HRT’s Missing Money: Board’s Fault, Not Townes’s

8 01 2010

There has been much talk recently about the performance of HRT President & CEO Michael Townes. While I do think that he should share responsibility for the Tide-related cost overruns, I do not believe that he should be held responsible for not informing the board about the $80,000 allegedly stolen from the fare boxes over a six-month period in 2009. The missing money was uncovered during an independent audit of HRT. This audit was paid for and authorized by the board. In other words, the auditors worked for the board, not for Mr. Townes. If the auditors failed to inform the board of the missing money during their presentation, it is the fault of the auditor for failing to make a complete report and it is the failure of the board to make sure that the auditor gave a complete report. Mr. Townes does not fit into that equation. After Mr. Townes was made aware and an investigation was complete, the responsible employees were terminated. No charges were filed because the HRT lawyer did not think that there was sufficient evidence. No civil suit was filed because the associated costs outweighed the benefits. This means that HRT, after learning of the issue, fixed the problem and decided not to waste more money than they would have recovered (i.e. responsibility).

I believe that no matter what, you should always give credit where credit is due. The cities of Hampton Roads should change their board representation if they have failed to properly oversee HRT. They want to fire Mr. Townes because he failed to give timely notification of cost overruns. Now, fire the board for failing to take responsibility for their share of the problems. The board is not just there for sh*ts and giggles. They have a purpose. They have a duty to the residents of their respective cities to make sure that money is spent wisely.

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3 responses

12 01 2010
josiah p.

Who is “I” in the article?…Auditors should have reported directly to the man in charge, what happened is like going around your elbow in order to get to your thumb!

12 01 2010
josiah p.

What is moderation, does it hurt?

13 01 2010
Russell Manning

The point of the audit, however, was for the board to see if there were problems. It was the Board’s Audit. The Board is “the man in charge.” They employ the CEO.

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