34HOTEL TRANSIENT OCCUPANCY TAX REVENUE COMPLIANCE REVIEWS
Over the past six years, our firm has developed extensive experience in performing revenue compliance
reviews on various hotels and motels related to City Transient Occupancy Tax Ordinances In many
instances, our work has uncovered substantial noncompliance by hotel operators and the underreporting
of transient occupancy taxes to the City. These engagements normally include the following procedures.
• A review of the City's TOT Ordinance to identify all major areas requiring compliance by the hotel,
and a review of the City's internal policies and procedures for monitoring the receipt of TOT.
• Documentation of each hotel's internal controls over the accounting for, and reporting of, room rents.
• Verification of "exemptions" taken by the hotel for government employees and "non- transient" guests
• Testing of the mathematical accuracy of annual, quarterly or monthly TOT reports, computation of late
payment penalties and interest due to the City.
Noted below are five cities for which we have performed TOT reviews, together with the number of hotels
reviewed and appropriate references.
Big Bear Lake 4 Mr John Cueves
Finance Director
(909) 866 -5831
Burbank 15 Mr. Robert P. Elliot
Deputy Finance Officer
(818) 238 -5500
Irvine 7 Mr. Jeffrey F. Niven
Manager of Fiscal Services
(949) 724 -6027
Manhattan Beach 8 Mr. Russell J. Morreale
Financial Services Manager
(310) 545 -5621
Palm Desert 8 Mr Paul S. Gibson
Director of Finance
(619) 346 -0611
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