• The Budget Analyst's 2006 Recreation and Park Department Audit Report included 18 findings and 169 related recommendations. The Budget Analyst identified 36 of the 169 recommendations as either directly or indirectly related to cash handling. Our examination of the current status of those 36 recommendations evaluates 10 as implemented, 10 as partially implemented, and 16, or approximately 44 percent, as not implemented.
  
  
• The Budget Analyst recommends that the General Manager, Recreation and Park Department, provide the Board of Supervisors with a schedule for implementing the remaining cash handling recommendations from the 2006 audit that are currently not implemented or partially implemented and are planned to be implemented.
  
  
• The Budget Analyst also recommends that the Board of Supervisors schedule a FY 2008-2009 mid-year review of the Recreation and Park Department's progress on implementing the recommendations of this cash handling audit report.

1.6 Implement a system to print scrip tickets online, in conjunction with the Director of Administration and Finance.

Implementation: RPD is using the point of sale function in CLASS¹ to sell scrip tickets at the McLaren Lodge Annex. Selling scrip online will require implementation of the membership module of CLASS. RPD expects to accomplish this in the next 12 months. [Not implemented.]

1.7 Implement monthly passes, as approved by the Board of Supervisors in FY 2005-2006, including developing a system to purchase monthly passes online, in conjunction with the Director of Administration and Finance.

Implementation: As with scrip tickets, monthly passes require the implementation of the membership module of CLASS. RPD expects to accomplish this in the next 12 months. [Not implemented.]

1.8 Assess opportunities to increase the locations where swimming pool patrons can purchase scrip booklets and monthly passes, including agreements with other City departments that routinely handle cash, such as the libraries, or vendors that sell MUNI fast passes, in conjunction with the Director of Administration and Finance.

Implementation: RPD has not yet implemented this recommendation. [Not implemented.]

1.9 Evaluate swimming pool staffing and planned closures throughout the year to ensure adequate staffing during the year and reduce the number of occasions that swimming pools are closed unexpectedly due to staffing shortages, including (a) revising the pool hours during the course of the year based on changes to maintenance and renovation schedules, pool use, and staff availability, and (b) posting the revised pool hours on the web site.

Implementation: Pool closures due to capital projects have made this analysis challenging.² [Not implemented.]

1.10 Evaluate swimming pool fees and attendance and identify opportunities for increased paid attendance, especially at pools with below capacity use and during the winter months.

Implementation: RPD evaluated aquatics fees in FY '06-'07 and determined that it was not appropriate to increase fees at that time. The department evaluates all fee schedules on an annual basis as a part of the budget process. To help increase revenue RPD is improving delivery of swim classes in FY '07-08. [Not implemented.]

6.1 Ensure, in relation to the borrowed State Proposition 12 funds for the Harding and Fleming Golf Courses' renovation projects, that the full FY 2005-2006 repayment of $935,420 is made to the Open Space Fund.

Implementation: Completed. [Implemented.]

6.2 Review available strategies to speed up repayment of the borrowed State Proposition 12 funds plus interest so that repayment will not take the full 25 years currently scheduled. The strategies reviewed should include modification of Harding and Fleming Golf Courses' fee structure and percentage of rounds reserved for residents' use.

Implementation: Department has not implemented this recommendation due to lack of funding. [Not implemented.]

6.3 Renegotiate the Master Tournament Agreement with PGA Tour, Inc., to either (a) negotiate more advantageous terms for the City, so that it fully recovers the Department's direct costs and makes a profit, or (b) terminate the agreement.

Implementation: Recreation and Park has reached a new agreement with the PGA Tour. The agreement amends the previous contract between the tour and City which called for five marquee events at Harding over a 15-year period. The revised agreement secures five tournaments over the next 12 years: the President's Cup in 2009, followed by Schwab Cup in 2010 and 2011, BMW Championship in 2013 or2014 and the President's Cup, BMW or CA Championship (formerly AMEX) between 2015 and 2019.³ [Implemented.]

8.3 Direct the Director of Administration and Finance and the Director of Partnerships and Resource Development⁴ to (a) assess the Department's current system capability and needs, including tie-in of the lease management system with the new revenue tracking system, and (b) present estimates of costs and timelines for the lease management system upgrades and revenue tracking system tie-in to be presented to the Recreation and Park Commission during the FY 2006-2007 budget review.

Implementation: Staff from the Property Management, Finance, and MIS divisions have worked together to develop both a lease management and a revenue tracking system. The lease management system will connect to the revenue tracking system to ensure up-to-date and accurate information regarding the status of payments from each of the Department's concessions. Staff has nearly completed development and implementation of the updated revenue tracking system. The structure of the lease management system has been developed and the system will be programmed and implemented by March of 2008. [Partially implemented.]

8.4 Direct the Director of Administration and Finance and the Director of Partnerships and Resource Development to (a) review and revise existing revenue monitoring protocols to ensure that property managers and Revenue Unit staff share lease revenue collection data on a monthly basis, and (b) develop a schedule to review coordination of lease revenue information and data.

Implementation: See response to recommendation 8.3 above. [Partially implemented.]

8.5 Direct the Director of Partnerships and Resource Development to review and revise existing protocols and develop rigorous standards to enforce lease provisions, including (a) routinely monitoring lease payments, (b) assessing penalties for all late payments, (c) routinely reviewing and reconciling percentage and other rent payments, (d) adjusting the minimum annual guarantee rents under the terms of the lease agreement, and (e) requiring timely submission of certified financial statements or audit reports.

Implementation: See response to recommendation 8.3 above. [Partially implemented.]

8.6 Recommend financial terms in the prospective Japanese Tea Garden lease to the Recreation and Park Commission that maximize lease revenues based on expected increases in Japanese Tea Garden attendance, including achieving revenues of at least $280,000 annually based on attendance of 425,000.

Implementation: RPD believes that it is important to make the concession at the Tea Garden more culturally competent. To that end, the department has examined a number of approaches to the concession at the Japanese Tea Garden including a partnership with the Asian Art Museum. Currently, staff is collecting data on other successful gardens and concessions in preparation for developing a new RFP for the concession. The department is finalizing an audio tour for the garden and the Property Management Division is collaborating with the new Golden Gate Park 93marketing group94 that includes representatives from the deYoung, Academy, Botanical Garden, Conservatory, etc., to better promote Golden Gate Park as a tourist destination. The department believes that these steps will increase attendance and overall revenue at the Tea Garden. [Not implemented.]

8.7 Immediately request loan documents from Kemper Sports Management.

Implementation: Completed.⁵ [Implemented.]

9.1 Submit the $35 facility use fee to the Board of Supervisors for approval.

Implementation: The Recreation and Park Department is no longer charging this non-codified fee. The Board of Supervisors approved a $50 non-refundable application fee in July 2007. This new fee replaces the $35 fee. [Implemented.]

9.2 Develop a written policy defining the type, purpose, and amount of each additional charge to an event sponsor, to ensure that such charges are consistent with Park Code Sections 12.22, 12.24, and 12.25.

Implementation: The department is planning to hire a new manager for the Permits and Reservations Division in the Spring of 2008. The recommended policy will be developed and promulgated by the new manager. [Not implemented.]

9.3. Establish formal criteria for waiving fees for events conducted by Federal, State, or City agencies, including establishing fees for non-profit or commercial events sponsored by Federal, State, or City agencies and present the criteria to the Recreation and Park Commission for approval.

Implementation: The department forwards all requests for waiver of fees or reduction in codified fees to the Commission for approval. [Implemented.]

9.4 Submit all fee waivers not authorized by the Park Code to the Board of Supervisors for approval.

Implementation: The department has not received any fee waivers that could not be adjudicated by the Commission. [Implemented.]

9.5 Assign responsibility and oversight of temporary permits for pushcart vendors and license agreements to the Director of Partnerships and Property.

Implementation: Completed. [Implemented.]

9.6 Identify and implement license agreements for all revenue-generating classes conducted by outside individuals and organizations, and implement a procedure to receive and record receipts from the license agreements.

Implementation: All recreation activities - including revenue-generating classes conducted by outside individuals and organizations - are being captured in CLASS. Once the classes and the organizations are identified, the Director of Partnerships and Resource Development and the Director of Operations will work together to determine which should remain within the system and develop agreements with them. [Partially implemented.]

9.7 Direct the Director of Administration and Finance and the Director of Partnerships and Resource Development to jointly develop formal procedures for (a) maintaining temporary permit files, (b) recording and reporting temporary permit fee receipts, (c) reconciling temporary permit fee deposits for each vendor with actual receipts, and (d) maintaining deposit records that cross-reference reservation and permit files.

Implementation: The facility rental module of CLASS will issue temporary permits, issue receipts and record and track revenue from the permits, including deposits. The department has developed a process and procedures for reconciling all funds (cash and credit card) collected through the CLASS system on a daily basis. [Not implemented.]

9.8 Direct the Director of Administration and Finance and the Director of Partnerships and Resource Development to jointly establish procedures for (a) maintaining reservation and permit files, (b) reconciling reservations and permits with daily deposits, (c) reconciling deposits, and (d) maintaining deposit records that cross-reference reservation and permit files.

Implementation: The facility rental module of CLASS will issue permits, issue receipts and record and track revenue from the permits, including deposits. The system provides records of all permits and reservations made. The department has developed a process and procedure for reconciling all funds (cash and credit card) collected through the CLASS system on a daily basis. [Not implemented.]

9.9 Submit an ordinance to amend the Park Code to the Recreation and Park Commission and the Board of Supervisors to prohibit permit issuance when the permit applicant owes the Department for prior events.

Implementation: The Department has adopted this recommendation as its practice. Legislation approved by the Board of Supervisors I July 2006 prohibits the department from issuing a permit before an applicant has paid all fees in full. [Implemented.]

9.10 Not issue any future permits to Events West until all past due amounts payable to the City are paid in full by Events West.

Implementation: Completed. [Implemented. The City and Events West reached a settlement agreement approved by the Board of Supervisors in August of 2007]

9.11 Direct the Director of Administration and Finance and the Director of Partnerships and Resource Development to jointly develop procedures to record, report, and collect unpaid and past due accounts, including developing reports that identify accounts that are 30 or more days past due and procedures to transfer delinquent accounts to the Office of the Treasurer and Tax Collector for collection.

Implementation: The Department requires that all event fees be paid prior to permit issuance. Recreation and Park Department is developing a protocol for concessions and late payment of rent in conjunction with the lease monitoring system. [Partially implemented.]

9.12 Review and simplify the Recreation and Park Department's fee structure, consolidating fees and reducing from the approximately 442 different fees now in use.

Implementation: The Board of Supervisors approved new recreation activity fees in July 2007. The Department has twice proposed a revised, simplified special event permit fee schedule; however, feedback from the public, the Mayor's Office, and the Board of Supervisors has prevented the department from moving forward with the legislation, to date. [Partially implemented.]

9.13 Assess the Recreation and Park Department's fees for private use of facilities, such as weddings and private parties, to price them competitively and increase revenues.

Implementation: The Board of Supervisors approved a revised fee schedule for weddings and facility rentals in July 2007. [Implemented. Prices were increased moderately. For example, the fee for a two-hour wedding in the Shakespeare Garden was increased from $500 to $550.]

9.14 Evaluate the Recreation and Park Department's fee structure for film and photography permits, including simplifying the fee structure in a manner similar to the Golden Gate National Recreation Area's fee structure and increasing fees to the level charged by the Golden Gate National Recreation Area.

Implementation: The Department is planning to hire a new manager for the Permits and Reservations Division in Spring 2008. The recommended changes will be developed by the new Permits manager. [Not implemented.]

9.15 Direct the Director of Partnerships and Resource Development to assess the marketing potential and status of Recreation and Park Department properties and develop a marketing plan, including developing a cost analysis and business plan for marketing Recreation and Park Department property to support any budget requests for marketing.

Implementation: The Recreation and Park Department must conduct an overall assessment of its concession facilities as a first step in the process. To assist in the Department's marketing efforts, the Director of Partnerships and Resource Development is collaborating with the new Golden Gate Park 93marketing group94 that includes representatives from the deYoung, Academy, Botanical Garden, Conservatory, etc., to better promote Golden Gate Park as a tourist destination. [Not implemented.]

9.16 Direct the Director of Partnerships and Resource Development to evaluate the priority scheduling or free use provided to the San Francisco Unified School District, the San Francisco Botanical Garden Society, and other organizations for various Recreation and Park Department properties, including identifying more efficient scheduling practices, cancellation policies and other procedures that impact the availability of Recreation and Park Department properties, and recommend policies for more efficient property use.

Implementation: The Director of Partnerships and Resource Development is reviewing a free use policy on Recreation and Park Department property. [Not implemented.]

9.17 Direct the Director of Partnerships and Resource Development to evaluate informal arrangements, such as arrangements with San Francisco City College, to identify opportunities for more formal agreements, efficient scheduling practices, and sharing of resources.

Implementation: The Director of Partnerships and Resource Development is working with field staff to collect data and understand City College's use of Recreation and Park Department facilities in order to develop a possible partnership with City College to provide training for staff in exchange for use of Recreation and Park Department space. [Partially implemented.]

9.18 Direct the Director of Operations and the Director of Partnerships and Resource Development to work jointly to identify all fee-generating classes, implement license agreements which include a charge for offering the classes at Recreation and Park Department facilities, and implement a procedure to receive and record receipts from the license agreements.

Implementation: All recreation activities - including revenue-generating classes conducted by outside individuals and organizations - are being captured in CLASS. Once the classes and the organizations are identified, the Director of Partnerships and Resource Development and the Director of Operations will work together to determine which should remain within the system and develop agreements with them. [Not implemented.]

10.1 Direct the Director of Operations and the Director of Administration and Finance to revise the cash-handling policies and procedures to (a) identify all staff who are responsible for handling cash, (b) procedures for receiving, recording, keeping, transporting, and depositing cash and other revenues, and (c) training for all staff required to handle cash or revenues.

Implementation: The Department has updated the cash handling policy and distributed it to all field staff. Implementation of CLASS has reduced the amount of cash collected (credit cards are now accepted) and resulted in clearly defined policies regarding daily reconciliation of cash drawers as well as additional improvements to cash handling, including a significant reduction in the number of sites in which cash is collected. [Partially implemented.]

10.2 Direct the Director of Operations and the Director of Administration and Finance to identify and end all cash handling practices outside of the formal policies and procedures, including informal petty cash funds and payments to individuals to provide services.

Implementation: The Recreation and Park Department has updated and distributed the cash handling policy to field staff. The policy clearly states that all informal petty cash funds and payments to individuals are prohibited. [Not implemented.]

10.3 Develop a formal policy, defining and reconciling policies and procedures for cash donations to the Department's gift fund and the San Francisco Parks Trust accounts.

Implementation: The Recreation and Park Department has drafted a policy for internal review. [Partially implemented.]

10.4 Direct the Director of Administration and Finance to develop formal protocols requiring (a) at least two employees present at all cash counts, and (b) routine reconciling of cash counts with attendance records and other use tallies as appropriate.

Implementation: The department has implemented policy requiring two employees to be present as cash is being counted. The revised cash handling policy and CLASS policy both specify procedures for reconciliation. [Partially implemented. Policies have been approved but are not being adequately enforced.]

10.5 Direct the Director of Operations and the Director of Administration and Finance to implement the May of 2004 Controller's Office aquatic program report findings and recommendations to develop a (a) policies and procedures to record cash sales accurately by pool, and (b) procedures for Revenue Unit staff to reconcile weekly cash receipts from the pools against attendance.

Implementation: Department staff are researching technology to allow for electronic entry to swimming pools. This would allow accurate recording of cash sales and enable reconciliation of Aquatics receipts. The Department would initially implement the new technology at Sava, Coffman, and Hamilton pools. [Not implemented.]