Wednesday, March 19, 2014

Closing the Barn Door

An Audit? The proverbial horse is already out of the barn, folks!

Tuesday night's Long Beach City Council vote to require an audit of the Marina Fund is too little too late. This Johnny-come-lately response to uncertain funding for the rebuild of the Alamitos Bay Marina is exactly my point on the lack of policy- making by the City Council. I have addressed it as a priority issue on my website and in community forums.

The recent calls for audits of several city departments are indicative of Council members who would rather manage after the fact---forensically investigating the wayward redirection of revenue---instead of being proactively responsible by setting clear policy and rigorously monitoring due diligence and staff outcomes. This is a basic element of policy governance.

The issue of Marina Fund spending is similar to a nonprofit's misuse of "designated funds." A board (i.e. council) policy should strictly limit staff from re-directing revenue by deviating from "donor intent" without getting prior Council approval. It's also an unethical practice.

Marina tenants have a right to be indignant that their fees have been redirected from their intended designation. Now we are looking at truncating this critical project prior to its completion, which will escalate the cost.

Marina funds redirected to Tidelands or elsewhere need to be restored immediately. The ongoing, regular monitoring of these revenue funds is called for.

That is policy making. That is a City Council's job. But for now it will be our City Auditor's job.

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