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FOAC accepts El Paso Zoo finance audit; auditors cite sponsorship, invoice collection and accounts‑payable issues
Summary
FOAC accepted an audit of the El Paso Zoo’s fiscal 2024–2025 activity that found proper revenue recording but three findings: unclear/unsigned sponsorship agreements for some events, invoices paid late, and unpaid school field‑trip invoices. Management described steps taken, and the committee sought additional detail on controls and fundraising.
Miguel Ortega of the Internal Audit Department presented the Financial Oversight and Audit Committee with the El Paso Zoo financial activity audit covering fiscal years 2024 and 2025. "The audit identified 3 findings," Ortega said, describing reviews of ticket sales, memberships, sponsorships and event accounting.
Finding 1 addressed events and sponsorships: auditors reviewed four events and reported three produced net profit while one showed a loss; two events received sponsorships totaling $8,500 that were handled by the zoo without formal sponsorship agreements. Ortega said the city attorney’s office advised sponsorships should be formalized either through a sponsorship agreement prepared with the city attorney or managed by the Paso del Norte Community Foundation.
Finding 2 concerned payment timeliness: of 71 event‑related invoice payments reviewed, 40 were not paid within 30 calendar days of invoice date; examples included multiple payments for the Brew at the Zoo event. Ortega said 39 invoice payments totaling $7,498.07 were paid 26–117 days late, and the audit recommended ensuring invoices are paid within 30 days per the city’s accounts‑payable policy.
Finding 3 concerned accounts receivable for school field‑trip reservations: three of 15 invoices from a sample were not paid within 30 days; two invoices totaling $769.90 dated 06/06/2025 remained unpaid as of 08/19/2025 (75 days late). Ortega recommended the zoo establish a process to collect payments from school districts prior to summer closure.
Gary Lunsford, interim zoo director, delivered management responses and described actions taken. He said the zoo implemented vendor agreement templates pre‑approved by the city attorney for events, filled the vacant budget and services coordinator position to focus on accounts‑payable processing, and refined event expense practices to reduce costs after a larger up‑front expense in 2024. "We successfully reduced expenses significantly for 2025 as well as increasing revenues for that event," Lunsford said of the 2025 Brew at the Zoo.
Committee members pressed for specifics about enforcement of sponsorship agreements and controls to ensure invoices are paid within 30 days. Representatives said timely payments matter to local vendors and payroll; staff said the new coordinator and additional training of purchasers should narrow the gap and that they would work with business managers to improve the process.
Members also discussed fundraising and membership revenue. Committee members noted that membership records had been reconciled after a platform transition and that historical membership data previously resided with the Zoological Society; auditors said they reconciled membership figures and found them accurate after cleaning duplicates. Management said fundraising currently funnels through the Paso del Norte Community Foundation but that a dedicated fundraising position would be considered in conjunction with a zoo master plan.
After the management response and discussion, the committee voted unanimously to accept the audit report, 4–0. Members requested additional detail on outstanding receivables and a plan for tracking sponsorship compliance and invoice timeliness.
The committee recorded the vote as unanimous and moved on to the next agenda item.
