Long Beach will conduct financial audit of Queen Mary lease agreement

Long Beach will conduct financial audit of Queen Mary lease agreement

2009 file photo

The City of Long Beach announced Tuesday that City Auditor Laura Doud is conducting a financial audit of the Queen Mary’s lease agreement.

The audit will determine if the City has received funds owed as part of the agreement.

“The iconic Queen Mary has for generations been a significant and meaningful part of our City’s history, but the ship has gone through some very challenging times,” Doud stated in a press release. “Since I was first elected to this office, I have tracked the Queen Mary’s developments, voiced my concerns about the progress of capital improvements as well as City oversight of the ship, pushed for reporting transparency and conducted a number of audits of the Queen Mary. This latest audit is a continuation of our work to ensure good stewardship of this historical asset.”

The City stated that this audit will provide a more detailed analysis of the agreement with Urban Commons LLC, the real-estate development agency overseeing the Queen Mary.

According to the City, this will be the sixth audit Doud has worked on for the Queen Mary. Previous reports conducted on the Queen Mary recommended improvement concerning asset management, capital improvements, internal controls and accounting, tenant contract compliance and the City’s oversight of the lease agreement.

It was previously reported in local media and the Signal Tribune that the condition that the ship found itself in raised concerns from the City. John Keisler, Long Beach director of Economic Development, had previously stated that Urban Commons had “fallen short” of the lease’s terms and asked for the agency to respond to financial and physical repair requests.

Urban Commons replied in a letter on Oct. 24 stating that it would address the most pressing concerns.

According to the City, the audit will also analyze Eagle Hospitality Trust, which is a real-estate investment trust–– publicly traded on the Singapore Stock Exchange by Urban Commons–– in charge of collecting private-investor funds to maintain the Queen Mary. The final report would ensure that financial statements and the what the investor was advertised for the publicly traded hospitality stock are in good standing.