Letter to the Joint Legislative Audit Committee

Joint Legislative Audit Committee: Senator Chester Crandell, Senator Judy Burges, Senator David Farnsworth, Senator Steve Gallardo, Senator Katie Hobbs, Senator Andy Biggs, Representative John Allen, Representative Paul Boyer, Representative Andrea Dalessandro, Representative Martin Quezada, Representative Kelly Townsend, Representative Andy Tobin

Arizona State Senate
Capitol Complex
1700 West Washington

Phoenix, AZ 85007-2890

Arizona House of Representatives
Capitol Complex
1700 West Washington
Phoenix, AZ 85007-2890

Subject: Arizona Historical Society Sunset Review

Dear Chairman Crandall and Committee Members,

The previous Performance Audit and Sunset Review Report for the Arizona Historical Society (AHS) was quite thorough and identified major problems within the society. The current report (number 13-13 dated September 2013) addresses procedural problems, but does not explore major problems. The AHS report is the last of the reports prepared in 2013, and there may not have been adequate time for the auditors to explore major issues. Before reauthorizing the AHS for another ten years, the Legislature should explore more serious problems not documented in the report. Only then can a proper allocation of public funds be made.

One major problem documented in the prior report is the Marley Center Museum.  The AHS failed to raise the funds for the history displays, and had to be bailed out with public funds (county and municipal). Given those funds, the AHS did build interactive displays in the Marley. However, over the years, they have not maintained those displays and few of them are operational today. As shown in the current audit report, the Marley (AKA History Museum at Papago Park) only attracted 6,867 visitors in 2012. Therefore, the state subsidy for this museum is hundreds of dollars per visitor. The funds shown in the AHS budget are only a fraction of the cost to taxpayers, because the AHS does not pay rent on the huge state owned building. A cocktail bar is a more prominently displayed (and apparently more frequently used) feature in the Marley than the history displays. Is the Marley really a serious history museum, or is it more of a taxpayer subsidized party house?

Another major AHS problem is the History Museum at Rio Nuevo (Tucson). The AHS spent over a million dollars of state funds on this museum. With those funds, they contracted for the design of a new museum so exorbitantly expensive that it will never be built. The AHS raised no funding for this project. The current report does not even address this issue. Surely such a waste of tax dollars should be investigated in a serious Sunset Review.

The current audit report does address the issue of the Arizona Mining and Mineral Museum, but does not explore it critically. Whatever the failures of the 5C Arizona Centennial Commission may have been, the AHS had no right (legal or moral) to close the existing mineral museum. In response to a legal challenge over this closure, the Arizona Attorney General replied that the AHS would continue to operate the mineral museum in the existing building as required by state statute. They did not. As a result, they are depriving about 50,000 students per year of field trips that supported the state mandated earth science education curriculum. This loss to teachers and students should be an even greater concern than the significant monetary waste.

The current report presumes that the AHS would be more successful at raising private funds if a full time staff person were assigned that responsibility. A though Sunset Review should explore the validity of that assumption. Is the fundraising failure due to lack of effort, or does an unfavorable reputation hamper fundraising efforts? The hostile takeover and destruction of the once top rated mineral museum alienated a large portion of the community. What was the AHS reputation in the museum community prior to that ugly incident? A thorough Sunset Review should include a survey to evaluate the potential for community support. A peer evaluation by member of the Museum Association would also be very helpful.

Finally, a complete Sunset Review should examine redundancy with other government agencies. As shown by the current report, few people visit AHS museums. Therefore, the major value of the AHS appears to be as a facility to store and preserve historic documents. That function may be redundant to the Arizona State Library, Archives, and Public Records. Would their large new facility provide a more economical way of preserving historic documents than AHS libraries?

As defined in the Arizona statutes, the Sunset Review is a very good process. Please gather additional information for the AHS review to assure that the process is effective.

Arizona Historical Society Performance Review Aviods Mineral Museum Mess

The Arizona Auditor General has completed the Performance Audit and Sunset Review Report for the Arizona Historical Society.  The report is available online at: http://www.azauditor.gov/Reports/State_Agencies/Agencies/Historical_Society/Performance/13-13/13-13_Report.pdf

The mineral museum mess is briefly summarized on pages 35 through 37 of the report. The report asks no questions and draws no conclusions about AHS involvement in this mess. Incredibly, the review does not even address the most pertinent and obvious question: Why was the historic and successful Arizona Mining and Mineral Museum closed?

Are taxpayers supporting two (AHS and Auditor General) dysfunctional agencies?

Reference:

Performance Audit and Sunset Review

Arizona Historical Society

September 2013

State of Arizona Office of the Auditor General

Report No. 13-13

Missing Arizona Museum

The following is a guest post by an anonymous contributor:

In an article in the September 2013 issue of Rock & Gem magazine, Bob Jones wrote a short history of the discovery of copper and other mineral wealth in the 1800’s in the Arizona Territory and how that discovery helped the territory become a state in 1912. 

He wrote of the thousands of collector mineral specimens that came out of the different mines in Arizona.  That these specimens were used for scientific study and display in museums the world over, but that Arizona’s mineral collection is no longer available for people here to enjoy.

He wrote of the 128 year history of the State Mineral Museum where many copper and other minerals specimens were displayed and about the museum’s senseless and untimely closing in 2011, just before the state’s 100th anniversary of statehood. 

He told of Arthur L. Flagg as State Mineral Curator and the founder of several mineralogical societies, how Mr. Flagg led field trips and encouraged collectors to display their collections at the State Fair.

He talked of the stamp mill, headframe, and steam locomotive and how volunteer miners and rock and prospecting club members pitched in to relocate the mining equipment for display at the museum.  He explained how much fun folks had at the annual Family Day.

He said that the only place in Arizona to see rocks and minerals is at the U of A mineral museum and that some of the Flagg Foundation minerals are displayed there.

He talked about the Earth Science Museum volunteers and their endeavor to build a new museum to once again help teachers and school students to learn about the earth sciences.

He spoke of the boondoggle of events perpetrated by the AZ Historical Society and Centennial Commission.

In his final paragraph, speaking of the many visitors that come to the state for the Tucson and Quartzsite shows he said “Failing to exhibit the state’s most important mineral collection to these visitors is ridiculous.  It would seem that supporting the establishment of a superb mineral museum touting Arizona’s in-organic wealth is a no-brainer.  Apparently, however, it is the state’s officials who are the no-brainers!”

Reference:

Arizona’s Missing Museum
A fine mineral collection seeks a new home
by Bob Jones, Rock and Gem, Sep., 2013

Internal Control Problems at Arizona Historical Society

The Arizona Auditor General conducted a limited procedural review of “cash receipts, cash disbursements, purchasing, payroll, journal entries, transfers, capital assets, collection items, and compliance with Arizona Revised Statutes”. The report includes five findings:

1: The society should strengthen its controls over cash receipts.

2: The society should maintain an accurate capital assets listing.

3: The society should strengthen its controls over collection items.

4: The society should comply with Arizona Revised statutes.

5: The society should comply with state travel policies.

Finding number 3 is of considerable concern since the hostile takeover of the mineral museum transferred the 20,000 specimen state mineral collection to the AHS. The mineral museum had a complete, current, and accurate catalog of the specimens. Is that control being lost following the transfer to the AHS?

Furthermore, some specimens displayed at the Tucson Gem and Mineral Show by the AHS had been renumbered. That is a concern, because the AHS took only the specimens, not the supporting data files. Those files were later salvaged by the state geologist. If the AHS renumbers only the mineral specimens, will the connection between mineral specimens and supporting data be lost?

Reference:

Procedural Review, Arizona Historical Society, Office of the Auditor General, State of Arizona, Financial Audit Division, February 28, 2013

http://www.azauditor.gov/Reports/State_Agencies/Agencies/Historical_Society/Financial/AZHistSocProcRev2-28-13.pdf

Volunteers mitigate Arizona Historical Society damage

Prior posts documented how the Arizona Historical Society executed a hostile takeover of the Arizona Mining and Mineral Museum. Subsequently, they destroyed the mineral museum and the K-12 education programs that many teachers depended on for earth science education support.

Former mineral museum volunteers are therefore taking earth science education programs to the schools. Not as many students can be served as when school buses brought students and teachers to the mineral museum, but the current outreach program is expanding. New volunteers are currently being trained to serve as many students as possible.

Details on the outreach program are available at http://www.earthsciencemuseum.org/node/56

What's next?

This blog has been continuously  documenting the hostile takeover and closure of the once top rated Arizona Mining and Mineral Museum since June 5th of 2010.  As reported in the last post, absolutely nothing appears to be happening at this time.  Does Arizona's elected leadership have any interest in cleaning up the mess they made?

As reported previously, the AHS's 10 year Sunset Review is in process at this time. The Arizona Auditor General
( http://www.azauditor.gov/ ) is completing the associated performance review at this time.

Will the report document the madness?

If it does, will the Legislature care?

The elephant on the corner

The big grey building on the North West corner of 15^th Ave. and Washington St. in Phoenix is obvious to everyone. Everyone that is, except Arizona’s elected leaders. Even though it is within sight of the Capitol, they don’t see it.

Due to botched centennial planning followed by stubborn refusal to fix the mess, it still stands empty. Bills to restore the once top rated Arizona Mining and Mineral Museum (at no extra cost to tax payers) have now been killed in committee two years in a row.

Although the buildings only current function is to hold up solar panels installed on the roof with Federal stimulus money, state government continues to provide the Arizona Historical Society with over $400,000 per year for a museum that does not exist in an empty building that is being ignored.

Meanwhile, 50,000 students per year continue to be cheated out of a unique learning experience.

Madness.