Okaloosa County BOCC — February 26, 2015 — I.c. Promo Reserves Trx BP

TOURIST DEVELOPMENT DEPARTMENT MEMORANDUM DATE: February 26, 2015 TO: Tourist Development Council FROM: Ed Schroeder, Tourist Development Department Director Charlotte Dunworth, Finance, Administration, & Compliance Manager SUBJECT: Promotional Reserves Transfer – replenish BP trx (AG Audit Finding Resolution) STATEMENT OF ISSUE: Request a transfer of $125,724 from fifth percentage promotional activities reserves to the current year media campaign. BACKGROUND: To complete the corrective action related to Findings 18 and 19 of the Auditor General's Preliminary and Tentative Audit Findings, a total of $125,724 in tourist development tax funds was transferred into BP accounts. A revenue transfer of $125,724 from 1151R-312145 to 1157R- 312145 and an expense transfer of $125,724 from 1151-548042 to 1157-548042 have been performed. A Strategic Marketing Plan will be brought forth at a future meeting for the expenditure of those funds in accordance with the BP funding agreement. A transfer from fifth penny promotional reserves is needed to replenish the tourist development tax funds and make the current year budget “whole” again. There is currently $2.1M in promotional reserves in the 5th penny, which exceeds the required reserve policy amount of $831K. Pursuant to Section D.200(1)(e) of the TDD Operations & Procedures Manual, the TDC shall provide its recommendation on budget modifications and allocation of reserve funds to the BCC. OPTIONS: Approve or Disapprove RECOMMENDATION TO BCC: Transfer $125,724 from fifth percentage promotional activities reserves (1151-599146) to the current year media campaign (1151-548042).