Newsletter Header

My first 2013 email to JLAC
PRELIMINARY STATE AUDIT FINDINGS

In 2013, I had such concern over North Miami's finances that I reached out to the Florida Joint Legislative Auditing Committee in hopes they would audit our books.

Unfortunately, there wasn't political will at the time to make that happen.

But after a regime change in 2014, the city council voted 3-1 to bring in State auditors.  Then-Councilwoman Marie Steril was the lone vote against, with myself and Councilpersons Bien-Aime and Keys in favor.

This week, preliminary findings were released to the city.  The city has 30 days to inform the State about corrective actions we will take. 
 
 

TROUBLESOME FINDINGS, BUT IN THE REAR VIEW MIRROR 

The best thing to say about the State's findings is that they are about things which happened in the past.  The Herald notes that "The majority of the staff and management of the first few years of the audit are gone..."

However, the preliminary findings fully justify why we voted to bring in the State.

Among other things, the Herald reports that the audit found:
 
▪ A lack of an internal audit process for city finances.

▪ Some employees were hired without background checks, even though they are mandated by the city.

▪ Five employees retained access to North Miami's IT network after they were no longer employed by the city.

▪ Some employees were able to receive a higher pension and other benefits by delaying their official retirement until after their actual last work day. Those two employees received more than $50,000 in sick leave and vacation time payments by delaying their retirement.

▪ No paper trail for some purchase orders or contracts. For example, in July 2012 the city paid $5,000 to a nonprofit to produce a magazine in Haiti that would focus on the impact of hurricanes and earthquakes, but no proof was found that the magazine was ever published. North Miami staff couldn't produce a purchase order or contract.

▪ A $2,500 contract termination fee was paid to a contractor when the company actually owed the city about $1,700.
  
▪ Officials who held city-issued purchasing cards spent more than the city's $500 single transaction limit more than 400 times to the tune of about $428,000.

▪ Museum of Contemporary Art employees spent more than $25,000 on travel for a member of Nigerian royalty to visit the city during Art Basel in November and December 2015. That sum included about $12,000 for hotels and about $7,000 for the Nigerian leader's private adviser to fly first class.



I KNEW SOMETHING WAS AMISS
  
 
As things seemed to be careening out of control with our finances, I prepared a list of oddities that I gave to JLAC in 2015. 

Click here to read my list of concerns.  For privacy's sake, I've redacted references to specific names of individuals and companies.

But if you were following the city in the years 2011-2015, none of these issues should be news to you.



Obviously, there are incredibly troubling findings in this report.  But our current city management and council are committed to fixing issues and moving forward with transparency.

Please feel comfortable that North Miami is in good hands.