OIG (Office Inspector General) Audits WPB Travel

September 29, 2019

On September 26,2019 I attended the I.A. (Internal Audit) quarterly meeting to discover the OIG audited the City’s “Travel” and “Manatee” Program.

This story will focus of the findings of the OIG report on Travel audit.

First a little information on the OIG which is led by John Carey, a man who’s expertise and experience, if I listed it all would be a story in itself. The OIG is responsible for investigating waste, fraud and abuse. The 29 page report was definitely an eye opener and I point out what I consider the most damaging to the city. At the end of the story you will find 2 website addresses for the OIG. The first will take you to the Official web site the 2nd. will provide the report on travel audit.

Please take the time to read the entire report and while your doing so keep in mind the City Commissioners oversees the City I.A. Dept.

First we need to understand the procedure for “signing off” on travel expenses submitted by the city employee who traveled supposedly for city business.

Previously when I requested a PRR for travel expenses the person approving the expenditure was either. Jeff Green, City Administrator or Dorritt Miller, Assistant City Manager who is no longer employed by the city.

Here are some of the figures reported and can be found on page 25 and the report contains either “Questioned Costs” “Identified Costs” “Avoidable Costs”

Questioned Costs

Finding /Descriptions / Questioned Costs

1 Purchasing Card Violations $ 777,396.56

2 Travel Policy Non-compliance $ 570.34

2 Lack of Travel Expense Report $ 23,450.24

3 Lack of Documentation for Discretionary

Fund Expenditures $ 1,400.00

5 Former employee Travel Expenditures $ 1,132.20

Total Questioned Costs $ 803,949.34

Identified Costs

Finding / Descriptions/ Identified Costs

2 Travel Policy non-compliance. $ 491.03

4 Non-compliant mileage reimbursement. $168.01

1 Expenses paid for ineligible expenses (tips

and gratuities.) $ 135.59

1 Expenses paid for potential improper charges. $ 242.52

1 Booking fee, late fee, double payment for

hotel room. $ 353.45

1 Sales tax paid in error. $ 5,113.21

Total Identified Costs. $ 6,503.81

Avoidable Costs

Finding /Description /Avoidable Costs

1 Lost discounts, upgrades, taxes, fees, tips and

gratuities, and potential improper charges. $ 20,561.00

2 Potential travel cost savings. $ 661.00

Total Avoidable Costs. $ 21,222.00

When the OIG finished the audit it made recommendations to the city and can be read on page 8

Management Response Summary: Listed on page 9

City’s Travel Policy: Can be read on page 9 through 13.

The city will “consider” recommendations made by the OIG throughout the report.

OIG official website can be used to view audits and file complaints. http://www.pbcgov.com/oig/

Audit Report

2019-A-0010

City of West Palm Beach Travel

Sept. 9,2019

Can be read here: http://www.pbcgov.com/oig/reports.htm

In closing the City’s IA Dept. discusses the city’s Internal Auditor’s report with questions from the 4 members on the committee and receives answers from City Administrator Jeff Green, City Attorney Kimberly Rothenburg and the manager/director of the dept. that was audited.

These meetings basically run 2-21/2 hours.

This meeting on the OIG report ran ½ hour. Another resident who joins me at the meeting looked at me with surprise and said “It’s over?” My response: “No, it can’t be” as we sat there with every one filing out of the room. I understand why the audit wasn’t discussed. Had to be there.