REPORT TO THE CITY COUNCIL
FROM: MICHAEL LIMA, Finance Director/Controller
Finance Department
SUBJECT
Title
Actions Pertaining to Modification of Audit Requirement in Convention Center Management Contract:
1. Approve the First Amendment to the 2020 Convention Center Management Agreement between the City and ASM Global Fresno, LLC. removing the audit requirement for Fiscal Year 2021's financial results.
2. Accept correspondence from the City's external auditor, Brown Armstrong, in which Brown Armstrong commits to a review of the Convention Center's Fiscal Year 2021 financial results as part of their Annual Comprehensive Financial Report audit.
Body
RECOMMENDATION
It is recommended that the Council Approve the First Amendment to the 2020 Convention Center Management Agreement between the City and ASM Global Fresno, LLC. removing the audit requirement for Fiscal Year 2021's financial results and Accept correspondence from the City's external auditor, Brown Armstrong, in which Brown Armstrong commits to a review of the Convention Center's Fiscal Year 2021 financial results as part of their Annual Comprehensive Financial Report audit.
EXECUTIVE SUMMARY
In June 2020, the City entered into a contract with ASM Global Fresno, LLC (ASM) to manage the Fresno Convention Center. As part of that contract, the City and ASM agreed to jointly fund an annual audit of the Convention Center's financial results for each year of the contract's term. Given the minor financial activity that occurred at the Convention Center during Fiscal Year 2021 as a result of the COVID-19 pandemic, both the Administration and ASM management believe that an audit of the Convention Center's financial results is unnecessary. Both the Administration and ASM have reached an agreement to waive the audit requirement only for Fiscal Year 2021. The agreement has been codified into the First Amendment to the 2020 Convention Center Management Agreement, which is recommended for approval. In lieu o...
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