Professor Elam

The Museo Alameda had a net operating loss of $1.47 million on revenues on revenues of $1.97 million. So it lost nearly as much as it took in. It had  whopping 30 employees on the payroll while racking up the losses and went through three executive directors in a couple of years.   Initial estimates had 400,000 visitors attending the museum every year. But the actual count has been 140,000, 45,000 and 26,000 this year. My guess is that the City Internal Audit staff did the audit but I will find out. 

How can things get this far out of whack, how could so many be so wrong? It strikes me that there is not nearly enough sharing in San Antonio. visitsanantonio.com lists  some 28 museums of various descriptions come up for San antonio.  Did SA need another one? Palo Alto CC has added a performing arts center, and it is expanding its arts school. It would seem that would be another logical place for such a venture, and of course the CC already has people in place to run such things.

Considering the Institute of Texan Culture is alive and well, still operating from its Hemisfair Days, the idea of a Latin culture museum would have been better served as part of an already successful venture. 

The real story here is that everyone's money is no one's money. No one looks after OPM, other people's money like they look after their own.   Even at that it is hard to see how a Board would run through this much cash. Now $1 M in debt, it will be quite difficult to get the ox out of the ditch. 

One of may favorite sayings, it is nearly impossible to stop a bad idea cloaked in good intentions. Children are urged to share their toys with others, adults should do the same. More on this as it develops. OH, the City of San Antonio has also in the pot for $315,000 to defray admission costs the first year. 

We study budgeting in cost accounting as well as variances from planned expenditures. This is a case study of why internal accounting controls need to be in place BEFORE ventures begin.