As a follow-up to discussions at the City Commission meeting early May, 2009 the following summary and time-table was provided to the stakeholdders as an update on the researched fact knowledge base as it relates to the interlocal relations of the City of Savannah and Hardin County through Team Hardin County, Inc. (THC), Hardin County Convention and Visitors Bureau (CVB) and Savannah Industrial Development Corporation, Inc., (SIDC).
Summary of Scope of Loan Research-
The Open Records Act request that was delivered to the CEO of everything Team Hardin County and their member entities, on April 13th and again on the 19th of April, was about 75% complete last week and the required factual record should be completed documented shortly.
The records request and other research efforts has produced over 2,500 pages of data that includes financials, charters, by-laws, board minutes and other relevant records, dating back to fiscal year 2000 for THC, SIDC, CVB, and THC-NAIA
After completing a preliminary review of this data, while at the same time noting more importantly, the records that were not or could not be produced, although required by State statutes and/or their own by-laws, I believe there are certain conclusions that can be drawn, at this time.
The conclusions as to the alleged debt of SIDC to THC for reimbursement of paid operating expenses, and accumulated between fiscal year 2002 thru 2008, can be separated between SIDC and the City of Savannah as they relate to Hardin County and/or Team Hardin County, Inc., and can be summarized as follows:
The first conclusion that can be made is that there is no documentation, of any kind, in the records provided by Team Hardin County (THC) that demonstrates that there was ever any consideration or approval, by anyone, of any transfer to SIDC, or to anyone else, of any funds that THC held in a restricted trust for the benefit the Hardin County Tourism and Convention Bureau (CVB).
There is no record of the Board of Directors of SIDC or CVB authorizing THC to expend any funds, to anybody, over and above the approved and funded budget. In the case of SIDC the necessary approval of the source of funds for SIDC would be the City of Savannah, who owns and is responsible for SIDC. In the case of the use of the CVB surplus funds, it would be Hardin County government, specifically, the Board of County Commissioners and the Board of Directors of CVB.
The custodian of all of the funds of all of the member entities of Team Hardin County, at all times, was, and is, the CEO of THC, on behalf of the Board of Directors of Team Hardin County, Inc. and managed in accordance with the adopted by-laws of THC and it’s Corporate Non-Profit Charter from the State of Tennessee along with it’s federal 501(c)(4) tax exempt status.
The Records Reflect: The first unauthorized transfer of CVB funds by THC during this period was made by the then CEO, Mr. Jerry Hunt in fiscal year 2002. But, it required at least one of the designated board members for signatures on the general fund checking account.
The CVB ended fiscal year 2002 with surplus revenue (hotel/motel tax collections) of approximately $4,500 over and above what THC was obligated to pay for the budgeted operating expenses of CVB. These unauthorized transfers have continued each year through December 2008, when $11,206 surplus funding was received by CVB. This was down from the high of $30,602 in surplus funds in 2007.
As of March 2009, SIDC was $71,293 behind in reimbursement of operating expenditures to THC. CVB was $73,445 ahead of reimbursements to THC, allegedly for future expenses. Neither SIDC nor CVB have checking accounts and THC holds and/or disburses all co-mingled funds from a centralized general fund account.
Team Hardin County, Inc., has no budget or income, no expenses, and yet serves as THE Joint Economic Community and Development Board of Hardin County, (JECDB), or a state approved "similar" organization. This ‘Board’ is state mandated, if Hardin County and/or any of the municipalities in Hardin County want to be qualified and/or eligible for ANY state grant. The statutes also mandates that the County Mayor and City Manager of Savannah each play a major role in the formation and operation of the JECDB.
The research results also revealed what should be considered a major problem area, over and above who owes who what, how much and why. There seems to be a major flaw in the way THC and Hardin County function as a Joint Economic Community and Development Board (JECDB), or a "Sufficiently Similar" organization, as intended by the Tennessee General Assembly or even the by-laws of Team Hardin County, which the Chairmen of the Board admits are, "generaly ignored."
Submitted for your consideration,
Ted
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