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ARIZONA STATE LEGISLATURE
Fifty-first Legislature – First Regular Session
SENATE GOVERNMENT AND ENVIRONMENT AND HOUSE OF REPRESENTATIVES GOVERNMENT COMMITTEE OF REFERENCE FOR THE PERFORMANCE AUDIT AND THE SUNSET REVIEW OF THE
ARIZONA HISTORICAL SOCIETY
Minutes of Interim Meeting
House Hearing Room 1 -- 9:30 a.m.
Co-Chairman Ugenti called the meeting to order at 9:42 a.m. and attendance was noted by the secretary.
Members Present
Senator Gail Griffin, Co-Chairman Representative Michelle Ugenti, Co-Chairman
Senator Katie Hobbs Representative Sonny Borrelli
Senator Kelli Ward Representative Doug Coleman
Representative Martin Quezada
Members Absent
Senator Carlyle Begay Representative Andrea Dalessandro
Senator Chester Crandell
PRESENTATION BY THE AUDITOR GENERAL
Dot Reinhard, Auditor General’s Office, reviewed a powerpoint presentation on the performance audit and sunset review of the Arizona Historical Society (AZHS) (Attachment 1).
RESPONSE BY THE ARIZONA HISTORICAL SOCIETY
Anne Woosley, Executive Director, AZHS, described the functions and services provided by the AZHS. She stated that the agency is particularly committed to its affiliated museums and Certified Museum Program, which provides services and grants to local history museums in communities throughout Arizona. She added that AZHS is a full-service agency and respectfully requested the Committee’s support for authorizing the agency for 10 years.
Dr. Woosley indicated that she agrees with the vast majority of the recommendations in the audit report, but takes issue with the suggestion that AZHS is not conscientious in recording and inventorying collections. She submitted that AZHS is looked to as a model to follow for complete and conscientious recording of objects. There are over 2 million items in AZHS’ collections that are distributed in major museum facilities in Tempe, Tucson, Flagstaff and Yuma. In the Tucson Museum, for example, there are records for 100 percent of all of the objects; the least complete record is approximately 87 percent. The vast majority of historical societies and collecting museums with the same number of objects do not meet those percentages. The auditors suggested that AZHS inventory collections annually, which is not the same as inventorying computers and office equipment, especially with AZHS’ sizeable collections. Curators continually work with the materials and are familiar with what is in the various storage areas. Inventorying is done by spot checking sections of the collections, which is the standard approach for museums. AZHS is working with the General Accounting Office to identify the most historically significant portions of collections to be counted every year; others of less significance will be phased in on a scheduling calendar.
In relation to 87 percent of least complete records, Dr. Woosley explained that the catalog information on those is not as complete, which is viewed as a backlog, and as new items are received, AZHS also deals with that backlog.
Bill Ponder, Chief Administrative Officer, AZHS, related that AZHS extended its cash handling policies to include the areas found to be less than adequate by the auditors and is engaging in on-site visits at all locations to retrain staff on proper cash-handling techniques. AZHS contacted the State Treasurer’s Office and was given temporary authority to retain its current banking system while working to move all accounts over to the state banking system, which should be accomplished by the end of the calendar year.
In response to a question about low attendance at some museums, Mr. Ponder acknowledged that there is not a high paying visitation turnout in some areas, such as Yuma, but there is a wider schedule of programming (lectures, tours and educational offerings) in which the number of people involved is not counted in the paying visitation figures. AZHS staff is working on marketing aspects to increase paying visitors.
Dr. Woosley indicated that the number of paying visitors does not include individuals who use the libraries and archives or school tours so visitation cannot be compared to a private museum that is functioning primarily through paying visitors. She acknowledged that school children are not charged to visit the museums, although there is a nominal charge if classroom learning tools are provided.
Dr. Woosley addressed the importance of subsidizing AZHS with public money, noting that the agency must also partner to raise private dollars to underwrite programs.
In response to questions, Mr. Ponder related that in fiscal year (FY) 2012, an appropriation of $2.6 million was provided to AZHS; private funds amounted to $986,480. In FY 2013, the appropriated amount was $2.6 million and private funds amounted to $1 million. He discussed efforts to work with cities, counties and community groups to facilitate fundraising, noting that outside supporters also donate through gifts and services. He advised that appropriated funds are spent for salaries and employee-related expenses (ERE) for staff (approximately $2.2 million) and utilities. Those funds do not fully cover utility costs so private funds are also used. He clarified that AZHS Board members receive no salary, mileage or per diem. Rent for facilities, which currently only applies to the Centennial Museum at approximately $400,000 per year, is paid from appropriated funds.
John Lacy, representing self, informed the Members that AZHS is in the process of completing an application to form a 501(c)(3) organization to raise funds, coordinate with various nonprofit organizations throughout the state and provide for direct reporting to the AZHS Board.
Senator Ward noted the audit report states there is a charge of $4 per child for school tours and chaperones are free as long as there is not more than a five-to-one ratio. She questioned why that is not counted as revenue from paid attendees. Dr. Woosley responded that those individuals are counted, but it is done separately from the 65,000 regular visitors in order to write grants. She reiterated that a charge is assessed if special programming tools are provided; if not, there is no charge.
In response to questions about
staffing, Dr. Woosley conveyed that when she became Director of AZHS in 2001, full-time
and part-time staff across all of the museums totaled approximately 122; there
will be approximately 41 employees after three vacant positions are filled by
the end of 2013. This is due to reductions in force (RIF) over the years and
not filling vacant positions. The responsibilities of remaining staff have
been vastly broadened. There are also
680 volunteers.
Regarding counting non-paying visitors, Dr. Woosley reiterated that there are 380,000 participating contacts, which is a conservative estimate. The Board and staff believe in free access to the libraries and people responsible for counting visitors do the best they can, but it is difficult, especially on a busy day, so estimates are made. Senator Griffin suggested a sign-in book in order to obtain a better count and requested a salary breakdown for positions at the museums.
In response to further questions, Dr. Woosley indicated that the process of writing the collections manual and the collections procedural document will be finished in 2014. Those policies are being implemented as they are updated. She related that the Virginia Historical Society is the only state historical society she is aware of that does not receive public funding, although it is possible that bonds were passed in Virginia for that purpose.
William Porter, President, Mohave County Historical Society, said that the current AZHS Board is unique and presently composed of 27 members; it works well because it covers the entire state. He added that he cannot think of any reason not to have a Governor-appointed member.
Dr. Woosley noted that there are currently openings on the AZHS Board for representation from every county but it is difficult to fill all of the seats because of travel and members receive no compensation or per diem. Also, timing of meetings is an issue for people who work. AZHS Board meetings are held around the state to address the distance problem.
Mr. Lacy clarified that in order to become a Board member, AZHS members are invited to submit their names or nominate another person to the nominating committee, which presents a slate of nominees at the annual meeting for a vote. He acknowledged that 15 of the 27 members are from Maricopa or Pima counties, but opined that reorganization of the chapter boards in the last year will result in more statewide representation.
Dr. Woosley opined that having a Governor-appointed AZHS Board member would be a valuable addition. She added that open nominations of individuals from the floor are also permissible at the annual meeting.
In response to further questions, Dr. Woosley indicated that she can provide a list of locations of AZHS Board meetings in 2012. Whether AZHS Board members can attend meetings electronically depends on where the meetings are held; it is not always possible.
Dr. Woosley related that
discussions and meetings are being held with representatives from the Arizona Department
of Administration and private individuals on repurposing the
Centennial Museum. The success of the repurposing is dependent upon funding
from the private sector. The building will not remain vacant, although its
sole focus will not be a museum.
Co-Chairman Griffin welcomed the following elected officials in the audience: Former Representatives Phil Hanson and Pete Hershberger, former Mayor John Driggs and Representative Kate Brophy McGee.
PUBLIC TESTIMONY
Marshall Trimble, State Historian, spoke in support of AZHS. He testified that while traveling around Arizona, he sees the outstanding work done by AZHS in preserving Arizona’s interesting and colorful history. He cannot emphasize enough the importance of people knowing the history of the area in which they live.
John Driggs, representing self, said 40 years ago, when he was the Mayor of the City of Phoenix, the City held a last-minute Centennial event, and during that process, the Phoenix Historical Society was formed. It was decided that AZHS was important enough that it was not necessary for the Phoenix Historical Society to remain independent so the Phoenix Historical Society joined AZHS. He opined that the Auditor General’s report inherently contains the basis for almost a mandatory continuation of the AZHS.
Joe Abodeely, Director, Arizona Military Museum, testified that the purpose of the Arizona Military Museum is to display and promote the military history of Arizona. It is a volunteer organization that receives a small grant each year from the AZHS that is used to maintain artifacts and records. He said AZHS is the “flagship of the fleet” and urged the Members to consider funding the agency for the next 10 years.
Jeremy Rowe, President, Daguerreian Society; Board Member, Ephemera Society of America, stated that there are many private collectors, institutions and families with historic materials. A historical society with some guarantee of support by the state is needed to collect and preserve those valuable materials.
Anne Wallace, Director of
Education/Grants Manager, Cave Creek Museum, said the
Cave Creek Museum is small but vital to the community. She noted that an archivist
named
Grace Schoonover recently passed away and left extensive archives of over 100
linear feet to the museum to care for, which will be done through grant funding
from AZHS. She urged the Members to approve a 10-year extension for the AZHS.
Gregory Davis, Past President, Superstition Mountain Historical Society, pointed out that people utilize the libraries and archives to obtain doctorates, master’s degrees and college degrees. Those people obtain jobs, buy homes, pay taxes and purchase goods in Arizona. Book publishers utilize AZHS collections, people buy the books and pay taxes on the books. Taxes are paid by the publishers, binders and bookstores that sell the books. He asserted that the tax dollars derived directly and indirectly from utilization of the AZHS far exceed the amount of money necessary to maintain the organization.
Names of people present in support of AZHS who did not testify:
Mary Ann Ruelas, representing self
N. S., representing self
Eric Gonzales, representing self
Betty Leon, representing self
Laraine Jones, representing self
Lupe Leon, representing self
Artie Gonzales, representing self
Sherri Jackson, representing self
Virginia Ginn, representing self
Anne Felker, representing self
Betty A. Cook, representing self
Sarah Tunnell, representing self
Shirley Pinkerton, representing self
Pete Hershberger, representing self
Kim Bittrich, representing self
Jacqueline Berkowitz, representing self
Linda Whitaker, Director, Library & Archives, representing self
Benjamin Findley, representing self
Madison Barkley, representing self
Barbara Prior, representing self
Nancy York, representing self
Joann Handley, representing self
Thomas Foster, representing self
Donald Prior, representing self
John Langellier, representing self
Melinda Nino, representing self
Ashley Smith, representing self
Mary Lou Morrow, representing self
Janice Bryson, representing self
Ronald Larson, Preparator, AZHS, representing self
Connie Kreamer, representing self
Nicole Lober, representing self
Nate Meyers, Museum Association of Arizona
Barbara Kraver, Sunnyslope Historical Society
Jody Crago, President, Museum Association of Arizona
Gary Daniel, representing self
Charlotte Dodgson, representing self
Gwen Groth, representing self
Susan Irwin, representing self
Michael Hockett, representing self
Rebekah Tabah, representing self
Robert Spindler, representing self
Richard Boyd, representing self
Voie Coy, representing self
Margaret Baker, representing self
Vincent Richie, representing self
Leslie Roe, representing self
Zona Lorig, representing self
Deborah Ortiz, representing self
Bonnie Newhoff, representing self
Bruce Dinges, representing self
Seth Franzman, representing self
Phoebe Coleman, representing self
Laura Hoff, representing self
Caitlin Lampman, representing self
Mary Flynn, representing self
Linda Head, representing self
Paul Nelson, representing self
James Brownlee, representing self
Doreen Crowe, representing self
Clair Thomas, representing self
Jessie Smith, representing self
Jane Berson, representing self
Roy Goodman, representing self
Ted Hale, Deputy Director, Arizona State Library, Archives and Public Records (ASLAPR), commented that the ASLAPR will be entering into a partnership to help AZHS process and catalogue a Yuma Territorial Prison collection in compliance with national standards. He urged continuance of AZHS.
Marilyn Michelback Coy, representing self, advised that her family arrived in Arizona in the 1880s as a pioneer historical family. She asked that the Committee approve AZHS’ continuation.
Leonard Marcisz, Member, Board of Directors, AZHS, related that people often hear that government agencies should be run like businesses. He submitted that the AZHS is run like a business and has effectively done more with less in hard times.
Senator Griffin commented that some of the items in the audit report from 15 years ago were not addressed, so she would like to have the agency return in a few years to report on those since public funds are involved.
Ms. Reinhard responded to questions about the follow-up process and potentially shortening the sunset review date.
Jim Norton, representing AZHS, remarked that the appropriations process occurs every year. In six months, the Legislature will likely be in session and AZHS will work diligently to ensure any issues are addressed. He opined that it is appropriate to continue the agency for 10 years.
Senator Ward noted that items from 15 years ago have not been corrected yet AZHS is given an appropriation every year.
Dr. Woosley indicated that she is unclear as to what egregious aspects have been ignored because she understands that the financial aspects were taken care of or are in the process of being taken care of, such as the separate bank account. As to how long it will take to develop a plan to accomplish the recommendations in the audit report, she reiterated the fact that AZHS is finalizing all of the recommendations, particularly in the collections area. Collection stewardship is taken very seriously. AZHS is located in state buildings with less than ideal environmental conditions so collections at the highest risk of fragility are moved into safer areas, which has been an ongoing process. Recommendations by the audit team will be completed in 2014.
When asked about the backlog of items, Dr. Woosley indicated that addressing the backlog is built into the regular working schedule of the curators. It is not a huge amount; in fact, it is a miniscule percentage of everything that is already done.
In response to further questions, Dr. Woosley submitted that the auditors are not familiar with industry standards and operations, which was evident in the assessment of collections management. The high number of $5 million mentioned by the auditors to address deficiencies that began in 1985 entails achieving the ideal situation by installing compact storage units, which are expensive. The Colorado Historical Society was recently appropriated $30 million for a new building; $8 million was for compact storage units. She contended that nothing in AZHS’ charge has deteriorated or been destroyed due to lack of care.
Mr. Abodeely remarked that from a small museum perspective, collections are a continual work in progress. It is difficult to attain the desired ideal standard, which requires funding.
Mr. Davis stated that there will always be more collections and backlogs, even in small museums.
RECOMMENDATIONS BY THE COMMITTEE OF REFERENCE
Co-Chairman Ugenti moved that the Committee of Reference recommend the continuation of the Arizona Historical Society for 10 years. The motion carried by a roll call vote of 5-2-0-3 (Attachment 2).
Without objection, the meeting adjourned at 12:13 p.m.
_______________________________
Linda Taylor, Committee Secretary
November 7, 2013
(Original minutes, attachments and audio on file in the Chief Clerk’s Office; video archives available at http://www.azleg.gov)
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COR – SENATE GE AND HOUSE GOV
November 4, 2013
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