Report 2023-133 Recommendation 5 Responses

Report 2023-133: City of Anaheim: It Has Not Properly Managed Tourism-Related Contracts and Millions of Dollars in Related Funds (Release Date: January 2024)

Recommendation #5 To: Anaheim, City of

To improve Anaheim's oversight of the tourism district assessment contract with Visit Anaheim, the city should by January 2025 seek to renegotiate with Visit Anaheim to revise the contract to ensure that the contract does the following:

-Requires Visit Anaheim to annually report to the city the amount of any unspent tourism district assessment funds and tourism district assessment fund reserve balances.

1-Year Agency Response

An amended and restated agreement is currently being negotiated between the City and Visit Anaheim to implement the State recommended contractual reporting requirements and metrics into the amended and restated agreement, including fund accounting which then would include percentages of fund balance. Additionally, the FY 2024/25 Annual Report includes fund balance percentages.

At the City's request, Visit Anaheim has already agreed to implement this recommendation and included information on unspent, albeit blended/comingled funds in their FY 2022/23 ATID Annual Report.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

The FY 2022/23 ATID Annual Report, which was approved by City Council on March 19, 2024, included information on unspent, albeit blended/comingled funds. The City will continue to engage with Visit Anaheim to ensure the reporting of unspent funds and reserve balances are a requirement in the agreement by January 2025. A proposed amended agreement will come before City Council for their review and consideration in Fall 2024.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

The FY 2022/23 ATID Annual Report, which was approved by City Council on March 19, 2024, included information on unspent, albeit blended/comingled funds. The City will further engage with Visit Anaheim to ensure the reporting of unspent funds and reserve balances are a requirement in the agreement by January 2025.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2023-133

Agency responses received are posted verbatim.