Arizona Office of Tourism
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:
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.
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.
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