Following a detailed examination of the finances, inventory and work processes at the Madeira Beach Marina, auditors from the firm of Carr, Riggs, and Ingram (CRI) provided their report to the Madeira Beach Board of Commissioners on Tuesday, Jan. 22, 2019. The report shows estimated marina losses totaling more than $550,000.
The audit was performed after the city’s internal auditor, John Houser of Wells, Houser, & Schatzel, expressed concerns following their annual review of the city’s finances. Mr. Houser’s concerns led to the city’s Director of Finance, Walter Pierce, to have finance staff perform an on-site evaluation of operations at the marina. That review revealed gaps in inventory, record keeping and more.
According to CRI’s Glenn Gillyard, a former deputy sheriff, the majority of the discrepancies were attributed to lack of training, mismanagement, and negligence, but in his opinion, they did not rise to the level of criminal activity. The auditors spent six months reviewing the marina’s operations between Feb. 1, 2015, to Aug. 1, 2018. Their investigation included interviewing all marina staff, including the former marina/public works director, as well as numerous city officials.
The report cited a lack of training on purchasing policies and procedures, awareness of the policies and procedures and the “tone at the top” set by management. The report also provided 25 recommendations for addressing the deficiencies, some of which have already been put into motion.
The total cost of the audit was $50,000, with the Board of Commissioners approving an additional $35,000 in August to complete the review after the initial examination revealed more work was needed. Of that cost, approximately $27,000, has been recouped after an overpayment to a vendor was reimbursed back to the city.
Information courtesy of the City of Madeira Beach.
The complete report can be found on the city’s website, www.madeirabeachfl.gov.
For more information contact Curt Preisser, City of Madeira Beach Public Information Officer at 727-391-9951 x299 or cpreisser@madeirabeachfl.gov.
For more information contact Curt Preisser, City of Madeira Beach Public Information Officer at 727-391-9951 x299 or cpreisser@madeirabeachfl.gov.