Parks and Recreation Director Lynn Johnson today said an issue with improper bookkeeping at the Holmes Lake Golf Course Clubhouse has been resolved, and the department has taken action to prevent problems from reoccurring.
Johnson said Parks and Recreation staff discovered the improper bookkeeping in August while conducting a fiscal year-end review. On September 14, the department ended its contract with Scott Weihe, an independent contractor who managed the clubhouse, for not handling funds in a manner consistent with the terms of the contract. Because Weihe was a contractor, not a City employee, the City's Personnel Code does not apply in this case.
Weihe was responsible for maintaining financial records, receiving revenue, paying vendors and staff and depositing income into the City's Golf Fund from his business account. The staff's review found that funds collected were not being deposited in a timely fashion. Parks and Recreation asked BKD, a local accounting firm, to examine whether the City received the revenues it was due.
The examination found that Weihe made procedural accounting errors. Johnson said Weihe had submitted duplicate requests for reimbursement and had paid both business and personal expenses from his business account, actions that are not illegal, but are not proper accounting practice. Johnson said that because Weihe was not properly capitalized, he had also requested and received City reimbursement for payments to vendors, but he had not yet paid some vendors the full amount due. The City paid the vendors and is confirming that all other vendors have been paid. As a result of the accounting errors, Weihe owes the City $19,589.72 at this time and has made arrangements to repay.
To ensure that no illegal activities had occurred, the Lincoln Police Department (LPD) investigated the situation and consulted with the Lancaster County Attorney. LPD turned the results of its investigation over to the County Attorney's Office, which determined that the evidence did not support criminal charges. In addition, BKD will continue its independent review of Weihe's records regarding the Holmes Golf Clubhouse operation.
"We have issued a Request for Qualifications to manage the Holmes Golf operation," Johnson said. "At the same time, we are clarifying job duties in the department to more clearly delineate oversight responsibilities of the golf fund." He said Denis Vontz, the contracted Golf Professional at the Highlands Golf Course, will continue to manage the Holmes Clubhouse on an interim basis.
"We are also looking forward to the January report from the Community Committee on Lincoln City Golf sustainability," Johnson said. "Broader structural reform will be considered in conjunction with the committee's recommendations."