Orange County Auditor-Controller Eric H. Woolery, CPA, today released an audit of the Revenue Generating Agreement between OC Community Resources/OC Parks and Vintage Marina Partners, LP. This audit covered the period from April 1, 2015 through March 31, 2016 and revealed 10 control findings.
“As promised, our Internal Audit Department completed their audit of the Vintage Marina agreement,” said Auditor-Controller Eric Woolery. “While there were significant findings, we are confident that OC Community Resources and OC Parks will work with Vintage Marina to correct any weaknesses going forward.”
The primary objective of the audit was to determine whether Vintage Marina’s records adequately supported their monthly gross receipts reported to the county and that these receipts were properly remitted to the County. The secondary objective was to determine whether Vintage Marina’s records adequately supported their monthly operating expenses (which are reimbursed by the County) and that the Vintage Marina’s management’s fee was properly calculated. The third objective was to determine whether Vintage Marina complied with certain financial and other provisions of the Agreement with the County, such as annual financial statement requirements.
For Objective 1, it was found that in general, records supported the receipts and were properly remitted. One Significant Control Weakness was found in which rent was not calculated in accordance with the tenant’s lease agreement. One Control Finding was found in which collection of cash receipts need to be logged by two employees.
For Objective 2, it was found that Vintage Marina’s records did support their monthly expenses reimbursed by the County however One Control Finding was identified where administrative fees charged to the County were not authorized in the agreement.
For Objective 3, It was found Vintage Marina complied with certain financial provisions of the agreement, however, Two Significant Control weaknesses were found where tenants gross receipts needed to be validated and reconciled. Also, 8 Control Findings were identified where:
- audited financial statements were not submitted timely
- internal controls over inventory safeguards could be strengthened
- lease agreements need to be properly executed
- temporary dry storage receipts were no pre-numbered
- receipts not automatically issues to customers
- dry storage security deposits not reconciled
- cash registers or POS systems not utilized.
The County and Vintage Marina entered into a 20 year operating agreement on February 6 , 2001 to manage certain facilities and services of the Dana Point Harbor. During the 12 month audit period, Vintage Marina reported approximately $42.1 Million in gross receipts and remitted approximately $6 million dollars in rent to the county. The Vintage Marina was reimbursed for $2.2 million of operating expenses by the county and management paid a fee of $1.3 million.
The Auditor-Controller’s office of Orange County typically releases anywhere from 1 to 5 audits per month. With over 400 employees, the Orange County Auditor-Controller’s office is the largest independently elected Auditor-Controller in the nation.