Long Beach, CA
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File #: 08-0339    Version: 1 Name: CAu - Sea Festival Audit
Type: Agenda Item Status: Received and Filed
File created: 4/10/2008 In control: City Council
On agenda: 4/15/2008 Final action: 4/15/2008
Title: Recommendation to receive and file the Contract Performance Audit for the Long Beach Sea Festival Association; and request City Council to direct City Management and the Long Beach Sea Festival Association to review recommendations, develop comprehensive strategies consistent with these recommendations and advise the City Council and City Auditor as to progress and plans for implementation in six months and one year from the date of receipt and filing of this report.
Sponsors: City Auditor
Indexes: Report
Attachments: 1. 041508-R-34sr&att.pdf, 2. 041508-R-34-Handout.pdf
Related files: 10-0064
TITLE
Recommendation to receive and file the Contract Performance Audit for the Long Beach Sea Festival Association; and request City Council to direct City Management and the Long Beach Sea Festival Association to review recommendations, develop comprehensive strategies consistent with these recommendations and advise the City Council and City Auditor as to progress and plans for implementation in six months and one year from the date of receipt and filing of this report.

DISCUSSION
Last summer the City Auditor's Office, along with the independent audit firm of Sjoberg Evashenk, began a contract performance audit of the Long Beach Sea Festival Association ("Association"). The Association had assumed responsibility for running Sea Festival in 2005 with the intent to revitalize the Sea Festival and promote the City by increasing the variety and quality of events. The purpose of this audit was to assess the performance of the Association in fulfilling the City's intent and goals under the existing agreement.

Our audit found that overall Sea Festival generally improved during the first two years of its contract with the City. During this time, the number of events increased, as did the visibility of Sea Festival as a whole. Additionally, a study commissioned by the Association was published after our audit was completed showing that the Sea Festival has had a significant positive economic impact on the City.

However, our audit also found that there are significant issues that the City should address in regards to Sea Festival. These issues include: the non-collection of the 2006 Agreement Fee due to the City; the proper calculation of the Agreement Fee under the contract generally; and the proper tracking of City staff time that is utilized to help coordinate and promote Sea Festival.
Furthermore, there is confusion between the City and the Association about various requirements under the Agreement that should be resolved.

Responsibility for Sea Festival is cur...

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