MORE EIDC REFORMS BACKED BOARD WANTS ADDITIONAL FISCAL ACCOUNTABILITY.

Byline: Beth Barrett Staff Writer

Elected officials on the scandal-plagued Entertainment Industry Development Corp.'s executive committee said Monday that reforms should go beyond those proposed by auditors to ensure financial accountability and public access to budget records.

The executive board's first discussion of the independent KPMG audit released Friday centered on a series of proposed financial controls that were absent under former President Cody Cluff, who has been indicted on 11 felony charges. Cluff has pleaded not guilty.

Auditors found the EIDC lost money for three straight years under Cluff, who ran up over $1 million in expenses, including lavish entertainment and travel and contributions to the elected officials who sit on the EIDC board. Fees for lawyers and consultants to clean up the situation have added to the cash drain.

Several executive committee members said they wanted more accountability, specifically over hiring consultants, where auditors recommended approval by the chairman and the president of the board.

County Supervisor Zev Yaroslavsky said the executive committee should be required to approve consulting and other contracts above a certain monetary threshold.

``The last time around, the president did a lot on his own,'' Yaroslavsky said.

Elected officials on the EIDC's board - including a number who got political contributions from the corporation - recently testified before a grand jury that they were unaware of Cluff's expenses, which included exclusive club memberships, fancy dinners and expensive hotels.

Mark Werksman, Cluff's attorney, has said all the expenses were legitimate.

City Councilwoman Wendy Greuel, also on the executive committee, said tighter fiscal controls and board oversight are crucial.

``We need to have enough checks and balances, not decisions made without board approval,'' Greuel said.

Committee members also asked for measures to ensure that the public has access to the EIDC's financial records - even if no elected officials serve on the board in the future.

``It is critical we have transparency whether (EIDC) is legally public or legally private,'' Yaroslavsky said. ``The public has the right to know how fees charged for public services are being spent.''

The EIDC was created in 1995 from city and county agencies to streamline the issuance of location permits for movie and television filming, and to combat runaway production. District Attorney Steve Cooley's criminal investigation has centered on allegations that Cluff misappropriated public funds, while EIDC officials have maintained that the corporation is private.

EIDC officials said Monday that financial records would be readily available for review.

Beth Barrett, [phone]

beth.barrett(at)dailynews.com