Forensic Audit for Parks & Rec fails on 4-1 vote

Submitted by Suanne Z. Thamm
Reporter – News Analyst
October 19, 2016 6:23 p.m.

A strong majority of the Fernandina Beach City Commissioners (FBCC) decided that the time had come to end the controversy over possible wrong doing in the Parks and Recreation Department and move forward with new procedures and financial controls. Only Commissioner Roy Smith disagreed.

Smith moved to approve awarding a bid to Carr, Riggs & Ingram, LLC to conduct a forensic investigation into special events held under the auspices of the city’s Parks and Recreation Department over the past two years. Vice Mayor Robin Lentz seconded the motion for discussion purposes.

According to the bid documents, the proposed cost of the audit would be$13,670, including $2,000 for travel. Hours for “additional or extended forensic procedures” would be billed at $165 per hour, and any expert witness service would be billed at $200 per hour.

Smith argued strongly that failing to proceed with a forensic audit after recommendations following the initial recommendation of other auditors would send a bad message to city staff. Smith said that from his perspective, the cost of the forensic audit was not that significant and it could allay concerns that there is “something else” to be discovered. “I don’t see how we, as guardians of taxpayer money, can let this go,” he said.

Commissioner Len Kreger said that he could not support the audit now, because commissioners had been assured earlier that all moneys from the cancelled barbecue event had been accounted for. He said that the city manager had taken disciplinary action against employees involved in special events. Kreger said, “Many of these [financial irregularities] had been going on for a long time. We had sloppy administration in handling money. An audit won’t tell us anything different. I think we can spend the money better some place else.”

Smith acknowledged that process problems have been addressed, but he expressed concern over incomplete information provided by an employee and information that had come to him suggesting that city employees had improperly handled money from alcohol sales at earlier events.

Vice Mayor Robin Lentz expressed ambivalence on the vote because of incomplete information provided by a city employee and the relatively low cost of the forensic audit.

Smith replied, “If we don’t go forward with this audit, I think we are making a big mistake. If we have problems handling money in another department — and I don’t think we do — those employees will just say,’Shoot, they’re not going to do anything about it anyway.’” Smith said that he wanted the forensic audit to make a point: both to learn what went wrong and press criminal charges, if necessary.

Commissioner Tim Poynter agreed that the way the Parks and Recreation Department had been run for the last few years was “terrible.” “But for whatever reason,” he said, “they were allowed to operate that way. I don’t think a forensic audit is going to bring up a lot of stuff, because there were no records being kept whatsoever to dig up and find out. A lot of things were done in a haphazard way. I understand your concern, Roy. I am not happy with this department. But I really think that now this department has been given marching orders from the city manager, people have been suspended. [Procedures for handling money] are being put into place. I think everyone who handles money for this community has been put on notice.” Poynter said that in his opinion the city has accomplished what it needed to accomplish. A lot of things happened in the past, but this guy [City Manager Dale Martin] is not going to allow it to happen again. That’s why I won’t support this motion.”

Smith continued to argue for the audit, saying that employee stealing is always, but much worse in the public sector because taxpayers’ money is at stake. “I would hope that taxpayers would have a problem with this,” he said. “I think that as commissioners we are not fulfilling our duties if we don’t vote for this [forensic audit].”

Lentz suggested that various problems Smith alluded to were management problems that have already been addressed.

Poynter said that his concern was not with spending $13,000 on the audit but with the need to move on. He said that he believed that the message that such conduct would no longer be condoned has been sent and received. “I am satisfied with that,” Poynter said.

Kreger said, “Money handling in [the Parks and Recreation Department] has been sloppy for years. And the staff in the city has known it’s been sloppy for years. Now it’s going to change. I agree with Tim, we’ve made the point, and the city manager will follow through with the rest of the city.”

City Manager Martin addressed concerns regarding incomplete information provided to the initial auditor. He read an email exchange with the auditor and said that the city’s Finance Director had verified that all money had been returned to vendors for the cancelled barbecue event.

Smith called the question, declaring that he thought the commissioners were doing a terrible wrong for the city by opposing the audit, adding that he would support it.

When the vote was taken, only Smith supported moving forward with the additional audit as the motion was defeated 4-1.

Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.