A consultant performing an independent audit of the Richland County Recreation Commission said the organization suffered from “dysfunction” while its board failed to provide strong oversight to ensure effective management and sound financial practices.
In response to the audit, the Richland County Council will consider at a meeting Tuesday whether to move forward with a proposed agreement that would require the Recreation Commission to implement organizational and policy changes in order to receive funding above the level mandated by law.
The organizational and policy changes are designed to increase transparency and public accountability at the Recreation Commission, whose board members are appointed by the Governor upon the recommendation of Richland County legislators. Richland County helps fund the agency, but does not have management authority over its board.
A final version of the audit was delivered Friday. The audit was requested by Richland County Council in June 2016 following reports of mismanagement and complaints by residents. Council also voted last year to withhold funding above the state-mandated amounts until the audit was complete.
County staff drafted a memorandum of understanding (MOU) for Council’s consideration at a special-called meeting Tuesday, following the 7 p.m. zoning public hearing. The MOU is intended to give County Council input in how funds provided to the Recreation Commission are used.
Of note is a requirement, based on a recommendation from the audit, that the executive director provide the County a detailed annual budget and quarterly updates. Failure to do so, according to the draft agreement, would result in “non-appropriation of non-statutorily required funds.”
Matrix Consulting Group, of Mountain View, Calif., conducted the review of the recreation agency with oversight by the County Administrator’s Office. The consultant gave an overview of the audit to members of County Council in March over the course of three workshops that included question-and-answer sessions.
A report was provided to County Administration, but staff determined the report did not reflect the information presented in the workshops. Therefore, the consultant requested an opportunity to revise the report. An updated report was delivered Friday.
The audit was led by Matrix’s vice president Alan Pennington, who also presented the preliminary findings to Councilmembers during the workshops.
“There was dysfunction in that organization,” Pennington said at a March 3 briefing. “I think that’s a fair word to use.”
The report presented several recommendations to improve the organization and promote greater transparency. In the final report, the audit recommended:
· The board should have more oversight over the commission’s operations.
· The board should publish full agendas and supporting documents online.
· The board should develop a more detailed budget document after adoption and publish the budget on its website.
· The executive director should provide a detailed budget each year to Richland County and provide quarterly budget updates.
· The commission should establish a position for an internal auditor and/or compliance officer.
Richland County hopes the audit can serve as a tool for local members of the SC Senate and House of Representatives to improve public accountability of the recreation commission.
To view a copy of the audit report, click here.