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HARDY v ERS 1515 SW 5th Avenue <br /> ATTORNEY GENERAL Suite 410 <br /> ,� cva:.'+ <br /> :+� i„ Portland, Oregon 97201 <br /> ' <br /> FAX: (503) 229 -5120 <br /> Arr <br /> PETER D. SHEPHERD TDD: (503) 378 -5938 <br /> DEPUTY ATTORNEY GENERAL Telephone: (503) 229 -5725 <br /> DEPARTMENT OF JUSTICE <br /> PORTLAND OFFICE <br /> April 10, 2002 <br /> Norman Marlborough <br /> Interim Track Operator <br /> Emerald Valley BMX <br /> 3995 Commercial Avenue <br /> Springfield, OR 97478 <br /> Reference: Audit Report <br /> Emerald Valley BMX _ <br /> XCT0059 -01 - • <br /> Dear Mr. Marlborough: <br /> Please distribute this report to the acting officers and board of directors for Emerald <br /> Valley BMX (hereafter referred to as "EVB "). <br /> This investigation was opened in November 2001 based on information provided by <br /> several EVB members. The complainants alleged that EVB's current governing structure <br /> violates Oregon law in that the bylaws have been suspended and all authority to operate EVB <br /> rests with Track Operator Scott Snook. <br /> The Department's investigation has revealed that the bylaws were not being adhered to; <br /> there has been commingling of funds between EVB and Scott Snooks' former business and that <br /> internal accounting controls are deficient. The Department has been recently notified that the <br /> general membership has reinstated the bylaws. - <br /> Representatives of the charity were cooperative and courteous throughout the course of <br /> our audit. <br /> The most significant findings of our audit are summarized below and are discussed in <br /> greater detail in the body of this report. - <br /> — <br /> FINDINGS <br /> (1) Beginning in October 1996, the EVB bylaws were suspended and Scott Snook was <br /> appointed Track Operator with full authority to operate EVB as he saw fit. Since that time, <br /> annual elections and board and membership meetings have been suspended. The bylaws have <br /> been ignored by Snook in his governance of EVB. <br /> 6 , <br /> =) <br /> tv "1 <br />