Audit reveals compliance issues at Veterans United Home Loans Amphitheater

The Virginia Beach Development Authority meeting on March 11, 2025, spotlighted an audit report on the Veterans United Home Loans Amphitheater, revealing critical compliance issues that could impact city revenues.

Linden and Keith, auditors for the amphitheater, presented findings that highlighted discrepancies in financial reporting and compliance with management agreements. The audit aimed to ensure that the amphitheater operated in accordance with its lease agreements, which govern revenue calculations for rent and local taxes.

Key findings included that Live Nation, the amphitheater's operator, failed to provide reliable ticket revenue breakdowns, which are essential for calculating admissions taxes. The auditors noted that the reliance on Excel spreadsheets for financial data posed risks of inaccuracies, including a significant error of $12,800 in monthly admissions taxes due to formula mistakes. Additionally, Live Nation did not certify the accuracy of meals tax payments before reporting them to the Virginia Beach Development Authority (VBDA).

The auditors recommended that VBDA enhance oversight by ensuring all necessary information for recalculating rent payments is reported accurately and that Live Nation provides periodic financial statements. They also suggested that Live Nation conduct annual reconciliations between ticket revenue and admissions taxes to validate the accuracy of reported figures.

The amphitheater, a major attraction for the city, generated substantial local tax revenues, with admissions taxes alone projected at approximately $2.7 million for 2024. The findings from this audit raise concerns about the financial integrity of operations at the amphitheater and the potential implications for city revenue.

As the meeting concluded, the auditors expressed their commitment to ensuring compliance and accuracy moving forward, emphasizing the importance of reliable financial practices for the amphitheater's continued success and benefit to the city.