Olympic Regional Development Authority

Selected Financial Management Practices

The Authority was created in 1982 to manage, maintain and promote the sports facilities used for the 1980 Winter Olympic Games held in Lake Placid. In September 1993, the Authority's CEO and several top managers resigned amid published allegations of mismanagement. We examined the Authority's internal controls and identified significant weaknesses. These weaknesses permitted favoritism in the hiring of employees and less-than-arm's length relationships between the Authority and some of its contractors. Moreover, because revenues and expenditures were so poorly controlled, Authority funds may have been missing. We worked with the State Inspector General in the investigation of these unaccounted for funds. While procedures were improved after a new CEO was hired in November 1993, further improvements were needed if the Authority's internal controls were to be adequate. 94-S-49