Report 2016-106 Recommendation 4 Responses
Report 2016-106: Los Angeles County: Weak Oversight of Its Lease With the Los Angeles County Fair Association Has Likely Cost Millions of Dollars in Revenue (Release Date: November 2016)
Recommendation #4 To: Los Angeles County
To ensure that it recognizes and addresses in a timely manner areas of potential concern related to the association's rent, the county should create and adhere to a policy of reviewing the association's rent calculations at least every three years.
Annual Follow-Up Agency Response From November 2021
County and Fair Association have executed Amendment No. 6 to the Lease that addresses this issue. Will send a copy of the amendment to the e-mail address set forth below.
- Completion Date: September 2021
California State Auditor's Assessment of Annual Follow-Up Status: Resolved
The amendment includes updated requirements for the Fair Association to provide Los Angeles County with audited financial statements which shall specify, among other items, all gross revenue and expenses. To the extent that Los Angeles County regularly reviews this information and the association's rent calculations, it would have resolved our concerns.
- Auditee did not address all aspects of the recommendation
Annual Follow-Up Agency Response From January 2020
Scope of Work for audit of Association every three years is currently being drafted and will be submitted to County Auditor-Controller for implementation.
- Estimated Completion Date: May of 2020
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From November 2018
County is taking steps to implement auditing the Fairplex lease and other revenue generating leases every three years.
- Estimated Completion Date: TBD
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
The County continues to work on a draft policy that will require County to review rent calculations on County-approved ground leases no less frequently than every three years.
ANTICIPATED COMPLETION DATE: December 31, 2017.
- Estimated Completion Date: December 31, 2017
- Response Date: November 2017
California State Auditor's Assessment of 1-Year Status: Pending
6-Month Agency Response
The County continues to work on a draft policy that will require County to review rent calculations on County-approved ground leases no less frequently than every three years.
- Estimated Completion Date: TBD
- Response Date: May 2017
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The County is in the process of formalizing its policy that will require all ground leases to be reviewed at least once every three years. It is expected that this will result in the County correcting any discrepancies in rent calculation in a timely manner.
Anticipated Completion Date: March 30, 2017
- Estimated Completion Date: March 2017
- Response Date: January 2017
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2016-106
Agency responses received are posted verbatim.