Audit Report finds SPAC Mismanagement

[harpergroup]

This was in today's NY Times.

The lead sentence in the article states: "The Saratoga Performing Arts Center's decision in February to end the New York City Ballet's 40-year summer residency was flawed and indicative of generally poor management that includes overpaying the center's top executive, according to a preliminary state audit to be released today."

Full article appears at:

Saratoga Center Cited for Mismanagement

So - thanks to all of the Save the Ballet folks for their efforts.

[Farrell Fan]

Thanks for posting this, harpergroup; it wasn't in my copy of the Times. Maybe it will be tomorrow. At any rate, I hope we hear from the Ballet Alert Saratoga contingent. Thanks and congratulations to all who worked so hard to keep NYCB at SPAC.

[Amy Reusch]

The audit found that, in making its case for canceling City Ballet's visit, SPAC exaggerated the size of its deficits for the ballet while understating how much money it lost on the residency by its other resident classical company, the Philadelphia Orchestra. It concludes, "Any major decision ... should be based on full and complete financial information."

Change Urged to Save SPAC Nov 24 story in the Times Union.

That's curious. Anyone know how much of an exaggeration and how much of an understatement?

[sandik]

I'm interested in seeing if any they make any comment about the role of Clear Channel in their investigations.

[rkoretzky]

Good morning and Happy Thanksgiving. Perhaps all who love NYCB and SPAC have something to be thankful for today.

My husband and a good friend of mine were both at the Press Conference announcing the audit results. I have a copy of the audit, which I have read in its entirety. We also made sure that copies were given to representatives of the dancers and musicians, who were so supportive and concerned for the last nine months. The news is getting out.

I am leaving for Europe tomorrow and will be away for two weeks but will remain in email contact and I will try to answer any questions about the audit report that are posted here.

To begin with sandik's question: CCE is mentioned frequently in the report, but mainly to Herb's detriment, not theirs. The implication is that SPAC didn't make good use of CCE's participation--in fact CCE is referred to as a SPAC partner in much the same way as NYCB and PO. "SPAC's successful partnership with CCE Inc....must be more fully leveraged to better support its principal mission and focus. WITHOUT THE PRESENCE OF THE NYCB, THE FOUNDATION OF THE STATE'S 100 YEAR RENT FREE LEASE WOULD BE CALLED INTO QUESTION, STILL FURTHER JEOPARDIZING THE FUTURE OF SPAC."

Herb is slammed for salary increases after the CCE contract reduced his duties by 70%: "Shortly after the current compensation contract was in place, CCE contracted with SPAC to book and stage all touring (rock and pop concerts) at their sole risk, thereby..reducing the level of responsibilities for the president. Nothwithstanding this substantial reduction...the president's compensation package was not adjusted accordingly.

SPAC's long range plans were never adjusted to reflect the CCE deal. Herb was asked to draw up a 5 yr business plan (his specialty as an accountant, one would think)--he never did so.

There is much in this report that is very damning. Sometimes there is justice in the world.

[Mel Johnson]

I knew that Bernadette Castro, NY State Commissioner for Parks, Recreation and Historic Preservation, wasn't going to take this one lying down. Hats off to her and the audit staff for telling it like it is!

[rkoretzky]

NYCB at SPAC would have died silently without the efforts of an incredible Saratoga community and the assistance of Assemblymember Tedisco and Senator Bruno. Please don't forget them in your congratulations.

[Alexandra]

From the comments (I haven't had time to read the articles) it DOES sound as though justice will be done -- surely a rare thing!

Thanks to rkoretzky for keeping us up to date on this matter all along!

[Mel Johnson]

And if you're part of the New York State community, who made noises about this situation, give yourself congratulations, too. It doesn't get more basic than this: That government derives its just powers from the consent of the People. The People spoke out - the government did as they bid!