City Audit May Spoil Everyone’s View of the Water Club

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Photo: Courtesy of the Water Club

Comptroller John Liu is accusing the Water Club of cheating the city, which charges rent of $495,000 per year unless gross receipts exceeded $8.25 million, in which case, the restaurant owes more. The Water Club reported making $6,190,181 in 2009 (meaning it didn’t have to pay extra rent), but that might not have been altogether accurate. According to DNA Info, “Liu's auditors, posing as customers on six visits to the Water Club in June and July 2010, said that the restaurant's bartender hit ‘no sale’ on the register one time for every four checks entered. A subsequent audit found that 12 of these auditors’ orders for food and drink had disappeared from the books.” Bummer. But who was auditing the auditors to make sure they tipped their bartender well?

Water Club May Have Stiffed the City on Rent, Audit Says [DNA Info]