DALLAS — There is a lot happening at Fair Park aside from the actual State Fair of Texas. For months, there have been concerns over the possible misuse of funds.
Fair Park First oversees Fair Park. They contracted Oak View Group (OVG) to run its day-to-day operations.
Back in the spring, Fair Park First accused OVG of misusing funds and called for an audit. They claim OVG used funds that were designated for certain improvements for daily operations instead.
Wednesday, the findings of that audit were presented to the board in a closed session. After that session, Fair Park First board voted to approve and accept what they call an “agreed upon procedures report.” They said $5.7M was misallocated. They're planning to work with an attorney to recover the funds that were mismanaged by OVG.
WFAA spoke with South Dallas developer and business owner, Zac Thompson, who said it is time for the city to take over Fair Park First and for citizens to get more involved. Thompson also said promises for improvements have not trickled down to the South Dallas community.
“It's a dream deferred and 65 years, all cultures, but specifically African Americans have been waiting for South Dallas for our part to change and it has not. And that's a slap in the face,” said Thompson, Southside Parking owner.
It is important to note that although funds were misappropriated, all money spent did, in fact, go towards the park in some way.
OVG responded to the claims in a statement Wednesday:
“Oak View Group is not responsible for any deficiency in the fundraising cash account balance at Fair Park. More importantly, the audit report confirms there has been no fraud or misuse of funds. OVG executed its responsibilities according to our contract. All fundraising cash was spent on Fair Park and Fair Park First exclusively, and all uses of donated funds were directed or approved by Fair Park First in writing. We have not received a demand from Fair Park First for payment of any amounts, but if received we will respond accordingly.”
Fair Park First sent out the following statement on Wednesday:
Dear Mayor Johnson and City Council Members:
We have attached the Independent Accountants Report on “Applying Agreed Upon Procedures” (Procedures Audit) from Malnory McNeal and Company. This was an audit to review Fair Park First’s restricted donor funds that were at the time managed by the Oakview Group (Fair Park’s Operator).
The Procedures Audit report states that Fair Park First directly received donor funds totaling $17,115,626 through the period ending April 30, 2024. The audit makes clear that $5.7 million was misallocated in donor funds, restricted for specific Fair Park projects and utilized those funds for park operations and unqualified projects. While there is no question the funds were spent on and at Fair Park, the determined amount misallocated was not spent on the specific Fair Park projects restricted by our donors. Oakview Group (OVG) has previously pledged that if it was determined it utilized restricted donor funds for operations, it would refund those funds for the designated projects.
Fair Park First is honored to serve as the conservator of the park engaged by you to restore, revitalize and renew Fair Park as a historic treasure and a community asset. OVG is contractually engaged to run the park’s operations day-to-day and the back office for Fair Park First. We are working with OVG to find a solution to ensure the donor funds are replaced and directed as originally restricted by our donors. This is a matter of good stewardship for our trusted donors who support Fair Park First’s mission and our community that is investing trust in the fulfillment of promises.
We will work closely with you, Dallas Park and Recreation, and Oakview Group to review and amend the contracts to better manage Fair Park and fulfill all obligations both current and future.
The Dallas Park and Recreation Department Director, John D. Jenkins, also released a statement.
"The Dallas Park and Recreation Department executive leadership has received the Fair Park First audit and is beginning to review it in detail. Once we complete our review, we will be able to share more information with the Dallas City Council and Dallas Park and Recreation Board on appropriate next steps.
Additionally, there will be briefings to the City Council and Park Board next week on the audit and the existing contracts. In all cases, we firmly believe the existing contracts with Fair Park First and the OVG360 (Oak View Group) need to be substantially amended to resolve identified contractual concerns."