B&F votes to sanction parks and rec

 

The Navajo Nation Council's Budget and Finance Committee voted to sanction the Parks and Recreation Department last week, despite a recommendation from the auditor general to do otherwise.

The department, which had fallen under fire for its handling of funds from the annual Fourth of July celebration has been implementing the corrective actions previously handed down, said Auditor General Elizabeth Begay.

However, that was too little too late for the committee.

"We'd really be making an exception here," said Nelson Begaye (Lukachukai/Tsaile/Wheatfields). "The (full) implementation is not there. All of the corrective action measures should have been implemented way back."

In addition to the sanctions, the committee ordered follow-up audits on the department 45 days after each celebration, namely the Independence Day celebration and the Navajo Nation Fair.

Troubles for parks and rec began in 2001, when an audit found a number of issues with its management of the annual summer celebration. The report issued seven corrective action measures - plans intended to rectify any financial concerns - at that time.

In September, a follow-up review revealed that the department implemented only one of the seven measures. At that time, committee members, who have the final say over whether to launch an audit or sanctions, said they were growing weary of the issue.

Committee members said it would sanction the program if all measures were not implemented within a month.

During the committee's most recent meeting on Dec. 16, the committee followed through, despite Begay's acknowledgement that three of the seven measures have been implemented.

This includes: separating the sales booths from the entry booths, where tickets are collected; assigning a carnival coordinator to monitor pre- and post-ticket sales and oversee the layout and management of the carnival concession spaces; and to update overall contract provisions.

The remaining four measures are currently in the process of implementation, the auditor's report states.

"The Parks and Recreation Department Special Events Office made improvements to implement its corrective action plan and correct the (previous) deficiencies," states the auditor's report. "Therefore, the Office of the Auditor General does not recommend imposing sanctions."

As part of the sanctions, the controller will withhold 10 percent of the program's overall funding and 20 percent of the salary of the parks and rec director, Ray Russell, until the remaining corrective action measures are fully implemented. When the corrective actions are done, all withheld funds will be released.

However, Russell said the department has implemented all of the measures possible. The remaining measures cannot be fully implemented - with visible results - until the Fourth of July celebration begins.

Among the four measures in process of implementation is the installation of a computerized ticketing system to quickly and easily assess cash receipts collected and identify any discrepancies, according to the auditor's report.

The department has purchased the system, but this was after the 2008 celebration and it has not been tested.

"A demonstration of the new equipment offers reasonable assurance of an improved ticketing system," states the auditor's report.

Another measure, to install turnstiles to count the number of customers who attend the event, was completed. However, during the 2008 celebration, the turnstiles counted nearly 600 more people than the amount of tickets actually sold.

"This means 585 people entered without paying or other circumstances occurred resulting in the discrepancy," states the auditor's report.

In an effort to further improve entrance controls, hand clickers will be used as back-ups to the turnstiles, the report states.

A third measure in process calls for the use of scan tickets for VIP and complimentary passes. Such passes have been used repeatedly, at times by several people, in the past. Bar codes on the new tickets would allow only one-time usage. This system is included in the computerized ticketing system, according to the report.

The fourth measure calls for the program to update its employee compensation practices to meet tribal personnel policies, in regards to overtime and temporary employment. The department responded by working with the Department of Personnel Management to pay eligible employees bonuses for working after regular business hours.

However, in each case, the measures cannot be physically implemented until the actual celebration, Russell said.

"We're not like a normal program where we can start this week, we can't," Russell said. "Everything is ready for implementation, we just have to wait to put it in process until that time."

Until then, Russell said he has little choice but to wait out the sanctions until the July celebration.

The committee passed the resolution, with sanctions, with a 5-1 vote.

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