Audit: Ex-Evansville parks director accused of fraud claims he did job like he was trained
EVANSVILLE — Former Evansville Parks and Recreation Executive Director Brian Holtz did his job the way the city wanted him to.
That was his official response in an audit the Indiana State Board of Accounts released Monday afternoon that stated Holtz should reimburse the city $491,706 in connection to alleged unauthorized purchases and diverted funds. The audit also states Holtz should pay the state $83,835 for the cost of the special investigation.
Mayor Lloyd Winnecke's spokesperson Noah Stubbs referred all questions to the state board of accounts.
The probe started in July 2021 after Holtz resigned. Mayor Lloyd Winnecke said at the time the director quit amid an Evansville Police Department investigation into seven department invoices the city called "out of the ordinary."
More:Affidavit: Former Evansville parks director accused of falsifying documents, forging names
The investigation has since led to criminal charges filed against Holtz. He has denied any wrongdoing. Nowhere in the audit does it state Holtz used any city money for personal use.
In the audit, Holtz claimed he performed his job as executive director of the parks department "in a manner in which he was advised to do by the Evansville Mayor’s Office, the Evansville City Controller’s Office, the Evansville Park’s Board, the Evansville Park’s Foundation Board and the Evansville City Attorney’s Office."
The response continues that he was doing his job as he was trained to, and as previous parks directors did.
Evansville Parks and Recreation audit findings
The 55-page report mirrors the allegations which are outlined in the criminal affidavit Evansville police filed against Holtz earlier this year. It states Holtz forged signatures of members of the parks board, falsified invoices and used city money for unapproved projects.
The three largest financial allegations stem from an alleged unauthorized purchase for an audio/visual system and a computer networking system, and the misuse of Evansville Parks Foundation money.
According to the audit, Holtz submitted and approved at least five invoices to the Parks Foundation totaling $151,740. Purchases and projects included mowing equipment, removal of concrete light poles at Wesselman Par 3 Golf Course, a new pick-up truck and a compact tractor and loader.
The audit findings allege Holtz entered into a contract for the purchase and installation of an audio/visual system for the Deaconess Aquatic Center totaling $127,723.
"The contract was signed by Holtz without Park Board approval, without soliciting three written quotes, and without obtaining a purchase order from the city," the audit states. "In addition, invoices submitted/approved by Holtz were altered."
Holtz also allegedly entered into a purchase agreement with a vendor for a computer networking system in the amount of $125,396. The purchase was approved by the city controller's office based on a "falsified requisition" from Holtz, and a falsified price quote.
In connection to that finding, the audit states Holtz should pay the city $76,225. This amount is how much the vendor said the city could not be reimbursed for.
All charges from the audit are below:
Diversion of Funds - Capital Projects, $63,639
Diversion of Funds - Sweatshirts, $326
Unauthorized Purchase - Audio/Visual System, $127,723
Unauthorized Purchase - Trash Totes, $38,000
Unauthorized Purchase - Outdoor Furnishings, $13,004
Financial Loss on Unauthorized Purchase, $76,225
Financial Loss - Unauthorized Waiver of Park Fees, $10,829
Financial Loss - Unauthorized Reduction of Park Fees, $6,392
Financial Loss - Unauthorized Vendor Costs Incurred, $3,828
Diversion of Foundation Funds for Unauthorized City Purchases, $151,740
How long the audit took to complete
The audit took a long road to release, and was delayed multiple times.
The Indiana State Board of Accounts came into town a week after Holtz's resignation. According to the affidavit outlining charges against Holtz, released April 25, the SBOA special investigator was concluding the examination. At that time it was said the investigator had found "Holtz to be solely responsible for the alteration of the invoices and contracts."
Prior to April 25, the Courier & Press was last told the report could be expected sometime between March and April after the investigation was extended, according to SBOA chief of staff Jennifer Gauger.
Previous coverage:Evansville parks: Here's what we know about the Brian Holtz investigation
It had previously been confirmed a draft version of the report was under review by a supervisor in February.
Before that, the C&P had been told the SBOA was nearing the end of its investigation in November 2021, and then that the report could be expected shortly after Jan. 1, 2022.
Where the criminal case against Brian Holtz stands
He entered a plea of not guilty at his initial hearing April 26. Stan Levco is acting as special prosecutor in the case.
A special judge, Gibson County Circuit Court Jeffrey Meade, will preside over the proceedings. Currently, hearings may take place in Gibson County, but if the case reaches trial that will take place in Vanderburgh.
The next hearing is set for 9 a.m. Nov. 18 in Gibson County.
This article originally appeared on Evansville Courier & Press: Former Evansville parks director ordered to pay more than $500K
