Fort Walton Beach Council agenda — 06-23-2009 special — reading text

of sale system during the same time period are 303, 500. Approximately 68 %, or 8, 188, of the employee comp and marshal rounds were played during the hours of 6 A.M. to 10 A.M. as illustrated in Schedule I. Tee times during this period are desirable, especially during snowbird season, which is the most profitable for the Club. These play times may limit the City' s opportunity to generate revenues from regular playing customers. City management should reevaluate the current privileges provided to Golf Club employees and volunteer marshals under Resolution 97 -30 and the Volunteer Marshall Program. 2. Provision L of City Resolution 97 -30 allows for compensated rounds for Golf Club employees and marshals pursuant to an administrative policy. An administrative policy has never been formally established, as such play has been a long standing practice. We recommend the implementation of the administrative policy in tandem with the re- evaluation of privileges to these employees and volunteers. Robert Mearns, City Manager City of Fort Walton Beach, Florida Golf Course Consulting Engagement Report Page two 3. No fee marketing/promotional rounds recorded in the Club' s point of sale system have increased from 804 rounds in 2006, to 1, 304 rounds in 2007, to slightly over 2, 000 rounds in 2008, as illustrated in Schedule II. The vast majority of recorded marketing/promotional rounds are not related to school or PGA play. Provision N of Resolution 97 -30 gives the Golf Club Administrator the right to grant promotional rounds to any individual with the intent to promote the City of Fort Walton Beach and the Golf Club. The increase in marketing/promotional rounds does not appear to be increasing total rounds played. Golf Club and City management should monitor the use and impact of promotional fee waivers to ensure the objectives of the policy with respect to Club promotion are balanced with the financial objectives of the Club operation. 4. Provision N of City Resolution 97 -30 requires that any fee waivers granted will be documented with records kept at the administration building. Besides information captured in the point of sale system when such play takes place, there is no documentation in the administration building to support how the individual or organization to whom the free play is granted promotes the City and the Golf Club. Such information would establish compliance with the resolution as well as provide data to help analyze if fee waivers granted is causing an increase in certain types of play. 5. Based on our observation while at the Golf Club, local school team play is not being consistently recorded in the point of sale system. Although there is no financial impact, recording these rounds in the point of sale system allows the City to capture all play data which then can be used for operational analysis and decision making. 6. Golf Club employees and volunteer marshals are set up as members in the membership database in order to track their play. The Golf Club Administrative Coordinator is currently responsible for updating ( additions, changes, de- activations) the membership database module which is integrated into the point of sale system. The Golf Club Administrative Coordinator does not have rights to change fees charged for particular types of play, as that responsibility rests with the City IT function. Updates to the membership database module are not being accomplished timely which has allowed isolated instances of individuals who were not current Golf Club employees or marshals to play for free as documented in Schedule III. We recommend the maintenance of the membership database rests with the City IT function.  Robert Mearns, City Manager City of Fort Walton Beach, Florida Golf Course Consulting Engagement Report Page three 7. From January 2006 to January 2009, $ 77,000 of manual adjustments not representing the posting of cash receipts has been made to the membership database. Written support for these adjustments is not maintained. We determined certain adjustments were for duplicate billings and other types of accounting adjustments. However, we could not determine the origin of the majority of these adjustments. The Golf Club Administrative Coordinator performs membership billing via the membership database module. Membership billing should be the responsibility of the City finance function. Manual adjustments to extend membership privileges, as provided for in Resolution 97 -30, should be initiated at the Golf Club with proper documentation and approval and forwarded to City finance for processing. 8. Support for voided transactions is not consistently maintained as required by Golf Club policies. During the time period examined, approximately $ 66,000 of void transactions were processed and required support was not consistently contained with the void transactions. Support for void transactions in the Golf Club point of sale system should be accompanied by a signed receipt from the cashier, approved by the Golf Club Administrator, and included with the daily cash reports provided to the centralized City Finance function. All void transaction support should be provided and approved to comply with City policy. 9. Cashiers at the Golf Club can currently record member play in the point of sale system using a last name rather than a member number. Using last name instead of a member number does not allow the point of sale system to adequately track rounds by membership category. In addition limited exceptions were noted in which free play was granted when a last name was used in lieu of a member number. The point of sale system should be modified so that cashiers cannot use a last name in lieu of a member number. Management should monitor weekly point of sale reports that identify codes used and ensure temporary member numbers established are for valid membership applications in process. 10. The Golf Club currently has approximately 90 voluntary marshals established in the point of sale system. Of those, seventeen do not have approved marshal agreements on file. All marshals should have an approved agreement prior to service and prior to establishment in the point of sale system. 11. Based on our observation while at the Golf Club, the starter was receiving receipts for play at the cashier counter and not at the first hole. The purpose of the starter is to monitor play on the course including ensuring all players have a receipt. Being located in the cashier building does not prohibit someone from walking onto the course and playing without payment. We recommend the starter accept receipts only at the first green. IM El Robert Mearns, City Manager City of Fort Walton Beach, Florida Golf Course Consulting Engagement Report Page four 12. To alleviate Golf Club operating losses, the Golf Club should develop a comprehensive plan to generate increased demand for rounds. Specifically, the Club should investigate: a. Development of a targeted marketing program to capitalize the Golf Club' s value proposition. For example, an applicable proposition may be — " The Affordable Golf Destination in the Tri- County ". b. Design a detailed plan to attract other demographic golf segments such as beginning golfers, ladies and juniors in partnership with the many national programs to support such growth. c. Conduct a short-term survey of current and lapsed customers to determine service issues and growth opportunities. This report is intended solely for the information and use of management, and the City of Fort Walton Beach Council, and is not intended to be, and should not be, used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. WLtlo June 18, 2009 wo h m SUPPLEMENTAL SCHEDULES I through III E 0 0  a tU a s CL 0 snows 0 L6 Ch V to OC N CO news U. LL., rl V a a, W. oo c t 0 LL. 0 0 v u M 0 we s a- tt J ooms W u a D o 4. cu Jc x* l• 9 On 4r/ lb sk 4A S k- A W d) o° o° L V- 4 V- 4  O en O