The resignation letter Tuesday

from the vice chairman of the Peachtree City Development Authority lays

out a devastating picture of an appointed government entity facing unforecast

cash flow problems, an undisclosed $366,306 sponsorship obligation and

an unfocused budgeting process still without "an adequate level of

knowledge and control over the accounting function" a year after

an independent audit called for such rudimentary accounting procedures.

Scott Bradshaw, citing his

"grave concern" over the bleak financial situation facing the

Peachtree City Tennis Center and Fredrick Brown Amphitheater, resigned

after his attempt to have the appointed authority discipline an unnamed

manager was rebuffed by the group during a closed session last week.

The Citizen made attempts to

reach Bradshaw, members of the Authority and other city officials for

comment Tuesday afternoon just before final publishing deadline.

"We have received highly

optimistic financial reports throughout the year," Bradshaw wrote,

"and I was stunned to learn on Sept.. 15, two weeks before the end

of the fiscal year, of serious cash flow problems.

"It was clear ... that

the DAPC would have difficulty meeting the final payroll ($36,000) and

paying the band ($50,000) for the last performance of the concert series

on Sept. 26 and 27," Bradshaw wrote. "Three Authority members

have been placed in the untenable position of meeting with staff to resolve

this problem."

Perhaps most devastating was

Bradshaw's discovery of a sponsorship agreement with shoe manufacturer

Adidas that obligated the Authority to guaranteeing $366,306 in sales

of Adidas products through the privately owned Trading Post tennis pro

shop onsite at the Tennis Center.

"The Authority made the

huge guarantee in exchange for the promise of $15,000 per year in t-shirts,

hats, travel bags, etc., for distribution at tennis tournaments and the

Amphitheater," Bradshaw wrote. "The agreement further provides

the DAPC Executive Director [Virgil Christian] a Level 1 position on the

Adidas Advisory Board."

That February 2002 agreement,

Bradshaw, charges, "was never discussed or voted on by the Authority."

Bradshaw, a well-known developer,

also charged that the privately-owned pro shop was commingling funds with

those of the Authority, mixing the Authority's court fees with the pro

shop's sale of clothing and tennis rackets.

"I have no reason to believe

there is wrongdoing in connection with these transactions," Bradshaw

wrote. He called for better accounting procedures to accurately define

which money was which.

The outgoing member said the

Authority faces further cash flow problems after spending $130,000 more

than it took in during the previous year. "The best action seems

to be to defer payments to vendors, which in some cases are past due,

and hold checks that are already written but not mailed," Bradshaw

said.

"Unfortunately, the necessary

deferrals of major financial obligations will contribute to even more

severe cash flow problems in the new budget year," Bradshaw wrote.

He said an outside auditing

firm was cut as a cost-saving measure by the executive director without

authorization by the Authority. "This major change was made without

vote by the Authority," Bradshaw wrote. "The Authority should

give serious consideration to immediately engaging the services of an

outside accountant."

Bradshaw further detailed the

lack of any specific accounting for more than $2.2 million in money spent

on expanding and renovating the Tennis Center and the Amphitheater administrative

office.

"Members of the Authority

have been provided with a variety of somewhat disconnected change orders,

contracts and partial lists of unpaid suppliers and subcontractors,"

Bradshaw wrote. "It is very difficult for anyone to clearly understand

the total financial picture related to these capital expenditures."

Bradshaw also charged that

Christian had violated an Authority directive to implement a hiring freeze

several months ago. "The Executive Director has subsequently replaced

two full-time and two part-time employees in clear violation of the mandate,"

Bradshaw wrote.

Contacted Tuesday, Bradshaw

said that no illegal activities have occurred on the part of the Authority

members, but, "Some poor decisions were made and they could have

been better managers."

Back

to News Home Page |