Avocado Commission audit questions $1.5M spending

January 16, 2009
Santa Paula News

As the California Avocado Commission enjoyed spectacular success in marketing the homegrown fruit that boosted the income of growers, senior staff and some directors spent more than $1.5 million on home improvements, clothes, hockey and baseball games as well as other expenses, according to a state audit.

By Peggy KellySanta Paula TimesAs the California Avocado Commission enjoyed spectacular success in marketing the homegrown fruit that boosted the income of growers, senior staff and some directors spent more than $1.5 million on home improvements, clothes, hockey and baseball games as well as other expenses, according to a state audit.The 91-page financial review, first requested by concerned commissioners in May, was released by the California Department of Food and Agriculture on Jan. 8.The report on the commission, a panel funded by growers, details a series of questionable expenses and practices by staff and some directors that occurred between July 2005 and May 2008, including season tickets to see Mighty Ducks hockey and Los Angeles Angels baseball.Tens of thousands of dollars were also spent on “appreciation gifts,” clothes at Nordstrom and other upscale shops and “expensive and unnecessary charges at luxury hotels,” the audit states.The audit identified more than $1.5 million in credit card charges and other questionable expenses.Auditors also noted several cases of improper contracting, and recommended that key policies and practices be implemented to tighten oversight.Former President/Chief Executive Mark Affleck, who served the body for approximately two decades, resigned “to pursue other interests” May 15, about the same time the audit was announced.The panel has already implemented many of the audit’s key recommendations...tens of thousands of dollars of spending has also reportedly been recovered from employees who engaged in audit targeted spending.
“We’ve known this has been an issue,” although Harold Edwards, President/CEO of Santa Paula headquartered Limoneira Co. said he is awaiting more information before addressing the audit’s findings.Edwards noted that over the life of Affleck’s tenure the commission grappled with “Major, major” issues including the period when the importation of Mexican and Chilean fruit “was allowed to free flow into the market” and growers scrambled to maintain the value of state grown avocados.Affleck was commission CEO “When consumption went from 600 million pounds a year to 1.1 billion a year,” that Edwards said allowed state fruit producers to “stay viable and vibrant...”Overall, “It’s up to the board and the commissioners and they have to deal with” ending the questionable spending practices as well as assuring safeguards are in place for the future.Growers pay the commission about 2 cents a pound of annual yields: “About two years ago,” Edwards said Limoneira Co. paid approximately $360,000. “...that’s money,” he noted. “The agency serves the needs of the growers and they’re fighting for their existence, so they are pretty upset about it.”An area grower who asked not be named said he is “furious” at findings of the report, which states that a whopping $123,227 was spent on season’s tickets for the Anaheim Ducks NHL hockey games and Los Angeles baseball games between 2005 and 2008. __In the Ducks’ case, playoff tickets - listed in a commission ledger as “merchandising, retail performance programs” - were shown in internal logs to be used by commission employees 40 percent of the time.Although only 15 percent of Angels tickets were used by employees, another 21 percent reportedly went unused. __“It’s just so brazen it’s unbelievable,” said the anonymous grower. “When times are good you wouldn’t think too hard about sports tickets but when times are bad - and we’ve had some real losses in recent years due to the weather - you really wonder how someone can use your money to renovate their house.”__The audit has been turned over to Attorney General Jerry Brown’s Office for further investigation.



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