Summary

This audit of the South Florida Water Management District focused primarily on expenditures and related activities for the period October 1, 1996, through September 30, 1997, and selected District actions taken during the period October 1, 1995, through September 30, 1996. Matters coming to our attention relating to noncompliance with various guidelines and those relating to significant deficiencies in the design or operation of the internal control for those operations audited are as follows:

Budget Administration

District reports of budgeted and actual expenditures for the 1996-97 fiscal year did not provide a comparison of budgeted and actual expenditures (and commitments) by governmental fund type and purpose as specified in Section 373.536(1), Florida Statutes, for all object categories. (See paragraphs 32 through 38.)

Land Acquisitions

• Land Acquisitions in Excess of Appraised Value. Our review of District land acquisitions disclosed several acquisitions where the purchase price exceeded the approved appraised value by a significant amount and the public records of the District did not adequately document the basis relied upon by the District in agreeing to pay amounts in excess of the appraised value. Absent this information in the public records of the District, the public cannot make informed decisions regarding the actions of District officials. (See paragraphs 41 through 44.)
• Latt Maxcy Acquisition. The Nature Conservancy (TNC) acted as the District’s agent in negotiating the $34.5 million acquisition of two parcels of land; however, the District was unable to provide a signed agreement which established the responsibilities of the District and TNC in each of these acquisitions and did not maintain documentation to demonstrate compliance with applicable laws, rules, contractual terms, and good business practices. (See paragraphs 45 through 50.)

Our review of District records pertaining to the acquisition of the Prairie Parcel at a cost of approximately $22.2 million disclosed that District records did not adequately explain the basis relied upon by the Governing Board in approving this acquisition. Neither the appraised value nor the purchase price of the property was adjusted as a result of significant estimated cleanup costs resulting from the discovery that the property had been used as a bombing range. (See paragraphs 51 through 59.)

Communication Expenditures

The District did not maintain telephone logs or other records to document the authorized public purpose of domestic long-distance telephone calls billed to the District during the fiscal year ended September 30, 1997. In addition, cellular telephone and calling card billings were not reviewed and approved by the users’ supervisors. (See paragraphs 60 through 64.)

Meritorious Service Awards

As similarly noted in audit report No. 12821, paragraphs 72 through 77, the District granted awards to employees for performing what appeared to be routinely assigned responsibilities, did not require written proposals for awards, and adopted procedures which were considered discretionary rather than mandatory. (See paragraphs 65 through 71.)

The Executive Director's written response to the audit findings and recommendations included in audit report No. 13311 is presented as Exhibit C.