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⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings 5 findings
F3
Page 3
Contractor storage yards, the RV park, RV storage and vehicle auction are inconsistent with FMC's purpose to provide "...county fair and similar educational, cultural, and community functions." Response to Finding 3. Disagree. The current Management Agreement permissively allows FMC to utilize the buildings and grounds to generate income for the purpose of funding the operations and maintenance obligations of the County Fairgrounds, with the exception that "no events shall be permitted which shall interfere with the conduct of the annual County Fair." FMC enters into agreements for interim uses that do not interfere with the conduct of the annual County Fair.
F4
Page 3
FMC's bingo games do not comply with many County bingo regulations. Response to Finding 4. Agree in part. FMC believes it is currently compliant with State law and County bingo regulations but will reassess compliance and or non-compliance and take whatever corrective action if necessary, by October 31, 2019.
F5
Page 3
The FMC Board exerts inadequate fiscal oversight of FMC's financial reporting of its operations and has failed to address the numerous inconsistencies in its financial reports. 2 of 7 Santa Clara County Fairgrounds Management Corporation Response to 2019 Civil Grand Jury Report The Santa Clara County Fairgrounds: A Diamond in the Rough Response to Finding 5. Disagree. The FMC Board practices fiscal oversight through the establishment of a Finance Committee to preview monthly financial results prior to the monthly presentation to the Board and an Audit Committee to review the annual Financial Audit, independently with FMC's audit firm. The FMC Board reviews monthly Financial Reports at Board meetings and addresses questions to staff when additional details or clarification is sought.
F6
Page 5
FMC's bookkeeping lacks transparency regarding the actual revenue received from different activities and events, specifically the profitability of bingo and the County Fair. Response to Finding 6. Agree. FMC has better defined each of its significant revenue sources with a footnote in the draft 2018 Audited Financial statements as follows: SIGNIFICANT REVENUE AND SUPPORT CATEGORIES AND DESCRIPTIONS FOR EACH ARE AS FOLLOWS: Anchor Licensees - FMC enters into a License Agreement with licensees for the temporary use of a designated location on the Fairgrounds for a specified term. The licensee agrees to pay SCCFMC a monthly license fee plus any additional charges for labor, services and equipment in connection with the permitted use. Off Track Betting - Revenue generated from satellite wagering commissions and city tax from Golden Gate, Los Alamitos, and other horse racing locations. 4 of 7 Santa Clara County Fairgrounds Management Corporation Response to 2019 Civil Grand Jury Report The Santa Clara County Fairgrounds: A Diamond in the Rough County Fair An annual event produced by FMC. Revenues are generated from admission fees, parking fees, food and beverage sales, sponsorships, and vendor revenue sharing. <b>Events</b> - FMC enters into a License Agreement with licensees for the temporary use of a building or outdoor space on the Fairgrounds for a specified event within an agreed upon term. The licensee pays FMC a use fee plus any additional charges for labor, services, and equipment used in relationship to the event. Food and beverages - Income generated from concession and catering services provided by FMC staff at events. FMC also enters into a License Agreement with caterers and food truck vendors for the temporary use of space and equipment in the commercial kitchen. In consideration, the licensee pays FMC a use fee. <b>Parking</b> - Direct charges for using a parking space. RV Park and Storage - Income generated from the daily use of Recreational Vehicle (RV) spaces in the RV park and monthly revenues from RV and boat storage. Bingo - Revenue generated from Bingo and Bingo flashcards games conducted twice a week, Tuesdays and Thursdays. Hosted Events - In addition to the annual County Fair, FMC produces three (3) events during the year; Hop 'N Vine Festival & Market, Fourth of July Celebration, and Pubtoberfest. Revenues are generated from admission fees, parking fees, food and beverage sales, sponsorships, and vendor revenue sharing. Other Income - Other income consists primarily of proceeds from an insurance claim
F7
Page 8
The FMC appears to be using the closed session personnel discussion exception to discuss other business which is not permitted by the Ralph M. Brown Act. Response to Finding 7. Disagree.
Recommendations 7
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R4bPage 3By October 31, 2019, FMC should ensure that the bingo games are following the County's bingo regulations.
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R5aPage 4FMC should direct its auditor to address and comment by December 31, 2019, on the appropriateness of FMC's reporting of building improvements and landscaping as capital assets and the depreciation of those assets.
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R5bPage 5FMC should take steps to have FMC's financial reporting revised to be more transparent and consistent across all its reports
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R6aPage 6FMC should immediately establish a separate account for bingo income consistent with the County Ordinance Code in order to enhance clarity around the financials of bingo.
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R6bPage 7By October 31, 2019, FMC should ensure that FMC's public financial reports accurately reflect the revenue earned by FMC's bingo operations and the County Fair.
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R6cPage 7FMC should seek financial advice on the proper reporting of income from pull tabs which appear to constitute unrelated business income; reporting of building improvements as capital assets and depreciation taken against such assets and file all necessary tax forms.
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R7Page 8The FMC Board of Directors key staff should undergo training to comply with the Ralph M. Brown Act
No Responses Found 1
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