Summary

The Department of Environmental Protection (Department) provides staff support to the Board of Trustees of the Internal Improvement Trust Fund for the acquisition of lands by the State.  It is our responsibility to routinely monitor these acquisitions and to perform audits as we deem necessary.  Six acquisitions were selected for audit based on our preliminary risk assessments.  The summary of our findings for the period January 1, 2004, through June 30, 2006, is as follows:

Finding No. 1:  Documentation supporting the Babcock Ranch acquisition gave an appearance of influence of the appraisal amounts by the Department in the establishment of value estimates of contracted fee appraisers. 

Finding No. 2:  In accepting a $2,100,000 increase in the approved value for the Norfolk Southern acquisition, the Department relied on appraised values based on a hypothetical condition that was demonstrated in the appraisal reports to be unlikely to occur.  Further, Department records should document consideration of the impact of the City of Jacksonville’s decision to pay an additional $5,116,000 for the property on the State’s decision to pay the entire maximum amount ($8,400,000).

Finding No. 3:  Inconsistencies and deficiencies in the highest and best use analyses and conclusions of appraisals for the Overstreet Ranch and Tiger Island acquisitions may have impacted the value estimates for those parcels.

Finding No. 4:  There was lack of documentation of the Department’s appropriate consideration of the prior sale, the value estimates in the appraisal reports, and the negotiation process of the Three Rivers acquisition.

The Secretary's response is included in this report as Appendix A.