DALLAS - When performers like Jessica Simpson put on a show at what's now called Superpages.com Center at Fair Park, the city makes money.

However, the city auditor has discovered that while the performance venue was called Smirnoff Music Centre from 2001 to 2006 and run by a firm called Live Nation, the city didn't get its full cut.

Unlike Simpson's singing, no one is cooing at city hall.

"It's a very sad state of affairs," said Mitchell Rasansky, the Dallas City Council finance committee chairman. "We're losing almost a million dollars out there.”

The audit discovered the city didn't get paid about $842,970 in ticket sales, sponsorship income and parking.

The question some council members are asking now is how come the city staff didn't catch the shortfall?

"We should have had much better oversight," Rasansky said. "Our park department should have looked into this much further and everybody else here at city hall who's responsible for this.”

Live Nation said it's negotiating with the city about the amount owed.

"... We are hopeful that this will finally be resolved in the near future," they stated.

The audit also discovered Live Nation and House of Blues, which Live Nation purchased in November, 2006, gave free tickets to city officials and city employees, but didn't report the tickets.

The audit said state law could have been violated since public officials cannot accept gifts over $50 from someone they control, like a concert operator.

A reason Mayor Tom Leppert said a tougher ethics policy is needed.

"I think it gives new urgency - the whole issue of having a policy that people understand, that's clear and doesn't raise questions,” he said.

News 8 asked Live Nation and City Attorney Tom Perkins for a list of city officials who accepted tickets, but they declined to comment.

E-mail bwatson@wfaa.com