Okaloosa County BOCC — November 5, 2013 — AGO Changes to Okaloosa PT — reading text

FINDINGS AND RECOMMENDATIONS Our report No. 2013-085, issued in January 2013, included our findings related to the BCC’s oversight of the Tourist Development Council and use of tourist development taxes by the Tourist Development Department, a BCC department. The scope of this audit did not include a review of Tourist Development Department transactions. However, for the areas of BCC operations that were included within the scope of this audit, we found several issues that were similar to issues also noted in our report No. 2013-085. This may be attributable to the fact that the period (October 2011 through February 2013) in which we primarily focused our examination of records and transactions for this audit overlaps to some extent with the period (May 2010 through May 2012) covered in report No. 2013-085. The County’s efforts to address the recommendations included in report No. 2013-085 are ongoing, and include corrective actions such as revision of its purchasing-related policies in April 2013 as indicated in finding Nos. 3, 9, and 11. Finding No. 2: Statements of Financial Interests Section 112.3145(6), Florida Statutes, provides that the Florida Commission on Ethics (Commission) shall annually prepare a listing of local officers required to file a statement of financial interests and provide that listing to the local supervisor of elections. Section 112.3145(2), Florida Statutes, provides that each local officer must file a statement of financial interests with the supervisor of elections no later than July 1 of each year. Section 112.3145(1), Florida Statutes, further specifies that local officers include, among others, elected officials; the chief administrative employee of a county; county attorneys; chief county building code inspectors; appointed members of county boards having the power to enforce local code provisions; appointed members of planning or zoning boards, boards of adjustment, boards of appeals, or other boards having the power to recommend, create, or modify land planning or zoning within a political subdivision; and purchasing agents having the authority to make any purchase exceeding $20,000. Statements of financial interests are important in that they provide a public record that discloses the financial interests, activities, and associations of local officers, including potential conflicts of interest. Each year, the Commission prepares a list of persons holding governmental positions who are required to file statements of financial interests for the previous year. The Commission obtains the name and address of each of these persons from coordinators who have been designated for each State and local government agency. Our test of 27 Okaloosa County local officers required to file statements of financial interests for the 2011 calendar year indicated that 25 (93 percent) had filed the required statements, including all County Commissioners; however, our test indicated that, as of April 2013, the County’s chief building code inspector and one BCC employee with the authority to purchase goods and services in excess of $20,000, had not filed such a statement with the Okaloosa County Supervisor of Elections (Supervisor of Elections). In response to our inquiries, BCC personnel stated that it is the statutory responsibility of the Commission to determine which positions within the County are required to file a statement of financial interests and the responsibility of the Supervisor of Elections to follow-up with individuals who do not file such a statement. BCC personnel also stated that the BCC follows statutory procedures and has not created an alternative procedure. While we agree it is ultimately the responsibility of the Commission to determine which positions within the County are required to file statements of financial interests, the Commission depends on local governments and coordinators to identify certain local officers required to file such a statement, such as BCC employees with the authority to purchase goods and services in excess of $20,000. When the Commission is not notified of such local officers, there is an increased risk that the BCC may do business with entities for which a conflict of interest exists because such interests would not have been disclosed. Recommendation: The BCC should ensure that the names and positions of applicable local officers as defined in Section 112.3145(1), Florida Statutes, are communicated to the Commission.