Within the audit, it was revealed that former Executive Director Steven Libman’s mistress and employee spent nearly $1,800 on airfare and meals during four trips to New York City.
“Libman's travel expenditures for meals indicated in the review were small considering it was for two and in the New York City area,” said Accetturo. “Hotel costs were also within range.”
Critics also question that on at least one trip to New York, Mayor Jim Brainard brought Nancy Heck, who is his community affairs specialist, with him on travel but never mentioned it publically.
Due to a concern of a potential sexual harassment lawsuit, Mayor Brainard hired private investigators at taxpayer expense to follow Libman and his assistant at the tune of $8,000.
Councilors said the audit revealed no wrongdoing.
Fox59 contacted Mayor Brainard who is in Washing DC. We asked him if this was a witch hunt, and he replied ‘no comment’.
Brainard defends hiring private investigators, because he feared Libman’s mistress would sue the city for sexual harassment. However, she has not.
Libman was forced to sign a confidentiality agreement and has said little, although he is exploring his options in suing the city.
The auditors also revealed that leaders spent $700,000 for a PBS Special without board approval and the project resulted in a $400,000 loss.
The Regional Performing Arts Center earned $1.4 million in tickets sales revenues. They spent over $1 million in advertising, yet received $2 million in government subsidies
“There’s nothing in there, no evidence of financial misdealing or fraud,” said Acceturro. “The only thing the audit tells me that there is no evidence.”
Steven Libman, former President and CEO of the Center for the Performing Arts, released the following statement Tuesday following the release of the audit:
“Today’s release of the regular annual audit of The Center for the Performing Arts, Inc. fills me with both pleasure and pride. It gives me pleasure because this regular annual audit demonstrates that through the end of the Center’s 2010-11 fiscal year, financial matters were handled with the high standards of care and professionalism that I demanded as President and Chief Executive Officer. Pride because the positive operating results and cash balances demonstrate the extremely fast development of the Center from a building and a vision into a vibrant, successful regional asset for performing arts through the hard work of the Center’s staff.
“Finally, I am especially proud of the Center for ending each of the first two years of operation with a surplus – a great accomplishment for a start-up performing arts center. This wonderful achievement was possible due to the very talented senior staff that I recruited and hired. Their dedication and leadership is what has enabled the Center to continue to move forward successfully.
“I congratulate the Board and the present staff for the Center’s solid performance and wish them the best of luck in the future.
“With respect to the internal review reported by Board Chairman Rollin Dick, I believe any organization needs to increase the sophistication of its financial controls as it grows and matures. At the start-up of the Center, we had a small staff and a very short time to prepare a season. We followed all Center procedures that were in place at the time. Given the success of the Center over the past two years, such items as expense reporting, human resources and contract procedures should be improved continually.”
