LTC 175-2017 Update regarding the theft of funds from a City bank accountMIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 175-2017
LETTER TO COMMISSION
TO: Mayor Philip Levine and Members of the City Co fj' ission
FROM: Jimmy L. Morales, City Manager
DATE: April 4, 2017
SUBJECT: Update regarding the theft of funds from a City bank account
The purpose of this Letter to Commission is to provide an update regarding actions
taken following the theft of $3.6 million in funds from a City bank account as referenced
in LTC #009-2017 on January 9, 2017.
Recovery -to -date
The total amount of funds which was fraudulently removed is $3,686,712.07. Since the
last LTC update on February 28th, the City has recovered an additional $726,435.00, for
a total recovery to date of $1,828,314.12. This leaves an outstanding amount of
$1,858,397.95. The Administration continues to work with the U.S. Attorney's office, the
FBI and Miami Beach Police to aggressively recapture all the funds.
Status of BDO project
BDO has completed its field work and is working to finalize its report.
Status of Additional Scope of External Audit
Finance staff is focused on working with our external auditor Crowe Horwath to complete
the City's annual financial statement audit, including the additional scope I referenced in
the February 28th update. The audit report is scheduled to be delivered at the end of
April.
SunTrust Bank review
System training for Online Treasury Manager, ACH Fraud Control and Enterprise Spend
Platform (Purchase Card) was completed on March 13th. The Treasury process review
was rescheduled and is taking place this week.
Finance Department Staffing
Since the February 28th update, CFO John Woodruff has filled four vacancies, including
the two new positions highlighted in the February 28th update.
If you have any questions, please feel free to contact me.