Lenwood M. Ivey, the foundation's president, didn't return messages seeking comment Sunday. In recent interviews, he said it was the city's responsibility, not his or his board's, to make sure the money is being properly spent. Other board members could not be reached for comment Sunday.
'Take responsibility'
Rawlings-Blake said she will ask the city comptroller's office to perform a separate audit from the one conducted annually for the foundation by a private firm. City auditors would examine contributions that have flowed into the foundation and whether the funds were disbursed in compliance with IRS rules, she said.
"The city must take responsibility and immediately address this controversy in a direct, open and transparent way. The best way to do that is through an independent auditing process with full public disclosure," Rawlings-Blake said.
The Sun investigation detailed questionable transactions, one of which involved a $20,000 contribution in 2007 from the area's largest builder, Whiting-Turner Contracting Co. The foundation earmarked the money for city recreation programs, but city officials spent the bulk of the money on Dixon's inaugural celebration, including expenditures for entertainment and the security services of a detective agency.
The newspaper also reported that employees of Baltimore Rising, a youth mentoring program, used $600 from a foundation account to buy 12 tickets to Dixon's inaugural ball.
Last year, the mayor's office used part of a contribution to the foundation from the M&T Charitable Foundation to send 30,000 holiday cards to city employees and constituents. The mayor's office defended the spending, saying the holiday cards included an invitation to an open house at City Hall in which citizens were invited to bring nonperishable food items as well as new hats, scarves or socks.
Audit firm silenced
The City Foundation for several years has hired a Baltimore-based firm, King King & Associates, to conduct its annual audit. Ivey, the foundation president, had referred financial inquiries from The Sun to the firm, but after answering three minor questions, an official with King King & Associates said that the foundation had "rescinded our authorization to discuss any and all financial matters."
Rawlings-Blake said the comptroller's office has been helpful in doing audits on nonprofit and quasi-governmental groups, including the youth mentoring program, Baltimore Rising.
Comptroller Joan M. Pratt could not be reached for comment.
The Sun investigation also addressed apparent confusion among city officials over ethics requirements, which can apply to city employees who engage in fundraising activities. Councilman Bill Henry said he expects the council to inquire about the extent of fundraising by city employees on behalf of the foundation, and whether those activities are being vetted properly by the city ethics board.
He said he also expects council members to ask the Dixon administration today if it intends to "lay out a comprehensive set of answers to all of these questions."
