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Santa Clara Stadium Authority
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
June 28, 2023
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OIRANGE COUNTY ■ SAIN DIEGO ■ BAY AREA ■ LAS VEGAS ■ PHOENIX wwvv.pungroup.com
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Agenda
About the Firm
Scope of Work
Procedures and Findings
Conclusion
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The Pun Group, LLP is a full service Certified Public Accounting Firm located in California, Nevada, and Arizona specializing in all industries, with special focus in Governmental and Not-for-Profit entities.
Our Partners Group has been providing auditing, accounting and advisory services to numerous governmental and not-for-profit entities throughout the United States since 1989.
With over 100 years of combined experience in the governmental industry, we have been a trusted business partner to our clients and have earned our reputation as one of the most respected and socially responsible accounting firms.
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Santa Clara Stadium Authority
SCOPE OF WORK
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• This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA). We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on internal controls and accordingly, we do not express such an opinion or conclusion. • We performed procedures agreed to by the Stadium Authority of Santa Clara (“Authority”) and the Pun Group, LLP (“Firm”), on the Bay Area Host Committee’s ("BAHC") 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 has agreed to and acknowledged that the procedures performed are appropriate to meet the requirements set forth in accordance with Section 4e of the Assignment and Assumption Agreement with the Forty Niners Stadium Management Company, LLP”. The sufficiency of these procedures is solely the responsibility of the Authority. We make no representation regarding the sufficiency of the procedures described either for the purpose for which this report has been requested nor whether they are suitable for any other purpose. • The BAHC is responsible for the Revenues and Expenses Reported in the Financial Statements Related to the January 7, 2019 College Football Playoff National Championship. • The procedures agreed to an the associated findings have been included in our report. • Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
Scope of Work
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Santa Clara Stadium Authority
PROCEDURES AND FINDINGS
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Procedure(s):
Procedure No. 1(a) – (f) Revenue Transactions
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 and
a. agreed bank deposit to the posting in the general ledger for each classification, 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.
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. 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. e. For the 25 revenue transactions, we recomputed the revenue collected and allocated based on the terms and conditions of the agreements and support provided and compared to the amount posted in the general ledger. f. Agree revenue reconciliation report to the Game Day event attendance report.
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There was one finding as follows:
Procedure 1(f) - We were unable to obtain the Game Day event attendance report.
Findings:
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Procedure(s):
Procedure No. 2 – Game Day Concessions
For Game Day concession sales, we obtained the game d ay 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.
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There was one finding as follows:
A tailgate event, was held outside of Levi Stadium, utili zing 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 the food and beverage commission from the Venue Concessionaire.” For the tailgate event, the Bay Area Host Committee’s revenue share payout was $218,942 (36.5%). Under the terms and conditions, it would appear to entitle the CFP Group with a 20% commission payout of $43,788 ($218,942*20%). We could not agree 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 Statement. We were unable to determine 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.
Findings:
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Procedure:
Procedure No. 3 – Other Revenue Categories
For other revenue categories, we agreed the amount s per the Committee’s Financial Statements to the Committee’s adjusted detailed trial balance.
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Except for the following, no exceptions were found as a result of our procedures:
We found that $150,000 in sponsorship revenue was classified 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.
Findings:
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Procedure:
Procedure No. 4 – Applied to Non-Payroll Expenses
We selected 25 non-payroll expenses from the general ledger and agreed the amount, payee, date, classification, and description to the support.
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Except for the following, no exceptions were found as a result of our procedures:
One (1) of the twenty-five (25) samples selected for testing from the general ledger for expenses was for an in- kind expense recognized by journal entry in the amount of $1,765,500. The support provided consisted of a listing of suite tickets exchanged for the value of these ser vices. We were unable to obtain and agree the amount recognized in the financial statements as expense (and r elated 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.
Findings:
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Procedure:
Procedure No. 5 – Payroll and Related Expenses
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 Commi ttee’s payroll summary and performed the following:
a. Agreed amount paid to the timesh eets 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.
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Findings:
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 accrued as an expense in the Financial Statement as of March 31, 2019. The support provided for the payment consisted of 1) an email exchange between the employee’s manager, the Chief Financial Officer 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.
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Procedure:
Procedure No. 6 – Adjustments to Revenues and Expenses
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 adjustment made to the supporting documentation for the adjustments and agree amount and date.
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No exceptions were found as a result of our procedures
Findings:
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Representations – Engaging Party and Responsible Party
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Attestation standards established by the American Institute of Certified Public Accountants require that we request a written representation from management responsible for t he subject matter of the attestation engagement stating that 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 to which we applied procedures has been accurately measured or evaluated.
The Authority has acknowledged in its representations to us that:
• BAHC is the responsible party for the subject matter in this Agreed-Upon procedures. • BAHC agreed and has provided an accounting of the Game to the Authority’s Executive Director in an “Initial Accounting” consisting of a profit and loss statement of the Game and possession of all hardcopy and softcopy supporting documentation and such additional information as may be necessary to confirm the information set forth in such profit and loss statement as outlined in accordance with Section 4e of the Assignment and Assumption Agreement.
• The Pun Group has requested written representations from management of the BAHC in connection with the Revenues and Expenses for the Game as reported in the Financial Statements, and we were unable to obtain that representation in accordance with professional standards. Such limitation has been disclosed in our report. • The supporting records are still suitable and appropriate for the intended purpose of the engagement.
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Santa Clara Stadium Authority
CONCLUSION
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Vanessa I. Burke, CPA, CPFO
Engagement Partner
[email protected]
(916) 230-7068
Kenneth H. Pun, CPA, CGMA
Managing Partner
[email protected]
(949) 777-8801
2121 North California Boulevard
Suite 290
Walnut Creek, CA 94596
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