Audit finds cash controls, billing and fee problems at Springfield parks; committee moves to executive session on security

A city performance audit of Springfield's Parks and Recreation Division identified multiple internal-control weaknesses, inconsistent billing practices and out-of-date fees, and the audit committee voted May 22 to enter executive session to discuss security deployment related to audit findings.

The audit presentation was led by Director Young Ngo of the Office of Internal Audit, who said the audit scope covered fiscal year 2024 and part of fiscal year 2025 through November 2024. "We have over 50 parks with with over 2,500 acres," Ngo said while introducing the division's size and organizational structure.

The audit team highlighted several findings:

- Cash-handling segregation: The report found employees in recreation, aquatics, toll booths and banquet facilities who both handle cash and record transactions. Ngo told the committee, "When you have record keeping and handling cash, you as I as I mentioned, you could also use and steal the assets." The audit recommended segregating duties so cash handling and record-keeping are not performed by the same individual.

- Disparate accounting systems and unreconciled receipts: The audit noted that some parks functions use separate systems (QuickBooks at banquet facilities; Word-generated invoices at toll booths) rather than the city's centralized Munis accounting system required by city ordinance. Ngo said information in QuickBooks differed from Munis and recommended moving to Munis general billing, rolling out the module where possible and reconciling any remaining separate systems.

- Stale and inconsistent fees: The audit found many park entrance and facility fees had not been updated for more than 10 years; specific examples include fees at the Carriage House, Emmas Place and King Phillips (last updated February 2021) and ice-rink rental fees at the CY Arena (last updated February 2015). The audit recommended a fee analysis to determine whether adjustments are warranted and to compare fees with other regional providers such as Stanley Park and Look Park.

- Spirit of Springfield contract: The audit's analysis indicated the contract's fees had not been updated since February 2020 and, as presented, barely covered direct labor costs; the audit recommended a cost analysis and consideration of an escalation clause tied to an inflation index.

- Undisclosed or inconsistent posted fees: The audit recommended posting fees on the parks website and ensuring website rates match the official rates. Director Tom Ash told the committee that the department had updated the website to disclose fees.

Director Tom Ash, present for the department, described planned infrastructure improvements that factor into control solutions. Ash said the department is installing fiber to parts of the park and intends to deploy a point-of-sale/cashier system and expand camera coverage where appropriate. "Once that happens, like areas like Serena And Recreation Building and even a toll booth, we'd like to go to a cashier system," Ash said, adding that expanded fiber and cameras will aid security and limit cash exposure.

On the topic of going cashless, Ash cautioned about access for residents who use cash and said the department is considering a hybrid approach. Councilor Davila emphasized affordability and urged caution about raising entrance fees that could deter residents.

Legal and policy notes in the audit: the auditor flagged a potential conflict with state law where banquet facilities offered discounted rates to nonprofits; Ngo said the matter was referred to the law department for review, citing Massachusetts general laws that prohibit use of public funds to aid private entities (as discussed in the meeting). The audit also referenced compliance with city ordinance for centralized accounting and noted DESE's requirement for annual audits of student activity funds in the earlier audit-plan discussion.

Following the open-session presentation and brief discussion, the committee voted to enter executive session to discuss "the deployment of security personnel or devices and strategies with respect to such deployment," citing Mass. Gen. Laws ch. 30A § 21(a)(4). Councilor Tim Allen moved the executive-session motion; Chairperson Delgado seconded. The committee voted in favor and the committee did not plan to reconvene in open session that night.

Details and clarifications from the audit and discussion: - Parks and Recreation staffing: the division reported approximately 91 full-time staff for FY25 and budgeted department revenues of $2.9 million, of which the golf courses were cited as the largest revenue source (approximately $2.1 million in the budgeted figure referenced). The audit also noted golf revenues rose 14% in calendar year 2024, to about $2.5 million, after a new point-of-sale system was implemented. - FY25 Parks budgeted expenditures were reported at about $12.9 million, with maintenance accounting for roughly $5.6 million (about 43% of operating expenditures reported in the audit). - The auditor said some recommendations have already been implemented: posted fees were updated on the parks website; the department has increased certain ice-time charges and golf fees via the park commission.

Next steps: the department and audit office will follow up on recommendations. The committee moved into executive session to discuss sensitive security controls related to cash handling and access; any subsequent actions required by law or policy will be determined after the executive-session discussion and legal review of nonprofit discounts.