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Board reports fiscal-year deficit, reserve remains above $1 million; staff to study fee options
Summary
The board’s executive director reported a small operating deficit for FY 2023–24 despite a $1.098 million reserve; staff said they will study fee changes and recovery of enforcement costs before making a recommendation to the board and to the government operations committee.
The Tennessee Board of Funeral Directors and Embalmers reviewed fiscal-year 2023–24 financial data at its Jan. 14 meeting and heard from Executive Director Mister Gribble that the board closed the year with a $26,947 deficit even though the reserve balance remained roughly $1.098 million.
Gribble told the board the assistant commissioner’s office provided revenue and expense data used in the report. The board’s beginning balance July 1, 2023 was reported as $1,125,184; net revenue for the year was $736,166 and total expenditures were $763,113. Gribble said there were no central “core” expenses charged to the board last year but that a core expense is likely in the current fiscal year.
Why it matters: the deficit, while small relative to reserves, triggers an expectation that the board will review longer-term sustainability and consider options such as fee adjustments or stronger collection of assessment and investigation costs.
Key financial details reported
- Reserve balance on July 1, 2024: $1,098,434.
- Net licensing revenue FY 2023–24: $743,695.
- Case-and-complaint revenue (civil penalties and recovery): $17,641 for FY 2023–24, down from prior years.
- Regulatory fee (statutory fee the department pays to finance administration): $251,170.
Board discussion and next steps
Board members asked about the components of the complaint/case revenue number, collection timing and the administrative cost of pursuing formal hearings. Legal counsel and staff said most civil penalties are resolved via consent order but that the department monitors collections and follows up when payments are late. Counsel noted that pursuing formal hearings can be resource-intensive and sometimes costs approach available statutory penalty limits.
Members asked staff to evaluate the actual cost to the board of handling complaints and whether offenders should bear more of those costs. Gribble said he will return with a more detailed recommendation after additional analysis and consultation with the assistant commissioner’s office. He also noted a rise in the number of establishments surrendering or allowing licenses to lapse, which reduces future licensing revenue.
Other items in the executive director’s report
- Closed establishments reported in the period include Eastland Funeral Home and Cremation Service (Nashville), Gateway Funeral Home Cremation Center (Clarksville), Lumen Cremation (Hendersonville) and Spencer Funeral Home (Spencer). Each closure reduces future renewal revenue for the board.
- The board’s administrative report listed 64 open complaints at the time of the meeting (32 against licensees and 32 against establishments).
Ending
Gribble asked the board for time to analyze fee options and collection practices. Several board members urged caution about raising fees but agreed staff should return with data and a recommended approach for presenting any proposed fee changes to the government operations committee.
