City of Scottsdale AZ : WestWorld Marketing & Concession Contracts - Audit No. 1806

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This audit evaluated the primary marketing and concession contracts in effect at WestWorld for contract compliance, effectiveness and administration.

Although the marketing vendor has been successful at increasing event-related revenues, results have not met the targets established in the Food & Marketing Agreement. Some factors that may help reduce this gap are:

• Including more research and analysis in developing marketing strategies,
• Addressing identified marketing challenges and private use restrictions on TNEC and WestWorld,
• Including additional Stakeholder reviews of the marketing plan, and
• Ensuring contract-required marketing activities are addressed.

Relating to concession fees, the audit found that food and alcohol revenues were generally reported correctly. However, WestWorld sometimes had the subcontractor pay event producers on the City behalf, and resulting changes to revenues were not transparent in accounting records. Also, reports to City Council do not estimate the impact of the negotiated terms. Additionally, certain use fees do not appear to be applied consistent with contract terms, and additional terms are needed to guide contractor-producer events.

We also found that some aspects of contract administration need improvement, including avoiding any perception of conflict of interest and ensuring contractual requirements are applied.