The Directorate of Festivals of the City of Buenos Aires contracted providers for the production of cultural events without alternative budgets to check the election of the most favorable offers and justified as expenses of necessity and urgency 39.4 percent of expenditures in 2006 aimed at the realization of festivals like BAFICI, the World Tango Dance Championship and Open Studio sample. The data comes from a report of the City watchdog (AGCBA, for its acronym in Spanish), which analyzed the funds implemented by the department of the Ministry of Culture under contracts, petty cash and the "costs of absolute necessity" which provides the decree 1370-1301, and concluded that "the events were not planned in a timely manner, which made it impossible the complete fulfillment of the regulations."

According to this legislation, the resolutions that provide funds for petty cash establish that the vouchers that exceed $ 1,600 expenses must be supported by documentary evidence that was awarded "the most suitable offer from at least three budgets" and, otherwise, "the accountability must contain a full justification for that inability."
 
The Audit checked 167 vouchers that were for the organization of BAFICI 2006 and found that 35 exceeded $ 1,600. Of those 35 bills, the two alternative budgets that establish the regulation were contained in only 11, though without the signature of the bidders. And in the remaining 24, 22 justifying the lack of any proposals but had no issue date. Apart from this, the watchdog failed to verify justification for two trips, one to the outside by $5,458 and another domestic for $1,647 who accounted it on May 2006, a date subsequent to the completion of the BAFICI, which was in April. 

Moreover, there were areas like "catering service", "advice on sound and lighting for the closing party of the festival" and "sound design for the screening of a film" which is justified as expenses of necessity and urgency. 

In 2006 the last edition of the exhibition Open Studio in the Palacio de Correos was organized. According to the AGCBA, for preproduction, renovation of the property, hiring artists, and other commitments, the Directorate of Festivals spent six times more than originally planned, and even they had to request a further extension of funds days before the closing of the festival. Of the 27 bills that exceeded $1,600, 16 had alternative budgets, although with several irregularities: in some cases "the budget was not attached nor were there alternative offers." There was even a provider who was awarded the grant without being the most convenient. The Audit found the accountability of the bill of a bidder for $ 13,794 of an advance and another for $ 44,462.40 in the final description. That total, $ 54,256.40, exceeded by 18.49% and 10.77% to the alternative budgets.
 
For the watchdog, the percentage of payments that the Direction of Festivals made through Decree 1370-1301 (under the modality of "urgent need"), highlights the "lack of foresight" in organizing events that are under orbit. And it adds that 43.57% of the expenditures managed under that approach "does not meet the applicable legal standard for government procurement.”
Also, another decree, 834/02, established "collaboration agreements" so that organizations, institutions, and businesses can contribute to the production of events included in the program of the City Festival (PROFECI, for its acronym in Spanish). The measure provides that such collaboration will only consist of the provision of goods and services "free of charge" for the City Government and that "in any case may never be cash." However, the ACGBA discovered a 2006 agreement in which a financial pledged to "provide by itself or through third parties, money to be used for production," from the Open Studio sample. Beyond not complying with the provisions of the current rule, in the final account there wasn’t a detail of the purchase that was foreseen in the signed agreement, i.e. they did not know what the money had been used for.
 
The Audit indicated that there is no formal record of every cooperation agreement and concluded that 76% of the surveyed cases, the resolutions that were approved, are dated after the completion of the corresponding festival.