Audit reveals BBDA's financial reporting lapses over five years

The Virginia Beach Development Authority (VBDA) meeting on March 11, 2025, focused on the findings of a recent audit and the ongoing financial oversight of local facilities. The meeting revealed significant concerns regarding the frequency and thoroughness of audits conducted on various venues, including the Amphitheatre and Convention Center.

During the discussion, it was noted that this was the first audit conducted in recent years, with previous audits of facilities being limited due to resource constraints. The audit highlighted a concerning lack of submitted financial statements from the VBDA, with no reports received for the past five years. This raised questions about accountability and compliance with financial agreements.

The audit also examined the admission taxes collected, amounting to approximately $2.7 million, which are crucial for funding the TIF (Tax Increment Financing) fund. The potential for underreporting or errors in these figures was emphasized, as inaccuracies could directly impact the revenue allocated to the TIF fund. The auditors expressed the need for improved verification processes to ensure that all revenue is accurately reported.

The VBDA has relied on an external accounting firm, Cherry Beckert, for audits, but there are concerns about the transition to a new auditor and the implications for ongoing financial oversight. The meeting participants discussed the necessity of establishing clearer procedures for financial reporting and auditing to enhance transparency and compliance.

In conclusion, the meeting underscored the importance of regular audits and accurate financial reporting for the VBDA. The authority aims to work closely with city staff to address these issues and ensure that all financial obligations are met moving forward. The next steps include obtaining the overdue audited financial statements and refining the reporting processes to prevent future discrepancies.