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RA’s 2014 Tax Return Shows Association By Numbers

by Karen Goff July 28, 2015 at 9:30 am 13 Comments

Reston AssociationReston Association brought in more than $12 million in membership assessments and paid out more than $8 million in salaries, other compensation and benefits in 2014.

These are some of the details made public in the association’s 2014 tax return.

The returns are made public and will be reviewed at Thursday’s monthly board of directors meeting as RA prepares for the upcoming budget cycle.

Among the details:

The association earned $15.8 million in program services revenue, slightly up from the previous year.

RA has $30.8 million in total assets, including property.

Top base salaries at RA were paid to CEO Cate Fulkerson ($180,000); Senior Director of Parks, Recreation and Community Resources Larry Butler ($129,076); CFO David Harirs ($116,846) and Director of Communications Kirsten Carr ($108,039). Harris and Carr both left the association in 2015.

The highest paid contractors were Chadwick Washington (legal): $430,683; KTL Solutions (IT): $233,808; Brittenford Systems (IT): $207,143; Odin, Feldman & Pittleman (legal) $139,731; and Millennium Pool Services: $205,853.

RA earned $15.8 million in program service revenue, including $12.8 million from memberships, $1.1 million from recreational programs, $1,064,546 from management and staff services and $711,467 from operating programs. RA’s investment income was $24,248.

RA’s total expenses were $14.8 million. Among them:

  • Salaries: $6.5 million
  • Grants: $27,772
  • Payroll taxes: $541,404
  • Legal fees: $645,448
  • Accounting: $45,576
  • Investment management fees: $18,129
  • Advertising: $12,576
  • Office expenses: $1,090,605
  • IT: $118,179
  • Occupancy: $825,736
  • Travel: $136,638
  • Insurance: $375,833
  • Program supplies: $306,688
  • Equipment: $593,884
  • Bad debt: $85,000

  • MJay

    Did RA pay $5.9 million or $8 million for salaries? The article says both.
    Also, I am interested in learning the details on RA spending $136,000 for travel. Why does a homeowners association need to spend so much on travel? Who traveled? Where did they go? Where did they stay? What rates did they pay? Did they fly coach? etc…
    I also wonder if it might be more cost effective to hire an in-house lawyer at a negotiated reduced rate or reasonable salary rather than paying Chadwick.

    • Karen Goff

      Sorry. it is 8 million for salary other compensation and benefits and 6.5 million in just straight salary. It has been corrected. Very good question on the travel expenses and I will be following up in another post.

    • FedUp

      That’s only about $1,400 for EVERY employee (& maybe some Board members?). What could possibly be WRONG with that???

    • Karen Goff

      Story has been amended to show the term “travel” is IRS term. It really is mostly “transportation” within Reston, ie maintaining fleet of vehicles, gas, repairs, etc., RA says.

  • jdingle

    On page 10 of the return, I see $658,113 for officer compensation (line 5) and $5,901,806 in other salaries and wages (line 7). This amounts to a total of $6,559,919 in salaries. Where does Ms. Goff come up with $8.0M in salaries?

    • Karen Goff

      One page 1 of the return it has that number listed. I will triple check.

      • Karen Goff

        I see the issue. That line item is for “salaries, compensation and benefits” not just straight salary, which is the 6.5 million number. I will amend the story.

  • Reston resident

    $645k in legal fees is outrageous for a home owners association of this size.
    We need details of what these fees where these fees were spent. Legal services should be put out for bid in order to reduce this expense.
    Having outside council sit in on numerous board meetings is ridiculous.
    Typical not for profit with bloated salaries.

    • FedUp

      So what’s wrong with $10 in legal fees for every man, woman, and child in Reston? For this price, you get attorneys who don’t know the law on building next to Chesapeake Bay feedwaters (you can’t) and, moreover, don’t care that Restonians are paying for it. And that alone will add $2.6 million (about $25 for every man, woman, and child) to your RA fee, thanks to the Tetra purchase (& not counting interest, renovations, remediations, repairs, etc., etc., etc.)

  • Greg

    The term “cluster f***” comes to mind… No pun intended.

    And Voodoo economics:

    IT: $118,179

    but this:

    KTL Solutions (IT): $233,808; Brittenford Systems (IT): $207,143; Odin

    Travel of $137k? To where? That’s criminal.

    Occupancy? Is that the rent paid for the RA HA Taj Mahal?

    • Karen Goff

      Story has been amended to show travel is the IRS term, but it is really “transportation,” ie, maintaining fleet of trucks and vans, gas, etc.

  • Dishin it out

    Karen , I would like to commend you on writing the RA budget story. I don’t know enough to decide whether funds were misspent or not, but it’s the first time I’ve ever seem any press on it at all. Thanks !

    • Karen Goff

      Thank you. this is just the straight up tax return and not an item-by-item look at what every dollar spent. They are getting ready to go through the process for the 2016-17 budget (which also will determine the assessment rate for the next two years), so that will be a better idea of where the money goes.

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