Audit finds St. Lucie County spent nearly $15,000 of taxpayer money on Fenn Center wedding reception

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Joe Smith and Heather Lueke
Photographer: Courtesy: tcpalm.com
Copyright 2011 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Posted: 10/11/2011

ST. LUCIE COUNTY — An independent audit released Tuesday found the Parks, Recreation and Facilities Department spent $14,832 of taxpayer money to throw a wedding reception for St. Lucie County Clerk of the Circuit Court Joe Smith and his wife, Assistant County Attorney Heather Smith, at the Havert L. Fenn Center in Fort Pierce.

The Smiths paid the county $1,801 to have their May 28 wedding reception at the Fenn Center. The audit found the county undercharged the Smiths $1,332 when comparing some of the charges to another wedding reception and the county’s established fees.

County Administrator Faye Outlaw said Joe Smith and his wife, Heather, whose maiden name is Lueke, have reimbursed the county for the $1,332 undercharge.

Outlaw also has put Parks, Recreation and Facilities Director Debra Brisson on probation and has asked Assistant County Administrator Lee Ann Lowery to conduct a comprehensive review of the management structure and operations of the parks and recreation department.

“Overall, from the findings in the report, it is clear the current procedures and practices for booking the Fenn Center events are flawed,” Outlaw wrote in an Oct. 10 letter to the St. Lucie County Commission. “The system must be overhauled and stronger procedures put in place to ensure all future events are handled in a consistent manner and appropriately charged. I intend to issue oral and written reprimands where deemed appropriate.”

Outlaw noted in her letter to the County Commission that the report found no misuse of taxpayer money or illegal activity.

Brisson said in a prepared statement issued Tuesday: “I am thankful for the independent examination, which supports no county funds were misused, and I accept the disciplinary actions recommended (by) the county administrator. As the director, I take full responsibility for the findings of the report. This was not Mr. and Mrs. Smith fault. (sic) They were presented with a bill and paid it in full. I will be working with county administration to create operational procedures to address and correct this and all other issues arising from the independent examination.”

County Commissioner Chris Dzadovsky said he’s calling for a complete policy review of how the Fenn Center operates.

“We need to make sure we don’t have any of these issues come forward ever again in the future,” he said. “In hindsight, it certainly may have been inappropriate judgment.”

County Commission Chairman Chris Craft, who was a groomsman in the Smith wedding, issued a prepared statement Tuesday that said in part: “It’s reassuring to see there was no misuse of taxpayers’ money, and I’m confident that Ms. Outlaw and her staff will continue to do what’s best for the residents of St. Lucie County.”

The county hired its independent auditor, Berger, Toombs, Elam, Gaines & Frank of Fort Pierce, to investigate allegations in a Sept. 23 letter made by former parks and recreation executive assistant Carol Strobert to Outlaw. Scripps Treasure Coast Newspapers first reported on the allegations on Sept. 28.

In that letter, Strobert, who resigned Sept. 9 after six years with the county, accuses her boss, Brisson, of misusing $30,000 of taxpayer money to throw a wedding reception for the Smiths. Among the allegations:

The Smiths were charged $1,801 for a reception that would normally cost a member from the general public $4,655.

The Smiths didn’t sign a rental/lease agreement to rent the Fenn Center as is required to have an event there.

The county bought chandeliers, candles, goblets, ceiling sheers, LED lights, plate chargers, mirror centerpieces, live trees, flatware and purple and white material for the reception and did not charge the Smiths for it.

The county used 15 employees with salary ranges from a high of $40.33 per hour to a low of $9.51 per hour and contract labor to set up the wedding reception. Some employees received overtime and at least one temporary employee got a 50-cent per hour raise;

The county used state prison inmates from the Martin Correctional Institution to help set up a private wedding event.

A couple that subsequently booked the Fenn Center for a wedding reception was charged more and did not receive the same special services.

County staff constructed two large portable bars for the reception. Labor material was provided by the county.

According to the findings of the audit, a true cost comparison of the Smith wedding and the wedding of the private couple could not be determined because “the county was not sticking to established prices in booking these events. Many items were either provided at no charge or were simply provided and not mentioned.”

According to the report, the Smiths came to the county to rent the Fenn Center, and county staff considered it an opportunity to showcase the Fenn Center as a premier location for a wedding event. County officials, including Outlaw, have said many of the items purchased for the Smith wedding could be used by anyone who books an event there. Outlaw

has said the county has been looking at ways to generate additional revenue at the Fenn Center, and one idea is through wedding events.

However, according to the report, while the Smiths weren’t charged rental fees for items purchased by the county, future patrons would be charged.

“Certain items were purchased solely for (the) wedding reception,” the report states. “At the time, the Smith-Lueke wedding reception was booked, the county had not acquired these items, and therefore, had not established a rental fee for them. The county is currently drafting new fees to include wedding reception packages that include fees for the items purchased.”

Fenn Center Director Anthony Allen told the auditor the county had been trying to break into the wedding event market for three years and saw the Smith wedding reception as a “high-profile” event that could be used to promote future wedding events. In return, the Smiths agreed to allow the county free use of their wedding photographs for marketing materials.

Dzadovsky said he wasn’t aware the county would be using the Smith-Lueke wedding to showcase the Fenn Center. He also said county expenses associated with the event did not have to be approved by the County Commission. He said Outlaw can approve and sign for expenses up to $50,000.

“Honestly, I didn’t even know they were having the wedding there. I wasn’t invited,” he said. “It never came to us.”

The audit reviewed all of the allegations made in the Strobert letter and found:

The county did not spend $30,000 for the Smith wedding reception. Its examination of purchasing cards and the general ledger indicate that $14,832 was spent for non-consumable items that were retained by the county.

However, the report does not show what the county incurred in labor costs to set up the wedding reception.

“This total does not include any time for the facilities department to construct the portable bar or chandeliers. However, it should be pointed out that the county does not capitalize labor cost for any improvements made by county staff,” the report states.

The purchasing card procedures were circumvented in that some purchases were split between two employees because charges exceeded purchase limits.

The purchase of paint and satin fabric were made for a specific color to match the wedding colors.

“The county should analyze this practice to determine if more neutral colors should be utilized for non-consumable items purchased for wedding decorations,” the report states.

The county purchased 20 trees at a cost of $1,500 that were used solely for the wedding reception. The trees were subsequently planted at Dreamland Park on Martin Luther King Boulevard.

“We do not believe that this was a good business practice,” the report states.

The county has incurred expenses to host other events that were not passed on to the lessee.

“For instance, certain electrical improvements were required for the center to host a large local fund-raising event that is held at the center each year,” the report states.

Since the items were non-consumable and were retained by the county to be used in future weddings, these items should not have been paid for by the Smiths, the report states.

“Futhermore, through my interviews with various people associated with these purchases, neither Mr. Smith nor Ms. Lueke were aware of what was being done to decorate rooms,” the report said.

The wedding reception did not use a rental/lease agreement for the use of the Fenn Center, which is not required for this type of an event, he report states.

“Only public events are required to utilize the rental lease agreement,” the report states. “Private parties were to use a one-page facilities use agreement per recreation department policy. However, the Fenn Center had not used that agreement for private parties for a year and a half. We recommend that the county re-institute the use of the facilities use agreement for private parties as soon as possible.”

County staff constructed two portable bars and two chandeliers to prepare for the wedding reception. The cost of the materials for these items was included in the amount spent.

“The portable bars were retained by the county, and a rental fee is established for their use,” the report states.

Copyright 2011 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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