AUDIT COMMITTEE SUMMARY
June 16, 2020
Audit of Convention & Sports Facilities Alamodome Event Services
Report Issued April 28, 2020
Audit Objective
Determine if Alamodome event services contracts are adequately managed.
Background
The Convention and Sports Facilities Department (CSF) oversees the operation and management of the City-owned Alamodome, which opened in May 1993. It is used for conventions, sporting events, corporate events, trade shows, and concerts. CSF has entered into 6 contracts which provide event related services. These services help support the smooth functioning of events and provide a comfortable, safe experience for patrons.
Contract monitoring staff review contract administration tasks, including procurement, contract execution, insurance, bonds, and development of contract administration plans. Alamodome operational staff monitor the day-to-day activities of the contract including requesting services for events, ensuring that sufficient staff are available, verifying contractors are performing appropriately under the contract, and reviewing and approving invoices prior to payment. During FY2019, CSF made approximately $3.8 million in payments to event services contractors. Two contractors, Staff Pro (now doing business as Allied Universal) and Selrico, comprise 81% of the payments, or approximately $3 million.
Scope and Methodology
The audit scope was FY 2019. We reviewed CSF contract monitoring process, which included reviewing contract administration plans, insurance requirements, bonds, and SBEDA requirements were monitored. Additionally, we reviewed CSF staff monitoring to ensure background checks, drug tests, and certifications complied with contract terms. We verified that oversight over contractors during events was sufficient, including on-sight compliance visits and performance inspections. Additionally, we reviewed training documentation to verify training requirements were being met. Finally, we tested a sample of payments to contractors to ensure they were adequate, supported, and appropriately reviewed.
Conclusions
Alamodome event service contracts are adequately managed. CSF management have contract administration plans in place. Performance bonds and SBEDA are adequately monitored. CSF management are adequately reviewing compliance for background checks and certifications. Further, CSF management are adequately monitoring contractors’ on-sight. Finally, payments to contractors are accurate and adequately monitored.
However, we observed some improvements which should be made to strengthen contract monitoring efforts. Event security training is not being conducted in accordance to the contract. Additionally, monthly drug test monitoring is not consistently occurring. Finally, monitoring of subcontractor insurance requirements needs improvement.
We made recommendations to address the opportunities. Management agreed with the recommendations and developed a positive corrective action plans.