An audit into how Fair Park First and operator Oak View Group managed donations was prompted by a whistleblower, according to recent reports.

The revelation came from Brian Luallen, the CEO of Fair Park First, who called the whistleblower’s allegations of “commingled” restricted donor funds controlled by OVG “a serious concern,” The Dallas Morning News reported. Fair Park First does not have access to account statements, and OVG360, the hospitality, sports, and entertainment division of Oak View Group, controls the bank accounts, Luallen said.

Neither Luallen nor Oak View Group responded to DX’s requests for comment.

According to DMN, Dallas-based Malnory, McNeal & Company was hired by Fair Park First to conduct the audit. Preliminary findings indicate that as much as $17.3 million in private donations may have been used or partly used to pay for day-to-day operations, including maintenance. However, such donations are sometimes restricted to certain uses, such as capital improvements.

“While we are aware of an ongoing audit focused on a discrepancy in financial accounting between Fair Park First donor funds and Fair Park First operating expenses, it is important to note that all of the funds being examined have been used solely for the benefit of Fair Park, and not for any other purpose,” according to a statement from an OVG spokesperson, per DMN.

In 2018, the Park and Recreation Board approved a contract with Spectra to manage and operate the 277-acre Fair Park. Spectra was later acquired by Oak View Group, and amendments to the contract were approved in 2021.

Following the acquisition and the creation of the Fair Park First board, the contract was crafted to make OVG360 responsible for property oversight, including maintenance and recruiting big-name entertainers, DMN reported. OVG360 had more financial power than Fair Park First under the contract terms.

Luallen told DMN that additional contract amendments may eventually be made to provide greater protection against the mismanagement of private and public dollars.

Interim City Manager Kimberly Tolbert’s office did not respond to a DX request for comment.