Bohen has been focused on the accuracy of reported municipal golf operating and financial results
In our view, there are two council members who genuinely dedicate time to scrutinizing the Town’s financial results. One of them is Tim Bohen, a council member who, candidly, can be a source of challenge for other council members and Town staff due to his pointed questioning. Occasionally, the manner in which he poses these questions may make some people uneasy. However, his questions are consistently relevant. Bohen is serving the public, not the staff nor the Town Council.
Bohen has been actively challenging the accuracy of the operating and financial data provided by municipal golf operator, Indigo Golf. Last spring, Bohen requested that the staff produce point-of-sale data to validate the revenue and golf rounds figures reported by Indigo Golf in their financial statements. Despite raising concerns about these reported results during at least two council meetings, Bohen received no response from the staff and no support from fellow council members. It’s important to note that Bohen wasn’t necessarily claiming that the numbers were incorrect; rather, he believed they appeared unusually high and not in line with what would typically be expected.
Frankly we thought the topic was dead
That is, until Bohen asked Town Finance Director Gephart at last week’s council meeting about a topic Bohen had heard during his attendance as the Finance and Budget Commission meeting earlier in the week.
Gephart told the Council that the town has engaged an external auditor to conduct a specialized examination of the financial records provided by Indigo Golf. The auditor's scope of work includes a review of the contractor's internal control measures. Furthermore, they will assess the integrity of the accounting system by testing sample transactions within the revenue process, scrutinizing point of sale data, and cross-referencing it with the monthly income report. Additionally, the auditor will verify deposits made into the bank account, ensuring the presence of supporting documentation. The examination will also encompass an evaluation of expenditure records.
According the vendor…Municipal Golf earned a profit!
Indigo Golf has submitted an accounting golf operations for fiscal 2023 (See panel). According to their annual report, El Conquistador Golf achieved an operating profit of $73,600, a significant improvement from the originally anticipated loss of $701,139 for operations alone. It's important to note that these figures pertain exclusively to operations and do not encompass the substantial expenses associated with irrigation replacement, which amounts to millions, or other municipal golf capital investment. It remains unclear whether these reported results also encompass the performance of the Pusch Ridge course.
Incentive Fee and Financial Reporting
Indigo Golf receives an incentive fee based on the financial results, while also supplying these results to the Town. Therefore, an independent audit is crucial to ensure the accuracy and reliability of these reported numbers.
Town Council Decision
The Town Council is set to decide the fate of the Push Ridge nine-hole golf course next spring. To make an informed decision, they must rely on accurate financial data, making the need for an audit paramount.
Homeowners Association Payments
Homeowners Associations are paying the Town of Oro Valley for golf course operation. If the golf courses are profitable, there's no justification for these payments to continue. An audit can determine the profitability and guide fair financial arrangements.
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