Removing accounting line item this year, which once showed PAC loses, raises additional issues of trust
The Blog investigates
The Blog was shocked when the Community College, in direct response to a question from Sedona Councilor Scott Jablow at the City Council meeting October 27, 2015, the College stated that in the last year the PAC subsidy was “about $70,000.” You may view the exchange between the two by clicking here.
What the Blog discovered in documented losses
The Blog began to dig through public reporting records from 2012 to November, 2015 to discover how the huge reported subsidy had dropped so dramatically. What the Blog found did not answer the question of why the dramatic drop occurred, if it did. What it did discover raises troubling issues of trust.
Huge loses reported for three consecutive years. For example, the College reported PAC losses in June, 2013 of $649,000, June, 2014 of $680,000 and estimated in a budget in April, 2014 loses of $585,000. (All of the College reports are reproduced below.) Those losses would have to be subsidized.
Wills’ explains losses. The Blog also discovered that the reason for the losses, as explained by President Penelope Wills to the Governing Board, was the following: “For the PAC, the net profit on shows and related food/beverage operations has been below projections.” (March, 2014). “Overall, the Auxiliary Fund, which was budgeted to break-even, is expected to have a deficit. This is due to Food Services (meal plans) and the Performing Arts Center having larger losses than projected.” (April, 2014).
McCasland questions. The Blog found that once Deb McCasland was elected to the Governing Board, she began asking questions about the operation of the Performing Arts Center. She was extremely knowledgeable because as a former Yavapai College employee, she was in charge of the programs at the Center.
Curtain of secrecy dropped on PAC accounting line item. The Blog also found that the curtain on monthly reports of losses for the PAC was pulled down in July, 2014 by the College. It did this by simply eliminating from the monthly report the PAC line item. This effectively removed from public view the losses that were being incurred and effectively removed the item for discussion by the Governing Board.
Demand an independent audit. The Blog believes that Yavapai County Taxpayers cannot trust the College to provide detailed accurate information about the PAC losses, which are subsidized by taxpayers. It believes that taxpayers should demand an independent outside audit to determine the nature and extent of taxpayer subsidy to this project.
The following chart, which was prepared by the Blog, is based are the reports taken directly from public Yavapai Community College records.
The following are reports taken from College documents over the last three years verifying the losses stated above.
The new method of reporting auxiliaries–no PAC line item.
