Olympic Regional Development Authority

Selected Financial Management Practices and Board of Directors' Governance, Guidance and Oversight (Follow-Up Review)

The Olympic Regional Development 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 Chief Executive Officer and several top managers resigned amid published allegations of mismanagement. In our prior audit reports 94-S-49 and 95-S-41, we examined the Authority's internal controls and the oversight provided by the Authority's Board of Directors. We identified significant internal control weaknesses and inadequate Board oversight that 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. In our follow-up review, we found that the Authority has implemented almost all the recommendations contained in our prior two reports. As a result, the Authority's internal controls are stronger and Authority operations are more closely overseen by the Board. 95-F-51