The Chattanooga Zoo has been operated for 10 years without a formal contract between the two bodies charged to run it, an internal audit shows.
“That formal arrangement between the two organizations was not documented and not formally established as it should have been,” said Larry Zehnder, the city’s Parks and Recreation director.
PDF: Zoo Audit
The audit, conducted by the city over a span of two years and released in February, shows the two organizations that run the zoo — Chattanooga’s Parks and Recreation Department and Friends of the Zoo — have had a loose-knit agreement on how the zoo should be operated for the last 25 years.
But that arrangement doesn’t have enough formal checks and balances for the $500,000 in city money the zoo receives annually, according to the audit.
Darde Long, executive director for the Chattanooga Zoo, said Monday most of the problems in the audit have been addressed, except for one.
“We have the direction,” she said. “We just don’t have the contract.”
AUDIT FINDINGS
The audit report states there is no formal agreement in place. Chattanooga and Friends of the Zoo first drew up a written agreement in 2000, but that never was put out to bid or ratified by the City Council, the report states.
In 2005, the agreement expired and was not renewed. Mrs. Long said the city and Friends of the Zoo began drafting another agreement in 2008 after receiving accreditation and being told such a document should be put in place.
Other findings in the audit include that Mrs. Long receives a $12,000 annual bonus, paid for with private funds from Friends of the Zoo. However, city employees are not allowed to take private funds, the audit states.
The report also said there is a lack-of-control issue at the zoo because it has a mishmash of six city employees, 25 full-time Friends of the Zoo employees and 15 part-time Friends of the Zoo employees.
AUDIT HIGHLIGHTSA report by the city’s internal auditor found several discrepancies at the Chattanooga Zoo:* Not having a formal contract between the city of Chattanooga and Friends of the Zoo* Letting two different entities run one facility* Paying the executive director a $3,000 quarterly bonus from private funds* Improper mechanisms in place to account for money transactions* Improper security of safes that handle petty cashSource: ChattanoogaMONEY AND NUMBERSThe Chattanooga Zoo receives money from the city of Chattanooga’s general fund and collections from ticket sales, gift shop purchases and memberships. Visitation also has increased at the zoo, records show.Funding:* $780,127: Amount of ticket sales, gift shop purchases and memberships in 2008 handled by Friends of the Zoo used for operations* $544,000: Amount of city subsidy from the general fund for operationsVisitation:* 69,000: Visitors to the zoo in 2000* 207,000: Visitors to the zoo in 2009Source: Chattanooga Zoo
Mrs. Long said Friends of the Zoo supplemented her income after finding she was not being paid in line with other zoo directors across the nation. She said she did not realize she could not take the supplemental income and since has given it up.
Many of the problems at the zoo are the result of its rapid growth, she said. In 2000, the zoo recorded 69,000 visitors and last year saw 207,000 visitors come through the gates, she said.
“It just exploded,” she said.
The Friends of the Zoo started in 1985 as a small volunteer organization to raise money for the zoo, she said. Since that time, its funding and presence have continued to increase, she said.
Working on a contract
Records show the split between who controls the zoo’s operations even extends to the Friends of the Zoo holding the contract for the business license and the city holding the U.S. Department of Agriculture license to exhibit animals.
Mrs. Long said the city and Friends of the Zoo now are working on a contract and will meet later this week. She said she thinks both parties are close to an agreement and acknowledged some problems arise because there is no binding agreement.
“Who’s really responsible if someone gets hurt at the zoo?” she asked. “That’s not clearly defined.”
City Attorney Mike McMahan said his office is working on a draft agreement.
“There’s maybe a few fine points that need to be resolved,” he said. “It’s in play.”
City Council Chairman Manny Rico said he would ask today about the progress of the talks. He said he was in disbelief that the two bodies have gone so long without a contract.
“If there needs to be a contract, it needs to be fixed,” he said. “I don’t see why it’s taken so long to get done. It better happen, sooner than later.”
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