Economic Development Corporation of Weslaco

Nonprofit profile at a glance

EIN
742588704
IRS 990 coverage
2009–2022
Forms available
Form 990 2022
Location
Weslaco, TX, USA
Phone
9569690838
Rating
79
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Public, Societal Benefit

Official website

Reported finances

Revenue
$8,559,382
Expenses
$4,503,064
Assets
$37,567,810
Liabilities
$15,133,475

Source: IRS Form 990. Selected filing: tax year 2022. Amounts in USD.

Leadership & pay

8 people listed

Executive titles in this filing

  • JERRY GONZALEZ (President)
  • SANDRA CHARLTON CPA (Vice President)

Highest reported compensation

  • STEVEN M VALDEZ: $96,700 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2022. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The economic development corporation's primary purpose is to enhance economic and industrial activities for the city of weslaco. Its main focus is in retaining and expanding existing business, and attracting new business and enhancing community assets; which infuses new dollars into the local economy.

What it reported doing in 2022

Economic development is the purposeful intervention by an entity to encourage private investment in a specific location when it otherwise might not have been made. That encouragement often represents public assistance with a financial value and is popularly referred to as an incentive or inducement. Edc provides loans/ grants to various businesses for creating of jobs through recruiting new industry and/or existing companies relocating and/or expanding.

Operating model

Revenue model
Earned-program. 69% of the money available for current operations came from fees and other program revenue.
Distribution model
Grant intermediary. The nonprofit sent 73% of its reported program spending out as grants.

The verdict

SUPPORTED - The filed numbers largely add up and a large share of total spending goes to programs. A relatively small share of available resources goes toward mission work and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 62
  • Transparency & Controls: 93
  • Accountability: 88
  • Sustainability: 82
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 55.1%; rating input score 55
  • Program expense ratio: 94.2%; rating input score 94
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 72nd percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 64th percentile among comparable filings
  • Governance controls: 5 of 7 controls in place; rating input score 71
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 47.4%; rating input score 92; 92nd percentile among comparable filings
  • Total-asset coverage ratio: 8.34; rating input score 90; 90th percentile among comparable filings
  • Liabilities to assets ratio: 0.4; rating input score 28; 28th percentile among comparable filings
  • Officer compensation ratio: 2.1%; rating input score 74; 74th percentile among comparable filings

Growth

  • Program expense growth: 10% per year; rating input score 100; 66th percentile among comparable filings
  • Revenue growth: 8.1% per year; rating input score 100; 62nd percentile among comparable filings
  • Asset growth: 9.3% per year; rating input score 100; 57th percentile among comparable filings

Details

  • Where the money goes: 55.1% of revenue deployed · 94.2% of spending went to programs
  • Governance: 6 of 6 board members independent · 5 of 7 filing controls reported
  • Programs: 3 filed program accomplishments
  • Leadership: top reported pay $97K · 8 people listed
  • Consistency: 36 of 36 current checks pass
  • Schedules: 5 filed schedules · includes grants
  • Filing history: 14 filing years from 2009 to 2022
  • Contacts: How to reach this organization
  • Money network: 15 filed money-flow records
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Review — Financial Efficiency: Mission deployment rate scored 55/100.
  • Review — Accountability: Governance controls: 2 of 7 not reported.
  • High — Sustainability: Liabilities to assets ratio scored 28/100.