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Audit finds inconsistent city advertising standards, flags low DPW revenue share with JCDecaux
Summary
A Budget and Legislative Analyst audit found uneven advertising standards across city departments, identified a Department of Public Works deal that remits about 7% of gross ad revenue to the city, and recommended centralizing standards and contract oversight to recover lost revenue.
A city audit presented Sept. 8 found San Francisco’s advertising agreements vary widely in financial terms and content controls, costing the city potential revenue and leaving compliance uneven across departments.
The Budget and Legislative Analyst Office told the Board of Supervisors’ Government Audit and Oversight Committee that citywide advertising revenue totaled about $20.9 million in the audit year and that roughly two-thirds of that came from the Municipal Transportation Agency (MTA). The office completed the performance audit after a Board motion in November 2010 and transmitted the final report in April 2010. The reviewers made four findings and 15 recommendations, saying better central oversight could increase annual revenues by roughly $1.3 million.
The analysts said the Department of Public Works’ contract with JCDecaux — which installs public toilets and commercial kiosks — requires the company to remit only about 7 percent of gross advertising revenue to the city (in addition to a base payment). The report contrasted that share with the airport’s agreement with Clear Channel, which includes a minimum annual guarantee…
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