An audit of some services provided by an outside operator at Dana Point Harbor couldn’t validate the firm’s reported gross receipts at the facility and said its “rent payments are not calculated or reported in accordance with lease agreements” the operator has with the County of Orange, which owns the harbor, the county auditor said in a report.
OC Auditor-Controller Eric Woolery’s office audited the deal between Vintage Marina Partners LP and the county’s community resources and parks unit, which oversees the harbor.
Vintage Marina signed a 20-year agreement in 2001 to run some of the services at the harbor. Dana Point Harbor services include support facilities for boaters, retail space and restaurants. Vintage lists an office location at the harbor.
The recent audit covered April 1, 2015 to March 31, 2016.
Vintage Marina for that period reported $42.1 million in gross receipts, remitted $6 million to the county, was reimbursed $2.2 million for expenses, and was paid a management fee of $1.3 million.
The audit found “three significant control weaknesses” related to gross receipts, rent payments, and oversight and management—and 11 smaller discrepancies that involve, among other areas, boat storage security deposits, unauthorized fees charged to the county, inventory control, use of point-of-sale systems, and written policies and procedures.
“We are confident that OC Community Resources will work with Vintage Marina Partners to correct any weaknesses going forward,” Woolery said in the press release.