DAYTONA BEACH — The latest report by Daytona Beach’s internal city auditor raised policy concerns with spending on over-the-counter medicines, coffee and other supplies in the city attorney’s office, but didn’t report major issues.
The City Commission hired the auditor to independently review the use of taxpayer funds, and he has been looking at city financial practices. Meanwhile, outside officials are also looking into city spending, including the Florida Attorney General’s Office.
Internal City Auditor Abinet Belachew told commissioners June 17 that since he started digging into spending in September, he has not found any conclusive evidence of fraud in the city.
The latest report from Belachew, with a letter to commissioners dated June 16, looked at P-card use in the city attorney’s office for fiscal years 2021 through 2025.
The city’s P-Card program “allows authorized employees to purchase approved items directly, rather than using Field Purchase Orders (FPOs) or traditional Purchase Orders,” according to the city. The program is intended to allow employees to more efficiently buy “low-dollar goods and services from vendors that accept Visa.” The P-card limit is up to $3,000 per purchase.
Daytona Beach city attorney’s office looks at beverage purchases
The audit found about $5,052 spent for coffee, tea, bottled water, forks, plates and related supplies over five years.
But the dollar amount wasn’t the issue, according to the report.
The expenses “were charged to the general office supplies budget category rather than a separately identified budget line item specifically established for such expenditures.”
Because of how the items were charged, it wasn’t easy to see that they were different than normal office supplies. The report says that “may reduce budget transparency and limit management’s and the City Commission’s ability to effectively monitor, evaluate, and oversee these expenditures,” according to the report.
The city attorney’s office said that the office buys the items for meetings and other gatherings with “outside parties,” and employees usually bring their own drinks and “related items,” according to the report. Also, there is no separate budget line item available for such purchases.
The audit recommended that if the City Commission approves the use of taxpayer money for those items, that a separate budget line be created for those purchases, “including spending limits where appropriate.” The city attorney’s office would abide by any future policy the city implements, according to the report.
OTC medication purchased with Daytona Beach P-cards
The audit report also found P-card “purchases of over-the-counter medicines, including Advil, ibuprofen, and similar items, totaling approximately $349.39 during the audit period.”
City Hall has an on-site nurse’s office with medical personnel. The city attorney’s office said the medicines were purchased because it was more efficient than “traveling offsite for minor health-related needs, such as headaches or unexpected discomfort, thereby minimizing workplace disruptions and maintaining productivity.”
The city attorney’s office said it believed “reasonable justification existed” for the purchases “but agreed to discontinue future purchases pending clarification of city policy.”
The report acknowledged that “employee wellness and workplace productivity are legitimate management considerations.”
“However, in the professional judgement of the Office of the City Auditor, over-the-counter medications and similar personal medical items are generally personal expenses that would ordinarily be borne by employees or covered through personal healthcare arrangements rather than taxpayer-funded resources,” according to the report.
The audit recommends that the City Commission approve a written policy on such purchases, including spending limits and other criteria, if commissioners determine it’s an acceptable use of funds.
Audit: Daytona Beach City Attorney’s Office P-card policy good overall
The audit also pointed out that the city attorney’s office has good practices in place for P-card spending, including only allowing one person to have P-card authority in the department.
“Based on our review, while there are minor findings, the City Attorney’s Office has established control practices that promote accountability and transparency in the administration of its P-card program,” the report says.
At the June 17 City Commission meeting, Zone 4 Commissioner Stacy Cantu congratulated the city attorney’s office on the report.
“That was a pretty good audit. You did well,” she said.
“Thank you,” City Attorney Ben Gross replied.
— Sheldon Gardner covers Volusia County government, including Volusia County beaches, the city of Daytona Beach and other local governments in West Volusia.
This article originally appeared on The Daytona Beach News-Journal: Exclusive: Daytona Beach audit reviews city attorney’s office spending
Reporting by Sheldon Gardner, Daytona Beach News-Journal / The Daytona Beach News-Journal
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By Sheldon Gardner, Daytona Beach News-Journal | USA TODAY Network
