Silver Lake Golf Course's Failed to Pay Taxes (Golf Master Tips) - The company that runs the Silver Lake Golf Course might have landed in the rough. Golf Center of Staten Island, which operates the 18-hole course, under-reported more than $86,000 in revenue to the city and failed to file its taxes since 2009, according to an audit conducted by City Comptroller Scott Stringer's office.
"It seems like no one was minding the clubhouse at the Golf Center of Staten Island," Stringer said in a prepared statement. "My auditors found tens of thousands of dollars in unreported revenue, thousands of rounds of golf off the books and no corporate or sales taxes paid in six years. You can't take a mulligan on paying taxes."
The audit found that Golf Center of Staten Island under-reported $86,277 in revenue from May 1, 2013 through April 30, 2014, and failed to report 3,200 rounds of golf played at the course.
Golf Center of Staten Island entered a 20-year license agreement with the Parks Department in 2007 to renovate, operate and maintain the course at Silver Lake Park.
Under the terms of that agreement, the course must pay a minimum of $565,000 in licensing fees, or a certain percentage of its gross receipts, whichever is greater.
Had the golf course reported its revenues correctly, the amount owed to the city still wouldn't have exceeded that minimum, the audit revealed.
"However, the practices that led to these reporting failures could affect future payments to Parks should golf sales increase," the audit reads.
The audit also showed that Golf Center had not filed or paid New York State sales tax or filed the applicable federal, state or city tax returns since 2009, and owed $234,000 in taxes to the state.
Following the audit, a Golf Center official indicated that the company was working towards remedying its tax issues, and had recently filed its 2010 returns and paid the taxes due.
The audit also revealed that as of April, Golf Center hadn't spent roughly $538,000 of the $2.6 million it's required to spend in capital improvements as a condition of its license.
The audit revealed several book-keeping flaws.
Golf Center didn't use pre-numbered contracts for parties and golf outings, and didn't keep an event calendar book for 2013, according to the audit. Following the audit, a Golf Center official told the comptroller's office that they had since remedied the issue and started using pre-numbered contracts, according to the comptroller's office.
Also, beverage carts and a food stand used cash boxes, and not a cash register, meaning they did not keep official records of any transaction, according to the audit.
Said Stringer, "A contract is only as good as its enforcement and it's clear that the Parks Department hasn't been paying enough attention to ensuring the Golf Club of Staten Island is complying with its agreement with the City."
Parks Department officials agreed with the audit's findings and recommendations, the audit documents state.
"While Silver Lake has paid the appropriate license fees and maintained their required insurance, the Comptroller's report flags some specific improvements for key operational areas," the agency said in a statement provided to the Advance. "NYC Parks has already taken substantive steps to improve revenue reporting, tax filing practices, and capital project completion, and will continue to work with the course's operators on the report's recommendations."
Golf Center officials did not return messages seeking comment Saturday and Sunday, but in a June 15 letter appended to the audit, Golf Center president Douglas Johnstone agreed to make changes and set up "an adequate system of controls" to track how much revenue the course makes. (Golf latest news source: Silive.com)
Silver Lake Golf Course's Failed to Pay Taxes
"It seems like no one was minding the clubhouse at the Golf Center of Staten Island," Stringer said in a prepared statement. "My auditors found tens of thousands of dollars in unreported revenue, thousands of rounds of golf off the books and no corporate or sales taxes paid in six years. You can't take a mulligan on paying taxes."
The audit found that Golf Center of Staten Island under-reported $86,277 in revenue from May 1, 2013 through April 30, 2014, and failed to report 3,200 rounds of golf played at the course.
Golf Center of Staten Island entered a 20-year license agreement with the Parks Department in 2007 to renovate, operate and maintain the course at Silver Lake Park.
Under the terms of that agreement, the course must pay a minimum of $565,000 in licensing fees, or a certain percentage of its gross receipts, whichever is greater.
Had the golf course reported its revenues correctly, the amount owed to the city still wouldn't have exceeded that minimum, the audit revealed.
"However, the practices that led to these reporting failures could affect future payments to Parks should golf sales increase," the audit reads.
The audit also showed that Golf Center had not filed or paid New York State sales tax or filed the applicable federal, state or city tax returns since 2009, and owed $234,000 in taxes to the state.
Following the audit, a Golf Center official indicated that the company was working towards remedying its tax issues, and had recently filed its 2010 returns and paid the taxes due.
The audit also revealed that as of April, Golf Center hadn't spent roughly $538,000 of the $2.6 million it's required to spend in capital improvements as a condition of its license.
The audit revealed several book-keeping flaws.
Golf Center didn't use pre-numbered contracts for parties and golf outings, and didn't keep an event calendar book for 2013, according to the audit. Following the audit, a Golf Center official told the comptroller's office that they had since remedied the issue and started using pre-numbered contracts, according to the comptroller's office.
Also, beverage carts and a food stand used cash boxes, and not a cash register, meaning they did not keep official records of any transaction, according to the audit.
Said Stringer, "A contract is only as good as its enforcement and it's clear that the Parks Department hasn't been paying enough attention to ensuring the Golf Club of Staten Island is complying with its agreement with the City."
Parks Department officials agreed with the audit's findings and recommendations, the audit documents state.
Golf Center officials did not return messages seeking comment Saturday and Sunday, but in a June 15 letter appended to the audit, Golf Center president Douglas Johnstone agreed to make changes and set up "an adequate system of controls" to track how much revenue the course makes. (Golf latest news source: Silive.com)
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