NASHVILLE, Tenn. -
A full financial and operational review of the Nashville Farmers' Market could begin as early as next week, according to Nashville Mayor Karl Dean's office.
The city's finance department recommended the full review after completing a financial operations review of the market's business from January 2010 to December 2011.
"Based on this limited review and the weaknesses and deficiencies noted, we believe that a much more detailed review is needed," Director of Finance Richard Riebeling said in a memo to Nashville Farmers' Market Board Members.
"The finance department recommends that a full financial and operational review be conducted under its direction at the earliest opportunity," Riebeling continued.
Nashville Farmers' Market's executive director Jeff Themm requested the review.
According to the memo, the finance department found issues with tenant billings.
They include discrepancies between rent billings and lease agreements. It also found that billings do not show a breakdown of rental charges.
When it comes to lease agreements, the review found inconsistent terms and a lack of a standard contract template.
It found that start dates, rent dates and rent escalation dates were unclear.
The review also pointed out that utility billings were not equitable, consistently applied, nor consistent with Nashville Farmers' Market policies.
Metro's finance department also found problems with the market's cost allocation methodologies including a lack of a cost allocation plan for common cost for all tenants and a lack of monitoring to ensure allocable costs are recouped.
The market's Night Market event was also listed in the memo. The auditors found inconsistencies with revenues related to alcohol sales and participating vendors' rent.
The review also found faults with the market's procurement practices, lack of enforcement of existing financial procedures and late fee collection.
Mayor Dean called on the finance department to quickly start a full review following the findings.
"Our job is to make sure that departments are run responsibly and serve as good stewards of public funds," the mayor said in a statement. "I expect prompt remedial action to the issues uncovered by our Finance Department."
Chris Moran, owner of Louisiana Seafood Company at the farmers' market, said the audit will help protect the vendors at the market and generate new business.
"We want to streamline the business that comes to the market as a whole," he said. "The only way to do that is to make sure our financial house is in order."
He continued, "That's something that will help every vendor in here, whether it's a current vendor or a future vendor."
Moran opened his seafood market in June 2011. He buys gulf seafood from the Louisiana coast and drives it to Nashville every week.
"We are always trying to add more people here," he said. "I think this audit will help attract more people here."
Moran is already making plans to expand his business in Nashville, because of the success he has already had at the farmers' market.
"We want to generate business from what we already have," he said. "There has been talk of possibly opening a restaurant here in Nashville."
Mayor Dean's office said the full review could start early next week.
"There is no timetable on how long it will take," Mayor Dean's Press Secretary Bonna Delacruz Johnson said in an email. "We will take the time to make sure it is done right, but at the same time, this will be a top priority."
To learn more about the farmers' market, visit NashvilleFarmersMarket.org.
