Audit Reveals Major Red Flags in 57 South Music Festival Management and Finances

City of Eagle Pass Reviewing Possible Legal Action to Recover Missing Records and Clarify Financial Discrepancies

Eagle Pass, TX – A preliminary audit presentation delivered to the City Council has unveiled troubling findings regarding the 57 South Music Festival, shedding light on significant financial irregularities, inadequate oversight, and critical missing documentation. The event, which was managed by an outside company called Just One Management, is now the subject of deep concern as the City of Eagle Pass considers whether to pursue legal action in order to obtain the documents needed to complete a full review.

The audit covered activities and financial transactions from May 1, 2023, through and slightly beyond the festival date. According to the audit team, the purpose of the review was to identify potential fraud, waste, abuse, or collusion while ensuring that procedures followed by both the City and its contractors aligned with official policies and public accountability standards. While the City provided a majority of the documents requested by auditors, the absence of crucial records from Just One Management continues to hinder the ability to draw complete conclusions.

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Among the most concerning findings were discrepancies related to vendor payments. Auditors discovered that in several cases, the amounts billed to the City by Just One Management did not match the actual charges from vendors. In some instances, the differences exceeded $200,000. The lack of supporting invoices or verification has raised serious questions about how the festival’s financial responsibilities were handled and whether any overpayments occurred. Compounding these concerns is the fact that Just One Management was granted broad discretion over vendor selection and financial administration, yet the company operated without sufficient oversight from City officials.

Further scrutiny was directed at how and when Just One Management was selected. The company was formed on May 27, 2023, which fell on a Saturday. Shortly after, an advertisement for a festival manager was posted with limited notice and turnaround time. Despite not having a signed contract in place, the company received $1.3 million in payments from the City. These facts led the audit team to question whether the selection process was legitimate and whether competitive procurement practices were properly followed.

Another point of concern involved the documentation—or lack thereof—related to talent payments. Roughly $1.3 million was allocated as talent fees, but no performer contracts were provided to justify or verify those costs. The inability to cross-reference who was paid, how much they were paid, and under what terms severely undermines confidence in the accuracy of the festival’s financial records. The audit also noted inconsistencies in Just One Management’s accounting practices, including multiple uses of the same check numbers and payments recorded before official approval was granted by City staff.

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Revenue projections and reporting were also flagged as problematic. While the festival was expected to generate up to $4 million in revenue, only $208,000 in ticket sales was reported. The audit raised doubts about whether any serious revenue forecasting or feasibility assessments were conducted before launching the event. In hindsight, the shortfall between expectations and actual performance indicates a lack of proper planning and due diligence.

There were also contract irregularities that appeared to benefit Just One Management disproportionately. Addenda to the management contract increased the company’s percentage of beverage sales revenue and contained few protections or safeguards for the City of Eagle Pass. This lopsided arrangement, coupled with the lack of documentation and poor oversight, signals a potential mismanagement of public funds.

Despite these findings, the audit remains incomplete because several key records controlled by Just One Management have not been provided. These include artist contracts, vendor agreements, sponsorship records, and detailed financial reports. The City Council must now decide whether to take legal steps to compel the release of those documents. A final report is expected in the near future and will include names connected to transactions and decisions that raised red flags. The Council will also determine whether to redact those names before releasing the report to the public.

The Maverick Take

The results of this preliminary audit reflect a concerning breakdown in how large public events are administered and monitored. The City of Eagle Pass entered into a contract with a newly formed company that was awarded substantial payments prior to finalizing a formal agreement. Without proper oversight, Just One Management was able to operate with significant authority while failing to provide documentation that could justify or validate its financial activities. Taxpayer dollars were used to fund this festival, and the community has a right to understand how those funds were managed, especially in light of reported discrepancies and irregularities.

As more information comes to light and the final audit report is released, residents will expect accountability, transparency, and answers. Whether the City Council chooses to pursue legal action will serve as a key test in how seriously it takes its responsibility to safeguard public resources.

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