Santa Clara Stadium Authority
Santa Clara, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to the
Bay Area Host Committee’s Revenues and Expenses
Reported in the Financial Statements Related to
the January 7, 2019 College Football Playoff National
Championship
For the year ended March 31, 2019
THE II PUNGR_OUP
ACCO UNTA N T S & ADV ISO R.S
2121 North California Blvd., Suite 290
Walnut Creek, California 94596
INDEPENDENT ACCOUNTANTS’ REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Board of Directors and Management
of the Santa Clara Stadium Authority
Santa Clara, California
We have performed the procedures enumerated below to the accompanying Bay Area Host Committee’s Revenues and Expenses Reported in the Financial Statements Related to the January 7, 2019 College Football Playoff National Championship for the year ended March 31, 2019 (“Financial Statement”) held at the stadium owned by the Santa Clara Stadium Authority, California (the “Authority”). The Bay Area Host Committee’s (“Committee”) management is responsible for the Bay Area Host Committee’s Revenues and Expenses Reported in th e Financial Statements Related to the January 7, 2019 College Football Playoff National Championship.
The Authority has agreed to and acknowledged that the pr ocedures performed are appropriate to meet the intended purpose of meeting the requirements set forth in accordan ce with Section 4e of the Assignment and Assumption Agreement with the Forty Niners Stad ium Management Company, LLP. These procedures were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determ ining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
1. We selected 25 revenue transactions from the general ledger for the following categories: (20) ticket sales, (5) sponsorship and suite rentals and agreed the amount, customer, date, and description to the detailed deposit and posting to the bank statements:
a. Agreed bank deposit to the posting in the general ledger for each classification.
Finding: No exceptions were found as a result of our procedures.
b. Agreed daily ticket sales report for the months May 2018 to January 2019 for the Game, to the total ticket revenue posted in the general ledger.
Finding: No exceptions were found as a result of our procedures. Ticket sales began in June 2018 therefore May 2018 is not included in the scope.
c. Obtained Game Day reconciliation for all tickets sold from in-house hosted software and external ticket sellers and agreed to the daily ticket sales report for a sample of days.
Finding: No exceptions were found as a result of our procedures.
d. For sponsorship/suite rental, we obtained the list and selected five samples. We agreed the amount to the copy of the agreement and to the detail of the customer’s account for billed and paid amounts.
Finding: No exceptions were found as a result of our procedures. (Yllll
www.pungroup.cpa g
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Board of Directors and Management
of the Santa Clara Stadium Authority
Santa Clara, California
e. For the 25 revenue transactions, we recomputed th e revenue collected and allocated based on the terms and conditions of the agreem ents and support provided and compared to the amount posted in the general ledger.
Finding: No exceptions were found as a result of our procedures.
f. Agree revenue reconciliation report to the Game Day event attendance report.
Finding: We were unable to obtain the Game Day event attendance report.
2. For Game Day concession sales, we obtained the game day concession report for food and beverage sales.
a. Agreed the report to the invoice from the concessionaire. b. Recomputed the revenue share based on the terms of the agreement.
Finding: Except for the following, no exceptions were found as a result of our procedures:
The CFP National Championship Game Agreement, by a nd among American Athletic Conference; Atlantic Coast Conference; The Big Ten Conference, Inc.; The Big 12 Conference, Inc.; Conference USA; Mid- American Conference; Mountain West Conference; Pac-12 Conference; Southeastern Conference; Sun Belt Conference; University of Notre Dame du Lac; C FP Administration, LLC; and Forty Niners Stadium Management Company (“Agreement”) states in Att achment I titled “Concessions and Vending” that “ The Host Committee shall provide the CFP Group with Twenty Percent (20%) of the food and beverage commission from the Venue Concessionaire”.
A tailgate event, was held outside of Levi Stadiu m, utilizing the venue concessionaire Levy, and earned revenue of $599,671 at the tailgate event. According to the Agreement, “ The Host Committee shall provide the CFP Group with Twenty Percent (20%) of th e food and beverage commission from the Venue Concessionaire.” For the tailgate event, the Bay Area Ho st Committee’s revenue share payout was $218,942 (36.5%). Under the terms and cond itions, it would appear to entitle the CFP Group with a 20% commission payout of $43,788 ($218,942*20%). We could not ag ree this amount to documentation that payment had been made by the Bay Area Host Committee to the CFP Group for the tailgate event commission and we could not locate the expense in the Financial Statemen t. We were unable to de termine from the terms and conditions of the agreement whether offsite locations utilizing the same Venue Concessionaire should be included in the CFP Group commission calculations.
3. For other revenue categories, we agreed the amount s per the Committee’s Financial Statements to the Committee’s adjusted detailed trial balance.
Finding: Except for the following, no exceptions were found as a result of our procedures:
We found that $150,000 in sponsorship revenue was cla ssified as suite rental revenue in the Revenue amounts in the Financial Statements. The total revenue agreed to the adjusted trial balance and allocations were not changed as a result of this finding.
4. We selected 25 non-payroll expenses from the genera l ledger and agreed the amount, payee, date, classification, and description to the support.
Finding: Except for the following, no exceptions were found as a result of our procedures:
One (1) of the twenty-five (25) samples selected for t esting from the general ledger for expenses was for an in-kind expense recognized by journal entry in the am ount of $1,765,500. The support provided consisted of a listing of suite tickets exchanged for the value of these services. We were unable to obtain and agree the amount recognized in the financial statements as expe nse (and related revenue) to a signed agreement with the vendor(s) for these services and we were not able to agree the amount, payee, date, and description to other support.
To the Board of Directors and Management
of the Santa Clara Stadium Authority
Santa Clara, California
5. We agreed the payroll expense amount and support for the Game to the Committee’ s payroll summary, and selected 25 employee payroll expenses from the Committee’s payroll summary and performed the following:
a. Agreed amount paid to the timesheets for the sample of employees. b. Recomputed amount paid using approved rate of pay.
c. Agreed the recomputed amount paid to the amount charged for the Game.
Finding: Except for the following, no exceptions were found as a result of our procedures:
Two (2) of the twenty-five (25) samples selected for testing, did not contain supporting documentation as follows:
A year end performance “Bonus” payment in the amount of $25,000 was paid to an employee of ManCo in July 2019 (after the Game) and was accrue d as an expense in the Financial Statement as of March 31, 2019. The support provided for the paym ent consisted of 1) an email exchange between the employee’s manager, the Chief Financial Offi cer and the Chief People Officer authorizing a performance-based bonus payment to the employee and 2) a copy of the pay stub which agreed to the amount in the email. Based on the documentation provided, we were unable to recompute the bonus based on performance metrics as described in the email authorizing payment.
One payment made to an employee for “Overtime/Double-time Wages” in the amount of $1,390.66 and charged as an expense in the Financial Statement did not agree to the recomputed amount of $540.90, based on hours reported on the employee’s timecard and hourly rate of pay at the time. The difference of $849.75 could not be recalculated based on the support provided.
6. Obtain a list of any adjustments made to revenue or expenses under the terms of the contract. Obtain the supporting detail for the adjustment. Compare the adju stment made to the supporting documentation for the adjustments and agree amount and date.
Finding: No exceptions were found as a result of our procedures.
We were engaged by the Authority to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards estab lished by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an audit or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Revenues and Expenses Reported in the Financial Statements Related to the January 7, 2019 College Football Playoff National Championship.
Accordingly, we do not express such an opinion or conclusion. Had we pe rformed additional procedures, other matters might have come to our attention that would have been reported to you.
Attestation standards established by the Am erican Institute of Certified Public Accountants require that we request a written representation from management of the Committee stating that Revenues and Expenses Reported in the Financial Statements Related to the January 7, 2019 Co llege Football Playoff National Championship for the year ended March 31, 2019 to which we applie d procedures has been accurately measured or evaluated. We requested that management of the Committee provide such written represen tation but management of th e Committee refused to do so.
We are required to be independent of the Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
To the Board of Directors and Management
of the Santa Clara Stadium Authority
Santa Clara, California
This report is intended solely for the information and use of the Board of Directors and management of the Authority and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record, and its distribution is not limited.
Walnut Creek, California
March 31, 2023
Santa Clara Stadium Authority
Bay Area Host Committee
Revenues and Expenses Reported in the Financial Statements Related to the January 7, 2019 College Football Playoff National Championship For the year ended March 31, 2019
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OPER;\.TINGLU'ENSES
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-~T.\SSETS
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Beginning of year
End!ofyear
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TOTAL OPERUING ru:n:~u"E
TOTAL OPERUING EXPENSE
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$
15,309,99)
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1,787,400
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21,455,092
20,827,243
627,849
1,455,092
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0 Santa Clara Stadium Authority
Notes to the Agreed Upon Procedures
For the Year Ended March 31, 2019
4 Note 1 – Purpose of Agreed Upon Procedures
The Bay Area Host Committee is a not-for-profit corpora tion founded to serve as the local organizing committee focused on bringing world class events to the Bay Area that drive economic v itality, civic pride and garner national and international media exposure. The Committee was crea ted initially to work with the College Football Playoff (“CFP”) to promote, organize and execute the 2019 College Football Playoff National Championship.
The Bay Area Host Committee financial statements which comprise the statement of financial position as of March 31, 2019 and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended and related notes to the financial statements were audited by ot her auditors whose report was issued on July 31, 2019 (“Financial Statements”). The Ba y Area Host Committee management is responsible for the fair presentation of these financial statements in accord ance with accounting principles generally accepted in the United States of America.
These Agreed Upon Procedures were performed for the Sant a Clara Stadium Authority (“Authority”) solely on the Bay Area Host Committee’s Revenues and Expenses Reporte d in the Financial Statements Related to the January 7, 2019 College Football Playoff National Championship game held at the stadium owned by the Authority in order to meet the requirements set forth in accordance w ith Section 4e of the Assignment and Assumption Agreement with the Forty Niners Stadium Management Company, LLP.
Note 2 – Basis of Accounting
The revenue and expenses reported in the financial statements have been prep ared on the accrual basis of accounting, whereby revenue is recognized when earned and expense are recorded when incurred.