The findings of a state probe into the purchase of vehicles at the Chattanooga Convention Center confirm the acquisitions weren't competitively bid in violation of board policy.
"Board policy requires competitive bids on purchases exceeding $10,000," said the report by the state Comptroller of the Treasury.
The report said that purchases hadn't been approved by the convention center board in violation of its policy.
The investigation examined vehicle purchases from December 2005 to December 2009. It was conducted in January after a yearly audit at the convention center found the violations.
According to the state report, a competitive bid process was not conducted for the purchase of a 2006 Dodge Ram for $36,645 or a 2008 Ford F-250 truck, which was acquired after trading in the Dodge.
The report said both vehicles were titled in the name of Tim Riddle, who was the center's longtime executive director at the time. He resigned in January, saying he planned to enter the private sector.
Jimmy Hudson, chairman of the Carter Street Corp., which manages the center, said that "we could not find any history that we did or did not engage in the competitive bid process."
The state's report also found that two checks to pay off the vehicles in the amounts $23,514 for the Ford F-250 and $29,880 for the Dodge Ram were only signed by the executive director and assistant business manager. Board policy requires that any check above $5,000 requires signature by the executive director and board chairman, according to the report.
The report stated that Mr. Riddle said he received "verbal approval from the board chairman" to purchase two other vehicles, a 2008 Jeep Grand Cherokee and 2009 Hyundai Genesis. However, the purchases did not receive board approval and were not competitively bid, the report said.
The report stated that after the discrepancies were found, there was a discussion among Mr. Riddle, two members of the board and an independent auditor.
Mr. Riddle could not be reached for comment.
The report said that "although Mr. Hudson knew the board's policy on purchases, he had forgotten it."
Board member Anne Wilkins said the board was "shocked" and unaware of unauthorized purchases.
"We immediately pounced on it the day we found out and requested additional auditing procedures," she said. "We did everything by the book. I don't know what else we could have done."
The report said the Carter Street Corp. board has agreed to "take appropriate actions" to ensure all vehicles purchased are properly titled. In addition, the board agreed to competitively bid purchases over $10,000, the report said.