Agenda - Council - 04/22/1997 - Laserfiche WebLink

Home

Nagel commented that he was glad that the Commission had a $147,000 revenue to start the year with. Motion was made by Peterson, seconded by Jacobson to ACCEPT THE QCCCC AUDITOR REPORT. 5 ayes - 0 nays. Motion Carried. 5.1 A - DISCUSSION OF FRANCHISE FEE AUDIT Jacobson then opened discussion to the staff about budgeting for an audit. O'Connell stated that he wanted a discussion about a regular audit in the current year or an analysis about the revenue streams other than subscribers. He stated that it has been ten years since the last audit of Franchise fees. He also noted there has been a steady increase in revenues such as advertising dollars and an increase in launch fees. He noted that it would be ideal to get an audit because there are a number of revenue streams that are taking place now that were not ten years ago. He also noted that no other Commission was willing to perform an audit or share in an audit analysis. Money could be allocated from the Consultants Category. Jacobson then suggested that Muellerleile do an estimate for an audit of the franchise fees and then the Commission could decide at the next meeting whether to accept or not to accept the proposal. Motion was made by Jacobson, and seconded by Nagel to SUBMIT A PROPOSAL OF THE AUDIT OF FRANCHISE FEES TO BE DONE IN 1998. Further discussion. Muellerleile stated that the price of a full scale audit ranges from $33- 39,000. He stated that an alternative to this audit was to look at each revenue stream and look at the allocation of the fees.' This would be a multi-purpose scope audit and it would be very systematic costing .about $5,000. The next alternative was to take the information from the systematic multi-purpose audit and then perform an internal control review based on its key factors to identify the key indicators of the revenue streams such as the population and number of subscribers that are independently available. By taking the key factors of the audit, it can be plugged into the system to find the revenue streams with the formula, as long as there have been no major changes. This would be another $5,000. And again he stated that a full scale audit would run from $33-39,900. I i I I I I I I I I i ! I I I I I