Office of Parks, Recreation and Historic Preservation

 

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NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Office of Parks, Recreation and Historic Preservation
Administration of Concession Services at Riverbank State Park:
Tri-State Snacks & Concessions


Issued: January 20, 2015
Link to full audit report 2013-S-83

Purpose
To determine whether the Office of Parks, Recreation and Historic Preservation (Parks) adequately monitored its concession contractor, Tri-State Snacks and Concessions (Tri-State), at Riverbank State Park, and whether Tri-State remitted the appropriate contract-related revenues to Parks. The audit covers the period February 1, 2011 to June 30, 2014.

Background
Riverbank State Park (Riverbank), a 28-acre rooftop park on the west side of Manhattan, is open 365 days a year and has a variety of indoor and outdoor athletic and cultural facilities. Tri-State operates Riverbank’s 150-seat restaurant, under a five-year revenue contract with Parks that started in August 2010. The contract terms required Tri-State to remit a flat monthly fee and a percentage of annual sales revenues over $750,000 to Parks. Tri-State is required to maintain adequate books and records to support its revenue remittances.

Key Findings

  • We found that Tri-State did not comply with all contract requirements, such as hours of operation and maintaining financial records.
  • Tri-State owes Parks at least $10,485 in licensing fees and potentially as much as $37,034 in additional fees, as a result of underreported and possibly unreported sales revenue. There were unexplained deposits made to Tri-State’s contract-related bank accounts.
  • In addition, Parks did not adequately monitor Tri-State’s operations to verify the accuracy of its revenue reports or compliance with other contract terms.

Key Recommendations

  • Recover the $10,485 in licensing fees due Parks based on the underreported Tri-State revenues identified in this report.
  • Follow up on the $37,034 of potentially underpaid licensing fees due Parks (based on unreported sales) and the unexplained deposits into Tri-State’s contract-related bank accounts.
  • Develop and implement an effective revenue contract monitoring system. Such monitoring should include (but not be limited to): periodic site visits to the location of the contracted services; an assessment of the contractors’ internal controls; periodic reviews of contractrelated books and records; and verification of sales and other major contract requirements.

Other Related Audits/Reports of Interest

Office of Parks, Recreation and Historic Preservation: Administration of Contract X00310, Bethpage Associates, LLC (2001-R-4)
Office of Parks, Recreation and Historic Preservation: Food and Beverage Concession Contract, Jones Beach State Park (2006-R-2)


State Government Accountability Contact Information:
Audit Director: Frank Patone
Phone: (212) 417-5200; Email: StateGovernmentAccountability@osc.state.ny.us
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236