Director tries to undo errors
Director tries to undo errors

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By Michael McNutt

Published: January 15, 2008

Inadequate budgeting controls are blamed for expenses expected to be as much as $10 million more than the amount coming into a state Tourism Department fund, an internal audit obtained by The Oklahoman shows.

No wrongdoing is cited in the audit of the 215 fund, which receives revenue from fees charged by state parks and resorts. The audit was requested last year Hardy Watkins, the agency's executive director.

"We are taking the steps to do a midyear budget reduction revision for fiscal 2008,” he said. "It helps to protect and ensure that we don't hit the end of the year with overspending in that account.

"There were absolutely no improprieties found with the audit,” said Watkins, who became director of the department in April 2006. "Certainly no money was misspent. All the money is accounted for as well.”

But the audit's findings have led Watkins to ask for funding to hire a full-time budget director to monitor and track all agency funds.

Wrong funds used

The department is taking steps to correct problems found in the audit of the agency's 215 fund, such as cutting expenses and making sure bills are paid with money from the appropriate accounts, Watkins said.

"We're not going to have to let go any employees,” Watkins said. "Services to the public will not be diminished at all.

"By going through and looking at the actual budgets of different facilities and looking at where some belt-tightening could happen through expenses, we've been able to realize significant savings and that really is operationally where we're doing it,” he said.

The 215 fund consists of fees generated by the state's 50 parks, five state lodges, 10 golf courses and campgrounds.

The fund is expected to generate about $24.5 million for this fiscal year, which ends June 30. However, the audit showed budgeted expenditures could total $34.7 million.

"We have many funds that we administer through this agency and so some things might have been budgeted out of 215 but were really intended to be paid for out of other funds so we've been able to identify some of that,” he said.

For example, money for a $3 million project to build tourist information centers in Kay and Beckham counties came from the 215 fund because money was available in that account; federal money to pay for the centers will be placed in the 215 fund when that money arrives, he said. The department will not have to ask for additional state funds to get through this fiscal year, Watkins said.

Lt. Gov. Jari Askins, chairman of the Oklahoma Tourism and Recreation Commission, said she "was pretty proud” of Watkins to ask for the audit.

The report was prepared by the agency's internal auditor, a position sought by Watkins shortly after he became director. The internal auditor reports directly to the commissioners, Askins said.

"He's (Watkins) coming back to us to let us know how many of the recommendations have already been implemented, which I think are several,” she said.

"Three years ago we had a different director and it was a wise move for the current director to ask for this audit so we can see what kind of history has the fund been used for,” Askins said.

The commission is scheduled to meet Wednesday.

Problems date back to 2003

Accounting problems have been found in some areas going back to 2003, according to the audit of the 215 fund for the 2005, 2006 and 2007 fiscal years.

"It appears the trend has been for the department to over-budget Fund 215 monies in comparison to revenues received for the same time period,” the audit states.

For the 2006 fiscal year, the department overspent the 215 fund by nearly $6 million and by $1.5 million during the 2007 fiscal year, which ended June 30.

The department in the past made up the overspending by taking money from other accounts, Watkins said. The Tourism Department has a $70 million budget. State appropriations allocated by the Legislature account for about $27 million and federal money makes up some of the rest.