Councilman Dr. H. Dan Adams’ Letter To The City Council About Ford Center Accounting

Dear Colleagues

Now that we all have been in procession of the letter from RGL Forensics for a couple of days, I believe we need to discuss what we should do with the report. It is my contention that since it was paid for with the Public’s money that it needs to brought to the City Council floor for discussion. We can debate as to its need; but I contend that we still need to share the report’s content with our Mayor and the Public, as some months ago, Mayor Winnecke reflected to me that he was “looking forward to reviewing the consultant’s findings”.

Various Issues have come forth:

1, Dave Garret’s “Lead Sheets” were not compiled on the City Council’s nickel. He and Councilman Friend did that work independently.

2. The conclusion (Pg 4, Paragh 4) by RGL Forensics speaks for itself – “We do not believe that the Garret Lead Sheets confirm that accounting irregularities occurred within the accounts of the Ford Center Construction Center. Yet the lead sheets do raise questions as to the accuracy of the information reported in the accounts and we cannot discount the possibility that accounting irregularities may have occurred. ”

3, It is presently unknown by me as to whether the ~$350,000 overpaid to the Kansas City steel company has ever been recovered or not. If not, what remedies are being pursued ? Although some have said such an overpayment is relatively “chump change” in a project of ~$129,000,000 (?), that sum could maintain a family of four for almost a decade. So I would like to know.

4. Some feel this study was a waste of taxpayer money. I, for one, do not in that I seriously doubt any review study would have been done at all, if we had not pursued this course. It is akin to me of doing a preoperative baseline hematocrit: the fact that it comes back a little abnormal helps the surgeon know when to transfuse blood. Our study clarifies the data for all to evaluate.

5. In my opinion, the recommendation (Pg 5) by RGL Forensics that “Therefore as a possible alternative, we recommend that a selected Garret Lead Sheet (or multiple sheets) be investigated completely to verify whether it is associated with intentional material misstatement. The conclusions from that investigation could then be used as a guide in determining whether a forensic audit is warranted. We would recommend Garret Lead Sheet No. 5, Purchase of the Executive Inn Hotel. “should be brought forth for a vote at City Council ASAP. I think one has to follow the recommendation of one’s consultant, but I am not an accounting expert….And I represent only one vote.

6. Through both our and the Administration’s efforts to review this situation, we have been able to create a substantive change of policy. From now on, there will be a Public Representative on every major City construction project. The Downtown Convention Hotel is an example of this excellent improvement. We all will be privy to real time accurate reports on how the Public’s money is being spent. This information was not promulgated during the Ford Center’s construction.

Please consider the above carefully. After due deliberation, communicate your desires to Chairwoman Robinson, Finance Chair Friend, Lawyer Danks or myself.

Thank you,

Dan

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