HomeMy WebLinkAboutCRA-R-05-0009 BACKUPAppendix A
CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST
REDEVELOPMENT AGENCY AND CITY OF MIAMI OMNI COMMUNITY
REDEVELOPMENT AGENCY
(COMPONENT UNITS OF THE CITY OF MIAMI, FLORIDA)
Management Letter in Accordance With the
Rules of the Auditor General of the State of Florida
Year ended September 30, 2004
2004-1 PAYMENTS TO VENDORS
Criteria/Specific Requirements
Purchases of goods and services and payments to vendors should follow the procurement and accounts
payable policies and procedures of the Agency.
Condition Found
We noted two payments to two separate vendors, one for $7,950 and another for $3,466, that were paid
by the Executive Director using his own personal funds, which was subsequently reimbursed to the
Executive Director by the Agency. Based on our discussions with the Executive Director, we noted that
the two payments were payments that needed to be made immediately, which immediate payment could
not have been made through the normal accounts payable process.
Perspective
The condition noted is considered to be isolated in nature.
Effect
Although the payments to the vendors using the Executive Directors personal funds were adequately
substantiated with supporting documentation, the amounts were significant. This could be perceived by
outside parties to be inappropriate, as this is not normal practice.
Recommendation
We recommend that the Agency continue to make a concerted effort to use Agency funds to pay vendors.
However, we understand that there may be situations that may occur whereby emergency payments are
required. Therefore, we recommend that the Agency obtain Board approval for emergency payments
allowing the Executive Director to use his own funding in cases like this. The other alternative would be
to obtain a corporate credit card controlled by the Executive Director and/or the Finance Officer, to be
used only for emergency type payments, and possibly for small purchases outside of the procurement
process.
Whichever alternative the Agency chooses, the Agency should document and implement a formal policy
that would describe the maximum dollar amount allowed for these types of purchases.
Management's Response
Management agrees with this observation and will take the necessary action to secure Board
authorization via a policy that will allow the Executive Director to make such payments on an emergency
basis.
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