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This audit evaluated contract compliance, effectiveness and administration related to the Scottsdale Arts contract.
The contract administrator has not ensured Scottsdale Arts appropriately spent purpose-restricted funding, and some categories were underspent by approximately $202,000. Further, funds restricted to art conservation and restoration have not increased in proportion to new public art.
While the Management Services Agreement encourages maximizing non-City revenues, the organization’s ratio of City funds to non-City funds has ranged as high as 47% during the past five years. Scottsdale Arts does not raise funds as efficiently as similar organizations and its administrative costs were higher. Further, contract requirements for critical evaluations of its performance measures were not enforced.
City oversight of program management and public transparency can be improved, including the Community Arts Trust grant process and public art inspection and maintenance responsibilities.