By John Waters, Publisher
The Big Bend Education Corporation [BBEC], a non-profit corporation founded to assist the Terlingua Common School District and San Vicente Independent School District, is now defunct—and by order of the Texas Secretary of State had forfeited its right to conduct business last year.
The non-profit corporation, founded in 1994, was created exclusively to provide funding for building new school buildings, remodeling existing school buildings, and to add classrooms in the two districts.
The Big Bend Education Corporation was discussed by former superintendent Kathy Killingsworth last month at the meeting of the Terlingua Common School District Board of Trustees.
The board was considering a proposal from current Superintendent Bobbie Jones to rehire Killingsworth as a private consultant to work on financial affairs. Killingsworth described her numerous job qualifications, including her longstanding work with the education corporation, neglecting to mention it is now defunct for failing to file a periodic report last spring.
Killingsworth discussed the vital role the education corporation has played over the years in raising money for the school from numerous foundations, and the pivotal role the education corporation played in securing funds to built school facilities. Killingsworth said she had written all of the grants for the education corporation over the last eight ro nine years.
With the corporation no longer existing, it is unclear how the two school districts will continue to apply or receive grant money.
On April 8 of 2014, the Big Bend Education Corporation was notified by the Office of the Secretary of State it needed to file a periodic report on or before May 8, 2014. After the corporation failed to do so, on May 15 the Secretary of State notified the education corporation its right to conduct business had been forfeited and if the needed paperwork was received within 120 day it could be “revived.”
On September 19, 2014 the Secretary of State issued an Involuntary Termination of the Big Bend Education Corporation stating the corporation had “forfeited its right to conduct affairs in this state” and “that the domestic corporation be terminated without judicial ascertainment.”
Had the corporation filed paperwork before September of last year, it would have been “revived” and in good standing with the state. Now the corporation no longer exists and any efforts to revive it will require establishing a new corporation or filing a reinstatement request with the Secretary of State Office.
At several times during the school board meeting, Killingsworth brought up the importance of keeping the corporation current stating, “It’s important to maintain that tax exempt status, I’ve been doing all that for a number of years working with Claudia Arnberger [former board member of defunct BBEC].”
Killingsworth continued, “If you ever lose, if you do not maintain your IRS letter of determination and you miss two places, you loose your tax exempt status and then you will not be able to receive grants from private foundations…. It’s important to maintain the functional corporation, in my opinion.”
According to the Internal Revenue Service, the last time the Big Bend Education Corporation filed annual form 990 tax returns was 2012.
The Texas Comptrollers Office lists the education corporation not in good standing.
When asked by school board president Mandy Willard, who is on the board of the education corporation, Killingsworth responded, “Right now it’s Claudia Arnberger and Ginny Carrico; there is a vacancy.”
Ginny Carrico, President of the Big Bend Education Corporation, told the Gazette she was unaware the corporation had been dissolved and the last time the board had met was “about four years ago.” Board member Claudia Arnberger told the Gazette she too was unaware of the revocation said, “This is the first I’ve heard of it.”
The board tabled the agenda item on hiring a financial consultant and will reconsider the item at the board meeting on February 11.
When the education corporation was formed in 1994, its original article of incorporation stated that upon dissolution of the corporation, all assets would be distributed to other exempt entities or to a federal, state or local government. It is unknown at this time if those remaining assets, if there are any, have been dispersed.
Although Killingsworth maintained to the Terlingua School board it was important to maintain the corporation as a functioning entity, that time has passed. In language befitting a human patient, the Secretary of State office stated the education corporation’s right to conduct business could have been “revived” and its rights to conduct business or exist has been “terminated.”
UPDATE: The corporation may file a reinstatement request with the Secretary of State office that if granted would allow the corporation to do business. The corporation would also need to follow a similar procedure with the Comptroller’s Office.
The Terlingua Common School District Board of Trustees will meet on Wednesday, February 11 at 5 pm at the Big Bend High School. The board will again discuss the agenda item to hire the former superintendent as a financial consultant.
This article was updated on February 11 at 12:41 P.M and again at 2:15 P.M.
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