Okaloosa County BOCC — July 15, 2014 — Minutes — reading text

Auditor performed various analyses of the Clerk and Board functions. However, no formal audit reports were issued and the department's work products consisted primarily of memoranda or emails addressed to the external auditor or employees. He reported the Clerk has envisioned changes for this department, including the provision for the Internal Audit Department to operate under written policies and procedures and audit assignments established through periodic risk assessment. The written policies would address the following: 1. The authority and responsibilities of the Internal Audit Department 2. The professional standards by which internal audits will be performed June 3, 2014 -17- Minute Book 71, Page 88 Okaloosa County Board of County Commissioners 3. The process by which departments, programs and functions of the Clerk and Board are selected for audit 4. The method and format of reporting Mr. Scallan stated he and Mr. Howard have met with Mr. Padgett regarding buy-in by the Board on written procedures. He said Mr. Padgett seemed to support the proposals outlined for Internal Audit Policies and Procedures. Mr. Scallan requested the Board to allow the Clerk's Office to continue to work with Mr. Padgett on these policies and to return at a future meeting for consideration of a resolution to formalize the Internal Audit function. Upon inquiry by Mr. Amunds, Mr. Scallan answered the draft of the policies and procedures and resolution to formalize the Internal Audit function could be brought back to the Board by next month. Mr. Amunds asked if this formalized policy could be in place before the Auditor General returns for his subsequent review. Mr. Howard replied that he forwarded a copy of the proposal to the Auditor General at the same time he forwarded the information to the Board to let the AG know we were responding to the findings. After transmission to the AGO, the next day Mr. Scallan received a telephone call from a supervisor of the AGO’s Pensacola office. That individual asked if the Internal Auditor will do a follow-up on the second report. Mr. Howard advised “That is our intent.” It was his belief that it would be a good idea to be proactive and he felt the AGO was pleased with what has been done. Mr. Amunds also posed questions about auditing Tax Collector records regarding tourist tax collections. Mr. Howard and Mr. Scallan stated they did not feel the Clerk’s Office would be responsible for auditing collections since that function was given to the Tax Collector. Mr. Amunds stated he spoke with Mr. Padgett last week about the county’s plan to hire someone for in-house internal auditing. He said Mr. Padgett has been walking the halls to discuss the issue with commissioners and it may be something to be reconsidered. With regard to the earlier question of auditing tourist tax collections, Mr. Howard stated there are a couple of Attorney General Opinions which ties the Clerk’s audit function directly to the Board of County Commissioners. He said since the Tax Collector is collecting this tax, the auditing of those June 3, 2014 -18- Minute Book 71, Page 89 Okaloosa County Board of County Commissioners omar sae pte boca 5 Sa ACE ca AN AL ro ie Ea aa Er PONSA He a enc an Re aN ii aaah GON NESE ALONG re UM RIAL eae ee Ta ee ge Nena DS See ae Sarl ani SS eae Rie collections would fall into the Tax Collector's scope of responsibility. Mr. Howard pointed out the expenditure of tourist tax dollars falls to the Clerk because it goes through the Clerk's Finance Office. Mr. Stewart confirmed the Clerk is the auditor for the county. It was his opinion the Clerk would not be divested of his responsibility although the Tax Collector collects the tax. Mr. Harris stated if a motion is needed to approve the Internal Audit function, he is prepared to make it. Mr. Amunds said he would like to hear from Mr. Padgett unless there is a need to adopt it today. Mr. Stewart stated he believes the Clerk is asking for direction to continue to work with staff to develop the policies. Mr. Harris made motion, seconded by Mr. Parisot, to continue to work on developing this relationship between the Clerk and Board for Internal Audit functions. 5 yeas. PUBLIC COMMENTS Mr. Gary Winstead, Sr., 1065 Tallokas Road, Crestview, came forward to present his concerns regarding the use of property at 5663 Old Bethel Road in Crestview which is owned by Gioglis Dimitrios. He presented each of the commissioners and the County Attorney with a packet of information regarding the property at this location. It was his contention vagrants were living in sheds on the property and also that applications for building permits contained fraudulent information. Mr. Winstead briefly reviewed the information in his packet and also reported that he had spoken with the Property Appraiser about the buildings on Mr. Dimitrios’ property. Mr. Winstead asked the county to investigate the building permits and uses of the property. Mr. Harris stated he has communicated with Growth Management Director Elliot Kampert on this issue. He said until something more emphatic is done, he does not see any alternative except to initiate a full investigation. Mr. Harris said the investigation will either prove or disprove the allegations. He stressed that he respects and supports our staff but “sometimes we can’t see the forest for the trees.” Mr. Harris said he doesn’t know who should conduct the investigation but there should be objectivity. Mr. Harris made motion to move forward with a full-blown investigation into Mr. Winstead’s allegations. Mr. Amunds asked to hear from Mr. Kampert. June 3, 2014 -19- Minute Book 71, Page 90 Okaloosa County Board of County Commissioners Mr. Kampert stated when his department became aware of these assertions, they did look into it. He said they discerned it was listed as a single-family structure in 1972. In 2009 there was a permit application for a storage shed. He also noted this area was not rezoned with a Rural Residential classification until 2010. Mr. Kampert reported that he personally visited the property at 5663 Old Bethel Road in April, looking at all four structures. He stated the primary house has electricity and water. The second building is a caretaker’s residence with carport and described as an efficiency-living type structure. The third building was used by two people; the fourth was an office-type building and no one was living in it. Mr. Kampert observed the installation of a septic tank and said that work was halted. He explained there are gray areas on uses because of the change in zoning which pre-dates 2003 and the 2010 rezoning to Rural Residential. Mr. Kampert stated the use of those buildings prior to those dates would be grandfathered in. He said he welcomes a review by an outside third party. Mr. Harris said he is not questioning the uses but wants to resolve the issues one way or the other. He stated perhaps an outside objective party can put this to rest. Mr. Amunds asked if Mr. Padgett and Mr. Stewart could conduct the investigation. Mr. Harris had no objections to this recommendation. Mr. Winstead stated prior to 2010 Kennedy Lakes had an Agriculture Zoning. He said none of the properties in this subdivision were active farms. Mr. Winstead stated his waterfront home looks straight onto this property. He called it a safety issue, expressing his concern about vagrants roaming the neighborhood. Mr. Boyles said this subdivision may not have a homeowners association which could monitor such activities but it could re- establish one. He suggested to Mr. Harris the investigation be by consensus and to direct Mr. Stewart to return with a report at the next meeting. Mr. Stewart pointed out the short window for returning with a report within two weeks and asked not to be locked into that timeframe. Mr. Harris withdrew his motion. Mr. Windes stated he believes there is consensus on how to proceed with this item. June 3, 2014 ~20- Minute Book 71, Page 91 Okaloosa County Board of County Commissioners ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 10:49 a.m. DON W. HOWARD CHARLES K. WINDES, JR., CHAIRMAN CLERK OF CIRCUIT COURT BOARD OF COUNTY COMMISSIONERS (These minutes were transcribed by Teresa Ward.) dune 3, 2014 -21- Minute Book 71, Page 92 Okaloosa County Board of County Commissioners