warning Hi, we've moved to USCANNENBERGMEDIA.COM. Visit us there!

Neon Tommy - Annenberg digital news

Audit On The L.A. Memorial Coliseum Commission Exposes Major Financial Missteps

Letticia Lee |
April 12, 2012 | 5:47 p.m. PDT

Staff Reporter

Photo Courtesy of Creative Commons.
Photo Courtesy of Creative Commons.

 A 74-page audit released by L.A. City Controller Wendy Greuel Thursday morning is putting the L.A. Memorial Coliseum Commission's mismanagement in the limelight. The report reveals several counts of the Commission Board's failure to conduct adequate control over fiscal operations.

Sjoberg Evashenk Consulting, Inc. was assigned to assess the LAMCC's management procedures for financial activities. 

"This audit demonstrates that management controls over Coliseum spending were weak or nonexistent, resulting in a dysfunctional and wasteful fiscal environment," Greuel said in her introduction letter.

The LAMCC is regulated under a joint powers agreement among the City of Los Angeles, County of Los Angeles and the Sixth District Agricultural Association. Since it is also a public venue that requires no public funding, it is expected to obtain self-sustaining revenue from the renting of its facilities.

Over recent years, however, the combined financial statements have shown significant losses of gross revenue. According to the Sjoberg Evashenk Consulting, Inc.'s findings, the difference between the gross revenue of 2007-2008 and the most recent report from 2010-2011 was nearly $4.3 million.

This significant decrease was no longer a surprise once the auditing company began to inspect the Commission Board's financial and accounting activities on record.

The investigation exposed the Commission Board's lax control that caused great damaged to the overall profits. This included "deposit" payments of about $900,000 to South American companies for sporting events that never happened, nearly $1 million in under-the-table payments to technical staff and a $4.8 million payment to a janitorial and security vendor with no evidence of signed contracts.

Additionally, while gross revenues of the LAMCC were declining, auditors found that the former general manager was receiving a bonus of $125,000 per year-- the maximum bonus allowed.

-----

Reach Staff Reporter Letticia Lee here.



 

Buzz

Craig Gillespie directed this true story about "the most daring rescue mission in the history of the U.S. Coast Guard.”

Watch USC Annenberg Media's live State of the Union recap and analysis here.

 
ntrandomness