Leawood accepts internal‑controls assessment of Iron Horse golf operations; staff to renegotiate Troon contract terms

The Leawood City Council on Monday accepted an internal‑controls assessment of the Iron Horse Golf Club that found the club’s cash handling, inventory controls and reconciliations substantially in compliance but recommended several documentation and contract changes.

City financial staff and auditors from CLA LLP presented the report. Diane Stoddard, the city’s finance/operations official, told the council the assessment was ‘‘an initial step’’ and that staff will take the auditor recommendations into account as it negotiates an updated agreement with Troon, the club’s operator. Auditor Aaron Perillo said auditors reviewed revenue recognition, cash receipts, purchase orders, inventory practices and physical security and ‘‘didn’t see anything that caused us to have immediate concern’’ but identified opportunities to tighten documentation and references to policy.

Perillo highlighted several recurring recommendations: formalizing sole‑source or preferred‑vendor documentation for ProShop purchases, recording preparer and reviewer signoffs on bank reconciliations and inventory counts, and removing embedded, dated purchasing thresholds from the management contract so city policy can be updated without contract amendments. He also suggested evaluating incentive fees on a net‑revenue basis rather than the current gross‑revenue trigger to better align incentives.

Resident Craig Kloss, who spoke earlier during public comment, had urged the council to review why the city had not pursued a municipal liquor license and to examine revenue sharing under the Troon contract. Stoddard and auditors confirmed alcohol is managed within Troon’s beverage accounts under the current lease/management structure and said parts of those contractual arrangements will be among the topics for restatement discussions; Patty Bennett (staff) had earlier told a resident that some details were attorney–client privileged and could not be publicly disclosed.

Council members praised Troon’s operational performance while noting the audit gives the governing body confidence to focus on economic terms during the forthcoming contract restatement. Council member Mary Larson moved to accept the CLA LLP Internal Controls Assessment Report; the motion was seconded and carried unanimously.

The council asked staff to report back later this year with proposed contract revisions and to return recommended language for the management agreement. The city’s current Troon agreement runs through 2028.