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http://www.gazette.com/onset?id=19917&template=article.html $16,260 hole found in City Auditorium books By PAM ZUBECK THE GAZETTE March 8, 2007 - 1:19AM
Lying on time cards. Allowing renters to pay vendors instead of rent. Giving renters special breaks.
Those and other mismanagement exposed in a recently released city audit cost City Auditorium at least $16,260 over an 18-month period, or nearly 10 percent of the facility’s total 2006 revenues.
Although the audit uncovered evidence of crimes, El Paso County District Attorney John Newsome chose not to prosecute.
A DA’s spokeswoman said last summer the activities at issue were policy violations, not criminal acts.
But Wednesday, after the audit was released, the DA’s office gave a different reason for not prosecuting.
“It was very difficult to track the money because of the lack of accounting practices. Without more information, we did not have enough to proceed,” the statement said.
City Auditor Jeff Litchfield said falsifying payroll records is illegal.
The auditorium, opened in 1923, hosts events such as concerts, cat shows and metaphysical fairs.
The deteriorating facility is at the center of debate about how or whether to salvage a building that hasn’t had a major overhaul since it was built and now needs $15 million in upgrades.
The audit was triggered when an employee contacted Litchfield last spring. Auditors uncovered wrongdoing and referred the case to the Colorado Springs Police Department, Litchfield said.
Police investigated and submitted the case to the DA for prosecution.
Manager Robert Lester Wade, 65, who had worked at the auditorium since 1996 and was paid $63,734 a year, was placed on administrative leave June 28. In August he left the city, though city officials refused to say whether he resigned or was fired.
Auditors found numerous payroll abuses, including hours carried to the next pay period to avoid paying overtime and an employee’s inflating hours and paying the extra money to another worker.
Other audit findings:
- The building was sometimes rented without written agreements; some weren’t signed by both parties.
- No procedures were in place to assure events were paid for. At least three events in 2005 and the first half of 2006 weren’t billed or paid, totaling $3,190.
- Cash collected for events and concessions wasn’t properly accounted for. The same person collected the cash and made bank deposits.
- Accounting practices were slipshod. Renters, including Star Bar Players, were allowed to pay vendors for auditorium expenses instead of paying rental fees. Unaccountedfor cash was used to pay expenses. Several payments were made on a storage trailer by having a worker add hours to a time card and use the money for the trailer rental.
- Rocky Horror Picture Show and Jehovah’s Witnesses weregiven price breaks that cost theauditorium $13,070 in 2005. Litchfield said it appeared the discounts were given because of multiple bookings.
- Deposits were posted to the wrong department or account.
- Auditorium keys were given to event sponsors, making it “unclear who had access.”
Parks manager Paul Butcher, who oversees the auditorium, could not be reached for comment, but Litchfield said the city is working on the problems.
“They took immediate action and started taking care of all the areas where controls were lacking,” he said.
Noting the audit represents the first to uncover wrongdoing since he joined the city 2½ years ago, Litchfield said auditors will review corrective progress later this year.
CONTACT THE WRITER: 636-0238 or [email protected] Nevada-