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Sunday, Apr. 26, 2009

Library finances: Checking out the books

Kathleen Imhoff, the Lexington Public Library's chief executive officer, spent more than $134,000 in five years on national and international travel, scores of meals at upscale Lexington restaurants, gifts for employees and board members, and other items, mostly on her library credit card.

Imhoff and her superiors on the library board of trustees defend her spending as appropriate for a high-profile businesswoman running a $15 million-a-year institution.

"The board hired me for several reasons, and among those was to increase library usage, to get the library more known in the community and to be an ambassador for the library, regionally, nationally and internationally," said Imhoff, 63, in a recent interview.

Of the $134,158 that Imhoff has spent since joining the library in 2003, she or others later reimbursed $6,568 for charges not related to library business, and $10,294 was billed to the non-profit group Friends of the Lexington Public Library.

Lexington's civic agencies are being scrutinized following a credit card spending scandal at Blue Grass Airport that led to the resignations of top managers and a criminal investigation.

Acting on a tip to State Auditor Crit Luallen about possible excessive and inappropriate personal spending, city auditors went to the library last week to secure financial records and interview Imhoff. Library officials said they were surprised, but they will cooperate.

Imhoff's spending pales in comparison to the more than $500,000 charged by airport officials. But it does raise similar questions about oversight.

Luallen and others criticized the airport board of directors for not noticing controversial purchases that happened on its watch, including visits to strip clubs.

At the library, hired auditors in 2007 warned about questionable credit card usage with inadequate documentation to support it. Still, the library board did not review Imhoff's credit card bills. They said it was unnecessary after she assured them she had added strict controls.

This month, after the Herald-Leader's review of Imhoff's charges, board Chairman Burgess Carey reversed himself.

Starting in May, Carey said, he will review Imhoff's credit card bills. But that does not reflect lost faith in her, he added. More oversight seems like a good idea in the face of increased concern about public funds, he said.

"She has done an outstanding job addressing the priorities we gave her," Carey said. "We have an excellent library that Lexington can be proud of, a library that is recognized nationally and that has a heightened visibility here in our community."

Unlike the airport, where just part of the funding is public, nearly all of the library's budget comes from Fayette County and Kentucky taxes. When Imhoff charges, taxpayers usually pick up the tab.

In the last five years, Imhoff has charged for items including:

Travel, $81,736, of which she or others have reimbursed the library $6,262: Trips to Norway, the Netherlands, the Czech Republic, South Africa and Canada, as well as 15 states (visiting some states many times) and Washington, D.C., including airfare, hotels, meals and shopping.

Staff gifts and special events, $15,139, of which she has reimbursed $9: These included custom-made, spiral-bound, full-color calendars that show off personal photographs that she and other library officials took ($8,154); silk flowers ($630); pastries from Magee's Bakery ($500); baby clothing and blankets for her executive assistant ($483); grocery gift cards for two assistants ($300); staff gifts from the Metropolitan Museum of Modern Art ($240); gift baskets from the Keeneland Shop ($187), tickets to a lawn party at Ashland, the Henry Clay Estate, for a library manager and her husband ($170); food and gifts from Liquor Barn for a staff party ($152); and Christmas cards ($101).

Meals, $10,800, of which she has reimbursed $46: Frequent brunches, lunches and dinners at Lexington restaurants, including Bellini's (32 meals, $2,216), Portofino (25 meals, $1,666) and Jonathan's at Gratz Park (seven meals, $1,234).