REPORT TO COUNCIL
SUBJECT
Title
Presentation, Discussion and Direction on the TAP International Financial Audit Titled "Contract Close Out Review: Convention and Visitor's Bureau"
Report
BACKGROUND
On May 22, 2018, Council provided direction to staff to begin an audit of the Convention Center and Convention-Visitors Bureau (CVB) and the City hired TAP International to complete a performance audit of the Santa Clara Convention Center (SCCC) and the Convention-Visitors Bureau (CVB). To date, TAP International has completed two audits that have been presented to Council.
At the September 18, 2018 Council meeting, TAP International presented the analysis and findings of the performance audit entitled "Santa Clara Convention Center and Convention-Visitors Bureau: Restructuring Operations Can Strengthen Accountability, Performance and Revenue". The audit revealed while the fiscal health of the SCCC and CVB was good when evaluated separately and received high customer satisfaction scores, the audit also revealed serious failures to manage public assets with appropriate stewardship, accountability and transparency by the Contractor (Santa Clara Chamber of Commerce).
On November 27, 2018, TAP International presented the analysis and findings of the performance audit entitled "City of Santa Clara Tourism Improvement District - Governance, Internal Controls and Oversight Need Attention". The findings revealed similar issues found in the Santa Clara Convention Center and Convention-Visitors' Bureau Audit including the need for updated policies and improved record keeping as the Fiscal Agent of the Tourism Improvement District (TID).
In November 2018, the agreement with TAP International was amended to include a close out of the 2017 Agreement between the City and the Santa Clara Chamber of Commerce (Chamber) to operate and administer the Convention and Visitors Bureau (CVB).
The scope of work of the audit included a financial analysis and review of the following:
1) R...
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