City Audit Reveals Overbudgeting At Paycom Center, Former Cox Convention Center

An internal audit revealed a deficit between the City of Oklahoma City's funding and what's actually being spent by the company, ASM Global, that oversees the Paycom Center and the Cox Convention Center.

Each year, the City and ASM agree on a budget to operate the Paycom Center and the former Cox Convention Center.

An internal city audit released last month shows that the budget has exceeded what ASM spent every year since 2018 by a total of $11.8 million. “That's one of the things you do an audit for. So, you can kind of catch these things. And so, the audit caught it," Sue Hollenbeck, the City’s Special Projects Manager, said.

Hollenbeck said the city funding ASM doesn't spend on operational costs gets reallocated for marketing or building improvements. “Nothing was overpaid. They just did an incredible job within the budget and the money that they were allowed the last few years,” Hollenbeck said.

She said the deficit also reflects higher revenues, specifically at the Paycom Center. “We're getting more and more concerts that are coming to Oklahoma City and better concerts, higher quality concerts, and more people are going to the concerts,” Hollenbeck said.

However, the City Auditor's 22-page report includes a list of recommendations to improve the financial relationship between the City and ASM.

Things like requiring ASM to report how they spend excess funds and lowering ASM’s budget accordingly going forward. “It’s a learning moment. They come in, and they say did you consider this, did you look at it this way? It’s another set of eyes,” Hollenbeck said.

The City Auditor made a total of 14 recommendations at the end of their report and the City agreed with all of them.

The report indicates the City has already completed some and responded with plans to implement others in the next fiscal year.

At this time, News 9 has not heard back from ASM with their reaction to the audit.

You can read the full report here: https://www.okc.gov/home/showpublisheddocument/45146/638652756934300000