Louisville Courier Journal Editorial: "Failure To Manage [Kentucky League Of Cities]".
Failure to manage
State Auditor Crit Luallen's scathing report on the spending habits of the Kentucky League of Cities is shocking, but it shouldn't surprise anyone who hasn't spent most of this year napping.
Ms. Luallen's audit, which was released Thursday, fleshes out a disturbing but now-familiar picture in which top league staff members spent hundreds of thousands of dollars on “excessive or questionable” expenses.
In addition, her report detailed hefty salaries for league officials, especially executive director Sylvia Lovely, whose salary jumped from $170,248 in 2002 to $331,186 in 2009. The league also spent $218,000 over five years on a retirement bonus for Ms. Lovely and bought a $64,000 vehicle for her use. The league paid $1.4 million for legal services to a firm where Ms. Lovely's husband is a partner, and spent $28,600 at a Lexington restaurant of which he is a part-owner.
Ms. Lovely said in August that she takes responsibility for lax management and said she will resign, effective Jan. 1. Exactly what anyone hoped she would accomplish in her final four months would be difficult to comprehend.
The state report also outlines a pattern of other extravagant spending, including $212,871 in questionable credit-card charges, $74,463 in expenses lacking adequate documentation, $430,000 on out-of-state trips that often included spouses, $314,000 over two years for vehicles and $50,000 for tickets to sporting events and shows.
The money is chiefly tax dollars, paid as dues to the league by member cities.
Equally appalling, however, is the laissez-faire oversight provided by the league's executive board. Any board of directors is charged, for example, with hiring and monitoring the organization's chief executive.
Yet, Louisville Mayor Jerry Abramson, a member of the league's board, said he was unaware of specific salaries, which he agreed were excessive. Ms. Luallen said the board approved an overall lump sum for salaries but not individuals' pay.
Mr. Abramson said that board members trusted the league's leadership and staff, and that their trust was misplaced. But trust is no basis for running an organization. Instead, boards are supposed to bring rigor, professionalism and close attention to their task.
Presumably, this will be true of the league's board in the future. Meanwhile, current board members should not despair. There are big banks on Wall Street that might love to bring them aboard.
State Auditor Crit Luallen's scathing report on the spending habits of the Kentucky League of Cities is shocking, but it shouldn't surprise anyone who hasn't spent most of this year napping.
Ms. Luallen's audit, which was released Thursday, fleshes out a disturbing but now-familiar picture in which top league staff members spent hundreds of thousands of dollars on “excessive or questionable” expenses.
In addition, her report detailed hefty salaries for league officials, especially executive director Sylvia Lovely, whose salary jumped from $170,248 in 2002 to $331,186 in 2009. The league also spent $218,000 over five years on a retirement bonus for Ms. Lovely and bought a $64,000 vehicle for her use. The league paid $1.4 million for legal services to a firm where Ms. Lovely's husband is a partner, and spent $28,600 at a Lexington restaurant of which he is a part-owner.
Ms. Lovely said in August that she takes responsibility for lax management and said she will resign, effective Jan. 1. Exactly what anyone hoped she would accomplish in her final four months would be difficult to comprehend.
The state report also outlines a pattern of other extravagant spending, including $212,871 in questionable credit-card charges, $74,463 in expenses lacking adequate documentation, $430,000 on out-of-state trips that often included spouses, $314,000 over two years for vehicles and $50,000 for tickets to sporting events and shows.
The money is chiefly tax dollars, paid as dues to the league by member cities.
Equally appalling, however, is the laissez-faire oversight provided by the league's executive board. Any board of directors is charged, for example, with hiring and monitoring the organization's chief executive.
Yet, Louisville Mayor Jerry Abramson, a member of the league's board, said he was unaware of specific salaries, which he agreed were excessive. Ms. Luallen said the board approved an overall lump sum for salaries but not individuals' pay.
Mr. Abramson said that board members trusted the league's leadership and staff, and that their trust was misplaced. But trust is no basis for running an organization. Instead, boards are supposed to bring rigor, professionalism and close attention to their task.
Presumably, this will be true of the league's board in the future. Meanwhile, current board members should not despair. There are big banks on Wall Street that might love to bring them aboard.
Labels: News reporting
posted by KYJurisDoctor at 5:55 AM
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