Report 2023-133 Recommendation 6 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 #6 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:

-Prohibits Visit Anaheim from transferring tourism district assessment funds to another entity without the city's prior approval and full compliance with the subcontracting provisions of the tourism district assessment contract.

1-Year Agency Response

Visit Anaheim is required to send subcontracts to the City for review and approval since February 2024. Beginning August 2024, all approved Visit Anaheim subcontracts were submitted to the City Council on a monthly basis as part of a formal receive and file action at City Council meetings

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

As part of the City of Anaheim's expanded oversight of Visit Anaheim, the Anaheim City Council must review and approve the list of professional services agreements authorized by the city manager and the list of Visit Anaheim subcontractor agreements approved by the Executive Director of Convention, Sports, and Entertainment. Although this expanded oversight is an improvement, it still does not prohibit Visit Anaheim from transferring tourism district assessment funds to another entity without the city's prior approval and full compliance with the subcontracting provisions of the tourism district assessment contract. Thus, the city has not fully implemented the recommendation.

6-Month Agency Response

Visit Anaheim is required to send subcontracts to the City for review and approval since February 2024. Beginning August 2024, all approved Visit Anaheim subcontracts will be submitted to the City Council and the public (on a monthly basis) as part of a formal receive and file action at City Council meetings. 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

We will consider the recommendation fully implemented after all approved Visit Anaheim subcontracts are submitted to the City Council and the city and Visit Anaheim have executed an amended agreement.

60-Day Agency Response

All subcontracts are currently being approved by the City.

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

The city did not provide documentation to substantiate its claim of full implementation.

All Recommendations in 2023-133

Agency responses received are posted verbatim.