His response

GVR CEO Kent Blumenthal reads a statement to the Board of Directors on Wednesday. At lower left is board member Tom Sadowski. 

A strongly worded rebuke of the GVR board by CEO Kent Blumenthal was punctuated by a standing ovation and calls to order at Wednesday's meeting at the West Center. 

Blumenthal was addressing comments by board President Charles Sieck about a budget surplus in a Green Valley Recreation e-blast to members Oct. 25 and in the Green Valley News last Sunday.

There were about 50 members in attendance when Blumenthal read from a statement that was also handed out to the crowd.

In his comments, Sieck had said that, according to a budget/surplus calculation, there was a $596,193 surplus last year and a total of $1.6 million in surpluses for the last three years that were not reported to the board by GVR staff. The budget/surplus calculation was provided by Susan Vos, a third-party accountant hired by the board to make recommendation about GVR's financial reporting and accounting methods.

"There was no 2018 surplus in accordance with GVR corporate policy," Blumenthal told the Green Valley News after the meeting. "The audit report reflects a surplus of $495,163, but does not include the below the line adjustments."

Blumenthal did not acknowledge requests for comment for last Sunday's story.

With Blumenthal in disagreement, the debate over whether there is a surplus or deficit continues. However, the day after the meeting, Sieck said he doesn't think anyone is disputing what the surplus is, but rather why there is one. 

In his statement to the board, Blumenthal said all GVR money is properly accounted for – "GVR annual financial audits match balance sheets; GVR checking accounts agree with balance sheets; GVR investment statements match investment reports."

Sieck and Blumenthal appear to be at odds on both surpluses and how to deal with the situation.

During the meeting, Blumenthal said statements by Sieck concerning how the surplus money is being spent and whether it's directly benefiting members as well as the funds being kept out of the board's control go beyond professional disagreements.

It has been Sieck's contention that the surplus has been underreported to the board of directors and kept in the operations account, which is under the control of GVR staff and not the board.

Sieck told the Green Valley News on Thursday that Blumenthal's statement was just a distraction and deflection.

"I think it was totally unprofessional that he did that," Sieck said. 

Most of the room stood and applauded Blumenthal's remarks, quickly followed by calls to order by Sieck,  who had warned he would clear the room.

At the end of the more than two-hour meeting, three GVR members addressed the board in support of Blumenthal, with one yielding her time to Richard Hill, a former GVR member and retired CPA.

Hill said he served as the chair for the Audit Committee during the two of the three years Sieck claimed surpluses were underreported. Hill told the board the staff wasn't incorrect in their reporting on surpluses but that there is a miscommunication between staff and the board.

Sieck said the board will address the surplus and Vos' recommendations at the next meeting this month.

Jorge Encinas | 520-547-9732

Load comments