Corporate Challenge racks up big costs

Erin Neff

Tuesday, Jan. 11, 2000 | 11:20 a.m.

Few argue over the goodwill and competitive spirit that the Las Vegas Corporate Challenge brings to thousands of valley employees engaged in its athletic events each spring.

But an internal audit has found that the city-sponsored program racked up $258,000 in overtime, comp time and expenses last year and should either get more private sector help or scale back its offerings.

"Since most of the events are run utilizing city recreation staff, the cost of running the events is being absorbed by the city," the audit, released Monday, states.

The cost to taxpayers includes time off in lieu of overtime pay, overtime, one full-time employee and related expenses incurred by the Department of Leisure Service's Recreation Division. The city's Audit Oversight Committee will consider the report Wednesday.

But City Manager Virginia Valentine said her staff already has a plan to begin overhauling the program this spring.

"We'll start this year and it may involve some scaling back of events," Valentine said.

Leisure Services Director Barbara Jackson, who replaced David Kuiper in that position last year, asked for the audit to learn more about her new department. Kuiper, who was reportedly under pressure to leave Leisure Services, was given a supervisory position in the city's Planning Department.

The audit came amid questions from Councilman Larry Brown about how much money the city sinks into such programs.

Auditors said Las Vegas runs its Corporate Challenge differently than other major cities that offer such programs because it does not get individual sponsors for events. The report was compiled between August and October.

The 1999 Corporate Challenge included 30 events with more than 18,000 weekend athletes participating. Team sports such as volleyball, basketball and softball drew huge pools of participants, while smaller groups of employees tried their hands at chess and a bicycle race.

City employees staff event sites, man registration tables and provide first- aid services, among other activities.

"I think we'd like to see more volunteerism and more corporate sponsorship," Valentine said. "It's a great event, and we'd like to see it continue but we can't continue to subsidize it."

The city did get donations of in-kind services and cash to run the event. But, auditors point out other cities received donations of everything from bowling alley fees to food.

"Only one other city has full-time staff running Corporate Challenge, but (its) costs are fully recovered from the event fees," the audit states.

In response to the audit's findings, Recreation Division managers said they are evaluating the financial effect and efficiency of implementing the Corporate Challenge and should have changes in place by March.

The other major finding in the Recreation Division audit involves a group of employees known the "A-Team," whose work costs more than $175,000 in salary and benefits annually.

The team, named after the 1980s television show whose characters performed a wide variety of tasks, provides refreshments, catering, setup and cleanup services at various departmental functions throughout the city.

In addition to the cost of refreshments, the A-Team's hourly rate runs $162 because technical/hourly staff perform the duties, the audit states.

Auditors found that the A-Team also provided services to entities outside the city.