suggestion that the TLMA would welcome Don L. King and SuzAnn Spindor at any longhorn event is very concerning. As the old saying goes “fool me once shame on you, fool me twice shame on me”. As a small breeder we can not afford to let anyone steal from us, especially those whom we have put in a position of trust. It is very unfortunate that the same small group of people keep trying to undermine what other good people in the TLBAA have done.
    Keep up the good work!
    Carole Reardon
    JR Ranch



  3. Visit My Website

    February 9, 2009

    Permalink

    Russell said:

    Thank you for your comments. I feel we have a number of good directors on the board that are trying to do what is right and you are right that it is unfortunate that there is a small group on the outside that trying to undermine the good that has been done and continues to be done in the TLBAA. It will take time to get things turned around but with the members support and input it can be done.



  4. Visit My Website

    February 9, 2009

    Permalink

    Russell said:

    David, Good to hear from you. I am glad that you did not just sit on the sidelines but instead replyed to Mr. Graddy’s e-mail. From what I am hearing I think he may be getting the message about spreading rumors.



  5. Visit My Website

    February 26, 2009

    Permalink

    Eula Baker said:

    I posted this same message over a week ago under your article entitled, “TLMA-Creating Good Will or Just More Controversy.” For whatever reason, my message has not posted yet; seems it’s still “awaiting moderation.”

    Up until now, the majority of the “alleged” improprieties you cite have been confined behind closed doors, in E-mails, personal conversations, etc. That you are airing these highly inflammatory and spiteful statements and accusations PUBLICLY on the Internet is concerning. I see this as being potentially detrimental and a disservice to the longhorn industry as a whole. Consider the image you are presenting to prospective longhorn breeders who may be doing on-line research. You are opening up BOTH groups to additional scrutiny, which could lead to said prospects uncovering even more unsavory information, depending from whom and where they get their information.

    To me, all the “negativity” in your articles about the TLMA is the proverbial “pot calling the kettle black.” In your defense of the TLBAA, you are perpetuating the same reprehensible behavior and actions you accuse the TLMA of, which ultimately reflects back on the TLBAA. (You speak of the actions of a few TLMA members as if they are all-inclusive of the TLMA, so I must also relate your actions as all-inclusive of the TLBAA.)

    Although not a member of ANY longhorn association, I do have a vested interest and try to stay informed. In other words, I can look at things objectively and this is my take.

    Thank you for the opportunity to present my point of view.



  6. Visit My Website

    February 27, 2009

    Permalink

    Russell said:

    I was unaware that your earlier post of these comments was “awaiting modoration”. Thank you for sharing your thoughts on the current happenings in the Longhorn industry even thou you are NOT a member of ANY of our Longhorn Associations. Sometimes an objective look at events can be helpful but other times it is best understood by those that are involved in it. I try to keep the posted articles balanced by covering the politics of the industry for those that want to know what is happening but can’t make the meetings, with other articles that will hopefully be benificial to the new breeder. I am looking forward to the day that industry politics is no longer an issue. Once again Thank You for sharing your point of view.