City of El Paso auditors to examine Sun Bowl Association’s use of rental car tax funds

EL PASO, Texas (KVIA) -- City of El Paso auditors will be diving into the Sun Bowl Association's use of city taxpayer dollars for the first time in over 25 years.

The city gives the association funds from rental car taxes to help pay for the annual bowl game.

The contract between the City of El Paso and the Sun Bowl includes specific language on how the funds can be used; the contract stipulates that the tax funds must be used for the game itself, no other events hosted by the association.

This is an excerpt from the contract sent to ABC-7 by the Sun Bowl Association:

"The Association's payment request shall be supported by valid invoices and other supporting documentation, including but not limited to employee time sheets, invoices, or other information reasonably requested by the Director.

"'Qualified Expenditures' is defined as all costs, amounts, charges, and expenses that are associated with the Athletic Event, including the costs of planning, acquiring, establishing, developing, advertising, promoting, conducting, sponsoring or otherwise supporting the Athletic Event..."

The process for this new audit's creation began after El Paso Mayor Oscar Leeser sent a letter to the City's Financial Oversight and Audit Committee (FOAC) requesting the audit of the Sun Bowl Association. That letter was dated Feb. 2024.

The Mayor's Letter to FOAC stated in full, "After a conversation with the City Manager and Chief Financial Officer that led to questions surrounding the contract between the City of El Paso and the Sun Bowl Association, I feel it would be appropriate and long overdue for the City's Internal Audit Department to conduct a review of said contract that details the parameters of the use of the Rental Car Tax collected by the City, as well as audit as appropriate the use of these funds intended for payment to the teams for participating in the Annual Sun Bowl Game. Thank you for your consideration."

Leeser told ABC-7 that there has not been an audit into the Sun Bowl since 1998.

The audit was approved unanimously by the FOAC and the Chief Internal Auditor, Edmundo Calderon, said he's working to complete it soon.

"But there's no completion date. We will get it done. I want to get it done this summer," added Calderon.

Bernie Olivas, Executive Director of the Sun Bowl Association, told ABC-7 he welcomes the audit.

"We haven't been audited since since I've been here," said Olivas, who's been the association's executive director since 2001. "And of course, if that's what needs to be done, they're more welcome to look at our books."

Leeser said the audit is not about accusing anyone of wrongdoing.

"We need to know where the money is going and make sure it's going in the right place. Not that there's anything wrong, but we want to make sure that everything is right," added Leeser.

"(The city) collects the rental car tax. And then we show proof as to why we need that money," said Olivas.

The Sun Bowl Association has received about $5 million in rental car tax funds every year. In 2023, the total was approximately $4.9 million, with around half going towards payment to the Oregon State Beavers and the Notre Dame Fighting Irish, according to the association.

Olivas told ABC-7 the only time the tax funds didn't pay teams directly was in 2020. Olivas said the funds covered salaries and expenses associated with the game before they ultimately canceled the Tony the Tiger Sun Bowl just a few weeks before it was set to take place, due to the COVID-19 pandemic.

The Sun Bowl Association is a nonprofit, and their finances can be seen online at the ProPublica Organization's website, linked here.