In response to the City of Pahokee’s request, we conducted an audit of the City’s accounts payable expenditures...
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In response to the City of Pahokee’s request, we conducted an audit of the City’s accounts payable expenditures and cash disbursement process. High turnover in City Manager and Finance positions caused significant delays in obtaining documentation throughout the audit.
We found wide-spread, systemic noncompliance with the City’s written guidance and lack of documentation for City expenditures. The issues identified in this audit and in past financial statement audits and OIG reports show a pattern of mismanagement and lack of accountability that has continued for at least ten years.
Our audit identified $1,927,729.55 in questioned costs due to noncompliance, insufficient documentation, and unnecessary expenses; $18,156.96 in identified costs due to overpayments to contractors and travelers, sales tax paid to vendors, and personal travel expenses for a former City Manager; as well as avoidable costs of $854.06 in sales tax paid to vendors.
Although the City implemented several corrective measures throughout the course of our audit, significant progress is still required to establish a sound financial accountability system. Given the frequent turnover of the City Manager and Finance Director positions and the City’s limited personnel, we suggest that the City consider obtaining outside assistance to help update and implement the policies and processes outlined in our audit recommendations.
We found evidence that suggests fraud and abuse by a former City manager and some instances of waste due to mismanagement and a lack of sufficient oversight and accountability over taxpayer dollars. Therefore, we provided a copy of the report to the State Attorney’s Office and to the Palm Beach County Commission on Ethics.
Our report contains recommendations to assist the City in strengthening internal controls, save taxpayer dollars, and improve compliance with the City’s written requirements. The City concurred and accepted recommendations.
Barbara Bellafiore
Executive Assistant
Office of Inspector General
Palm Beach County
Click on "attachments" to read the whole report.
