Okaloosa County BOCC — March 17, 2015 — Promotional Reserves Transfer – replenish BP trx (AG Audit Resolution) — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: March 17, 2015 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: Promotional Reserves Transfer – replenish BP trx (AG Audit Resolution) DEPARTMENT: Tourist Development Department BCC DISTRICT: ALL 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 have been 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. The Tourist Development Council recommended the transfer of $125,724 from fifth percentage promotional activities reserves (1151-599146) to the current year media campaign (1151- 548042) at its February 26 meeting. OPTIONS: Approve or Disapprove RECOMMENDATION: Transfer $125,724 from fifth percentage promotional activities reserves (1151-599146) to the current year media campaign (1151-548042). RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator