Remember toward the end of 2008 when MOCA had negative money and were flayling around and everyone was panicking and then Super Eli came to the rescue? Well, the LA Times is now reporting that the Attorney General found that not only were they very good at going broke, they were very good at breaking laws!
Instead of reducing spending, MOCA paid some of its bills with money from endowments that donors had earmarked for other purposes, Johns found; she noted that the law requires either that nonprofits get written permission from donors before using restricted endowments in other ways, or that they obtain court orders overriding the restrictions. “The withdrawals we reviewed did not follow this standard,” Johns wrote.
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As a consequence, MOCA was ordered to take two “required corrective actions” — hiring a consultant to help it come up with newer and better financial procedures, and special training for all museum board members “to ensure that they fully understand their fiduciary duties.”
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Well, this should be interesting to watch. Deitch is on his way over. They are now going to have to hire consultants. I haven’t heard if they are still having that fundraiser at Blum + Poe, but that’s not good.
I have to wonder if they are just counting on more attendence and interest because they have their hearts set on Eli Broad having his museum downtown and having that fix a lot of their publicity woes. Now that Beverly Hills has bowed out of the competition, it’s only DTLA and Santa Monica going head to head. Where the ball stops, nobody knows.
April 16, 2010, 9:48am