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Audit scolds state parks division for 'egregious waste'

$800-per-hour comedian cited among problems

Carrie Porter

Published July 15, 2008 at 12:05 a.m.

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The Colorado Division of Parks and Outdoor Recreation failed to account for $1.3 million of lottery funds, paid a comedian $800 an hour to entertain staff and "circumvented the standard reservation processes" to procure stays in park cabins for staff and friends, according to a state audit.

"This is the most egregious waste of money and resources I've seen in my four years on the audit committee," said Sen. David Schultheis, R-Colorado Springs.

The Legislative Audit Committee met Monday for a four-hour review with members of the parks division and Great Outdoors Colorado.

GOCO funds some park acquisitions for the division of parks.

The state auditor blamed a lack of accountability and oversight, in addition to fiscal irresponsibility, for the litany of problems.

Auditors discovered more than $2 million of questionable payments for contracts, as well as a consistent pattern of resources appropriated for personal use.

"We found that the Division improperly authorized two employees to commute in state vehicles at a cost of nearly $40,400 between January 2004 and October 2007 and did not report these benefits as taxable income on the employees' W-2 forms," the audit states.

Additionally, auditors found division staff members used "fully furnished cabins at Mueller State Park to benefit themselves, their friends . . . and organizations with which the Division does business," reserving the cabins during holidays and booking them before the public could.

Auditors also found expenditures they deemed "unreasonable and unnecessary."

"For example, the Division paid $6,100 for employee entertainment during a three-day training for 250 employees," the audit report states.

"Expenses included hiring a comedian at a cost of $800 per hour and renting casino equipment for $5,300.

"In addition, the Division spent about $43,000 for food during this training, which was significantly higher than the state's allowable per diem.

"Had the Division used the per diem . . . the costs to the State would have been $21,700 less," the audit states.

"There is a pervasive, long- standing culture of abuse, waste and loss," said Jennifer Harmon, a legislative auditor. "It needs a complete turnaround."

Mike King, deputy executive director of the Department of Natural Resources, said the DNR takes the "audit's findings extremely seriously."

"The auditors have given us a road map, and now we know the magnitude of the issues we face and the direction we have to go," King said.

"What needs to be clear is that things approved in the past will no longer be acceptable."

GOCO Board Chairwoman Norma Anderson, who served on the audit committee during the division's last audit, in July 2000, said the situation has worsened.

"There is no oversight, and it's like the inmates are in control," she said. "There are systemic issues within the agency that require major changes."

John Swartout, GOCO's executive director, said GOCO requested an audit in March 2007, when discrepancies surfaced.

Unless records become more transparent, Swartout threatens to withhold funding.

And better training is a central theme in the audit recommendations.

New leadership within the division signals a fresh start.

Dean Winstanley stepped in as director of the division in November 2007, replacing Lyle Laverty.

Two new commission members were appointed last year, and Steve Cassin took over as chief financial officer three months ago.

porterc@RockyMountainNews.com or 303-954-5625

They wrote it

* "The division paid $6,100 for employee entertainment during a three-day training for 250 employees. Expenses included hiring a comedian at a cost of $800 per hour and renting casino equipment for $5,300. In addition, the division spent about $43,000 for food during this training, which was significantly higher than the state's allowable per diem."

Comments

  • July 15, 2008

    8:41 a.m.

    Suggest removal

    Ginger writes:

    I work in the mental health field providing services for persons with gambling addictions. It is not unusual for some of these people to purchase $350-$400 in lottery scratch tickets per week. Unlike many other states which receive a percentage of lottery proceeds for treatment of addicted gamblers, the CO Lottery, to my knowledge, provides no funding at all for education and treatment of persons with gambling problems. When I saw this article about the CO Parks Division's obvious abuse of funding they receive from Lottery proceeds, it is indeed irresponsible for the state to allow these abuses when just a small percentage of Lottery proceeds could be used to help those persons trying to recover from a gambling addiction and have no way to pay for private treatment. Shame on Colorado.

  • July 15, 2008

    2:38 p.m.

    Suggest removal

    dp writes:

    Hmmm.... they use money inappropriately and the answer is to give them less money to spend. Wow, that makes sense!!! Who the heck is that punishing? Could it be you and me? That is government at its very best.