Secret Center Spending Unveiled

In an almost 6 year period (Apr 2001-Jan 2007) $753,107 was spent on Center capital and major improvements. Some of these major expenses were funded out of Operating monies keeping total Center improvement costs below member visibility.

An analysis of the transaction detail for a 15-month period: Oct. 2005. - Dec 2006 shows the Center Capital and major improvement expense was $327,300 and yet according to the ECA Audited financial reports the Capital expenditure amounts for 2 years: FY 06, FY 07 was only $94,530 (24 months).

How is it possible that a forensic analysis of the transactional detail for a 15 month period demonstrates that more than $200,000 more was spent on the Center capital and major improvements when the Audit shows less than half that amount being spent for the elapsed time plus 9 months?

Almost $87,000 was spent on the Center septic system, which is not reflected in the Capital Report for that 15-month period. A company called Finish Line General Contractors was paid more than $90,000 in the same 15-month period for Center upgrades and Golf Snack Bar renovations. A third beneficiary of Center spending was a company named International Design Group, which also was paid almost $90,000 for Center upgrades.

Is it any wonder that the ECA General Manager will not release the specific transaction details on Center spending? The Center is clearly a spending boondoggle with no accountability and no verification by anyone. Certainly any long-term serving Board member is suspect as having possible complicity.

The decision to remove specifics as to how Capital Funds are being spent by major Cost Centers is an enabler of secrecy when it comes to spending as it is for Operating Funds. It demonstrates poor financial judgment at the least and at worst, complicity. No one in this community is capable of doing a forensic analysis on their own particularly when the General Manager and Board will not release the data. However given the above, it is clear that a NO vote to major Center Capital spending should be the resounding vote of Council on Saturday. It is imperative that an independent forensic audit be done before any major Capital is expended on the Center.

On August 13, I submitted a formal request to the ECA Board specifically asking for a Center renovation cost list in priority order. That request is posted in Pages at the top right, labeled: Letter to the Board 8-13-14, included is the response mandating it be submitted by snail mail from Ken Ryder.

The contents of the request is a condensed version of two previous blogs:

     http://eastmanblog.blogspot.com/2014/07/a-shell-game-renovate-center.html

     http://eastmanblog.blogspot.com/2014/07/the-center-right-to-know.html

Three weeks later our request is unanswered. Yet tomorrow the Council will vote without proper information.

ECA owners’ trust has been violated and we need to clean house.

Submitted by Robert Logan