The Management Team through its Management Action Plan will develop procedures requiring inventory counts to be conducted and reconciled monthly. The Convention Center could strengthen their control over inventory access by maintaining and reviewing a formal list of employees who have been issued keys. The Management Team through its Management Action Plan has established a formal list of employees who have been issued keys and will develop procedures on the issuance and return of keys. While management continues to believe that this goal is reasonable, documentation was not available to determine whether they are meeting this goal. The Management Team through its Management Action Plan will develop and implement forms that in conjunction with the Finance System's job ledger program will begin tracking purchases, labor and other expenses associated with an event to ensure the targeted overhead contribution has been realized.
Procedures are currently in place to determine consumption of alcohol for events with hosted bars.
With cash bar events, however, consumption is not reconciled to event sales. The Management Team through its Management Action Plan is in the process of revising current liquor inventory forms and developing procedures for their completion. This information will be used to reconcile liquor consumption to revenue received. We appreciate the efforts of Convention Center s management in timely addressing the issues raised during the audit and aggressively seeking solutions to these matters. We believe through the implementation of the Management Action Plan included in this report, controls will be strengthened, improving accountability.