Audit finds issues at Virginia Tourism Corporation, CEO calls it a ‘difference in understanding’

RICHMOND, Va. (WRIC) -- An audit into Virginia's tourism agency found issues with 100% of the contracts it sampled. The agency's response said the audit left out relevant context.

The Virginia Tourism Corporation (VTC) had its performance audited by the Office of the State Inspector General (OSIG), which found multiple issues with the way VTC stores data, collects documents for grants and writes contracts.

But in a response from VTC's CEO and President Rita McClenny, she noted several "differences in understanding" between the agency and the audit.

OSIG contracted Sikich CPA, LLC to conduct the audit based on performance from July 1, 2022 to present day.

VTC is a state agency that uses state funds to promote tourism to the Commonwealth through advertising campaigns and through grants to several programs.

The General Assembly gives it the authority to "stimulate the tourism segment of the economy by promoting, advertising and marketing the Commonwealth's many tourist attractions and by coordinating other private and public efforts to do the same," according to the audit report.

According to the report, in 27 of the 41 sampled grants (66%), VTC did not ensure grantees submitted all the documents required by their terms. Another finding states that in 28 of the 28 sampled contracts (100%), VTC did not comply with contracting requirements in their policies.

But in a letter responding to the findings that was included in the report, McClenny said "VTC has and continues to dispute the accuracy of these claims and have repeatedly provided documentation that illuminates our position," referring to the finding about documentation.

It also states that problems with Sikich's own data portal impeded it from "fully reviewing and understanding the information provided."

The report found 14 instances where invoices were not approved or paid on time.

VTC's response said the auditor did not provide "what VTC believes to be relevant context." That context being that the 14 invoices came from a group of 186 reviewed, and 9 were from one vendor with which VTC addressed the payment issue.

According to the letter, invoices are an issue, but "NOT a rampant problem."

Another finding in the report concerning contracts states that VTC failed to follow internal policy by not including its standard terms and conditions in every contract. VTC said that its policy actually does allow them to not include this, and when this was brought to the auditors attention the finding was not removed.

The report recommended that VTC update its manual to reflect its current practices.

"While VTC believes the policy to be clear and accurate, we will review it again and ensure that the language is abundantly clear," the letter reads.

McClenny tells 8News that there was "a difference in understanding," between VTC and the auditor. The corporation will be moving forward with the recommendations made.

8News is working to gather responses from OSIG and SIKICH.

The full audit report can be found below.