SPRINGBORO — A state audit shows that this Warren County city's golf course had a $2 million deficit last year. It urges city officials to change their bookkeeping and renegotiate the private contract to run the golf facility.

        Heatherwood Golf Course is owned by the city of Springboro but operated under contract by a private firm. According to an annual audit by the Ohio Auditor, the operating fund showed a temporary cash deficit of more than $2.6 million at the end of 2000.

        “We did recommend that the city establish some procedures to reasonably determine payroll and receipts have been properly collected ... related to the golf course,” Ohio Auditor spokeswoman Kim Norris said of the audit released Sept. 27.

        But city officials counter that the audit included no accusations of theft or wrongdoing. It criticized the city for being less than diligent in its bookkeeping and recommended more city oversight of the private firm — American Golf Corp. — that has run the facility for the city since 1995.

        “We don't agree with some of their recommendations,” said Springboro City Manager Wally Dothwaite. “They are splitting hairs,” he said, emphasizing the annual audit did not make any findings for any missing monies.

        Mr. Dothwaite said the deficit was merely on paper and that the city had transferred funds from other budgetary sources — as it had done in previous years — to cover the operating cost deficit. He said Heatherwood is currently within budget and producing a small profit for the city.

        Auditor officials recommend, however, an alternative budgetary process that city officials have said they will adopt.

        “And in response to their recommendations, we have stepped up our oversight,” he said.

        This will soon include a renegotiated contract with American Golf Corp. that will lower the annual fee paid by the city to operate the golf course from $225,000 to $170,000.

        The changes are not expected to affect the golf facility at 88 Heatherwood Blvd. or increase course fees for patrons, he said.

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