Sunday, August 29, 2004

OPINION/COMMENTARY

Land Acquisition Group Caught Misusing Taxpayer Money According to the Los Angeles Times on June 6, California Department of Finance auditors issued a report on March 24 documenting that the conservancy group "does not adequately manage, control, or oversee" $115 million in bond funds given it by the state. The auditors accused the organization of "funneling away money to pay for legal fees, office expenses, conferences, cars, travel, vacation and sick pay, and 'excessive' overhead charges." "In our opinion, they're not spending funds in line with the bond measures," said Office of State Audits and Evaluations chief Samuel Hull. "Some of the things they did I've never seen before. They are creative, I'll give them that." According to the audit, the conservancy assesses an extremely high 9 percent "administrative overhead" fee for its land purchases, which has amounted to more than $1.5 million. The auditors report the conservancy's administrative overhead assessments are a staggering 350 times greater than the overhead of comparable state agencies such as the Coastal Conservancy and the state Department of Fish and Game. Such fees, according to the auditors, are "grossly out of proportion to services provided." Specific expenditures cited by the auditors as inappropriate include memberships in VIP airline clubs, hotel room service expenses in excess of state travel allowances, and air travel purchases for the wife of the conservancy's executive director....

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