The Lexington council wants a review of LexArts finances and its diversity efforts.
Vice Mayor Dan Wu put a review of LexArts, a community umbrella arts organization, into the Lexington-Fayette Urban County Council’s Budget, Finance and Economic Development Committee last week.
A date for that review has not been set.
Wu’s motion during a May 28 council work session comes on the heels of a community meeting May 7 about LexArts and its efforts to reach and highlight minority artists. Wu and seven other council members attended the meeting organized by local artists.
During the May 7 meeting, several artists expressed concerns about LexArts, which will receive $325,000 from the city for the fiscal year that begins July 1, and its ability to highlight and showcase artists of color or diverse backgrounds.
But the concerns about LexArts is also about its finances, said Wu during discussions during a May 28 meeting where the council made changes to Mayor Linda Gorton’s $531.8 million budget proposal for the fiscal year that begins July 1.
LexArts had asked the council for an additional $100,000 for a cultural pass for students to go to various arts events during the summer. A council subcommittee, called a budget link, had recommended funding it at $50,000.
During the May 28 budget meeting, Wu urged the council not to approve the allocation, saying he had reservations about LexArts and the management of its finances.
An audit has been completed for the fiscal year that covers 2021-2022. But an audit of finances for 2022-2023 is still pending, he said.
“I’m very much opposed to giving them extra funding,” Wu said.
LexArts’ cultural pass for students is already operating. Wu said LexArts can return to the city with a request for more funding at a later date.
“They can come back once they showed us proof of concept,” Wu said.
The council ultimately voted 8-6 not to fund the cultural pass as part of tweaks it made to Gorton’s budget proposal. The council ultimately added approximately $3.2 million in additional spending to her proposed $531.8 million budget.
A final vote is expected June 13.
Fundraising and the arts
LexArts funds various arts programs through its fundraising efforts called the Fund for the Arts.
That effort typically raises slightly shy of $600,000 per year. LexArts then gives that money to various arts organizations such as the Lexington Philharmonic, the Lexington Children’s Theatre, Lexington Living Arts and Science Center and other arts groups.
In comparison, Louisville’s Fund for the Arts typically raises about $6 million a year, according to Louisville’s Fund for the Arts most recent tax returns. Louisville is twice the size of Lexington.
The allocation from the city is typically for operations for LexArts. It is not part of the money it gives to arts groups through its annual fundraising efforts.
However, this year some arts groups the typically receive funding from LexArts received those payments several months late.
LexArts officials met with the mayor to discuss the issues earlier in May, city officials confirmed this week.
“The mayor met last week with LexArts to discuss financial issues,” said Susan Straub, a spokeswoman for the city.
She referred all other questions to Ame Sweetall, president and CEO of LexArts.
LexArts says it’s upping diversity efforts
Two LexArts board members resigned in early May after the dust-up over a LexArts Facebook post about 13 artists selected for a Commerce Lexington arts project. LexArts did not select the artists but promoted them on social media.
The issue of lack of diversity in the arts has long been simmering, but it blew up after the LexArts Facebook post, multiple artists have said.
Sweetall, who attended the May 7 community meeting, said LexArts is working to address the concerns of those artists. LexArts often works with various organizations, such as Commerce Lexington, to solicit artists for various public and private art projects.
“First, we have not fully communicated the opportunities LexArts has made available through our DEI efforts, and that we must do more to directly engage with artists, to meet them where they are,” Sweetall said.
”We have begun developing action steps to correct both of those concerns. In addition, as a result of this discussion, we are dedicated to accelerating the pace of our efforts. We will share additional initiatives in the near future.”
Sweetall did not deny there have been delays in payments to arts groups from money raised by its fundraising arm, the Fund for the Arts. Many groups that receive grants for operating expenses receive them quarterly, Sweetall said.
“The general operating support recipient organizations receive quarterly payments at the end of each quarter – and often that can be delayed temporarily due to cash flow issues for LexArts procured grant funding, fundraising timing, vendor payments, etc.,” Sweetall said.
Sweetall said the 2022 audit has been completed. That audit showed the group raised $1.9 million through sponsorships and grants and spent roughly $1.7 million.
But a March 14 letter to LexArts from auditors Mather and Company said they struggled to get accurate information from LexArts.
“The completion of our audit was delayed as a result of not receiving critical information necessary to perform the audit in a timely manner. Additionally, certain items were received in an incomplete/incorrect form further delaying audit procedures and requiring numerous communications between our staff and the Organization’s Finance & Operations Director and others,” the letter said.
Camden Skidmore, chairman of the LexArts board, said the board has already addressed the issues identified in the 2022 audit.
“We have used this letter along with the audit to develop an action plan to correct and improve the internal controls at LexArts. That plan will be presented in our finance committee and presented to the Board of Directors for approval this month,” Skidmore said.
A 2023 audit is in the process of being completed, Sweetall said.
LexArts is moving to a two-year audit cycle, she said.
Sweetall said the group is working hard to address diversity efforts moving forward.
“It’s widely known that historically, arts programs have not done enough to support black, indigenous, and other people of color (BIPOC) artists and communities,” Sweetall said.
“LexArts has taken many steps toward equity and inclusion in the last few years. We are committed to accelerating that progress and invite the community to join.”
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