Port Commission : concession audit of the Pollack Group, Ltd., doing business as Nick's Lighthouse

12 Pages·2002·0.36 MB·English

by  San Francisco (Calif.). Office of the Controller. Audits Division

SANFRANCISCOPUBLICLIBRARY
3 1223 07425 1910
5/S ORT COMMISSION:
oncession Audit of
ranciscoPublicLibrary
e Pollack Group, Ltd., doing
bvernmentInformationCenter asiness as Nick's Lighthouse
jnFranciscoPublicLibrary
nLarkinStreet,5thFloor
Francisco,CA 94102
I3RENCE BOOK
\e takenfrom theLibrary
DOCUMENTS DEPT.
APR 2 h 2002
SAN FRANCISCO
PUBLIC LIBRARY
AuditNumber01062
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PORT COMMISSION:
Concession Audit of
the Pollack Group, Ltd., doing
business as Nick's Lighthouse
DOCUMENTS DEPT.
APR 2 k 2002
SAN FRANCISCO
PUBLIC LIBRARY
AuditNumber01062
April23,2002

CITYANDCOUNTYOFSANFRANCISCO OFFICEOFTHECONTROLLER
AUDITSDIVISION
I
EdwardHarrington
Controller
April23,2002 AuditNumber 1062
SanFranciscoPortCommission
FerryBuilding,Suite3100
SanFrancisco,CA 94111
PresidentandMembers:
TheController'sAuditsDivisionpresentsitsreportconcerningtheconcessionauditofthe
PollackGroup,Ltd.,doingbusinessasNick'sLighthouse.Nick'sLighthousehasa66-year
leasewiththePortCommission(Port)oftheCityandCountyofSanFranciscotooperatea
restaurantandcrabstandonPortproperty.
ReportingPeriod: July1, 1998,throughJune30,2001
RentPaid: $769,533
Results: Nick'sLighthousecorrectlyreportedgrossreceiptsof
$11,838,969andcorrectlypaiditsrenttothePort.
Respectfullysubmitted,
NoriakiHirasuna
Director
CityHal)•1Dr.CarltonB.GoodlettPlace•Room388•SanFranciscoCA94102-4694 FAX[phone]
I
!
I
INTRODUCTION
BACKGROUND
ThePollackGroup,Ltd.,doingbusinessasNick's
Lighthousehasa66-yearlease,whichexpiresonApril30,
2036,withthePortCommission(Port)oftheCityand
CountyofSanFranciscotooperatearestaurantandcrabstandon
Portproperty.TheleaserequiresNick'sLighthousetopaytothe
Portthegreaterofaminimummonthlyrentoraspecified
percentageofitsmonthlygrossreceipts.ThePortspecifieda
percentagerentof6.5percentofgrossreceiptsfromfoodandall
itemssoldthroughthebarincludingoutdoorcrabstandsales.The
percentagerentforallotherusesis8.5percent.Duringtheaudit
period,theminimummonthlyrentrangedfrom$1,503to$1,772.
SCOPE AND METHODOLOGY
ThepurposeofthisauditwastodetermineifNick'sLighthouse
compliedwiththereportingandpaymentprovisionsofitslease
withthePort.OurreviewcoveredtheperiodfromJuly 1, 1998,
throughJune30,2001.Toconducttheaudit,wereviewedthe
applicabletermsoftheleaseandtheadequacyofNick's
Lighthouse'sproceduresforcollecting,recording,summarizing,
andreportingitsgrossreceiptstothePort.Todeterminewhether
Nick'sLighthouseaccuratelyreporteditsgrossreceiptstothePort,
wecompareditsreportedgrossreceiptstothegrossreceiptsNick's
Lighthouserecordedinitsmonthlysummaryrecordsforall
monthsoftheauditperiod. Onasamplebasis,weexamined
Nick'sLighthouse'smonthlysalesrecords,dailysalesreports,
cashregistertapes,andbankdepositrecords.Wealsocompared
forselectedquartersthegrossreceiptsNick'sLighthousereported
tothePortwiththegrossreceiptsNick'sLighthousereportedto
theCaliforniaBoardofEqualization.
1

AUDIT RESULTS
NICK'S LIGHTHOUSE CORRECTLY
REPORTED ITS GROSS RECEIPTS
AND CORRECTLY PAID ITS RENT
FromJuly1, 1998,throughJune30,2001,Nick'sLighthouse
correctlyreported$11,838,969ingrossreceiptsand
correctlypaidrentof$769,533tothePort.Thetablebelow
showsthereportedgrossreceiptsandrentpaidtothePort.
TABLE
Gross ReceiptsReportedand RentPaid
July1, 1998,Through June30,2001
Gross Receipts RentPaid
July 1, 1998, throughJune30, 1999 $3,526,777 $229,241
July 1, 1999,throughJune30, 2000 3,867,836 251,409
July 1, 2000, throughJune30, 2001 4,444,356 288,883
Total $11,838,969 $769,533
Weconductedthisreviewaccordingtogenerallyaccepted
governmentauditingstandards.Welimitedourreviewtothose
areasspecifiedintheauditscopesectionofthisreport.
Staff: ElisaSullivan,AuditManager
SamAppiah
cc: Mayor
BoardofSupervisors
CivilGrandJury
PublicLibrary