AU09-013 Downtown OPerations - RiverWalk Leases Audit Report

CITY OF SAN ANTONIO OFFICE OF THE CITY AUDITOR Audit of Downtown Operations Department River Walk Leases Project No. AU09-013 May 13, 2010 Audit of Downtown Operations River Walk Leases Executive Summary As part of our annual Audit Plan approved by City Council, we conducted an audit of the Downtown Operations Department, specifically the River Walk leases. The audit objective, conclusion, and recommendations follow: Are River Walk leases appropriately complied with and documented? Generally, lessees complied with lease terms and City management appropriately documented leases. However, insurance requirements were not satisfied and renewals of leases were not timely. We recommend that the Downtown Operations Department: • Work with Risk Management (a Division of Human Resources) to ensure that leases contain appropriate insurance coverage types and amounts needed to protect the City’s interests. • Ensure that each business complies with the insurance requirements of the lease. • Begin the renewal process with sufficient lead-time to ensure timely execution of leases. • Agree upon and document interim rent when a new lease is not negotiated prior to expiration of the existing lease. Management’s verbatim response is included at Appendix C on page 7. Other Matters One River Walk business is operating in City space without a lease. Because this ...