REPORT TO COUNCIL
SUBJECT
Title
Action on Presentation by TAP International, Inc. of "City of Santa Clara Tourism Improvement District - Governance, Internal Controls and Oversight Need Attention"
Report
BACKGROUND
TAP International, Inc. (TAP) was hired by the City to conduct a performance audit on the Santa Clara Convention Center (SCCC) and Convention-Visitors Bureau (CVB). As part of the initial data gathering for this audit, TAP noted that the Santa Clara Chamber of Commerce (Chamber) administered all funds for the TID, in accordance with the TID Bylaws designating the Chamber as the manager of the TID program with the responsibility to among other items receive and disburse TID funds.
Based on TAP's early review of information for the SCCC and CVB performance audit, TAP suggested, and the Council approved on August 28, 2018, an audit of the TID.
The financial audit of the TID included an examination of the following questions:
1. Have the hotels participating in the TID accurately remitted TID revenue to the City for FY15/16, and FY16/17?
2. Are the expenses of the TID consistent with TID bylaws and policies since FY12/13?
3. What is the nature and extent of any outstanding bills and payables, if any, that have not yet been recorded in the TID's financial system.
DISCUSSION
TAP will make a presentation to Council on the audit and its findings. Prior to the issuance of the final report, "City of Santa Clara Tourism Improvement District - Governance, Internal Controls and Oversight Need Attention" (attached), entrance and exit conferences were held with the Chamber of Commerce, TID Advisory Board and City and a draft report was provided for review and comment.
Separately, City staff has prepared a companion report (#18-1371) with a response and implementation matrix based the audit's findings.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Act ("CEQA") pursuant t...
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