HomeMy WebLinkAboutItem #13 - Discussion Itemrol Joseph P. Grassie
City 'Manager
thoW Howard V. Gary, Ditectot,,
Management and tudget
Mt, 6t MIAMI. PL6P1bA
INfiirR,i)i'i=`iet MEMORANbUM
bAtE. Match 22, 1978
suPitcr. Child bay Care Audit
ptFtaENcts
ENGLOSU$ tt
ttL t
On February 2, 1978, a memorandum was submitted to Robert Parkins, Director
of Citizens Services from Luisa Calderin, Coordinator of Social Services
Delivery for the Department of Citizens Services. This memorandum outlined
a number of allegations made by various individuals associated with the
program.
The allegations as stated in the memorandum, are as follows:
1. The Parent -Teacher -Community private account where monies have
been utilized to throw a January 10, 1978 party.
2. Mrs. Chandler's practice of charging requisitions as if more
children were served than actually did by the U.S.D.A. Food
Program
3. Continued pressure placed upon employees, particularly at the.time
when they were ready to be audited. There have been cases of
actual blackmail, according to Vicky Hamilton.
4. Employees working out of job classification.
5. Improper implementation of the Art Therapy Grant.
6. The terminatinq,of Randi Waldstein and Lourdes Garcia.
7. Falsification of attendance records.
8. Supply and equipment's budget used for unauthorized items.
With regard to the first allegation, our audit reveals that each center has
a private checking account. These accounts are funded, maintained and
controlled by the Day Care parents for any use they deem appropriate.
When the auditors requested to review the checking accounts, they were
informed that the checking accounts were private and that the City of Miami
had no jurisdiction over them. A further check with the Law Department
substantiated their claim.
t#ence, if the Day Care parents decided to have a patty with theft private,
non.City funds, then that would not be imptopet from, the City's point of
View:
the second allegation that the bay Cate program► was overstating the number
of children served heals in its tepotts to the tTnited States bepattment of
Agriculture (USA) was verified by our audit to be accurate: The audit
reveals that for the period covering October 1916 to December, 107/, the
number of meals served Was overstated by 3,235. This resulted in the City
of Miami receiving approximately $1,600 score than it should have received
in USDA reimbursements.
Allegation !1 3 above was made by a Day Cate Supervisor who alleged that she
was forced to include falsified food service reimbursement requisitions in
her tJ.S.D.A. files. These falsified records requested food service
reimbursement from the granter source for more children than were actually
served meals.
The memorandum also alleges that Day Care emplyees ate "working out of job
qualification." This allegation has been referred to the Department of
Human Resources to evaluate the qualifications of all Day Care employees to
ensure compliance with job specifications. Their findings will be
submitted to you in the very near future.
Pursuant to allegation #i5, this accusation stems from a Day Care
Supervisor's allegation that there is no trained Art Therapist as required
by the Art Therapy Grant, to instruct trainees in this program. Instead,
classes are being conducted at the Miami Dade downtown campus within an Art
Instruction Expression class with no qualified art therapist. This
allegation is currently under review by the Internal Audit Division.
With respect to the termination of Randi Waldstein, Ms. Waldstein was
terminated prior to the transfer of the Day Care Program to the Department
of Citizen Services. The reason for termination apparently related to her
failure to follow her supervisor's instructions related to the field trip
where Ms. Waldstein took her personal car instead of a City -provided bus.
According to a statement of the former secretaryu to the Day Care
Administrator, back -dated letters and memoranda were applied to her file.
As for Lourdes Garcia, she was terminated for several reasons. The reasons
stated were: (1) unusual punishment enacted upon the childre; (2) failure
to follow proper procedures regarding parent conferences; (3) failure to
accept responsibilities to work with staff; and (4) insubordination to her
supervisor. Ms. Garcia requested and received a hearing by Affirmative
Action and Labor relatins. Her termination was determined to have been
with cause and was sustained by both offices.
With regard to the falsificaton of attendance records, our audit reveals
that in some cases the records revealed that employees were paid for hours
they did not work. Furthermore, daily and hourly time attendance reports
did not agree with the payroll reports, and some part-time employees were
granted paid vacation for which they are not entitled to receive.
Allegation #8 was made by a Day Care secretary, who stated that an office
refrigerator was purchased for the personal use of a Day Care
ADministrator's staff. The secretary further stated, that empoyees were
instructed to tell the department Director that the refrigerator was for
the use of the Day Centers, should he ask about the usage. Since the
refrigerator is being used by the Day CAre Program and it is very difficult
to determine whethet all DAy Care personnel can use it, this allegation is
somewhat tenuous.
aieeph R. Grassie
City MAhager
city oP MIAf I. PLOAR A
INTER. lF ICE MEMBRAMbUM
1 /
LOOM: Howard V. Gary, Directorf'® 7
Management and tudget
rbitt Match 22, 1978
sUi4JEc7 child Day Care
Pr''ogratn Audit
REFERENCES.
ENCLOSURtS.
PILE
Pursuant to your request, I am enclosing herewith the audit of the Child
Day Care Program for fiscal year 1977 and the period covering October 1,
1977 to December 31, 1977.
In summary, the findings of the audit are as follows:
1. Time and attendance reports are not properly maintained.
2. Fees for day care services are not properly charged.
3. Participant files are incomplete and poorly maintained.
4. Financial and budgetary information are poorly maintained and,
in some cases, non-existent.
5. Reimbursement reports are erroneously prepared.
6. The Day Care Program was poorly managed and supervised.
7. Top management in the Department of Citizen Services has
inadequate knowledge of budgetary, fiscal and other reporting
requirements.
B. There are no periodic reviews or evaluations of the Day Care
Program.
9. Day Care revenues are not properly appropriated and accounted
for.
10. Financial and programmatic reports are not completed and sub-
mitted to the granter source on a timely basis.
11. Reimbursement for granter sources are not received on a timely
basis.
Three other issues regarding Day Care are still outstanding. Those issues
are the qualifications of Day Care personnel, the use of CETA funds in
the Day Care Program, and the audit of the entire Department of Citizen
Services.
1
The issue regarding the qualifications of bay Cate personnel has been
referred to the bepartient of MUMAh tesoutces for evaluation because this
is a separate audit in itself and requires the ekpertise of trained
personnel technicians. Onee completed, thin evaluation will determine if
- the qualifications of bay Care personnel ate in compliance with related
56b specifics ions.
The use of CSTA in the bay Cate program is mainly limited to one program
(i.e., the Art Therapy Grant) and etTA positions which augment the staff
of the program. A separate audit is required and underway for thin aspect
of the bay Care program. Once completed, the findings will be submitted
to you.
The last issue of auditing the entire Department of Citizen Services
requires a policy decision. The accounting firm of peat, Marwick and
Mitchell, Inc., was asked if they could audit the Department of Citizen
Services. Their response was yes, but they felt that the City's cost
would be astronomical. If the City's Division of Internal Audit performed
the audit, it would take at least 10 months, depending upon the scope of
the audit and the condition of the records. It should be noted, also,
that if the Division of Internal Audit performs the audit, other audits
that generate revenues to the City would have to be postponed.
Finally, some broad issues were raised regarding our budgetary and
accounting system. These issues relate specifically to the Day Care Pro-
gram and generally, to all federal and state grant-in-aid programs.
Firstly, our financial accounting and management system does not provide
a mechanism whereby charts of accounts can be maintained for each grant
on a fund/grant or program basis. The classification of accounts now in
use does not fully comply with governmental accounting, auditing and
financial reporting guidelines, nor with the new State of Florida require-
ments.
The work to remedy this problem has been underway for the last several
months and should require about two (2) weeks to complete. It should be
understood, however, that the new chart of accounts will not become
effective until October 1, 1978. The reason for this date is that cur-
rent accounting operations within the City would be put into turmoil if
there was not a planned conversion. The logical point occurs at the close
of the fiscal year, September 30, 1978. Inherent within this process
will be the assurance that the City can meet the need to provide the
grant accounting which has been sorely remiss in the past.
Secondly, our past system of budgeting did not properly appropriate grant-
in-aid funds. As a result, budgets were not properly authorized, com-
puterized or monitored, and grant-in-aid staffs were unable to obtain
budget status reports necessary to manage their programs.
To remedy this problem, the Department of Management and Budget will have
to do three things. The first is to legally authorize all grant-in-aid
programs by the passage of appropriate legislation. This process was
completed October 1977.
The next step requires the development of detail line -item budgets for
all grant-in-aid programs. This process has been underway since December
l9/7. Ohde coMpleted, it will interface with the few dharts bf addoUhts
and todil petit qtaht-ih-aid ptoqtams to obtaih budget and fiscal reports
Which ate necessary for good Mahagetent and cohtrol,
Inherent ih this press Will be the assurance that hew or ekittihg per»
sbhhel are added to the bepaktMeht of Management and budget to perform
this massive respohtibility,
tinder this neW systeM of accouhtihg, the departtentt With grants will
receive classification of accounts expressed ih terms of each grahtts
reporting and accounting reguireMehtt. It will be the responsibility of
each department to code daily transactiong in order to ihput the ihforma=
tioh into the system. The monthly trial balances and reports will be
produced from that input, As a result, reporting and accounting respon-
sibilities will be transferred to the Finance bepartmeht's Grants Section
ih the Geheral Accounting bivision. Meanwhile, the Management and Sudget
beaprtment will prepare budget ordinances and input this information
directly into the computer after obtaining City Manager, City Commission
and agency clearances. The time frame for this action is scheduled for
operations October 1, 1978.
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its
eft of MIAMI. PI-oftIl5A
INTERhbrNIee MEMORANDUM
te: Howard V. Gary, Director
Department of Management and Budget
00
MfibM:
Sujan C Assit iant Director
Department 1/ a "t and Budget
for tnternaltAtldit Division
SCOPE OF AUDIT
bitt March 21, 1978 tiLt: 78 202
5ueutct. Child Day Care Program Audit
Period October 1, 1976 through
Septeimber 30, 1977 and October 1,
1977 through December 31, 1977
RtFtatMct9
tNCLOSURtt.
A. GENERAL INFORMATION
1. At the request of J.R. Grassie, City Manager, we have audited the Child
Day Care Program, administered by the City of Miami, for the fiscal year
1976-77 and the period October 1, 1977, to December 31, 1977.
2. All revenues available for use by the Child Day Care Program have been
identified. Each revenue source has been reviewed to determine if the
appropriate legislation was passed by the City Commission providing for the
use of said revenue by the Department responsible for administering the
Child Day Care Program.
3. The purpose of this audit was to examine the revenue and the expenditure of
funds associated with the Child Day Care Program. Our review of
anticipated revenue and expenditure covers the fiscal years 1976-77 and
1977-78. Examination of the revenue and the actual expenditures is limited
to the fiscal year 1976-77 and the period October 1, 1977, through December
31, 1977.
4. The funds for the Child Day Care Program are provided by the Federal
Revenue Sharing Fund, Florida State Community Affairs, United States
Department of Agriculture Food Reimbursement (U.S.D.A.) and Day Care fees.
However, only the following funds were appropriated by the City
Commission:
Source of
Funds
Ordinance or Fiscal Year Fiscal Year Period 10-1-77
Resolution No. 1976-77
Federal Revenue Res. 76-945 $300,000.00
Sharing Fund
ft
e1
ft
Ord. 8713
Ord. 8722
Res. 77-971
Res. 78-36
F1. State Comm.
Affairs Grant Res. 76-1138 $ 45,000.00
345,000.00
1977-78 to 12-31-77
$ 17,750.00
17,750.00
17,750.00
159,750.00
$17,750.00
17,750.00
17,750.00
213,000.00 53,250.00
City of Miami
Department Of Management and Budget
Division of ltiteraal Audit
toward V. Cary
W _P. A IT (Cb_tid).
5. the 197647 Adopted Budget and the 1977=78 Budget Estimate ithply that the
revenues mentioned in item # 4 above were to be used for the Operation of
the Child Day Cate program. t)ndet this program, day care is provided
between the hours of 7:00 a.m. and 6:00 pan. for preschool age children
Of working parents residing within the City of Miami. Day Care services
are provided at the following facilities:
March 201 1978
Eaton Park
Moore Park
Shenandoah Park
B. PAYROLL.
1. Day Care centers maintain employee attendance sheets and send carbon copies
to the Day Care Administrator. Based on these records and its own records
the Administrator's Office prepares a consolidated tithe sheet and forwards
it to Joe Owsiak, Assistant Director, of the Citizen Services Department
for inclusion in the payroll of the whole Department.
C. DAY CARE FEES
1. The City Code Section 39-16.1 provides for fees based on yearly gross
family income, to be charged for the use of Child Day Care facilities. The
current fee schedule was authorized by Ordinance No. 8682 which was passed
on July 28, 1977, and became effective from August 1, 1977. The fees
charged upto July 31, 1977, ranged from a minimum of $2.00 to a maximum of
$35.00 per child per week. From August 1, 1977, the scale of fees was
revised to a minimum of $7.50 and a maximum of $35.00 per child per week.
The fee for the second child shall be half the fee for the first child. For
the third child and all additional children, the fees shall be half the fee
for the second child. The old and the revised scales of day care fees are
shown on the attached exhibit A.
2. The fees are collected weekly on the first working day of the week. If
fees remain unpaid for two weeks, a written reminder requesting prompt
payment is sent to the parents of the child concerned. A final reminder is
sent after the fourth week if payment is still delinquent. A copy of this
final reminder is sent to the Accounts Receivable Division of the Finance
Department. Thereafter, the child is not permitted to return to the center
until all outstanding fees are paid.
D.
U.S.D.A. FOOD REIMBURSEMENT PROGRAM
1. The cost of food consumed by the children at the Child Day Care Centers is
partially reimbursed by the Florida Department of Education under its Food
and Nutrition Management Program. The reimbursement rates per meal
applicable to the period under review are as follows:
Oct. 1976
Dec. 1976
Breakfast $ .2877
Lunch .6843
P.M. Supplement .1611
Total $ 1.1331
Jan. to
June 1977
$ .2952
.6990
.1667
$ 1.1609
July to
Sept. 1977
$ .3092
.7311
.1743
$ 1.2146
Oct. to
Dec. 1977
$ .3370
.7882
.1923
$ 1.3175
'pt bpAUbit (Obit ' d
b. .8.ti:At'OOD REIMBIASBMENT PROGRAM CONV
2. The contracts for the supply of Meals to the three Centers for the
periods dune 1, 1976 to May 31, 1977, and dune 1, 1977 to May 30, 1978,
were awarded to the Marriott Corporation and Dietcraft tte. ih
accordance with Resolutions 176..582 and 77..449 adopted on dune 9, 1976
and May 19, 1977 respectively, as follows!
Marriott Corp.
Jytie 1, -1976 ' ._May ,_3.1,µ1977
Breakfast $ .33
Lunch .60
B.M. Supplement 619.._
Total $1.12
Dietcraft Inc.
$ .25
.75
.19
$1.19
3. To claim reimbursement for disbursed food, the City is required to
maintain, in addition to other records, the following records:
a. An attendance record of children enrolled daily.
b. The number of meals actually served to children by type of meal.
c. The daily number of meals served to adults by type of meal.
4. Each month Child Day Care Centers are required to request reimbursement
for meals served to children. This is accomplished by completing form
ESE 185 which includes the number of meals served and the cost of these
meals. These forms are submitted to the Day Care Administrator who in
turn prepares a consolidated claim on the monthly reimbursement voucher
(form ESE 367). These forms must be received by the funding source no
later than the tenth of each month. The maximum number of meals
approved for reimbursement at the three centers is as follows:
Breakfast Lunch P.M. Supplement
135
135
ft
All three centers FY 76-77 135
ft
FY 77-78 80
135
135
E. FLORIDA STATE COMMUNITY AFFAIRS GRANT
1. For FY's 77 and 78 the City was awarded Florida State Community Affairs
Grant of $45,000 in each year to operate the Child Day Care Program.
The amounts of $45,000 to be received in each fiscal year were
scheduled to be received in twelve (12) equal installments.
2. Clause No. 6 of the Grant Agreement requires the submission of the
following reports to the Florida State Community Affairs.
a. A monthly financial statement within ten days of the end of the
month.
b. A quarterly program status report within fifteen days of the end of
the quarter.
c. An annual audit report covering contract funds, program compliance
and administrative capability within 120 days of termination of the
agreement.
3. The City is required to match this program with funds from its annual
Federal Revenue Sharing allocation.
F. FEDERAL REVENUE SHARING FUND
1. A major portion of the funds needed to operate the Day Care Program are
appropriated from Federal Revenue Sharing Fund.
.. 003Wevxmdn,,w,w. kosK to 1.av: :k . s "a"4F> Altv. : `?dt' "
City of i iatii W
bepattmettt of Management and $udget
bivisiati of internal Audit
toward V. Gary
tI:MIT PROC bUBES
March 20 i 1918
Ai ptisttMt
1. Pertinent records of the following Impartments have been ocamined.
a. Citizen Services (formerly Office of Comunity Affairs)
b. Finance
c. Management and Budget
2. The following personnel were contacted for information:
Name Department
R. W. Parkins Citizen Services
J. Owsiak Citizen Services
W. Black Citizen Services
R. Chandler Citizen Services
J. A. Ellis Citizen Services
V. Hamilton Citizen Services
D. Johnson Citizen Services
C. Garcia Finance
M. Merritt Finance
J. Baldwin Management and Budget
3. A test for compliance was administered relative to the usage of the
annual $45,000 State of Florida Community Affairs Grant Award and the
U.S.D.A. Food Reimbursement of $32,864.81 and the budgeted $27,000 for
fiscal years 1976-77 and 1977-78 respectively.
4. A comparison was made between:
a. Budgeted appropriations and expenditures for fiscal year 1976-77.
b. Budgeted appropriation and expenditures covering the period of
October 1 through December 31, 1977.
5. The Budget was evaluated in terms of the cost per child.
B. PAYROLL
1. Attendance records of the Child Day Care Centers were examined.
2. Time worked, by the various employees was traced to the Payroll Register
and Detailed Earnings Reports of the Finance Department.
3. Detailed Earnings Reports were verified to the computer expenditure
reports.
4. We verified whether part-time employees enjoyed benefits such as paid
vacations.
.dity a Miami
b artmettt of Managetent and Budget
Di `jaititt of ihtetnal Audit
Mswatd fir cam,5�
AUDIT PROCEDURES ,CONT!D
C. DAY CARE FEES
1. The auditors verified whether:
Match 20, 1918
Fees charged were correct based on the gross family incomes as
provided in the City Code Section 39-16.1. Revised fees were
charged from August 1, 1977, to the present.
b. Procedures for the recovery of past due fees were fully and
properly implemented.
Total amount of fees collected for the period October 1, 1976,
through December 31, 1977, was deposited in the City Treasury.
2. Fees collected were reconciled with the records of the Finance
Department.
D. U.S.D.A. FOOD REIMBURSEMENT PROGRAM
1. Monthly reimbursement requisitions were examined to determine whether
the completed requisitions prepared by each center agreed with the
number of meals actually served to the children.
2. The records of the Child Day Care Centers were examined to determine
the following:
a. The number and names of children enrolled.
b. The daily number of meals actually served to children by type of
meal.
c. The daily number of meals served to adults by type of meal.
3. The auditors verified the extent to which:
a. The Day Care Administrator's Consolidated Report (Form ESE 367)
agreed with the reports (Form ESE 185) received from the Centers.
b. The number of meals claimed was correct and within the approved
limits.
c. The reports were filed on time.
E. FLORIDA STATE COMMUNITY AFFAIRS GRANT
1. The auditors verified whether:
a. Monthly Financial Statements, quarterly Program Status Reports and
annual Audit Reports were filed on a timely basis.
b. The City matched this grant with an equal amount from Federal
Revenue Sharing Fund.
Howard V. Gary -6- March 20# 1918
fir AUAIt,_PROCEfURES CONT'D
P. 1'EfERAL_REVENUF SHARING FUND
1. Resolution number 76'.945 for fiscal year 197641 and Otdinance nutbets
8713, 8722 and Resolutions Nos. 77=971 and 78-36 for fiscal year
1977=78 were examined to verify the appropriation of federal Revenue
Sharing Funds to the Child Day Care Program*
I...__,.AUDIT. FINDINGS
A. PAYROLL
1. The employee attendance sheets were not always properly and fully
completed and the following discrepancies were discoveredt
a. The times "in" and "out" for some employees were not entered on the
sheets. The employees were, however, paid for normal attendance.
This obviously defeats the purpose of maintaining the time sheets.
(See Recommendation # A 1)
b. In some cases the records revealed that employees were paid for
more hours than they actually worked. (See Recommendation # A 1)
c. The part-time employees are not entitled to paid benefits such as
vacations; however, records showed that part-time employees at
Shenandoah Day Care Center were paid for vacations. (See
Recommendation # A 2)
B. DAY CARE FEES
1. The revised fees for Day Care became effective August 1, 1977. For
those children enrolled on or after August 1, 1977, the revised fees
were applied. In the cases of those enrolled prior to August 1, 1977,
fees were not always adjusted to reflect the new rates. (See
Recommendation 11 B I)
2. The fees charged for Day Care service are based on gross family income.
However, in a significant number of cases, fees charged were lower than
the fees which were correctly due. It is possible that the fees in
these cases were assessed when the gross family incomes were low on
account of illness or lay-offs. Whenever errors were found, the
higher, correct fees were charged from a current date without
retroactive adjustments. (See Recommendation B 2)
3. The Auditors found several cases in which fees charged were based on
the amounts of gross family incomes supplied by the parents without
corroborative verification. (See Recommendation B 4)
4. When verifying fee collections against Revenue Report No. 8 (Code
017434) the auditors found some cases where the refunds were shown more
than once on the report. This resulted in erroneous totals, although
refunds were made correctly. The correct fee collections for the
fiscal year 1976-77 and the quarter ended December 31, 1977, should be
$52,607.66 and $14,842.86 instead of the Report number 8 totals of
$52,640.00 and $9,241.00 respectively. This results in over -statement
of Day Care Fees by $ 32.34 for Fiscal Year 1976-77. The Day Care fee
difference of $5,601.86 received in December 1977 appears on Reprot # 8
for the month of January 78. (See Recommendation# E 6 and Exhibits E
and F).
City 6f MIAMI
Mepartthent of Maiiagefetit and Budget
DiViaioh of itttethal Audit
Howard V. Oary
ill. AUt 1t VINDtNGS CONtD
$. 1bAY CARE, PEEB_CON'i!D
Match 20, 1978
5. According to the Adopted Budget for FY i976=77, the bay Cate Fee mount
of $15,000 was appropriated as revenue available to the General Fund.
However, Day Care Fee collections for FY 76-77 amounted to $52,607.66.
The difference of $17,607.66 between this amount and the original
appropriation was not properly appropriated for Day Care or any other
purpose (See Recommendation 11 E 21 E 7)
6. Carlos Garcia, Assistant Director of Finance, informed the auditors that
the total amount of Day Care Fees received for the FY 197677 was
reclassified and made available to the Child Day Care Program, via the
Federal Revenue Sharing Fund. While this reclassification did serve the
purpose for which the fee amount should have been made available, it
contradicted the Budget Document and the City Charter which states that
all funds must be appropriated by Ordinance (Section 34). (See
Recommendation /t E 7 A)
7. The auditors found that the patents of some Day Care participants live
outside of the City limits (See Recommendations 4E B 6).
C. U.S.D.A. FOOD REIMBURSEMENT GRANT
1. For the month of August 1977, the Food Reimbursement voucher was
prepared only for meals provided at the Eaton Child Day Care Center
instead of all three centers. This resulted in an under -reimbursement
in the amount of $1,910.81 as follows:
Meals
Breakfast
Lunches
No. of meals
Provided at all Rate
Three Centers
1,380 $ .3092
2,581 .7311
P.M. Supplement 2,485 .1743
Total Reimbursement Due
Less reimbursement received based
on meals provided at Eaton only
Amount of Reimbursement not received
(See Recommend tion 41 C 1)
Amount
$ 426.70
1,886.97
433.14
$2,746.81
836.00
$1,910.81
2. For the months of August and September 1977 the City was entitled to
$5,713.81. However, only $3,803 was actually claimed and received as of
December 22, 1977. Furthermore, the $3,803 was miscoded to the wrong
account which could not be verified. The amount of $3,803 was received
late by the Finance Department and was not accrued on a timely basis.
As a result, the assets and revenues were understated (See
Recommendation 11 E 5). (See Exhibit F for $5,713.81)
�idw4YR�:sx'mkt_+vs� K a4:.»:wry+ o-nr��>.z'S�t�If±:SKa'tfi
August, 1977
September, 1977
Correct Amount Amount Received Difference
Due
$ 2,746.81
2,967.00
Total $ 5,713.81
$ 836.00 $ 1,910.81
2,967.00 -0-
$ 3,803.00 $1,910.81
Itowatd V. Gaty
March 20, 1978
111. AUDIT_kINDINGs (COMTD)
C. U,S.b.A., Y60D_,WMPORSEMENT Gg2AN (Cbt TD)
J. An amount of $9,205.03 representing food PeiMburseinent claims for the
of October, tbvelnber and December, 1971 had not been received as of March
7, 1978. (See Recommendation #E-1) (See Exhibit X).
4. The anticipated food reirnburseMent amounts of $27,307 and $27,000 for FY
1976=77 and FY 1977-78 have been treated as revenue available to the General
Fund as per udget bocUMents (See Recommendation #E2).
5. Carlos Garcia, Assistant Director of the Finance Department, informed us that
the U.S.b.A. Reimbursement Graht of $27;307 (shown as Miscellaneous Revenue
Matching Grant Fund, for the FY 1976-77) was reclassified and made available
to the Child Day Cate Program via the Federal Revenue Sharing Fund. Although
this reclassification did serve the purpose for which this amount was inten-
ded, it contradicted the Budget Document. (See Recommendation #E7A).
6. There were discrepancies between the number of children actually present and
served with meals as reported by the Centers to the Child Day Care Adminis-
trator's office and the numbers for which the Administrator's office claimed
reimbursement. (See Recommendation #C2). (See Exhibits-N, 0, and P).
7. In most cases the reimbursement claims were based on higher numbers of
children than were actually present and served with meals as shown by the
enclosed Exhibits N, 0 and P. (See Recommendation #C2).
8. The cost of food served at the Day Care Centers was $38,954.77 and $10,247.55
for FY 1976-77 and the period October 1, 1977, through December 31, 1977
respectively as shown on exhibits L-1 and L-2.
9. The cost of lunches eaten by Day Care employees is borne by the City.
Exhibit M shows the number of lunches served to Day Care employees which
totals 10,204. The Auditors were unable to determine whether Day Care
employees are entitled to free lunches. If one assumes that an average
lunch cost 68 then the cost to the City for these lunches equals $6,800.00.
D. FLORIDA STATE COMMUNITY AFFAIRS GRANT
1. The Annual Audit Report for the year ending September 30, 1976, was filed
in May, 1977 and the Annual Audit Report for the year ending September 30,
1977, had not been filed as of March 9, 1978. (See Recommendation #D1).
2. On March 9, 1978, Mr. Earl Billings, an employee of the State of Florida,
stated that he had not received the following reports:
(a) The monthly financial reports after the month of June, 1977.
(b) The quarterly program status report for the quarter ended September
1977.
(c) The Annual Audit Report for fiscal year 1976-77. (See Recommendation
#D1) .
City of Miati
bepartfnent of Management and Budget
biVision of internal Audit
Howard V. Gary -9- March 20, 1978
Ili. AUDIT FINbtt4GS (CONTD)
b. FLORIDA .,St -ATE ...COMMUNITY AFFAIRS. _GRANT (contd)
3. According to Mr. Billings, failure to file these reports has placed
this grant award in jeopardy of being terminated. The grant award
amount of $18,750.00 covering the months of October 1976 to February
1977, was received on February 14, 1977, and was wrongly coded to the
State of Florida handicapped Program. (See RecoM endations # Di, D2,
E3, Exhibit F).
4. The grant amount of $11,250.00 covering the period October 1, 1977, to
December 31, 1977, had not been received as of March 9, 1978. (See
Recommendation D1).
5. Cases were found in which one check for the payment of two or more
monthly installments was received instead of a separate check for each
month as stipulated in the grant agreement. There seems to be no follow-
up action to insure prompt receipt of grant installments (See Recommen-
dation #E3).
6. The Florida State Community Affairs grant of $45,000 for FY 76-77 was
used for the Child Day Care Program, but was not properly appropriated.
E. FEDERAL REVENUE SHARING
1. For FY 76-77, $300,000 of Federal Revenue Sharing Funds were allocated
to Day Care; however, no detail line item budget by object of expen-
ditures was prepared. The amount allocated to the Child Day Care Pro-
gram for the FY 1976-77 was transferred to the Program from the Federal
Revenue Sharing Fund at the end of the fiscal year instead of at the
beginning of the year.
F. GENERAL FINDINGS
1. Generally, the Department of Citizen Services was not able to provide
financial information in auditable form and the information required by
the Division of Internal Audit was not readily available. Financial
reports were mixed with program details of non -financial nature.
Financial records were in such poor condition that they had to be con-
structed before the audit could begin. The Department of Citizen Services
employees were not even aware of the existence of documents like budgetary
details of the various programs. The condition of the records was so poor
that the management could not use them for the purpose that they were intended
i.e., decision making and control.
City of Miami
bepartment of Mahage!eht and Budget
Divisioh of Internal Audit
Howard V. Gary Rio=
F. Gt%5 ,_FINDINGS (COMM
2. Schedules have been prepared to show the excess
tares and the average cost pet child associated
for the period October 1, 1976 through becetnber
(a) Excess of Revenue
over Expenditure
(b) Average Daily
Cost per Child
(c) Average Annual
Cost Per Child
(See Exhibit I and J)
March 20, 1978
of revenues Over ekpendi
with the Day Care Prograh
31, 1977, as follows:
FY 77
$62,728.47 Exhibit I
12.47
3,067.62
10-1 77-12'31,77
$745.49
11.87
3. A general reconciliation of budgeted revenues for the period October 1,
1976, through December 31, 1977, is shown on exhibits C and D.
IV. RECOMMENDATIONS
A.
B.
1.
PAYROLL
1. The employees' time records should be properly completed. Upon receipt
of the time records in the Administrator's office, they should be carefully
examined for accuracy. (See Audit Findings #A1(a) & (b)).
2. Part-time employees should not be granted paid vacations for which they
are not entitled. (See Audit Finding Al (c)).
DAY CARE FEES
The Citizen Services Department should ensure that the revised Day Care fees, as
approved by the City Commission, are charged to all children. (See Audit Finding
#B1).
2. The Citizen Services Department should seek advice from Law Department regarding
legal propriety of collecting, with retroactive effect, the difference between the
revised fees that should have been charged and the fees actually charged. (See
Audit Finding Bl).
3. In view of the large number of discrepancies found in the amounts of fees
due and those actually charged, the fee recommended by the Social Service
should be carefully examined in the Day Care Administrator's office. (See
Finding #B2).
correctly
Worker
Audit
4. The children's files should provide a complete record of enrollment, gross family
income, rates of fees, payment of fees, past due payment and absences from the
Center.
1
dr-
City of Miami
bppertmettt of Mahagemetit acid Budget
biVittiOn of internal Audit
Howard V. Gary
RECOMMENDATIONS CONY b
B. DAY CARE FEES CONT' b
r im- March 20, 1078
5. Before a child is accepted at a center, the parents should be required
to produce corroborative evidence of their gross family income, such as
an employer's certificate or an ineome tax return. (See Audit Finding
fit 3).
6. Parents should be required to file a report of the gross family income
and corroborative evidence on or before October 1, of each year. The
fees should then be reviewed by the Day Care Administrator for
verification of gross family income (See Audit Finding tt B 3.)
7. The Day Care facilities provided by the City are primarily for the use
of residents of the City of Miami. The records of all children using
the City of Miami facilities at present should be examined and the
parents of non -City children should be advised to make alternative
arrangements for their children. The vacancies resulting from this
action should be alloted to City of Miami children on the waiting
lists. (See Audit Finding # B 7).
8. It is recommemnded that the day care fees for fiscal year 1977-78
should be removed from the General Fund revenue and placed in a Trust
and Agency Fund for Day Care.
C. U.S.D.A FOOD REIMBURSEMENT PROGRAM
1. An amended Food Reimbursement voucher in the amount of $ 1,910.81
should be submitted for the month of August 1977. (See Audit Finding It
C 1)
2. Claims for food reimbursements should be based strictly on the actual
number of children served meals at the centers. (see Audit Finding C6,
C7 )
D. FLORIDA STATE COMMUNITY AFFAIRS GRANT
1. The Director of Citizen Services should ensure that all monthly,
quarterly, semi-annual or annual reports required by the Federal, and
State agencies, are filed on a timely basis in accordance with the
terms of the related agreements. (See Audit Findings it D1, D2, D3, D4)
2. The Finance Department should reclassify the amount of $18,750. to the
Child Day Care Program. (Finding 4t D 3)
E. GENERAL RECOMMENDATIONS
1. If payment is not received within a reasonable period of time after
submission of the appropriate documents, the Directors of Citizen
Services and Finance should follow-up to ensure prompt payment.(See
Audit Finding # C3).
2. The following revenues, which should have been appropriated to the
Child Day Care Program were actually appropriated in the General Fund
for General Fund purposes:
1
City of tiai
bepatt ►efit of MatSagehent and Budget
biviaion of interttai Audit
t#otaatd V. l aty
E 4ERAtJ 1COmmENbAflOt4S._ CoNt b
(a) 'oe..PYL1076 71
12� Match 20, 10ia
(i) bay Care Fees $ 15,000.00
(ii) U.S.D.A. Reimbursement Grant
Total _$_,. 42., 307._00
(b) Pot FY. 1.9.77
(i) Day Care Fees $ 86,250.00
(ii) U.S.D.A. Reimbursement Grant ,27,000.00
Total $111.,250.00
However, equal amounts have been made available to the Child Day Care
Program from Federal Revenue Sharing Funds. To completely satisfy the
purpose and intent of the Day Care Fees, U.S.D.A., reimbursements and
Florida State Community Affairs Grant, these revenues should be
appropriated and expended for the Child Day Care Program. The City
should change its practice of utilizing dedicated funds for specific
purposes as revenue available to the General Fund. Dedicated funds
should only be used for the purpose which they are intended. (See
Audit Finding # B 5, C 4, E 1)
3. The Finance Department should give serious consideration to the
establishment of accounts on a fund/grant or program basis. These
steps will help accurate and efficient management of the
grants/programs and timely completion of all allied reports, which will
help improve the City's cash flow. (See Audit Finding D3, D5)
4. The Finance Department should revise their method of recording revenue
receipts and refunds on the computer reports to avoid duplications and
coding errors.
5. The Finance Department should accrue as of September 30, 1977, a
reimbursement due the City from U.S.D.A. in the amount of $ 5,713.81.
(See Audit Finding 'l C 2)
6. The Finance Department should make the appropriate adjustment for the
$ 32.34 over statement of Day Care revenues. (See Audit Finding 4l B4)
7. If and when actual revenue receipts exceed the anticipated revenues,
the department head (s) concerned should notify the Department of
Management and Budget so that the appropriate actions can be taken.
(See Audit Finding 41B 5)
7—A Any corrections necessary to the budget document should be done by
Ordinance. (See Finding B 6, C 5)
1
City of Miami Or"
Department of Mariegemeft and Budget
bivibioh of internal Audit
IoWArd V Gary -IS- Match 20, 1078
tV4 It oM1010AfiIONS ON P
E. GE14EI4 BECOOtENbATIoNs CONT'b
8. It is recommended that the Department of Human Resources evaluate the
qualifications of all bay Care employees to insure compliance with job
specification.
9. A Grant Management Unit in the Department of Management and Budget
should be established for the following purposes:
a) To insure that funds are expended in accordance with grant
regulations.
b) To insure that grants are expended in accordance with City policies
and procedures.
c) To insure that funds are properly appropriated.
d) To insure that periodic reviews are made to minimize the misusage
of grant funds and to insure that programs achieve their goals.
e) To insure the centralization of budget management responsibilities.
10. A grant accounting section should be established in the Finance
Department. All grant accounting should be performed in this unit in
accordance with federal and generally accepted accounting procedures.
All accounting, regardless of funding source, should be performed by
the Finance Department and not by grant programs. The responsibility
for requesting, receiving and disbursing grant funds shoud be handled
by this new grant accounting section of the Finance Department.
11. To staff the Grant Accounting and Grant Management Units in the
Department of Finance and Management and Budget, it is recomended that
existing grant resources in all Departments dedicated to budget and
finance functions should be transferred to the Department of Management
and Budget and Finance. Furthermore, it is recommended that provisions
be made in all grant applications and budgets for periodic audits as
deemed necessary by the Internal Auditor of the City of Miami. These
resources will either be used to augment the staff of the Internal
Auditor or to obtain outside audit expertise.
cc: J.R. Grassie
R.W. Parkins
G. Knox
J.E. Gunderson
Audit File
Reader File
kibit A
City of Miami
Internal Audit
Departheflt of Mahagernent and budget
s
Schedule of Fees for Use of
Child Day Cafe Facilities
Pees Applicable
thru 4141Y 31, 1977
Yearly Gross
Family Income
$ 0-4,200
4,201-4,999
5,000-7,499
7,500-8,999
9,000-12,499
12,500-14,499
14,500-15,999
16,000-16,999
17,000-17,999
18,000-18,999
19,000-19,999
20,000-24,999
25,000-29,999pg
35,00u-an�9above
One Child
Weekly
$ 2.00
3.00
5.00
7.50
10.00
13.00
15.00
17.00
19.00
22.00
24.00
26.00
23.00
37).00
3E.00
revised Fees
Ff fectiye August _1,. 1977
Yearly Gross One Child
Family_„ _Income Weekly,
$ 0- 4,999
5,000- 7,999
7,500- 8,999
9,000-12,499
12,500-14,499
14,500-15,999
16,000-16,999
17,000-17,999
18,000-18,999
19,000-19,999
20,000-24,999
25, 000-29 , 000
30,000-34,999
35,000- and above
$ 7.50
8.50
9.50
11.00
13.00
15.00
17.00
19.00
22.00
24.00
26.00
28.00
30.00
35.00
1
City of Mia►i
tnterna Audit (bepartti►ent of Manager eht and Budget)
Child bay Cate Program
10=01476 thru 9.-3047
Reconciliation of Budgeted_ReVenues
Federal ReVenue Sharing
Resolution #76-945
Florida State Community
Affairs Gtant
Resolution #76-1138
Day Care Fees
U.S.D.A. Food Reimbursement
Agreement No. 576
Budgeted Adjustments Revised
$300,000.00 $ - $300,000.00
45,000.00 45,000.00
Total Revenues $345,000.00
52,607.66 52,607,66
32,864.81 32,864,81
$85,472.47 $430,472.47
EkNiStti-b
City of Miami
internal Audit (DepartMent et ManageMent and budget)
Child by CAM Program
10.-0107 thru 12=31.47
1eeonc.ili4ion_Pf_tUdgeted ReVerlues
Federal Revenue Sharing
Ord. #8713, 8722 and
Res. #77=971
Florida State Community
Affairs Grant
Res.#77-797
Day Care Fees
U.S.D.A. Food Reimbursement
Agreement No, 576
Budgeted
$53,250.00
Total Revenues $53,250..00
Adjustments Revised
$51,250.00
11i250,00 11,250.00
14,842.86 14,842.86
9,205.63 9,205.83
$35,298.49 $88,548.69
tgittRIT-t
city of Miami
Internal Audit (DepartMent of ManageMent and budget)
child Day Care PrograM
1O-01.47 thru 12-3147
Reconciliation of Actual_ReVenUes
Federal Revenue Sharing
Florida State Community
Affairs Grant
Day Care Pees
U.S.D.A. Food Reimbursement
Total
Received
$53,250.00
9,241.00
$ 62049140
Adjustments
11,250.00
5,601.86
9,2°5.63
Adjusted
$ 53,250.00
11,250.00
14,842.86
9,205.63
$ 26,057.49 $ 88,548.49
tkRititAt
internal Audit (bepartMent of Mahatlemeut And Budget)
CITY OF MIAMI
CH= t tAkt PRO-0AM
thru
RECONCrttATION OP ACTUAL REVENUES
Federal Revenue Sharing
Florida State Community
Affairs Grant
Day Care Fees
U.S,D.A. Food Reimbursement
Total Revenues
gECEZVED ADJUSTMENTS ADJUSTDD
$300,000.00 $300,000.00
26,250.00 18,750.00 45,000.00
52,640,00 ( 32.34 ) 52,607,66
27,151.00 5.713.81 32.884.81
$408,041.00 $24,431.47 $430,472.47
• +I
1
1
3 [1ti1T,,d
lntetial Audit (DepartTeht of Managetheht and Budget)
City of Miami Child bay Cate rot
tXpenda ttires
10-01 16 thru 9‘.30=77
Personal Services:
Salaries (1) 273,496
Serverance - 69 273,565
Contractual:
Postage 247
Telephone 1,100
Light & power 4,689
Motor Pool 2,109
Print Shop 1,460
Repairs - Equipment & Supplies 746
Special Services - Miscellaneous 29
Travel 1,583 .
Rentals 6,093
Miscellaneous 497 18,553
Commodities:
Book Publications 1,154
Cleaning Supplies 1,594
Clothing 215
Construction Materials - Building 191
Special Supplies (Food) 37,154
Medical Supplies 76
Office Supplies 2,305
Special Supplies 2,459
Miscellaneous 2,641
Fixed & Sundry Charges:
Social Security
Group Insurance
Retirement System
Unclassified
Equipment
Total Expenditures
47,789
15,761
3,051
6,895
15 25,722
2,115 2,115
Note (1): Amount shown for salaries does not include
salaries and wages of CETA employees.
367,744
tkiliSiTAM
City of Miaciii
1ntetnal Audit (bepartitent of Managefheht and Budget)
Child bay Care Ptogratti
Skpend iture s
10-0177 thru 12-31-77
Personal SetVicest
Salaries (1)
Personal Services - Miscellaneous
Contractual:
$65,815
85,0 $66,665
Postage $ 15
Telephone 208
Motor Pool 102
Print Shop 437
Repairs - Equipment & Supplies 373
Rentals 1,740
Miscellaneous 599 $ 3,474
Commodities:
Publications & Memberships $ 26
Cleaning Supplies 594
Construction Materials - Building 275
Food 10,413
Medical Supplies 165
Office Supplies 265
Special supplies 399
Miscellaneous 720 $12,857
Fixed & Sundry Charges:
Social Security
Group Insurance
Retirement System
Unclassified
Total Expenditures
$ 3,322
473
1,003
9 $ 4,807
$87,803
Note (1): Amount shown for salaries does not include
salaries and wages of CETA employees.
1
Average Daily Attandance
(29,486 - 738)
tAlltataf
Internal Audit (bepartt ent _ot Management and Budget)
City of Miami Child bay Care Program
kevenue txpenciiturea And Statistical bata
10=01-76 thru 9=30-77
tXcess _bf ge.Venue
Over,txpehd.itures
Revenue (EXHIBIT-P)
Expenditures (EXHIBIT-G)
Excess
Statistical Data
Number of Day Care Centers
Number of Operating Days
(each center) 246
Total Operating Days
(3 x 246) 738
$ 430,472.47
i67,.244.00
$ 62,728.47
3.
Total Children Served
(all centers/all operating days) 29,486
40
Average Daily Cost per child
Expenditures - Total Children Served $12.47
($367,740 29,486)
Average Annual Cost Per Child
(246 x $12.47)
$3,067.62
(1) Partial reimbursement of food costs from the state of Florida
in the amount of $32,864.81, is included in Revenue.
4V t"O *t t6r by q` ° n i r_p:`° V, , �i ;:..
tMlitEiffitt
City of Miami
thtettal Audit (bepattmeht of Management and budget)
Child bay CAte Program
Revenue txpenditutesioand Statiatidal beta
1°4)1-77 thru 12-1-77
tkoess of Revenue
Over_150hditutes
(1) Revenue (EXHIAIT-t)
Expenditures (ExEntT-14)
Excess Revenue
Statistical Data
$88,548.49 •
87,80340
$ 745.49
Number of Day Care Centers 3
Number of Operating Days
(each center) 60
Total Operating Days
(3 x 60)
Total Children Served
(all centers/all operating days)
Average Daily Attendance
(•7,396'..- 180)
180
41
1.verage Daily Cost per child
Expenditures s. Total Children Served
($87,803 * 7,396) $11.87
(1) Partial Reimbursement of Food Costs from The State of
Florida in the amount of $9205.63, is included in Revenue.
1•41.
61.
1
City Of Miati
internal Audit (bepartment of Managetneht and tudget)
Child bay Care program
Food Reimbursements
10=01=-77 thru 12=31-77
Name
_Of_ Rate of 'Total
Month Menu Quantity_ Reimbursement Amount Amount
October 77 Breakfast' 1520 x.3370 $ 512.24
Lunch 2565 x.7882 2,021.73 i
P.M. Supp. 2451 x.1923 471.33 $ 3,005.30
November 77 Breakfast 1600 x.3370 $ 539.20
Lunch 2631 x.7882 2,073.75
P,M. Supp. 2511 x.1923 482.87 3,095.82
December 77 Breakfast 1555 x.3370 $ 524.04
Lunch 2641 x:7882 2,081.64
P.M. Supp. 2594 x.1923 498.83 3,104.51
Total Reimbursement due. $ 9,205.63
. i.
CITY OF MIAMI
INTERNAL AUDIT
DEPARTMENT oF MANAGEMENT AND BUDGET
CHILD DAY CARE PROGRAM
FOOD RECEIVED
PERIOD 10-1-76 TO 9-30-77
MARRIOTT CORP. 6/77-9/77
10/76-5/77
E
{NAME OF CENTER
EATON 165
1,995. $.25 $ 498.75 $ 2,128.95
Lunchfast 4,940. $.330 $ 1,630.208918.55
9,368. .60 5,620.0 4,397. .75 3,297.75 8,
PMh3,287. .19 624.53 1,962.12'
P.M. Supplement 7,041. .19 1,337.79 4,421.03. 13,009.82
SUB TOTAL 0,588.79 81
MOORE 165
5,020. $.33 $ 1,656.60 2,835. $.25 $ 708.75 S 2,365.35
4,453. .75 3,339.75 8,895.15
9,259. .60 5,555.40
7,380. .19 1,402.20 3,770. .19 716.30 2,118.50
SUB TOTAL 8,614.20 4,764.80, 13,379.00
EXRIB.IT-L-1
DIETCRAFT, INC.
10/1/76 - 9/30/77
Breakfast
Lunch
P.M. Supplement
NO. OF SCHOOL NO. OF SCHOOL TOTAL AMOUNT
81
DAYS QUANTITY RATE AMOUNT DAYS
QUANTITY RATE AMOUNT
SHENANDOAH 165
4,140. $.33 $ 1,366.20 1,215. $.25 $ 303.75 $ 1,.669.95
Breakfast Lunch 9,412. .60 5,647.20 4,289. .75 3,216.75 8,863.95
P.M. Supplement 7,360. .19 1,393.40 3,335. .19 633.65 2,032.05,
4,154.15 12,565.95
SUB TOTAL 8,41.1.E10
$13,3339.98 $ 38.954.77
TOTAL
$25,614.79
81
tkitititAL4
City of Fiial i
internal Audit (bepatt tent of Ma tagetnent and budget)
Child bay Care Pfoe at
Food tzeceiVed (Bietetaft_Inc.)
io= 01a77 thru 12-31-77
Matte bf Center No. of School_.,bays Quantity state Amouht
Nation 60 1475 $ .25 $ 368.75
3185 .75 2,388.75
2320 .19 440.80
Sub Total 3,198.30
Moore 60 . 2300 .25 575.00
3515 .75 2,636.2S
2925 .19 555.75
Sub Total 3,767.00
Shenandoah 60 900 .25 225.00
Sub Total
3405 .75 2,553.75
2650 .19 503.50
3,282.25
Total $10,247.55
XiBit=M.
internal Audit (bepatt►ent of Management and Budget)
City of Miami
Child bay Cate Program
10.0146 thru 12-31=77
Number of lunches served to bay Care employees
Month Quantity
December 1977 600
November 1977 635
October - 1977 .539
1774
Total
September - 1977 641
August - 1977 560
July - 1977 646
June - 1977 602
May - 1977 766
April - 1977 622
March - 1977 803
February - 1977 665
January - 1977 711
December - 1976 727
Ncvember - 1976 846
October - 1976 841
Total 8.L_•i30
Totals
10,204
et
to •
• • $
Month
tXHItiTAN
CITY OP MIAMI
INTEANAL =IT
b8PARTMENT OP MANACEM8NT ANO 8UbdET
CH= bAY dAftt PAOORAM
ANALYSIS OP FOOO RtIMtURStMtNTS tREADIVAST
Authorized for
Reimbursement
Applied fot Attendance to5
ReiMbursement the # of meals No of
(claim) served school
YIL.
December-77 1,680 1,555 1,555 21
November-77 1,600 1,600 1,600 .20
October-77 1,520 1,520 1,520 19
Total 4,800 4,675 4,675 60
September-77 2,835 1,640 1,550 21
August-77 3,105. 1,380 1,280 23
7u1y-77 2,565 1,615 1,615 19
7une-77 2,430 1,495 1,500 • ,18
May-77 2,835 1,745 1,725 21
April-77 2,835 1,575 1,575 21
March-77 3,105 1,935 1,905. 23.
February-77 2,565 1,710 1,710 19
January-77 2,835 1,887 1,890 21
December-76 2,835 1,765 1,755 21
Novenber-76 2,700 1,800 1,800 20
October-76 2,565 1,687 1,710 19
Total 33,210 20,234 20,015 246
Totals 38,010
24,909
24,690
306
Month
SXHiBifio.O
a
CITY OF MIAMI
tNTSANAL AUbiT
DSPAHTMENT OF MANAGSMENT AND $UbGET
CHILD PAY CASE FttO' ttAM
ANALYSts OF FOOD httMBURSEMSNTS Y LUNCH
Authorited for Applied for Attendance to No of
Reimbursement burse rent keitbursement the # of meals School days
December-77 2,835 2,641 2,371 ,21
November-77 2,700 2,631 2,603 20
October-77 2,565 2,565 2,422 19
Total 8,100 7,837 7,396 60
September-77 2,835 2,741 2,598 21
August-77 3,105 2,531 2,508 23
July-77 2,565 2,431 1,941 19
June-77 2,430 2,360 2,259 18
May-77 2,835 2,845 2,843 21
April-77 2,835 2,740 2,619 21
March-77 3,105 3,107 3,083 23
February-77 2,555 2,406 2,396 19
January-77 2,635 2,506 2,456 21
December-76 2,835 2,400 2,235 21
November-76 2,700 2,462 2,385 20
October-76 2,565 2,261 2,163 19
Total 33,210 30,790 29,486 246
Totals 41,310
38,627
36,882
306
C2Ty OF MXAMt
INTERNAL AUDIT
DEPARTMENT OF MANAGEMENT AND BUDGET
CHILD DAY CARE PROGRAM
ANALYSIS OF FOOD REIMBURSEMENTS
P. M. SUPPLEMENTS
Authorized for Applied for Attendance to Rio. of
Month Reimbursements Reimbursements * of meals served School Days
December-77 2,835 2,594 2,371
November-77 2,700 2,511 2,603
October-77 2,565 2,451 2,422
Total 8,100
7,556
7,396
21
29
19
60
September-77 2,835 2,619 2,598 21
August-77 3,105 2,485 2,508 23
July-77 2,565 2,431 1,941 19
June-77 2,430 2,360 2,259 18
May-77 2,835 2,845 2,843 21
April-77 2,835 2,739 2,619 21
March-77 3,105 3,069 3,083 23
February-77 2,565 2,406 2,396 19
January-77 2,835 2,506 2,456 21
December-76 2,835 2,414 2,235 21
November-76 2,700 2,462 2,385 20
October-76 2,565 2,261 2,163 19
Total 33,210 30,597 29,486 246
Totals 41,310
38,153 36,882 306
dire nt MIAMI, FLOtilbA
INTEf2•OPP1Ct MtMc RANbUM
te: J seph R. Grassi e
City Manager.
tft0
W. Parkins, Director
'Citizen Services Department
March 9, 1978
StIOJEC`..
PILE:
fEF Rl4CE3:Letter of Concern as to quality
and progress of Child bay Cate
ENCL0 U FS:Centers
The letter, above referenced, was presented to the City of Miami Commission
on February 23, 1978, and included fourteen (14) questions and three (3)
procedures for implementation.
The letter was provided to my administrative staff and the bay Care Adminis-
trator for response on February 27, 1978. Listed below are the responses
from my administrative staff; no response has, as of this date, been pro-
vided by the Day Care Administrator.
Question ill
Answer:
{Vhq do teachers work 40 hours and receive
pay for only 30 hours?
Teachers receive full pay for the forty (40)
hours worked. Teacher Assistants, Instructors
and Aides have always been part-time employees
entitled to work 30 hours per week, and paid
for those 30 hours. 0n those occasions where
the Day Care Administrator has decided that the
part-time employees are needed in excess of
the 30 hours, those employees are provided with
compensatory time for the hours worked in excess
of the 30 hours. This procedure, to my knowl edge, i s
identical to the practices employed when the
Day Care Program was contained within Parks and
Recreation. The Day Care Administrator and I
did request - and have recently received a Human
Resources Department audit that would provide
for some increase in the number of full-time
personnel. These new full-time positions,
however, cannot be filled until funds have been
identified. And, this process requires the kind
of in-depth operating budget detail and review
that we have been trying to accomplish for
some time. Basically, then, Teachers do not work
40 hours and receive pay for only 30 hours.
Page 1 of 6
Joseph lip Grassie
City Manager
Question N2
Answer:
Question ll3
Answer:
March 90 1 g,8
Ref: Letter of Concern as to
quality and progress of
Child Day Cate Centers
Why aren't supplies timely received when
needed instead of waiting sometimes 4 or
5 months for simple, basic supplies?
to our knowledge, supply requests have been
processed promptly. Equipment purchases had
been delayed or modified, if considered appro-
priate, while my administrative staff was at-
tempting to develop a form of inventory control,
This inventory control was considered essential
in order that we might ensure that our costs
to equip each Center were responsible and appro-
priate; so that we might determine what savings
could be identified in order to ascertain when
the new full-time positions discussed in question
N1 might be funded; and, to ensure that we re-
duced the tendency to order goods and equipment
without regard to that which is on -hand.
Why has the quality of care, guidance, teaching,
moulding (sic) and development of young,
inquisitive minds steadily diminished?
Changes in "quality" of service would be generallu
under the control of the individuals directly
responsible for the daily operations of the pro-
gram. We have requested a review of this issue
by persons believed to be knowledgeable with
Day Care Programs, and we are in the process
of conducting a "survey" of perception as part
of this review. The results of these efforts
should assist us in providing an objective
answer to this question.
Question ll4 Why don't the Centers have enough teachers?
Answer:
Paperwork required to fill any vacant positions
must originate with the Day Care Administration.
And, the paperwork Filling these vacant teacher
positions was first processed through the
Department's administrative offices on February
15, 1978. None of the three Centers have vacant
Teacher positions presently. Teacher/Client
ratios are recommended and maintained in accord
with state requirements. Day Care administration
is responsible for ensuring that these requirements
are met, and the Department's administration
has had no prior notification that we were ex -
Page 2 of 6
Joseph Rh Ctassie
City Manager
Question 1/5
Answer:
March 9, 1978
Ref: Lettet of Concet as to
quality and progress of
Child Day Care Centers
petiencinq any problem, in this regard. Certain
agreed vacancies may have been maintained during
a period when salary savings were being accumulated,
but this process was the responsibility of the
Day Care Administration. One group of fifteen
(15) Employee Requisitions, originally sub=
mi tted on May 31, 1977, was delayed due to..
"some ambiguity as to which were active and
which were not, " according to the Management and
Budget Department. Ultimately it was determined
that only two of the fifteen (15) requisitions
were valid, and these two were approved on
February 23, 1978, by Management and Budget.
lVhy do supervisors and teachers have such long
extended probationary periods thus lowering
morale, incentive and discouraging the employees?
To the knowledge of the Department Administration,
all employees have the same probationary period of
six (6) months. If there has been any extension
of this period, it has occurred without the knowledge
or approval of the Department.
Question 116 li'hy was the control and direction of the Centers
transferred to the Community Affairs Division (sic)?
Answer:
Question N7
Answer:
The transfer of the program occurred at the request
of the Day Care Administrator, firs. Robbie Chandler,
and the Director of the Department of Parks and
Recreation, Mr. Al Howard.
Why were the fees increased when most of the parents
have not had a salary increase in their jobs in
two or three years?
The Day Care Administration and the Administration
of the Department recommended the fee increase
after a comparison of fees paid at comparable pro-
grams. This "adjustment" was approved by the
City of Miami Commission and was the first change
in fees since 1974.
Page 3 of 6
Joseph R. Crassie
City Manager
Question f18
Answer:
March 9, 1978
Ref:
Letter of Concern as to
quality and progress of
Child Day Cate Centers
Why don't the Centers have transporation available
for field trips, as in the past in a bus, when
all the children went together, and were exposed
to a wide variety of learning experiences?
The Day Care Program was transferred from Parks
and Recreation with the same fifteen (15) passenger
van that the program had prior to the transfer.
Since the program has been within this Department,
an additional fifteen (15) passenger van has been
provided: Consequently, there should be adequate
transportation available. further, when arranged
by the Day Care Administration, busses can con-
tinue to be scheduled through the Parks and
Recreation Department as was done prior to the
program's transfer. Prior to now, we have no
knowledge that this was a problem.
Question N9 A. Why the Gestapo like tactics in the recent
audit of the Day Care Centers?
Answer: 9A The procedures followed were standard audit
practices. In addition, whenever there exists
a possibility of "records modi fications, " as
part of the audit concern, it would be in appro-
priate not to conduct the audit as implemented.
Question 1198 8. Children's medical records were removed thus
unnecessarily creating a potentially hazardous
and dangerous setting for children where special
instructions must be adhered to?
An:swer: 98 The Internal Auditors advise that some medical
records were unintentionally removed.
however, returned the same day.
Question 119C What were the results of the audit?
Answer: 9C
They were,
Estimates are that the audit will be concluded
on, or about March 14, 1978, consequently this
question cannot be answered at this date.
Page 4 of 6
1
ibseph R: Grassie
City Manager
Question 1/10
Answer: 10
Question 1111
Answer: 11
March 9t 1971?
Ref: Letter of Concern as to
duality and progress of
Child Day Care Centers
Where have the fees paid by parents since 1974
been appropriated? The fees were originally
earmarked for maintenance and supplies in the
Day Care Centers.
We have no knowledge of where "fees" might have
ended up prior to the transfer of the program
to our Department. Since the transfer, we have
ensured that the fees paid to the program are
used by the program by budgeting the fees for
program expenses. f•faintenance and supplies are
also budgeted items, so - while not specifically
earmarked as indicated the program, and only
the program, receives the benefit of the fees.
Money has already been appropriated for the ex-
pansion of the Centers, and yet the Administration
has cut back on supervisors, teachers, instructions
and aids, with the intent of expanding centers.
This item appears to be more a statement of
opinion rather than a question. Never -the -less,
the Department administration has has no involve-
ment related to cut backs of "supervisors, teachers,
instructions (sic) and aids." The departmental
administration has assisted the Day Care Adminis-
tration in establishing the means to expand the
existing centers, but again - the daily operational
responsibility for the Day Care program belongs to
the Day Care Administration.
Question 1112 When will the Community Affairs Division be audited?
Answer: 12
External Auditors have been in contact with the
Department administration, as a preliminary step
to the audit, and are currently - as we understand
it - preparing cost estimates. Since the actual
implementation of an audit is generally unannounced,
the date of audit would not be normally known to
us.
Page 5 of 6
Joseph R. Ctassi e
City /lanaget
Question #13
/larch 9, 1978
Ref: Letter of Concern as tD
quality and progress Of
Child Day Cate Centers
Why has this program, as it seems with practically
everything, become a political situation, ovet-
shawdowing the main concern, our children?
Answer #13 This question embodies an opinion that may or may
not be accurate. It most assuredly was not the
Department's desire that the situation raised
in the question occur.
Question /114 Where would the children go if the Centers close?
They would stay at home and the parents seeks
assistance in the form of welfare in order to
stay home and properly take care of and supervise
the children.
Answer: 14 To our knowledge, no one has suggested that the
Centers close.
The three procedures recommended for implementation are requests for
information that the Day Care Administration should be able to provide,
The Departmental Administration has, however, also experienced difficulty
in securing - from the Day Care Administration - some of the same kind
of information that the Parent Teachers Community Association is requesting
Consequently - following the conclusion of the current audit - we will
be better able to determine how the information requested could best be
provi ded.
RII'P: edj
cc: Parent Teachers Community Association
Page 6 of 6
1
s
TOt Miami City (lommittion �.,� _
FROMI Parents of C;hil df en enrolled in City of Miami Lay Care CCnte'
SV43J%Cft Letter of Concern as to tuality and Prose s of Child Day'
Cate Centcrs
.
The parents and guardians of children in Day Care Centers operated
by the City of Miami are vitally concerned with the qur.lity of care and
treatment of our children enrolled in the present program. Observers
have.. noted over the last two years that the impetus in the program of
child development has slowed down and even regressed. Supervisors and
teachers are also concerned and have written letters to their supervisors,
of which we have copies, indicating that they have fallen into the category
of "baby sitters."
The regressipn and ddwnward trend in the centers seems tz' have startrrd
when the program was removed from the control and direction of the City
'Parks and Recreat!:an Division and placed under the Community Affai.s
•
Division.
The follawino is a list of statements.and •qu.stions for which the
concerned parents would like lucid answers and replies.
1. Why do teachers work 40 hours and receive pay for only 30 hours?
2. Why aren't supplies timely received when needed instead of waiting
sometimes 4 or'5 months for simple, basic supplies?
3. Why has the quality of care, guidance, teaching, moulding and
development of young, inquisitive minds steadily diminished?
-1-
•
41244
4. Why don't the Centers have enough teachers?
56 Why do supervisors and teacher have such long extended probationary
periods thus lowering, morale; ihcentiVc and discouraging the employees?
'6. Why was the control rind direction of the C'•?nters transferred to
the Community Affairs Division's
/. Why were the fees increased when mort of the parents have not
had a salary increase in their jobs in two or three gears?
O. Why don't the Centers have transportation available for field
trips, as in the past in a bus;, when all the children went together, and
were exposed to a wide variety of learning experiences?
. 9. Why the Gestapo like tactics in the recent audit of the Day Care
Centers? F(Children's medical records were, removed thus unnecessarily
creating a potentially hazardous and dangerous setting for children where
. •
special instructions must be adhered to). pat were the results of the audit?
10. Where have the fees paid by parents since 1974 been appr.oria ted?
These fees.were originally earmarked for maintenance and. supplies in the
Day Care Centers.
11. Money has already been appropriated for the expansion of the
Centers, and yet the Adminitration has cut.back on supervisors, teachers,
instructions and aids, with the intent of expanding centers.
12. When will the Community Affairs Division be audited?
13. •Why has this program, as it seems with practically everything,
become a political situation, overshadowing the main concern, our children?
•
3a
1A. where wculd thn childrnn go if the CWntPrs close?' They would
stay at hoille and thn patent) r.ek assistance ih thn f`'rm r)f wnlfa..c in
order to stay home and properly take dire of and 5UpetVirin thn childrnh.
The fore.on i.r)n qU"S tions and stit! m n is 1 ri.resent serlaus pr'ob1Qrns
of which sinr or'? parents ai•e d'. irp. The parents Ciro:caniz ation recmrn.,hdt
that tt.e, Day C. Centers br. rnt+Irned ,to the cntro1 :,rd direction of
the Parks and Recreation Division. The Day Care plan was much more
effoctivr' and beneficial to the childzen and parents under the original
plan, offering a wide variety of fun,'games, learning experiences, end
sincere con,., ,.r in nurturitrg, challenning and developing young, inquisitive,
and impressionable minds of our future citizens.
In c n,'ulion, we connrnnd parents would=appreciate the following
•
lateral communication procedures beimg implemented:
1. Have a routine report. of expenditures for Day Care Centers
available to parents and interested parties.
2. Make kr:own the amount of funds available from the. Federal Government
to the City for support of the.Day Care enters.
3.. t:ake available the amount of funds budgeted for Day Care Centers,
and rake known the dispor semen is of the weekly fees paid by —the parents.
Respectfully submitted,
Parent Teachers Community Association