This audit was conducted to evaluate contract compliance, effectiveness, and administration of the destination marketing contract with Experience Scottsdale. The destination marketing contact can be strengthened by addressing more operating risks, such as requiring a full accounting of City bed tax monies, including any unused monies remaining at year end, and establishing a fee method that is more closely aligned with the purchased services. As well, the contract does not establish ownership of intellectual property, and terms are not sufficient to limit administrative costs and maximize the destination marketing programs. Further, performance monitoring activities can better ensure focus on the City’s objectives, including relevant performance standards and regular advertising effectiveness studies.
The department agreed with the recommendations and plans to implement changes by June 2022.