A state audit found Los Angeles County “likely lost out on more than $6 million in revenue” from its 500-acre fairgrounds because it didn’t adequately monitor its lease with the L.A. Fair Association, says the Los Angeles Times. “State Auditor Elaine Howle said the revenue was lost while the fair association paid its executives compensation far out of line with other fair executives in California” — the chief executive took home $1 million every year.
Separately, the county auditor said the county potentially should see an additional $1 million a year in rent and recommended the country government seek back payments. The state audit said the fair association should seek back payments from a hotel and conference center built on the fairgrounds, which are owned by Los Angeles County.
The audits were ordered after the Los Angeles Times reported the fair association paid high salaries to its managers at the same time the nonprofit association lost money.