Sacramento Nonprofit Audited For Not Paying $400K City Loan Back

SACRAMENTO (CBS13) - The nonprofit Sacramento Sports Foundation used a $400 thousand city loan to bring the World Masters Track Championship to Sacramento. The event was a score but the foundation lost money and never paid Sacramento back.

The Sports Foundation says the Track Championship lost $300 thousand. So what happened to the rest?

Sacramento's Culture and Leisure Director Barbara Bonebrake believes the money went into the Foundation's other operating costs.

"The loan actually had very specific language in that it was to be used for the event, and to be in a separate checking account," said Bonebrake.

Whether or not there will be repercussions if the foundation used the money for their general operating costs won't be known until an audit is complete.

When asked if not separating the money was a mistake Sacramento Sports Commission and Foundation Director John McCasey said, "I dont think it was that catastrophic."

McCasey says there is no misuse of funds at the foundation.

Sacramento's auditor Jorge Oseguera will be reviewing their books.

"We are left wondering, what happened to the $100 thousand difference. At this point and as of yet, the foundation has not been able to provide us with an adequate answer," said Oseguera.