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Home My WebLink AboutSEOPW-CRA-M-04-0001CRA Board of Directors Meeting January 26, 2004 0 ITEM 1 0 OFFICIAL REPORT Harvey, Branker & Associates, P.A., CPA Consulting Firm Report on CRA Audit CRA Board of Directors Request SEOPW/CRA OW/CRA • ORA Board of Directors Meeting January 26, 2004 ITEM 1 SOUTHEAST OVERTOWN/PARK WEST AND OMNI COMMUNITY REDEVELOPMENT AGENCIES INTER -OFFICE MEMORANDUM To: Chairman Arthur E. Teele, Jr. Date: File: and Members of the CRA Board JAN 16 2004 Subject: Report by HB&A on Questionable Disbursements" as reported by City of Miami M Auditor General at 12/8/03 CRA Board Meeting From: Frank K. Rollason References: Executive Director Enclosures: Supporting Documentation Please be advised that Mr. Carlton Branker of Harvey, Branker & Associates will give a report on his analysis of the "Questionable Disbursements", as outlined by Mr. Victor Igwe, City of Miami Auditor General, at the December 8, 2003, CRA Board of Directors Meeting. Pursuant to SEOPW/CRA Motion No. 03-105 and Omni/CRA Motion No. 03-70, passed on December 8, 2003, the CRA Board of Directors directed the [CRA] External Accountant (HB&A) to meet with the Auditor General to prepare a specific listing, for the next CRA Board meeting, of all the questionable expenses of the CRA which total $9-10,000,000.00 with answers to each of the questionable expenses to determine whether or not there is an understanding as to where the funds are. NO FISCAL IMPACT FKR/ap • OMM/CRA SEOPFl/CRA 0 4 - 0 .g ., ? A S EOP W AND OMNI/CRA CITY CLERK'S REPORT MEETING DATE: December 8; 2003 NON - AGENDA ITEM 12 APPROVED: UTIVE A MOTION DIRECTING THE EXTERNAL ACCOUNTANT TO MEET WITH OUR AUDITOR GENERAL TO PREPARE A SPECIFIC LISTING FOR THE NEXT CRA BOARD MEETING OF ALL THE QUESTIONABLE EXPENSES OF THE CRA WHICH TOTAL $9,000,000 TO $10,000,000 WITH ANSWER TO EACH OF THE QUESTIONABLE EXPENSES TO DETERMINE WHETHER OR NOT THERE IS AN UNDERSTANDING AS TO WHERE THE FUNDS ARE. JA11 2 G 2004 Page No. 7 SEOPW/CRA MOTION 03-104 MOVED: SANCHEZ SECONDED: REGALADO ABSENT: GONZALEZ SEOPW/CRA MOTION 03-105 OMNI/CRA MOTION 03-70 MOVED: WINTON SECONDED: REGALADO ABSENT: GONZALEZ PRISCILLA A. THOMPSON, CITY CLERK NOTE: AS DULY NOTED ON THE HEREIN AGENDA AND CITY CLERK'S REPORT, WHICH CONSTITUTES A JOURNAL OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (CRA) BOARD PROCEEDINGS, THE "UNANIMOUS" NOTATION NEXT TO THE VOTE ON EACH ITEM MEANS THAT ALL FIVE MEMBERS OF THE CRA WERE PRESENT AND VOTED "AYE" ON SAID ROLL CALL VOTE. NEGATIVE VOTES, PHYSICAL ABSENCE OF A BOARD MEMBER OR ABSTENTION FROM VOTING BY A BOARD MEMBER, IF ANY, IS ALSO DULY REFLECTED IN SAID VOTE SEOPW/CRA OM M/CRA il4- 0"1. 4- 01 • 1' fW O pti 1; u 1f 1E kZ;' ® 17 1E 1c 2C CRA Audit Report - 04-008 Analysis of *Questionable* Disbursements Audit Period: October 1, 1998, through September 30, 2002 Audit Report Management Dacrrintinn Audit tact rriterin not mat Amni int ID.— n A,fl ,., Dl— Lack of monitoring as required by 24 Monitoring starting 10/01/03, per CD Procurement of goods and services with CDBG monies CFR Part 85.40 $ 1,028,020.64 33 Director Interlocal Agreement prohibits the use of Interlocal Agreement amended/ CDBG CRA Administrative Staff Salaries CDBG monies for this purpose 491 000.00 37 replaced w/ GF Original source documents supporting Interlocal Agreement amended/ CDBG Procurement of goods and services with CDBG monies disbursements not retained for audit 136,114.80 1 39 replaced w/ GF 15 of 21 transactions tested were not Competitive bidding process has been Procurement of goods and services with TIF monies lbidded out 1,212,492.89 40 limplemented Lack of CRA Board's consideration/approval and no written Brian Hankerson/Hankerson Associates consultants a reement 92,116.60 44 Board approval will be obtained in the future Lack of written agreement to determine Judy Associates - Consultant and verifv type of services performed 206 800.00 44 Board approval will be obtained in the future Lack of written agreement to determine Judy Associates - Consultant and verify type of services performed 172 650.00 44 Board approval will be obtained in the future Lack of CRA Board's consideration/approval and no written �aqreement Vernon P. Clarke - Consultant 124 982.00 45 Board approval will be obtained in the future Was paid $1000 and hour and another �$4,200 Reginald Gousse - Consultant an hour- work done not verifiable 5,200.00 46 New manage ent has implemented controls Lack of CRA Board's consideration/approval and no written �aqreement Reginald Gousse - Consultant 10 278.00 46 Board approval will be obtained in the future ck of CRA Board's nsideration/approval and no written Ereement Reginald Gousse - Consultant 23 320.00 46 Board approval will be obtained in the future Consultant was not authorized to perform Arnold Lewis Mobley - Consultant any services 2,376.50 1 46 New management has implemented controls Lack of CRA Board's Lease of computers Iconsideration/approval 26,909.28 47 Board approval will be obtained in the future Change orders subsequent to bid. TLMC Enter riese Related mobs were included in bidspecs. 200 192.00 51 1 New mana ement has implemented controls Enhancements approved by CRA official, TLMC Enter riese a former business partner of TLMC 278 224.11 1 51 New manaclement has implemented controls TLMC Enter riese Lack of competitive bid 153 731.00 51 New management has implemented controls Total amount disbursed exceeded Civil Cadd Engineering,Inc. amount authorized by the CRA Board 212 755.66 53 Board approval will be obtained in the future Civil Cadd Engineering,Inc. Paid si ned/sealed plans not delivered 187 151.73 54 New management has implemented controls Total amount disbursed exceeded Marlins Ball Park Analysis I lamount authorized by the CRA Board 27 459.00 57 Board approval will be obtained in the future Lack of CRA Board's Contract Services in Bahamas/Work Permit/Bus Benches I Iconsideration/approval 4,250.001 60 1 New management has implement controls 0 • 2' 2: 2: 2, 2! 2( 2-, 2( 2( 3( 3' 3: 3: 3� 3'. Gam' vj 3E tZ ' 31 3E 3E 4( 41 ! ! i Audit Report Management Description Audit test criteria not met Arnmint Pana on Ar-tinn Plan Lack of CRA Board's Employee's wages while on contract consideration/approval 1,384.80 61 New mana ement has implemented controls Lack of CRA Board's Legal Services for the above work permit consideration/approval 3,380.00 61 New management has implemented controls Books/Periodical purchased with TIF monies Could not be located 1 14,842.49 1 62 lNew mana ement has implemented controls Lease of an Offices ace Leased Offices ace was never used 13 000.00 63 New management has im lemented controls TIF monies used for Festivals Events were held outside CRA area 96,307.00 65 New management has implemented controls Lack of public purpose/Approved budget does not include a line item for this type CRA provides food for guests at board Food/Entertainment of ex ense 11 180.00 65 imeetinqs Only 8 of the 28 required paintings were Artist -in -Residence delivered. 24,339.00 66 New management has implemented controls Governmental entities are exempt from Sales tax pavinq sales tax 1,209.66 66 New management has implemented controls Authorized amount was exceeded/Lack George Sanchez (Artist/Limousine/hotel room charges I of public purpose 6,207.98 1 67 New manage ent has implemented controls Kodak Digital zoom camera Item is missinq from inventory 900.00 68 1 New management has implemented controls Omnibook Pentium computer laptop Item is missing from inventory 1,975.00 68 New mana ement has implemented controls Laser inter/fax Item is missing from inventory 800.00 68 New management has implemented controls lack of evidence of supervisory review/approval of supporting Wages/Salaries time/attendance report 69 264.75 76 New mana ement has implemented controls The number of the hours that employees were paid exceeded actual hours worked Wages/Salaries lbv em to ees 622.65 76 1 New mana ement has implemented controls Lack of supporting time/attendance Wages/Salaries records 1 23 013.00 76 New management has implemented controls Lack of supporting time/attendance Wages/Salaries records 25 113.00 76 New management has implemented controls Former Executive Director was paid hours worked in excess of 40-hour work Wages/Salaries lweek - No authority 2,072.00 1 76 lNew mana ement has implemented controls Original source documents supporting Wages/Salaries disbursements not -retained for audit 166 305.00 76 New management has implemented controls Lack of CRA Board's Severance Pay consideration/approval 12 968.00 77 New management has implemented controls Lack of CRA Board's consideration/approval for additional Wages/Salaries lwages 12 692.35 77 New mana ement has implemented controls This budget line item was overspent - Community Development Expenditures budget amendments was not prepared 375 000.00 78 New management has implemented controls This budget line item was overspent - Capital Outlay expenditures budget amendments was not prepared 2,627,322.00 78 New management has implemented controls 2 • 0 43 44 45 46 Audit Report Management rlocrrintinn Aiidif fact rriforin nnf mot Amn—f P.— nn Arfinn PI.n This budget line item was overspent - General Government expenditures budget amendments was not prepared 986,827.00 78 New management has implemented controls This budget line item was overspent - Principal payments Ibudqet amendments was not prepared 1 115 000.00 78 New management has implemented controls This budget line item was overspent - Interest payments budget amendments was not prepared 242,675.001 1 78 New management has implemented controls Amount advanced as loan has not been TIF monies advanced as loans repaid to CRA 42 557.03 80 New management has implemented controls Total $ 9,472,981.92 NOTE: BY `QUESTIONABLE' I MEAN THAT A PARTICULAR TRANSACTION DID NOT SATISFY ONE OF SEVERAL AUDIT TEST CRITERIA. IT DOES NOT MEAN THAT MONEY WAS MISSING OR STOLEN. THE FEDERAL AND STATE AGENCIES INVESTIGIATING THESE AND OTHER TRANSACTIONS WILL DETERMINE WHETHER ANY MONIES WERE STOLEN OR MISSING. tz acs C, O _ ZA l 3 8 i •