Okaloosa County BOCC — August 18, 2015 — County Response to P&T 2015 — reading text

audit finding and recommendation. In the Follow-Up conducted, the Auditor General found that all areas had been corrected with the exception that the BCC records maintained by the CCC personnel did not evidence a comparison of cumulative contract payments to maximum amounts stipulated in the contracts. The County will continue to coordinate with the Clerk to assure that monitoring of Contract Payments is effectively managed. Finding 10: Questioned Expenditures COUNTY RESPONSE: The County concurs with the results of the Follow-Up Procedures directed to the previous Finding and agrees that the BCC has fully and completely addressed and had implemented the recommended corrective actions. Finding 11: Purchasing Card Controls COUNTY RESPONSE: The County concurs with the results of the Follow-Up Procedures directed to the previous Finding and agrees that the BCC has fully and completely addressed and have implemented the recommended corrective actions. Finding 12: Advance Payments COUNTY RESPONSE: The County concurs with the results of the Follow-Up Procedures directed to the previous Finding and agrees that the BCC has fully and completely addressed and had implemented the recommended corrective actions. 8  Finding 13: Travel Allowances COUNTY RESPONSE: The County concurs with the results of the Follow-Up Procedures directed to the previous Finding and agrees that the BCC has fully and completely addressed and had implemented the recommended corrective actions. Finding 14: Contributions to Private Nonprofit Corporations Results of Follow-Up Procedures The BCC's actions partially corrected this finding. During the period August 2014 through January 2015, the BCC made contributions totaling $80,395 to nine different private nonprofit corporations. Our review of these contributions disclosed that the BCC did not always document how each contribution served an authorized public purpose or obtain a subsequent accounting from each corporation to document that an authorized public purpose was accomplished. Absent such documentation, there is an increased risk that contributions may be used for nonpublic purposes. On March 17, 2015, the BCC adopted a nonprofit funding policy (Policy) that established eligibility criteria and procedures to apply for and use such funding. The Policy requires the BCC to approve funding applications and purposes before funds are released, applicants requesting $10,000 or less to certify by affidavit that funds will be used in compliance with the Policy, and applicants receiving over $10,000, to provide receipts and other documentation that evidence funding was used in compliance with the Policy. Recommendation: The BCC should continue efforts to ensure that contributions to private nonprofit corporations are only for authorized public purposes. COUNTY RESPONSE: The County agrees with the audit finding and recommendation. As noted, the County has implemented a policy for the funding of nonprofits in March, 2015. The contributions that were examined as part of review occurred prior to the implementation of that policy. The County believes that the adopted policy will address the concerns raised in the audit. The County will continual to assure that adequate documentation will be provided which establishes an authorized public purpose or obtain a subsequent accounting from each corporation to document than an authorized public purpose was accomplished. 9  Finding 15: Fuel Card Purchases Results of Follow-Up Procedures The BCC's actions did not correct this finding. Our review of December 2014 fuel charges totaling $8,345 at two departments disclosed that one department did not retain 21 receipts totaling $946 for fuel charges at retail locations and, as a result, could not confirm that the fuel card vendor accurately invoiced the fuel charges or that fuel costs were accurately charged to BCC departments. In the absence of reconciliations of the invoice from the fuel card vendor to receipts from retailers, the BCC cannot be assured that fuel charges incurred at retail locations were accurately invoiced by the fuel card vendor or that fuel costs were accurately charged to BCC departments. Recommendation: The BCC should enhance procedures to ensure that BCC departments retain all receipts from retail locations and perform reconciliations of fuel charges to those receipts and fuel card vendor invoices. COUNTY RESPONSE: The County agrees with the audit finding and recommendation. The County currently monitors fuel sales through a variety of documentation. The primary source of review is the electronic transaction data which establishes the purchaser, the fuel card number, the vehicle that was fueled, the fueling location, the amount purchased and the price. The County has already reviewed the parameters for all fuel cards and adjusted the parameters where appropriate. The primary deficiency relates to the acquisition of fuel at a non-County owned and operated facility. To address this issue, the County has implemented procedures which would limit the ability of employees to acquire fuel at locations other than the County owned and operated fuel facility. This will restrict the ability of employees from using non-County owned and operated facilities and limit the need for additional documentation. The County will continue to review its procedures and controls to provide assurance that adequate documentation is available. Findings 16 through 21 are directed to the Clerk of the Circuit Court and as such, no response is required by the County. 10 11