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Chamber refuses to hand over its audit

Last month, some Safety Harbor commissioners said they were entitled to see the chamber's annual internal audit

By EILEEN SCHULTE
Published December 10, 2005

SAFETY HARBOR - The Safety Harbor Chamber of Commerce's executive board has decided not to give the city a copy of its annual internal audit, requested by city commissioners last month.

Cyndi O'Donnell, president and chief executive officer of the chamber, told the Times on Thursday she will disclose financial information that pertains only to the Community Redevelopment Agency, an administrative body that helps revive the downtown core.

The chamber receives funds from that agency.

"If that's what they are sending, then it does not seem to meet the request," City Attorney Alan Zimmet said on Friday.

City Manager Wayne Logan wrote O'Donnell a letter on Nov. 22 asking for the audit, but the chamber said the request was too vague.

Zimmet then wrote a letter to the chamber on Dec. 6 that said, in part: "As you are aware, the City of Safety Harbor is a member of the Safety Harbor Chamber of Commerce. The City, pursuant to Section 617.1602 is hereby making a formal request to receive a copy of the Chamber's latest audit report. This request is being made in good faith and for the purposes of allowing the City to review the Chamber's finances and determine how money contributed by the City and the City's Redevelopment Agency to the Chamber was spent by the Chamber of Commerce."

The statute Zimmet cites says in part that a member of a corporation is entitled to see the accounting records of that corporation if enough notice is given.

The issue first arose during a Nov. 21 meeting to approve the CRA fiscal budget.

City Commissioners Andy Steingold and Kara Bauer had demanded details of how the city's $51,000 is being spent.

Mayor Pam Corbino disagreed, saying she didn't believe the city needed to see a detailed audit of the chamber's expenses. Commissioner Nadine Nickeson said the chamber had given a presentation of expenses at a work session several weeks ago, and she was satisfied "with seeing how they expended the money we give them."

Corbino and O'Donnell did not return phone calls on Friday.

On the suggestion of City Commissioner Keith Zayac, the five-member commission unanimously approved the $51,000, but with one provision: that the chamber provides the audit and no improprieties are discovered.

But on Friday, Zayac said he was unsure what motivated the request in the first place.

"This issue came out of the blue," Zayac said. "I don't know what's behind this. Why is it so important we (see the audit) now when there has been no accusation of misappropriation of funds?"

But when Steingold and Bauer heard about the board's refusal to turn over the audit, they were angry.

"I believe they are doing themselves a disservice by not complying and providing the audit and any other documents requested by the city attorney," Steingold said. "If I see those documents and there are no improprieties, I have no problem."

Steingold said he planned to ask the city attorney to apply for a court-ordered inspection if the chamber refused to turn over the audit.

Said Bauer: "I cannot believe the chamber thinks it's above the law. This isn't over. The audit will be made public."

Eileen Schulte can be reached at 727 445-4153 or schulte@sptimes.com

[Last modified December 10, 2005, 00:51:18]