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This report includes findings and
recommendations for the Arizona Office of Tourism (AOT) in four areas.
First, the auditors found that AOT had violated state procurement statutes and guidelines.
Auditors identified 16 purchases totaling approximately $1.2 million in which
AOT exceeded its expenditure authority and did not seek competitive bids.
In addition, AOT has used its advertising contract to circumvent procurement
requirements by subcontracting for at least 18 goods and services. This
approach allowed AOT to select vendors without competition. These
problems are compounded by lack of a procurement coordinator, central
procurement files, and failure to maintain adequate records. The report includes 11 specific recommendations to help ensure AOT complies with state
procurement requirements.
In addition, the report includes three
findings in the following areas:
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AOT’s
membership in a limited liability company violated Arizona’s constitution
and statutes. AOT became a member in the company to purchase an Internet address and share a travel information Web site. However the
constitution prohibits state agencies from contributing money to or being a
member of a company or corporation. Further, AOT’s membership violated statutes requiring agencies to employ only the Attorney General as
counsel and make purchases within its expenditure limit. The report recommends that AOT work with the Attorney General’s Office to resolve
outstanding issues related to the Web site and prevent similar problems in
the future.
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The report addressed the need for AOT to
discontinue using an inappropriate method to calculate its impact on
Arizona’s economy and instead focus on developing performance measures
that better reflect its indirect role in facilitating tourism.
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Finally, the report recommends that AOT work with
the Tourism Advisory Council and tourism stakeholders to research and
develop a statutorily required long-range tourism development plan to
address the strategic challenges facing Arizona tourism
The report also includes an Other Pertinent
Information section that describes how Arizona and other states structure and
fund their tourism promotion efforts.
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