The nonprofit managing Fair Park says the operator it contracted with, Oak View Group, misallocated $5.7 million in donor funds to cover day-to-day expenses.
The long-awaited report’s results were made public late Wednesday after the Fair Park First Board accepted the findings and indicated it would begin a process to recoup the funds from its contractual partner.
“While there is no question the funds were spent on and at Fair Park, they were not spent on the specific Fair Park projects restricted by our donors,” Fair Park First said in a statement.
“OVG has previously pledged that if it was determined it utilized restricted donor funds for operations, it would refund those dollars for the designated projects.
Oak View Group has maintained that any expenditures of funds at Fair Park were approved by the previous executive director of Fair Park First and the past president of the board.
Brian Luallen left Fair Park First earlier this summer after initiating an audit into the possible misuse of donor funds for other Fair Park operations.
OVG President of Venue Management Greg O’Dell told NBC 5 late Wednesday that OVG executed its responsibilities according to its contract.
“The audit report confirms there has been no fraud or misuse of funds,” O’Dell said. “We have not received a demand from Fair Park First for payment of any amounts, but if received, we will respond accordingly.”
The city of Dallas owns Fair Park, a 277-acre Park. In 2019, the city turned over the park’s management to a newly created nonprofit. Fair Park First then subcontracted with OVG360, formerly Spectra, to operate the venues and handle payroll and finances.
John Jenkins, director of the Dallas Park and Recreation Department, told NBC 5 last month the current contractual arrangement means the city of Dallas has no oversight of the operator, OVG360.
On Wednesday, Jenkins confirmed receiving the report and reviewing the findings. He noted that the Dallas City Council will receive a briefing on Oct.16, followed by the Dallas Park and Recreation Board on Oct. 17.
“In all cases, we firmly believe the existing contracts with Fair Park First and the OVG360 (Oak View Group) need to be substantially amended to resolve identified contractual concerns, Jenkins said.