Something that drives private ski areas nuts!

Taxpayers be damned, especially those of you who own a private ski area

http://www.adirondackdailyenterprise.com/page/content.detail/id/544346.html

can you copy it in?

Well, that's smart. Like they're actually going to get a bunch of people paying for that paper. NYT and the WSJ maybe, but......

LAKE PLACID - State comptroller's office released an audit on Wednesday of the state Olympic Regional Development Authority that he said shows the authority needs to improve its financial practices.

One of Comptroller Thomas DiNapoli's most serious charges is that the authority put zero profits into their capital improvement fund and that the fund has no balance. State law requires ORDA to establish a fund to provide for capital improvements and repairs to the Olympic facilities. It also requires a deposit of 25 percent of operating profits each year.

The audit also reported that ORDA relies on loans and outside contributions to cover cash shortages. From April 1, 2010, through March 31, 2013, the authority losses totaled $4.2 million. But ORDA's losses totaled $45 million over this same period if a number of other factors are included, like depreciation, accounts receivable and post-employment benefits due its employees, the comptroller's office wrote. Examining the authority's revenue stream and its corporate sponsorships, auditors found that the authority could increase its income.

"ORDA's continuing struggles to maintain fiscal balance show that the authority needs to explore new ways to save costs and commit to sound financial planning going forward," DiNapoli wrote in a press release. "ORDA needs to develop a realistic and detailed multiyear financial plan to build its cash reserves and maintain operations for the economic benefit of local communities, as well as the tens of thousands of people who enjoy its attractions."

Some of DiNapoli's recommendations for the authority are that it conduct a "top-to-bottom" review of spending, estimate expenses better and award contracts competitively. Out of a sample of 29 bids, 11 of them, totaling $427,000, were not competitively bid.

In a recent ORDA board meeting, CEO and President Ted Blazer highlighted upcoming capital improvements, including replacing an old ski lift at Gore Mountain Ski Center in North Creek with a new high-speed chairlift. Refurbishments to the ramps to the pool house at the Lake Placid ski jumps will also be made, and a leaky roof will be fixed at the Olympic Center arena complex in Lake Placid.

In recent years, auditors said ORDA has used a line of credit to cover its operating costs and payroll. In some cases, other state agencies have paid ORDA's bills, "including $1.5 million of capital lease payments ORDA could not pay since December 2008," DiNapoli said.

The authority was last audited in 2008. That audit found that an ORDA lawyer was wrongly receiving retirement benefits. The lawyer, John Cansdale, should have been treated as an independent contractor, not an employee, the audit found.

ORDA operates the Whiteface and Gore Mountain ski centers in the Adirondacks, Belleayre Mountain Ski Center in the Catskills, the complex of sliding and cross-country ski venues at Mount Van Hoevenberg and the Olympic Center and Olympic Jumping Complex facilities that the town of North Elba owns. ORDA is governed by a 12-member Board of Directors and chaired by Patrick Barrett.

"I'm going to read it tomorrow," Barrett said of the audit. "If I was up there I would read it but I don't have the thing in front of me."

Barrett said he is currently in Syracuse and didn't have time to read the audit. Calls to ORDA officials went unanswered Wednesday morning. This report will update their comments as they become available.

A full copy of the audit can be found online at: osc.state.ny.us/audits/allaudits/093014/13s18.pdf.

My take on the audit findings following a 10 minute read-through.  Keep in mind that the Comptroller's Department can't audit an agency or authority and NOT make recommendations or come up with findings.

"One of Comptroller Thomas DiNapoli's most serious charges is that the authority put zero profits into their capital improvement fund and that the fund has no balance. State law requires ORDA to establish a fund to provide for capital improvements and repairs to the Olympic facilities. It also requires a deposit of 25 percent of operating profits each year."

But ORDA had a net operating LOSS each year.  If state law requires a deposit of 25% of operating PROFITS each year, what is required when there are no profits?  No profits = no deposit.  Are Authorities required by state law to operate at a profit?  Breakeven?  I don't beleive so.

"Some of DiNapoli's recommendations for the authority are that it... award contracts competitively. Out of a sample of 29 bids, 11 of them, totaling $427,000, were not competitively bid."

Hmmm, 11 out of 29 sounds like a lot (38%).  But when you dollar -value those bids, it's $427K out of $8.2 million (5%).  You can get those dollar values from the audit report linked at the end of the ADE article.  So 95% of ORDA's contracts were awarded competitively.  The Comptroller's finding doesn't sound too serious to me.

The audit report did mention that ORDA should prepare more realistic budgets.  Recent budgets overestimated revenues and underestimated expenses.  The report also questioned the value ORDA receives from the Chevy sponsorship and recommended re-examining that relationship.  Those findings weren't mentioned in the ADE article, but seem like legitimate recommendations to me.

I suppose the Comptroller's major criticism is that ORDA operates at a net loss.  Well, if the state is going to own half of the Adirondacks , isn't ORDA's operating loss just part of the state's ownership cost?  After all, you've got to provide some level of employment to make up for private enterprise that is excluded from state-owned lands, as well as facilities / infrastructure to support the private enterprise that remains.  

"I'm going to read it tomorrow," Barrett said of the audit. "If I was up there I would read it but I don't have the thing in front of me."  Barrett said he is currently in Syracuse.

Apparently the internet doesn't work in Syracuse.

" One of Comptroller Thomas DiNapoli's most serious charges is that the authority put zero profits into their capital improvement fund and that the fund has no balance. "

So are there profits or not ? If there are, where are they ? If there aren't then how can Dinapoli fault ORDA for not depositing something it doesn't have ?

My take away from this is there are profits otherwise DiNapoli would not have made this point.

Whether by a Government Comptroller or a private firm, too often these audits are extremely vague and only drop a slight mention, a mere hint of things, just enough to cover the auditor's butt in case the poo hits the fan.

To preclude someone from posting some bull about how improprieties at ORDA are impossible because they're audited by some prestigious firm, keep in mind that every financial scandal has always had audits from such firms long before the crime was officially charged.

Nothing to see here. DiNapoli is preparing for his run for governor. Silly talk. This is NY state government spending we're talking about, after all. "Long term planning"? Hahaha. Maybe the next election, but that's about it. And, if he wants to find some egregious spending and improper pensions, please, look no further than the corrupt members of the assemblies in Albany. ORDA is just an easy target.

"Profits". hahaha.

When I first saw the news about the audit 15 months ago, I too thought that DiNapoli might be planning to run for governor. The audit still brings up serious issues in how ORDA runs its business.  If they had a tighter financial ship, there might be more $$ for improvements to everyone's have venues.

In addition today's Adirondack Daily Enterprise has an article about potential conflict of interest:  the condo that ORDA allows vendors/sponsors to use is owned by a former board member.

http://www.adirondackdailyenterprise.com/page/content.detail/id/544423/ORDA-condo-lease-raises-ethics-questions.html?nav=5008

If you have an iPhone, there's an ADE app that lets you look at articles for free.  Tear down that paywall!

The authority I work for was audited a year and a half ago... we made the news in Albany and NYT about how we were failing... Nothing came of it.  We are still here today.  These things happen constantly.  No matter what, they will find something.  Mostly they go after not following the bid process perfectly or have weird banking processes.  We got dinged for both when we got audited.  Looks like the same here.  They will always find something.  

There are many interesting responses from ORDA answering many of the charges in the audit.

Although ORDA is supposed to operate in a self sustaining manner, that's not what it's all about. It is another mechanism for redistribution to the North Country. Not that it's a bad thing, just understand what it is.

PeeTex wrote

Although ORDA is supposed to operate in a self sustaining manner, that's not what it's all about. It is another mechanism for redistribution to the North Country. Not that it's a bad thing, just understand what it is.

At present, I don't have the time to research this, but I've had a couple of people suggest that ORDA wasn't originally intended to be self-supporting, that in the early years, state aid to ORDA was in the 10s of millions of dollars.  Then it declined over time.