The citys Parks Department gets significant revenue from concession activities. Concessionaires operate two restaurants in the park, a boating activity, a parking facility, and a Carousel. All major facilities are owned by the Parks Department. All the concession contracts had been awarded just before the 1997 season. The contracts were one-year contracts, renewable for five subsequent years at the sole option of the Parks Department. The Department renewed the contracts in 1998 and 1999. Concessionaires pay the Department varying percentages of gross revenues for the privilege of operating the concessions. The Department is planning to renew the contracts again for 2000. The Mayor asks the Commissioner to hold up the renewals until the City Auditor audits the concession arrangements. The audit will cover all three years, starting with procedures leading to award of the contracts.

Required: List the major risks that the Auditor might perceive regarding the concession arrangements; and develop a program for the Auditor to use in performing all aspects of the audit.