Fuzzy records, responsibilities
The foundation employs no staff to process its contributions, deposits or expenditures, relying on Broache and a city finance clerk to do the work on city time and at city expense. Ivey, the organization's only paid employee, earned $18,900 in 2008 for his part-time job. His civic career began in the mid-1960s, and he gradually moved up to head the Urban Services Agency for Schaefer. Later, he worked as a consultant to Mayor Schmoke.
Ivey said the foundation's practices have changed little in his two decades on the board.
The city maintains most foundation records. But details of foundation finances and decision-making can be traced back only as far as mid-2002, because earlier records were destroyed under the city's records disposal schedule. Ivey said the city began using accounting software for foundation transactions a few years ago, but nearly all of the organization's records are still on paper - a system that complicates any analysis of its finances. Asked for a breakdown of contributors to the foundation, Ivey said he could not provide one because it would take too much time for the city clerk who does the foundation's books.
Some longtime members of the City Council told The Sun they had no idea that the foundation existed until they were contacted for this article.
"I don't even know what it is," said Councilwoman Mary Pat Clarke, who has spent more than 21 years on the council, including a stint as president.
The foundation's board of directors meets four times a year behind closed doors. Until two years ago, the minutes detailed a range of items discussed by the board.
But records of meetings since then shed little light on what decisions are made or how. The board spends only the investment income from its assets, according to Ivey. On average, since 2001, the board has directly approved about 3.5 percent of annual spending, distributing $90,075 per year out of an average of $2.6 million spent by the foundation over that period, according to a Sun analysis.
Of the nine members of the foundation board contacted during the past month, four agreed to be interviewed. They disagree over who bears the responsibility to make sure that foundation money is spent properly.
Welch, the circuit judge, said he believes it is the board's responsibility, but in recent years the board has broadly interpreted how city agencies can spend money from foundation accounts.
