TITLE
Recommendation to receive and file the audit of the Lease and Related Amendments between the City of Long Beach and the American Golf Corporation.
DISCUSSION
In 2006, the former Office of the City Auditor published an audit of the Lease (#17748) and Related Amendments between the City of Long Beach and the American Golf Corporation. Our Office has conducted a follow-up audit on high-risk areas from the prior audit report, which we have attached t'l this letter.
The scope of the audit was limited to the following areas of the Lease: reporting of gross receipts, golf professional fee revenue, capital improvement requirements, and complimentary play. The audit makes recommendations for greater internal controls and enhanced oversight in these areas.
We welcome any questions regarding our report. Finally, we thank the management and staff of American Golf Corporation and the Department of Parks, Recreation and Marine for their cooperation during this audit.
TIMING CONSIDERATIONS
This item is not time sensitive.
FISCAL IMPACT
The attached audit report details ways the City can protect its financial interests by implementing stronger controls and enhanced oversight in relation to the City's Lease with American Golf Corporation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LAURA L. DOUD, CPA
CITY AUDITOR