Music Center Terminates Chief Financial Officer

The Los Angeles Music Center confirmed Friday that it is terminating the employment of its chief financial officer, who has been on paid leave since September after an embarrassing admission that the Music Center had overstated its 1990-91 fund raising by $1.3 million.

James B. Black said in a brief telephone interview Friday that he would continue to draw his salary from the Music Center for “several more months.” He declined further comment.

Music Center President Esther Wachtell said the agreement with Black was made “several months ago,” but it was never announced. When asked to confirm that Black’s salary would be paid for several more months, she said, “If Jim says so, I guess it’s true” and refused additional comment.

The decision was revealed after an inquiry by The Times. Music Center Vice President of Marketing and Communications Larry Londre responded with a prepared statement attributed to a Music Center spokesman, saying that the center had “entered into an agreement with James Black which provides for Mr. Black’s termination as an employee of the Music Center. The spokesperson said that, as a matter of policy, the Music Center will make no further comment.”

Londre said he was instructed to read the statement to a Times reporter “only if you called.”

The Music Center, which announced on June 30, 1991, that its annual Unified Fund Drive had met its $17.6-million goal for 1991, revealed in August that it had fallen $1.3 million short and had to borrow $3 million to cover the shortfall, plus other capital needs of $1.7 million. It blamed the problems on “inaccurate estimates and inadequate budgeting processes.”

At that time, Music Center Chairman Ronald J. Arnault, a top corporate official at Arco, said the organization would overhaul its internal finances. He later said, “This was not a sterling managerial performance, by us collectively and the financial people.”

Black left his post Sept. 1, and an Arco financial executive was loaned to the Music Center and performed Black’s job while he continued to draw his salary. Officials have declined to give Black’s current salary, but tax records show he earned $79,808 in 1989-90.