Scope of Work_Airport Concessions Assessment.pdf

Airport Concessions Assessments – Agreed-Upon Procedures (AUP) Engagements

1. Introduction

1.1 Purpose

The City of Atlanta Department of Aviation (“DOA”), owner and operator of Hartsfield-Jackson Atlanta International Airport (“Airport”), is soliciting sealed bids from qualified professional services firms to perform Agreed-Upon Procedures (“AUP”) that assess gross receipts reported by Airport concessionaires. The selected firm shall report factual findings only and shall not express an audit opinion or assurance conclusion.

The purpose of these services is to provide the DOA with independent assessments regarding the accuracy, completeness, and reliability of monthly gross receipts reported by Airport concessionaires. The successful proponent shall randomly select a minimum of sixty (60) concession locaƟons each DOA fiscal year (July through June) and perform specifically defined procedures to test six (6) consecuƟve months of reported gross receipts for each selected locaƟon.

1.2 Background

Hartsfield-Jackson Atlanta International Airport operates one of the nation’s largest and most diverse airport concessions programs. The concessions program includes retail, food and beverage, and passenger service locations operating throughout the atrium and seven concourses. Currently, there are approximately 394 concessions locations operating throughout the Airport.

Under the Concessions Program, the City of Atlanta Department of AviaƟon (DOA) contracts with prime concessionaires to operate and manage groups of concession locaƟons throughout Airport. Under these agreements, prime concessionaires are responsible for the day-to-day operaƟon of mulƟple retail, food and beverage, and service concession and ensuring revenues are reported to DOA as per the agreements.

2. Scope of Services

The selected Proponent shall randomly select a minimum of sixty (60) concession locations per DOA fiscal year (July – June) to examine and test six (6) consecutive months of reported gross receipts for each concession location.

2.1 Agreed-Upon Procedures Engagements

The Proponent shall perform Agreed-Upon Procedures (“AUP”) engagements in accordance with applicable professional standards. The Proponent shall execute specifically defined procedures and report factual findings without expressing an audit opinion or assurance conclusion.

2.2 Gross Receipts Assessments

The Proponent shall randomly select a minimum of sixty (60) concession locations per DOA fiscal year and perform specifically defined procedures to test six (6) consecutive months of gross receipts reported to the DOA to determine whether concessionaires are accurately reporting monthly gross receipts in accordance with:

Applicable concession agreements Reporting requirements Lease terms and conditions Policies and procedures

2.3 Review Procedures

The Proponent’s procedures may include, but are not limited to, the following:

Reviewing concession agreements and lease terms

Reviewing monthly gross receipts reports Comparing reported revenues to Point-of-Sale (“POS”) transaction records Reviewing sales receipts and supporting documentation Reviewing Georgia sales and use tax reports Comparing reported gross receipts to Georgia sales and use tax reports Comparing sales records to bank deposits, where applicable Reviewing voids, refunds, discounts, and promotional transactions Conducting interviews with concessions personnel and Department of

Aviation staff Reviewing policies and procedures for capturing and reporting gross receipts Performing walkthroughs of concession locations to gain an understanding of operations, if necessary Identifying discrepancies, variances, and exceptions

2.4 Audit Program Development

The Proponent shall develop and document a standardized audit program that identifies the testing methodology, sampling approach, review procedures, documentation standards, and report protocols for each assessment.

The Proponent will maintain a standardized data request package with an understanding that all data requested from concessionaires may not look the same.

2.5 Standardized Date Request Package

The Proponent shall maintain a standardized data request package while recognizing that the data provided by concessionaires may vary in format and presentaƟon.

2.6 Reporting Requirements

The Proponent shall prepare written reports for each assessment, maximum 2 pages, summarizing procedures performed, factual findings, identified discrepancies, exceptions, variances, recommendations for corrective action, if applicable, and management responses from concessions location and DOA.

3. Deliverables

The selected Proponent shall provide the following deliverables:

Audit work plan and methodology Standardized audit program and testing procedures Draft assessment reports, if necessary Final assessment report for each concession location o 1–2 page report o Verified gross receipts o Variances identified o Potential under/over payments o Recommendations for corrective action o Response from Concessionaire/DOA

An annual report summarizing results upon completion Maintain working papers for each assessment for review upon request

The Proponent shall complete and submit, at a minimum, one (1) individual assessment report within fifty (50) calendar days from issuance of the Notice to Proceed. Thereafter, assessment reports may be submitted monthly until all assigned assessments are completed.

4. Minimum Qualifications

Proponent shall demonstrate the following minimum qualifications:

Experience performing Agreed-Upon Procedures engagements Experience conducting revenue audits or gross receipts assessments Certified Public Accountant (“CPA”) firm in good standing Knowledge of Government Auditing Standards and applicable accounting principles Ability to provide qualified staff and resources necessary to perform the services Experience evaluating Point-of-Sale (“POS”) systems and revenue reporting controls preferred

Experience in preparing factual findings reports and exception-based reporting