Agenda Item
City Council
Item #: 7.4. 7/12/2022 File #: 22-0262
TO: Honorable Mayor and Members of the City Council
FROM: Rob Houston, City Manager
1. SUBJECT
2021 Orange International Street Fair Report.
2. SUMMARY
As part of their agreement with the City, the Orange International Street Fair is responsible for presenting to City Council a report on the production of the previous year’s event.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. DISCUSSION AND BACKGROUND
The Orange International Street Fair (Street Fair) is an annual event, produced by the Orange International Street Fair, Inc. (OISF), held in the Orange Plaza area over the Labor Day weekend.
This popular event draws hundreds of thousands of visitors over the three-day period and requires months of planning and coordination. The production of the event is governed by an agreement between the City and OISF. The agreement also provides for OISF to reimburse City costs and for OISF to maintain certain policies, procedures, and financial records.
In 2018, the City Council requested staff to examine financial procedures in the production of the Street Fair, as well as policies related to the selection of nonprofit participants, cash handling, contract awards, and other operational practices. The City engaged the CPA firm Nigro & Nigro, PC, to perform Agreed Upon Procedures (AUP) review. The AUP report contained the following recommendations for OISF:
· Vendor Participants: Implement and maintain an internal checklist that each required item provided by the applicant meets the standard as set forth in the “Ethnic Street Rules and Regulations” (ESR&R) and retain supporting documentation received from the participant. · Vendor Maintenance and Wait List: Maintain a wait list and perform an annual review. The waitlist procedure, points of contact, and applicable contact persons within OISF should be published on the website to avoid confusion among any non-profits who may wish to City of Orange Printed on 7/7/2022Page 1 of 3
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Item #: 7.4. 7/12/2022 File #: 22-0262
published on the website to avoid confusion among any non-profits who may wish to participate.
· Complaint Resolution: Follow complaint procedures and document the course of action. · Alcohol Service Rotation: Expand the rotation of alcohol serving participants to make all 16 licenses available each year and not have them determined by the street where the participant is located. Also, document and publish the policy and rotation list on the Street Fair website. · Booths and Sponsorships: Develop a form or modify the invoice or online application to include a deposit amount and balance remaining and ensure invoices match these amounts.
Consistent handling of deposits through invoicing and consistent use of invoice numbers will improve tracking and ensure all participants have paid the required amount. Invoices charged to participants should be supported with itemized detail and signed by the committee chair or representative other than the treasurer.
· Wristband Sales: Retain all cash receipt records so that a clear trail exists from the point of collection to the point of deposit. Each organization should observe the cash count and sign off on tally sheets. During future reviews, the process should be observed by a qualified independent auditor over Labor Day weekend. Additionally, OISF should use prenumbered wristbands for tracking purposes so that there is better control over sales and inventory. Also, the rationale for disbursing unequal donation amounts should be documented and the calculation retained.
· Cash Disbursements: OISF should have written policies for expenses and check writing.
Responsibilities should be divided between approving the payment and issuing the check among separate members to segregate those duties. The two-signature policy for all checks of $2,000 or more should be followed. OISF should retain all supporting documentation such as original receipts, indicating on the receipt or invoice that the service or product has been received and is suitable for payment. OISF should document and retain approval and budgets for expenses at monthly meetings.
· Bank Reconciliations: Bank reconciliations should be performed within two weeks after the end of the month. Someone other than the Treasurer should prepare the reconciliation, or the external CPA should review and indicate this review in a manner such as initialing. · Financial Statements: OISF should submit reviewed and audited financial statements annually to the City. The following duties should not be performed by the Treasurer but should be segregated and performed by different members: authorizing transactions, recording transactions, and custody of assets.
The above recommendations were included in the Agreement for Production of Orange International Street Fair dated December 28, 2019. The attached 2021 Street Fair Report from OISF details OISF’s implementation of the recommendations. Staff has reviewed the letter and the annual financial statements and has not identified any areas of concern that would warrant additional review at this time.
The 2021 Street Fair Report also notes the that the event was a success despite the staffing and supply chain challenges caused by the pandemic and back-to-back-97-degree days. The 2021 Street Fair provided an opportunity for over 50 nonprofit organizations to raise funds that will directly benefit City of Orange Printed on 7/7/2022Page 2 of 3
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Item #: 7.4. 7/12/2022 File #: 22-0262
the Orange community.
7. ATTACHMENTS
· Agreement for Production of Orange International Street Fair · Agreed Upon Procedures Report
· 2021 Street Fair Report
City of Orange Printed on 7/7/2022Page 3 of 3
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