Professional and Operational Audit Services

BACKGROUND The 22 nd District Agricultural Association (District) is an institution of the State of California that owns and operates the Del Mar Fairgrounds and produces the San Diego County Fair, the largest annual event in the region. A nine-member Board of Directors, appointed by the Governor of California, oversees the District and conducts public meetings in accordance with the Bagley-Keene Open Meeting Act. District is not a taxpayer-funded organization; operations are primarily funded by revenues generated through activities and events hosted across three distinct properties: the 212-acre main campus known publicly as the Del Mar Fairgrounds, the 48-acre Surf & Turf Recreational Facilities, and the 64-acre equestrian center known as Del Mar Horsepark. NOTICE: The California Coastal Commission (CCC) has jurisdiction over all developments and improvements to District property. In addition, the San Diego Regional Water Quality Control Board (Regional Board) is the State agency responsible for ensuring compliance with the Clean Water Act and the District is required to comply with the California Environmental Quality Act (CEQA). PURPOSE, MISSION, VISION & VALUES District board and staff have been actively engaged in a strategic planning process to shape the future of the Del Mar Fairgrounds. Part of this process included the adoption of official statements that defined and elaborated on the purpose, mission, vision, and values of the organization in pursuit of ensuring a quality experience for guests and patrons of the Del Mar Fairgrounds. PURPOSE We are a timeless community treasure where all can flourish, connect, and interact through year-round exceptional experiences. MISSION We connect our community through shared interests, diverse experiences, and service to one another in an inclusive, accessible, and safe place with an emphasis on entertainment, recreation, agriculture, and education. VISION We will be the community's iconic place for social interaction and cultural expression, honoring traditions, embracing innovation, celebrating excellence, and having fun. VALUES – We believe in... Fun! … celebrating the ordinary and the extraordinary in unique ways. A+ Quality … creating exceptional and memorable experiences. Integrity … being responsible to our community, the environment and to one another. Respect … providing an inclusive and interactive place where all people can connect. Service … purposeful and inspiring engagement. ABOUT THE DEL MAR FAIRGROUNDS The Del Mar Fairgrounds was founded in 1936 — more than two decades prior to the incorporation of the City of Del Mar — to host the annual San Diego County Fair. Today, the facilities include 200,000 square feet of trade show and meeting space, a 15,000-seat grandstand, a 3,500-9,000 seat multi-use outdoor arena, a one-mile dirt surface horse racing track, and a 23,000 square foot entertainment center known as The Sound at Surfside. Events hosted at the Fairgrounds fall into two categories: • Events and activities produced and managed by District, including the San Diego County Fair and Surf and Turf RV Park. • Events and activities produced by third-party promoters and operators through rentals of the facilities. Past and ongoing events and activities include concerts, festivals, trade shows, consumer expos, immersive experiences, equestrian competitions, animal shows, sporting events, fundraisers, and personal celebrations. Several renters operate year-round on District properties, including at the Del Mar Horsepark and at the 48-acre Surf & Turf Recreation Facilities, which features tennis, swimming, volleyball, a driving range, two miniature golf courses, and a golf pro shop. The Del Mar Thoroughbred Club is the largest renter of District facilities, with an on-site Operating Agreement for office space and producing two seasons — during the summer and fall — of live thoroughbred horse racing. Legends also has a dedicated staff on site that exclusively manages event catering, restaurant, bar food, and beverage services at the Fairgrounds, including at The Sound, which is operated by Belly Up Entertainment. ABOUT THE SAN DIEGO COUNTY FAIR With roots dating back to 1880, the annual San Diego County Fair is a community celebration of agriculture, education, entertainment, and arts and also features rides, games, food, and shopping. The Fair marks the unofficial start of summer in San Diego County and has become a treasured tradition for generations of San Diegans. Each year, the Fair has a new theme. Usually, the San Diego County Fair opens in early-to-mid June and ends with a rousing finale on or after Independence Day weekend. Over a four-week run, the Fair draws about 1 million attendees, making it the largest annual celebration in San Diego County.