Why an audit claims KC Parks & Rec is failing to keep records to track finances
Amid the claims in a recent audit of the Kansas City Parks and Recreation’s finances, the report suggests the city department is failing to keep records that are used to track revenue and a list of improvement projects needed to maintain its facilities.
City Auditor Marc Shaw told the City Council last week that these issues and other financial mismanagement concerns could be costing the city millions of taxpayer dollars.
The report led to a fierce response from Parks Director Christopher Cotten, who argued the auditors shared false or inaccurate information and failed to understand how parks and recreation programming works.
In regard to record keeping, Shaw said Parks leaders have claimed the department has between $80 million and $400 million worth of deferred maintenance because of budget shortfalls. But the audit claims the department would not provide documentation of the deferred maintenance backlog upon request.
Additionally, the audit found that the department’s finance division is not tracking money owed to the department, tracking late payments or issuing invoices to park users. The audit states that “in most cases” of underpayment from facility users, the department’s finance division was unaware of non-payment and did not know how much was owed to the department.
Staff not aware of financial policies
Shaw told the City Council that these issues may be related to poor financial controls that stem from unclear roles and responsibilities among staff. He said staff reported that they were not aware of financial policies and operating procedures.
“These deficiencies left leadership without reliable financial information, limiting its ability to assess the department’s financial health or make informed operational and resource allocation decisions,” Shaw said.
Millions of dollars of deferred maintenance
Cotten argued the department has conducted multiple studies and plans that showed more than $400 million of deferred maintenance, which he called “unfunded issues.” He also pointed to a 2019 Urban Land Institute report that showed the department had $60 million of deferred maintenance at the time.
“The fact of the matter is that over the past few years, we have worked diligently at the request of Mayor (Quinton) Lucas to get a firm grasp on our issues,” Cotten said. “We are currently doing the hard work of ranking these unfunded issues in order to have a better plan of addressing these needs,” he added.
As part of the audit, Shaw recommended for the city to seek an external review of the department’s financial practices to further examine the issue. He also suggested the department establish better defined oversight responsibilities for its finances and facility use contracts and to better apply its stated fee collection policies.
