BY TRACY LEE TATE
Times Staff Writer
LAKE BUTLER – Questions abound concerning where about $1 million in city money went during the tenure of past City Manager Dale Walker.
Several types of spending are under investigation, with one tasked to nail down the details of expenditures made by several city employees using their city-issued credit cards. The company doing the forensic audit (Powell and Jones) has flagged numerous instances of spending that are questionable and it must be determined whether these expenditures were made on behalf of the city or for the personal benefit of the employee.
The job is a big one because at least some of the spending is for items that could be for city operations, personal purchases by employees, or could also have been made at the direction of the city manager, the employee’s direct supervisor.
The total of suspected unallowable or illegal purchases on the city’s six credit cards, used by five employees, was $22,597.32. This figure includes sales tax paid on some purchases, despite the fact the city is tax exempt, in the amount of $1,935.70. Employees using the credit cards were Amanda Brown, Mike Cotter, Cody Douglas, Willie Henderson and Dale Walker. The detail of credit card spending was included in the forensic audit at the request of Lake Butler Acting Mayor Annette Redman.
On Amanda Brown’s credit card statements, there were audit-cited items including coffee K-cups, tea, candy and snacks, as well as the expected office supplies. At the time Walker was manager, he kept the employee breakroom stocked with coffee, tea, candy and a few snacks for employees to use as desired, so it may be difficult to prove any inappropriate expenses for these items that was to the benefit of Brown or for her personal use.
Also in question are food expenses, possibly connected with city business-related travel, and book purchases, which may have been books ordered for Walker’s employee book club program.
One large expenditure in question is a purchase of liquor in the amount of $539.50, which was discussed in the meeting at which the audit was presented, and attributed to likely be a bar set-up for a Florida Association of Small Counties meeting hosted by the city at the Hal Y. Maines Community Center at the lake.
The serving of alcohol at the community center is prohibited by the city and there is some comment that it is against state statute for a meeting of elected or public officials, but this does not directly involve Brown.
Credit card statements for past City Finance Officer Mike Cotter also show an alcohol purchase in the amount of $791.36.
Credit card statements for past Public Works Director Cody Douglas show a large number of food purchases, many of which are in Lake Butler. Also in question are the purchase of a large number of jeans and shirts. While this may be a personal purchase it may also be a director buying approved work clothing for all employees in his department rather than having them each purchase work clothing for themselves and seeking reimbursement.
Also, the statements how a number of purchases for outdoor/sporting goods, including two solar panel kits for home, vehicles or boats. Douglas’ total for questionable charges was the highest of all of the credit card users at $13,584.11.
Director of Solid Waste Willie Henderson had the lowest amount of questionable expenses at $311.41. These were three instances of meals paid for on the city card for one diner, a couple and a family. The Times had asked Walker about these expenses during an interview about a month before he was discharged and was told that when an employee goes out of town for a work-related trip (such as to pick up supplies) he is considered to be on the clock for the full time away from the workplace and his meals are paid for because he does not have the option of eating at his workplace.
Credit card statements for Walker showed $2,108.21 in suspect expenses, including several purchase of flowers at a store in Alachua and the entry fee for a budget document for an award ($3,450, not discussed or approved by the city commission).
In their findings, the auditors stated the lack of internal controls on spending, bank statements not reconciled in a timely manner, balance sheet ending balances not sufficiently supported by documentation, and failure to review credit card statements and verify purchases. The questionable charges on the credit cards are being investigated and the employees (only one still works for the city) will be billed for proven misspent amounts and required to reimburse the city.
Auditors noted that the city purchasing policy needed to be updated to cover proper use of city credit cards and the cards be kept in a more secure manner. Also earmarked for update is the city vehicle policy, putting in place restrictions that the vehicles and fuel purchased by the city be only used for city business.
Among the expenditures never brought before the commission for approval were a new fence around the Dekle Cemetery and the cleanup of water plants at the lake. The commission was reminded that all spending outside of routine operational expenses must be approved by the board and that the budget must be amended every time city funds are spent that exceed the amount budgeted for that function or department.
The Lake Butler City Commission is working toward making the recommended changes and setting the city to right and both the city commission and the auditors are in the process of investigating the possible misspending by employees. It is possible that it will take several months to complete the interviews and research before a final figure of what can be recouped by the city can be determined.
Conservation board to meet
The Bradford Soil and Water Conservation District will meet at 4:30 p.m. on Tuesday, July 18, at the Bradford County Extension Office. Agenda items will include the Chemours Industrial Wastewater Draft Permit and the proposed changes to the Bradford County Comprehensive Plan related to mining.
These meetings are open to the public. Contact Paul Still at 904 368-0291 or email [email protected] for more information.
