The Controller's Office released an audit report today on the Treasure Island Development Authority (TIDA). The audit concluded that TIDA has been poorly managed with regard to its financial practices, staffing, monitoring of interim subleases, expenditures, and employee payroll and reimbursements. The audit report includes 35 recommendations to improve management of TIDA activities.
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The audit objectives were to determine if TIDA is appropriately accounting for its revenues and expenditures, to determine the amount of TIDA's liability to the Public Utilities Commission, to determine whether TIDA had implemented the recommendations from the audit conducted by the Harvey Rose Accountancy corporation in February 2005, and to assess current staffing to identify alternate methods for accomplishing key functions. In addition to the stated objectives, the audit team also verified calculations related to the former director's salary, benefits, retirement contributions, severance pay, and expense reimbursements.
The report concluded that TIDA has been poorly managed with regard to its financial practices, staffing, monitoring of interim subleases, expenditures, and employee payroll and reimbursements. The audit report includes 35 recommendations for the TIDA Board of Directors to either implement or direct future TIDA management to implement. Specifically, the audit recommends establishing accounting procedures that comply with generally accepted accounting principles and sound internal controls, reorganizing the staff structure in accordance with TIDA's current mission and functions, routine monitoring of interim sublease agreements, implementing the recommendations from the Harvey Rose audit, establishing payroll procedures to ensure legal compliance, and submitting the former director's CalPERS information to CalPERS for corrections.
December 12, 2005
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