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emerald Valley BMX <br /> March 18, 2002 <br /> Page 4 <br /> DISCUSSION <br /> A complaint was filed with the Department alleging that the current governing structure <br /> of EVB is improper. The complainants said that in October 1996 the membership voted to <br /> employ Scott Snook as the Track Operator. EVB's board of directors entered into a contract <br /> with Snook, which expired on December 15, 1998. The contract suspended the bylaws and <br /> effectively granted Snook complete authority to operate EVB without oversight by the board or <br /> membership. <br /> Scott and Candy Snook told Department investigators that Mr. Snook has been EVB's <br /> Track Operator since 1996 and Candy Snook has been the bookkeeper. They became aware of <br /> the bylaws only after receiving notification of this review and that during Mr. Snook's tenure as <br /> Track Operator the bylaws were not followed. Mr. Snook said that he ran the track as he saw fit <br /> but would consult some of his supporters regarding major decisions. When he agreed to become <br /> track operator he said he would do so only if the bylaws were suspended. <br /> Mr. Snook said that he made all decisions regarding EVB in regards to track operations <br /> and administrative matters but that he sought advice and approval from a small group of <br /> supporters for major decisions. <br /> The majority of EVB revenue comes from race entry fees but other revenue includes <br /> concessions, approximately $6,200 in parking revenue and an ABA subsidy of $4,000 for the <br /> recent national race hosted by EVB. The bylaws requirement for two signatures on checks has <br /> not been followed since 1996. <br /> Financial documentation for the years 1996 through November 2001 was reviewed. The <br /> documentation included checking account statements, cancelled checks, deposit slips, various <br /> receipts, various credit card statements, financial statements and general correspondence. <br /> From October 1996 through November 2001, bank deposits and withdrawals total <br /> $189,227 and $188,390, respectively. According to receipts included in the documentation there <br /> were receipts totaling $54,324 for this period. According to cash flow reports, expenses totaled <br /> $184,433 leaving $131,109 in unsupported expenses. The year 2001, accounted for about <br /> $60,000 of the total revenues and expenses because of a national ABA race, which was held at <br /> the EVB track. <br /> The receipts were not organized in any systematic system and there was no easily <br /> recognizable audit trail. The receipts were generally loose in the bags although some were paper <br /> clipped together. The financial reports received were inadequate and there were no journals or <br /> ledgers included. <br /> The cancelled checks and check register printouts do reveal recurring payments to the <br /> ABA, utility related businesses, concession related businesses and other payments to various <br /> businesses that appear to be legitimate. Many of the receipts found were from the ABA, Echo <br /> Spring Dairy, McDonalds Wholesale, Delp's Awards, Costco, Home Depot, various service <br />