Audit finds VisitPittsburgh lacks transparency, mixed public and private funding
PITTSBURGH (KDKA) — The organization charged with promoting tourism and bringing conventions to Pittsburgh lacks transparency and accountability, according to the findings of the Allegheny County Controller's Office.
The audit, released Thursday, said VisitPittsburgh denied county auditors access to the salaries of much of its staff and co-mingled private and public funds, making it impossible for the controller to determine their effectiveness.
"It would only help your cause by providing all that information for us," Controller Corey O'Connor said.
VisitPittsburgh receives 90 percent of its funding from tax dollars, with millions in revenue coming from public sources.
The audit looked at the time period from Jan. 1, 2017, to Sept. 30, 2022.
The audit's findings also include, according to the Allegheny County Controller's Office:
- Key local stakeholders are not being adequately represented on the organization's Board of Directors,
- Hotel tax dollars have not been accounted for as restricted revenues as required,
- The organization's accounting records do not clearly identify how hotel tax dollars have been spent,
- A misallocation of personnel resources,
- Reserves being maintained by the organization are not reasonable,
- And, the improper recording of event subsidy liabilities.
The report is urging VisitPittsburgh to put "a greater focus on cost control." The office is also asking that the organization provide detailed salary information for its entire staff and put in place a policy to provide "accurate" information on its activities to stakeholders.
VisitPittsburgh President and CEO Jerad Bachar fired back Thursday.
"What it does include are a lot of factual inaccuracies, a lot of omitted data and it has a lot of language that is very misleading," Bachar said.
"We also provided them with a treasure trove of various accounting documents, our financial statements, our cash flow statements, anything related to the fiscal operations of the organization," he added.
Bachar said the audit was pitched as a performance review but instead ended up being a report that is 50-some pages of suggestions for an organization that, he says, has a track record of success.
"There is nothing within these audit findings, again, that points to irregularities or unethical business practices," he said. "It is simply a collection of recommendations that are politically motivated."
Read the full report here:
The organization has long come under fire for failing to fill the David L. Lawrence Convention Center and promoting tourism in the region.
State Sen. Wayne Fontana, who called for the audit in September, is calling for its reorganization.
"I think it's right to be accountable for the money you already get before you start asking for more," he said.
The president of VisitPittsburgh says it will turn over a list of staff salaries if the county promises not to make them public.
The county controller added he hopes to do a follow-up in a year to see what, if any, recommendations VisitPittsburgh decided to implement.
