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Vendor Audit - Economic Development Department, Albuquerque Convention & Visitors Bureau

The City of Albuquerque and the Albuquerque Convention & Visitors Bureau should work together and improve the successful promotion of Albuquerque as a destination.

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The Office of Internal Audit (OIA) conducted a vendor audit of the contract between the Albuquerque Convention & Visitors Bureau (ACVB) and the City of Albuquerque (City) as overseen by the Economic Development Department (EDD).  The audit was included in the fiscal year 2012 approved audit plan.

EDD works to create, diversify and enhance job growth and to promote business development and stability.  Additionally, EDD supports business and the development community within city government and between city agencies.

ACVB is a non-profit 501(c)6 organization contracted with the City to “stimulate economic growth by marketing Albuquerque as a convention and visitor destination”.  ACVB has been in charge of marketing Albuquerque for over 30 years.  In 2004, the City Council mandated that the marketing contract be put out for competitive bid.  Following the formal evaluation process, ACVB was selected by the City and was once again responsible for marketing Albuquerque as a destination.  The initial contract following the bid, expired June 30, 2009.  The current contract between the City and ACVB is for the period of July 1, 2010 through June 30, 2013 and includes two 1-year extensions.

Has ACVB complied with the current contract?

  • The current contract contains elements which are unattainable, irrelevant, outdated and unsubstantiated.
  • ACVB uses explanations to report various elements of the contract.
  • ACVB did not provide written notification to the City of all subcontractors.
  • Has ACVB utilized the public funds in accordance with applicable statutes, ordinances, Administrative Instructions, and policies and procedures?
  • Of a sample of 24 expenditures for which Lodger’s Tax was used, 2 items totaling $5,082.36 were identified which do not fit the criteria as described in the Ordinance.

Were the Hospitality Fee reimbursements made to ACVB valid?

  • Of a sample of 12 Hospitality Fee reimbursements selected, all had the necessary supporting documentation and consisted of valid expenditures.

Has the Economic Development Department properly managed the ACVB contract?

  • ACVB’s accreditation through the Destination Marketing Association International (DMAI) expired October 31, 2011 although is listed as active on the ACVB website.
  • The current contract does not include language required by the Inspector General Ordinance.

Is the ACVB contract consistent with comparable organizations?

  • The current contract does not include performance measures.