Despite an effort to find out if City-organized sporting events are making or losing money, a City Council special committee still has questions.
The Special Committee on Oversight of the Sports Development Events Fund met Tuesday to review the results of a Council Auditor's Office evaluation of financial reports from a handful of previous sporting events organized by the City.
"We really don't have any (event financial records) that we have confidence in," said Council Auditor Kirk Sherman.
Sherman and auditor Heather Reber were instructed by the committee May 14 to review the financial records of three events pre-2011 and two events after the start of 2011 to provide a comparison to the Navy-Marine Corps Classic college basketball game.
Sherman explained he received information from the events, but separate accounting for each has not been conducted. Some information was available, but was not assigned the proper accounting codes for the City, which made it difficult to provide an accurate account of the events, he said.
"At the end of this review we will have recommendations for improvement moving forward," said Sherman.
Alan Verlander, City director of Sports and Entertainment, agreed with Sherman's assessment.
"We have a good recommendation moving forward so that we can be transparent with every expense and every revenue item," Verlander said.
The first Navy-Marine Corps Classic on Nov. 9 at Naval Station Mayport accumulated a deficit of about $700,000. The committee was created to investigate how the City could avoid repeating the performance.
"When I came to work in the middle of May last year, I was told we were going to do this basketball game and, in essence, to make it happen. From that point, when I came in, my role was reporting directly to the fourth floor (mayor's office)," said Verlander.
Council member Matt Schellenberg, the committee chairman, asked how the next proposed classic would differ.
"We are sort of at the same point we were last year. Tell me how it's different," said Schellenberg.
Verlander said that there is more communication between him and other City leaders, including Chief Financial Officer Ronnie Belton, Office of Economic Development Executive Director Ted Carter and Vic Guillory, director of Military Affairs, Veterans & Disabled Services.
Verlander and Belton offered solutions for funding the event now that the Sports Development Events Fund is almost depleted.
"We know that the fund is going to have to have an allocation from the general fund during budget time if they plan on continuing to operate as an entity in the city," said Council member Richard Clark, who serves on the committee.
"They used the (Sports Development Events Fund) the way it should be used, we just want to know what our costs are," he said.
Schellenberg asked Belton if Mayor Alvin Brown plans to put money in the fund in the next budget.
"We are looking into that," said Belton.
Verlander told the committee the City had access to Event Development Funds made available through the City's facilities management contract with SMG.
The contract requires SMG to provide $500,000 for event development and $1 million the City has full discretion to use "for any purpose it deems appropriate."
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