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FOR IMMEDIATE RELEASE: May 21, 2003
CONTACT: Mark Funkhouser, City Auditor, (816) 513-3300

Performance audit on convention center facility rental revenues released

Today, the City Auditor’s Office released a report on convention center facility rental revenues. The report concluded that the City’s process for setting rental rates needs to be improved.

Operating revenues are less than operating costs and the general fund has contributed more than $6 million over the past five years to make up the difference. The report also found that although the Convention and Entertainment Centers Department has written guidelines describing factors to be considered in granting rental discounts, the department does not have written policies describing how much rental revenue the City is willing to forgo and who is responsible for reviewing and approving the discounts. In addition, the City does not consistently document the rationale for rental discounts.

The report includes recommendations that address improving cost and revenue information, the rental rate setting process, and discount policies. Management agreed with the recommendations.

This report can be accessed from the City’s Web site (http://www.kcmo.org) beginning May 22.

    
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