Lee County Commissioner Expenditures

Transcription

1 Internal Audit Report Lee County Commissioner Expenditures Audit Number: Date: April 22, 2014

2 April 22, 2014 The Honorable Linda Doggett Clerk, Lee County Re: Audit of Lee County Commissioner Expenditures Dear Ms. Linda Doggett: The Internal Audit Department has conducted an audit of Lee County Commissioner Expenditures. Dave Rollman, CIA, completed this review. The response to the auditor s conclusions, issues, and recommendations is attached to this report. The auditor wishes to thank the Lee County employees for their assistance and cooperation during the review. This report will be posted to the Clerk of Courts website under Internal Audit, Audit Reports. The hyperlink to the report has been sent to the Lee County Board of County Commissioners and appropriate parties. Sincerely, Tim Parks, Chief Internal Audit Officer/Inspector General Internal Audit/Inspector General Department TJP/PR

3 Audit of Lee County Commissioner Expenditures Table of Contents Contents Executive Summary... 1 Introduction... 2 Issues... 2 Profile... 5 Response... 6

4 Audit of Lee County Commissioner Expenditures Executive Summary Personnel costs make up approximately 87% of the commissioners expenditures. The Lee County Commissioners were paid correctly, according to a formula based on statute and the county s population. Local travel was highest in District 3 because the former commissioner received fixed monthly payments. Out-of-county travel was highest in District 4. The former commissioner traveled most frequently of the five commissioners, including international trade mission trips to Colombia and Chile. The proper backup documentation was on hand for the sample of expenditures reviewed. However, some of the expenditures had been posted to incorrect subsidiary accounts. 1

5 Audit of Lee County Commissioner Expenditures Introduction The Internal Audit/Inspector General Department conducted an audit of the Lee County Board of County Commissioner expenditures. The scope of the audit included a review of expenditures from Fiscal Year 2011 through Fiscal Year Audit work paper files contain details supporting the findings, conclusions and recommendations in this report. Issues Total Expenditures The following is a table of expenditures by district from Fiscal Year 2011 through Fiscal Year 2013: District FY 2013 FY 2012 FY 2011 Total District 1 $255,486 $234,815 $226,988 $717,289 District 2 $250,364 $218,419 $221,622 $690,406 District 3 $234,648 $231,996 $230,650 $697,294 District 4 $238,711 $215,193 $229,270 $683,174 District 5 $210,047 $200,438 $210,614 $621,099 Pooled Items $29,521 $45,187 $54,584 $129,292 Total $1,218,777 $1,146,048 $1,173,727 The pooled expenditures are primarily for insurance, office supplies, and telephones. Districts 1 and 4 have extra expenditures related to a second office in Cape Coral. A sample of expenditures was reviewed in detail, and the backup documentation was examined. A few accounting entries were found where the expense had been posted to an incorrect subsidiary account. County Administration personnel were notified so that the necessary corrections could be made. County Administration has modified their procedures. No other exceptions were noted. 2

6 Personnel Services Travel Personnel expenditures are the largest category of expenditures, accounting for approximately 87% of total expenditures. The commissioners salaries are set by statute and are based on the population of the county. The salaries for the last four fiscal years are as follows: FY 2014 $87,839 FY 2013 $84,428 FY 2012 $84,294 FY 2011 $84,220 Payroll records were reviewed. The above amounts were properly paid to the commissioners from Fiscal Year 2011 through Fiscal Year Travel is also a major expenditure. The commissioners frequently travel in the performance of their duties. Trips are often discussed at board meetings. However, there is no method to formally approve the commissioners travel. Commissioners, as the highest authority in the county, are authorized to approve their own travel. The commissioners also have travel expenditures that are funded by the Lee County Port Authority. A review of these expenditures was not within the scope of this audit. The following is the total local and out of county travel for Fiscal Years 2011 through Local FY 2013 FY 2012 FY 2011 Total District 1 $720 $748 $772 $2,240 District 2 $2,529 $608 $837 $3,974 District 3 $1,742 $6,045 $5,614 $13,401 District 4 $4,232 $1,615 $2,917 $8,764 District 5 $3,375 $1,613 $1,344 $6,332 Total $12,598 $10,629 $11,485 The local mileage was highest in District 3. The former District 3 commissioner received a fixed local travel monthly allowance of over $450 in lieu of submitting reimbursement requests at the mileage allowance rate. This is authorized by Florida Statute Such an allowance may be made on the basis of a signed statement of the traveler and at least annually thereafter. The statement must show the places and distances for an average month s travel on official business and the amount that would be allowed under 3

7 the approved rate per mile. The latest statements were reviewed, and the following was noted: Signed statements of the typical monthly travel were submitted, but not on an annual basis. The latest statement was submitted in December 2010, and it was utilized from December 2010 through November 2012, at which time the commissioner left office. Most of the itinerary/purpose entries on the statement listed the town or location of the travel; however, some did not. For example one entry states only March of Dimes. Incomplete entries make it difficult to review the mileage for reasonableness. The commissioners occasionally utilize a Port Authority plane and pilot. As long as the trips do not involve overnight travel, they are posted to the local travel account. The local travel in Fiscal Year 2013 for the former District 4 commissioner included a few of these one-day trips. Out-of-County FY 2013 FY 2012 FY 2011 Total District 1 $2,320 $4,281 $1,669 $8,270 District 2 $5,983 $2,522 $1,811 $10,315 District 3 $223 $3,504 $2,049 $5,776 District 4 $13,633 $6,549 $9,573 $29,755 District 5 $0 $304 $2,979 $3,283 Total $22,159 $17,159 $18,081 District 4 had the largest expenditures for out of county travel. The former District 4 commissioner had the most out-of-county trips including international trips to Colombia, Chile, and Puerto Rico. Some of these trips were trade missions. The proper backup documentation was submitted. However, the commissioner did not appear to be the liaison for any groups that would necessarily call for international trade mission trips. Recommendation: It is recommended that if any commissioners request the fixed monthly reimbursement of local mileage in lieu of the monthly submission of mileage, the statements be submitted annually and the destinations be listed so that the travel distances can be verified. This will comply with statutory requirements. 4

8 Purchase Cards Profile Each of the commissioners has a County procurement card. The following are the credit card purchases by district in Fiscal Year 2013: District 1 $ 2,216 District 2 $ 6,116 District 3 $ 2,939 District 4 $13,031 District 5 $ 1,660 The charges were reviewed. More than half of the total dollar amounts were travel related. The charges appeared to be business related. Background The County Commissioners by district are as follows: District 1 - John Manning District 2 - Cecil Pendergrass (since November 2012, prior Brian Bigelow) District 3 - Larry Kiker - (since November 2012, prior Ray Judah) District 4 - Brian Hamman (since October 2013, prior Tammy Hall) District 5 - Frank Mann The commissioners salaries are set by Florida Statute 145. The commissioners follow the same basic purchasing procedures as other county departments. Objective and Scope The objective of the audit was to review the BOCC expenditures for appropriateness and compliance with County procedures and applicable laws and regulations. The scope of the audit included a review of Board of County Commissioner's expenditures for the period of Fiscal Years 2011 through The expenditures in the first quarter of Fiscal Year 2014 were also reviewed. 5

9 From: Larry Kiker Sent: Wednesday, April 16, :55 PM To: David Rollman Cc: Hyman, Roy; John Manning; Cecil L. Pendergrass; Brian Hamman; Frank Mann; Desjarlais, Roger; Wesch, Richard; Linda Doggett Subject: Re: Audit of BOCC Expenditures Mr. Rollman, Thank you for the recent audit for the Lee County Board of County Commissioners. We have received a comprehensive evaluation as well as recommendations. We recognize the extraordinary expenses for some District offices and are not considered a continued exposure. We look forward to working with the Audit staff in the future as we identify opportunities to operate more efficiently and effectively. Should you have questions, please contact me at Larry Kiker District Three Office Lee County Board of County Commissioners Larry Kiker Commissioner Roy Hyman Assistant Telephone: (239) Fax: (239) Dist3@leegov.com<mailto:District2@leegov.com> US Mail: PO Box 398, Fort Myers, Florida Office: Old Lee County Courthouse 2120 Main Street, Fort Myers, Florida