HomeMy WebLinkAboutOIG No. 25-21 State Beachfront Mgmt. Agreement - OperationalTO:
FROM:
DATE:
PROJECT:
PERIOD:
TOR G
Joseph M.Centorino,Inspector General
Honorable Mayor and Members of the City Commission
Joseph Centorino,Inspector General
December 23,2025
State Beachfront Management Agreement (#3595)Operational Audit Report
OIG No.:25-21
October 1,2023,through September 30,2024 (Sand Tax Payments)
October 1,2024,through September 30,2025 (Beachfront Concession Fees)
This report is the result of the City of Miami Beach Office of the Inspector General (OIG)audit of
the operational controls surrounding the City's management of State Beachfront Management
Agreement No.3595 and Amendment Number 1,signed on August 9,2007,with extended terms
until February 7,2032.
The OIG tested all transactions recorded in the City's sand tax general ledger account during the
audit period.The audit also verified whether the 2024/25 fiscal year upland fees per unit and
beachfront concession fees were correctly billed to the applicable hotels,apartments,and
condominiums.A separate audit report focusing on the OIG Auditor's related financial review will
be issued to the State of Florida Department of Environmental Protection (State).
BACKGROUND
In 1982,the City entered into a management agreement (originally No.750-0006,currently No.
3595)with the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida
to manage the State-owned beachfront east of the erosion control line within the City for an initial
25-year period,which was subsequently extended for an additional 25-year period beginning
February 7,2007.In return,the City agreed to remit to the Florida Department of Environmental
Protection (State)25%of any and all monies (sand tax)the City collects for the use of State-
owned property.The City is also required to submit an annual audit report to the State detailing
the amounts collected and totals remitted to the State.
There are currently four types of beachfront property fees:
1.Concessionaire Operator Fees:Operators of concessions placed seaward of Lummus
Park,Ocean Terrace,North Shore Open Space Park,21°and 46"Streets,and Pier Park
pay for the use of the beachfront according to their respective contractual agreements with
the City.
2.Beachfront Concession Permit Fees:
a.Upland Permit Fees -A Miami Beach hotel,condominium,club,public establishment,
or other permanent,high-occupancy commercial operation that serves the public
and/or guests or residents of the upland property located on the beachfront pays the
city "upland"fees annually based on the number of units.This fee category includes
"non-upland"property owners who have negotiated an agreement with nearby upland
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fee property owners for use of the same beach access.
b.Other Concession Permit Fees -These fees are for food and beverage sales,beach
furniture rentals,water sports rentals,parasailing rides,and mobile cooking food sales.
3.Special One-Time Event Permit Fees:These permits are granted to members of the
public who organize one-time-only events on the beach,such as weddings and volleyball
tournaments.
4.Vehicle Beach Access Fees:These are for events that require the parking of essential
vehicles on the beach or sand areas.
SCOPE,OBJECTIVES,AND METHODOLOGY
The audit focused on the following general objectives:
1.To determine whether tested sand tax transactions occurring during the 2023/24 fiscal
year were accurately calculated and recorded in the City Financial System.
2.To determine whether the Facilities and Fleet Management Department appropriately
billed the 2024/25 fiscal year upland,non-upland,and beachfront concession fees to all
examined hotels,apartments,and condominiums.
3.Other audit procedures as deemed necessary.
The audit methodology included the following:
1.Reviewed applicable provisions of State Beachfront Management Agreement No.3595;
2.Interviewed and made inquiries of staff to gain an understanding of internal controls,
including,but not limited to,examination of applicable transactions and records;
3.Drew conclusions based on the results of testing with corresponding recommendations,
obtained auditee responses,and a corrective action plan;
4.Performed other audit procedures as deemed necessary.
SUMMARY
The City received the following revenues from the various fees imposed during the audit period:
Transactions Total Dollars CollectedNumbers
1:Concessionaire Operator Fees 47 $2,186,383.12
2:Beachfront Concession Permit Fees 265 $1,122,687.88
3:Special One-Time Event Permit Fees 223 $401,122.60
4:Special Event Vehicle Beach Access Fees 13 $25,829.60
Total $3,736,023.20
The audit revealed that the Facilities and Fleet Management Department and Tourism and Culture
Department have effectively managed the collection of the above fees from beachfront property
users.The Concessionaire Operator Fees,Special One-Time Event Permit Fees,and Special
Event Vehicle Beach Access fees were found to be in compliance.This demonstrates the
Department's commitment to maintaining high standards of operation and ensuring that all
processes are conducted efficiently.However,the OIG did identify errors in Beachfront
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Concession Permit Fees (Category #2).
The deficiencies identified in the audit findings below determined that there were issues with both
overbilling and underbilling,and that certain internal controls were lacking in the Facility Division's
administrative process for billing 2024/25 permit owners,and maintenance of accurate records
for permit applications received.
Below is a table of the issues noted with the associated amounts of permit billing errors:
Finding Title Amount of Responsible Division
#Error
1 Underbilled Beachfront Concession $48,932.Facilities ManagementPermitFees
2 Overbilled Beachfront Concession $30,982.Facilities ManagementPermitFees
3 Internal Control Deficiency-Missing N/A Facilities ManagementInformationonApplications
Internal Control Deficiency-Facilities Management
4 N/A And InformationNumerousVoidedInvoicesTechnoloav
FINDINGS,RECOMMENDATIONS,AND MANAGEMENT RESPONSES
FINDING #1:Underbilled Beachfront Concession Permit Fees
OIG review during the audit period identified that the Facilities Division underbilled the
Upland Owner Concessions by $48,932.00.
Condition:
The Facilities Division within the Facilities and Fleet Management Department bills the upland
concessionaire owner using the application submitted annually.The Facilities and Fleet
Management Department provides the most current Rules and Regulations for beachfront
concession Permits and Upland fees,and the most updated Miami Beach FY2025 Fee Schedule
to the prospective upland concessionaire owner.
The OIG tested 100 %(69)of the permit invoices issued during the audit period,which
represented $661,344 in permitting revenues.The testing was conducted to verify the accuracy
of billing for the Beachfront Concession Permits and Upland Fees for the period from October 1,
2024,to September 30,2025.The OIG noted that permits were underbilled in nine cases,
resulting in uncollected revenue of $48,932.00.The underbilling percentage error represents 13%
of the total permit fee invoices issued and tested.
Criteria:
Pursuant to the Sixth Amended and Restated Rules and Regulations for Beachfront Concession
Operations,All Upland Owner Concessionaires are subject to an annual upland fee.The annual
upland fee is per upland unit for each Upland Property and will increase annually based on the
Consumer Price Index (CPI)of the preceding Twelve (12)months as determined by the U.S.
Department of Labor Statistics.A maximum upland unit fee will be established also to be adjusted
annually based on the Consumer Price Index (CPI)of the preceding Twelve (12)months as
determined by the U.S.Department of Labor Statistics and will be applicable to the Upland
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Property only.The upland unit fee associated with any additional properties are not to be included
in association with determining the maximum upland unit fee.The upland unit fee and additional
property unit fee will be required for each Beachfront Concession location,plus any applicable
taxes and the activity fee for each Concession activity,such as beach furnishings rental,Food
and Beverage beach service,and beachfront watersports rentals and parasailing if so approved.
All tax receipts and upland fees shall be due and payable prior to October 1st of the fiscal year.
City of Miami Beach FY2025 Fee Schedule,Chapter 102.Taxation States:
1.Upland Unit and Additional Property Fee -$32/Unit a.Maximum Cap for 2024 -2025 -
$21,299
2.Beach Furnishings -$1,126
3.Water Sports-$1,126
4.Food and Non-Alcoholic Beverage Service --$1,126
(Service from Upland Property)
5.Parasail -Existing $1,126
Effect:
Underbilling deficiencies negatively impact the amount of revenue collected by the City for permit
fees and understate the amount of revenue remitted to the State of Florida Department of
Environmental Protection.Furthermore,these errors indicate weaknesses in internal controls and
billing oversight,increasing the likelihood of recurring inaccuracies and operational inefficiencies
unless corrective measures are implemented.
Cause:
The discrepancies were primarily due to the following:
1.Inadequate verification of unit counts and permit categories during the application review
process.
2.Absence of automated validation checks in the billing system.
3.Inconsistent documentation practices.
Recommendations:
To address the identified issues,the OIG recommends the following:
1.Strengthen internal controls over the fee assessment and billing processes,including dual-
review mechanisms.
2.Implement automated validation within the billing system to cross-check unit counts,
permit types,and applicable fees.
3.Develop standardized procedures and checklists for reviewing concessionaire
applications.
4.Provide training to staff responsible for fee assessments to reduce human error and
improve consistency.
5.Conduct periodic spot checks between the applications and the billed amounts to ensure
billing accuracy throughout the fiscal year.
Facilities and Fleet Management Department Response:
The Facilities and Fleet Management Department has reviewed the auditors'breakdown of
underbilled permits and,after detailed reconciliation,determined that only seven permits were
underbilled,representing a total of $17,592,rather than the $48,932 cited in the audit report.
Based on the spreadsheet provided by the OIG,the following discrepancies require correction:
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1)Permit BFC210029-The amount identified as underbilled by OIG was $22,150.00.However,
the billing by the Department was correct.The beachfront concessionaire initially paid via check,
which was returned due to insufficient funds.The Department was not notified of the returned
check at the time,which caused the balance to remain open.Once the concessionaire was
notified,they subsequently paid the outstanding invoice with a credit card.An additional invoice
for late fees has also been issued.Therefore,was no underbilling under this instance.
2)Permit BFC210049 -This permit is closed/inactive as there is a duplicate in the system.The
property renewed its beachfront concessionaire permit under BFC210065.Consequently,there
is no underbilling associated with this beachfront concession property.
As a result,only 7 of 9 permits were confirmed to be underbilled,representing 10%instead of
13%of total permit fee invoices.The Department has addressed the discrepancies by issuing
new invoices for the underbilled amounts,totaling $17,592,and initiated collection accordingly.
Implementation Date:December 20,2025
OIG Reply
The OIG was aware that the Facilities Division team made corrections to certain billings and
payments after the OIG noted the discrepancies and after the audit began.For Permit
BFC210029,a check marked as insufficient funds (CK #000929)was returned on September 23,
2024.The payment was received eight months after the billing date,following notification from
the OIG auditor about the issue.
During the audit fieldwork,it could not be verified that Permit BFC210049 was inactive based on
the information in Energov1.
The OIG position on this issue stands.
FINDING #2:Overbilled Beachfront Concession Permit Fees
Our review during the audit period identified that the Facilities Division overbilled the
Upland Owner Concessions by $30,982.00.
Condition:
The Facilities Division within the Facilities and Fleet Management Department annually bills the
upland concessionaire owner using the application submitted.The Facilities and Fleet
Management Department provides the most current Rules and Regulations for beachfront
concession Permits and Upland fees,and the most updated Miami Beach FY2025 Fee Schedule
to the prospective upland concessionaire owner.
The OIG tested 100 %(69)of the permit invoices issued during the audit period,which
represented $661,344 in permitting revenues.The audit was conducted to verify the accuracy of
billing for the Beachfront Concession Permits and Upland Fees for the period
from October 1,2024,to September 30,2025.The OIG noted that permits were overbilled in 12
cases,totaling $30,982.00.The overbilling percentage of error represents 13%of the total permit
fee invoices issued and tested.
1 Energov is a software widely used by governmental organizations to manage and streamline the processes of
permitting,licensing,asset management,and community development.
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Criteria:
Pursuant to the Sixth Amended and Restated Rules and Regulations for Beachfront Concession
Operations,Rate and Fee Schedules for Upland Owner Concessionaires,
All Upland Owner Concessionaires are subject to an annual upland fee.The annual upland fee is
per upland unit for each Upland Property and will increase annually based on the Consumer Price
Index (CPI)of the preceding Twelve (12)months as determined by the U.S.Department of Labor
Statistics.A maximum upland unit fee will be established also to be adjusted annually based on
the Consumer Price Index (CPI)of the preceding Twelve (12)months as determined by the U.S.
Department of Labor Statistics and will be applicable to the Upland Property only.The upland unit
fee associated with any additional properties are not to be included in association with determining
the maximum upland unit fee.The upland unit fee and additional property unit fee will be required
for each Beachfront Concession location,plus any applicable taxes and the activity fee for each
Concession activity,such as beach furnishings rental,Food and Beverage beach service,and
beachfront watersports rentals and parasailing if so approved.All tax receipts and upland fees
shall be due and payable prior to October 1st of the fiscal year.
City of Miami Beach FY2025 Fee Schedule,Chapter 102.Taxation provides as follows:
1.Upland Unit and Additional Property Fee -$32/Unit a.Maximum Cap for 2024-2025-
$21,299
2.Beach Furnishings-$1,126
3.Water Sports-$1,126
4.Food and Non-Alcoholic Beverage Service --$1,126
(Service from Upland Property)
5.Parasail -Existing $1,126
Effect:
Overbilling deficiencies undermine the reliability of the City's billing practices and expose the City
to potential financial liabilities,including refunds or adjustments to concessionaires,which could
harm the City's credibility and trust with concessionaires.Furthermore,these errors indicate
weaknesses in internal controls and billing oversight,increasing the likelihood of recurring
inaccuracies and operational inefficiencies unless corrective measures are implemented.
Cause:
The discrepancies were primarily due to:
1.Inadequate verification of unit counts and permit categories during the application review
process.
2.Absence of automated validation checks in the billing system.
3.Inconsistent documentation practices.
Recommendations:
To address the identified issues,the OIG recommends the following:
1.Strengthen internal controls over the fee assessment and billing processes,including dual-
review mechanisms.
2.Implement automated validation within the billing system to cross-check unit counts,
permit types,and applicable fees.
3.Develop standardized procedures and checklists for reviewing concessionaire
applications.
4.Provide training to staff responsible for fee assessments to reduce human error and
improve consistency.
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5.Conduct a field inspection to compare the applications and the billed amounts to ensure
billing accuracy throughout the fiscal year.
Facilities and Fleet Management Department Response:
The Facilities and Fleet Management Department has reviewed the detailed breakdown provided
by the auditor.The Department has conducted a thorough reconciliation of the permit invoices.
Our analysis determined that only 9 of the 12 permits were overbilled,representing a total of
$12,960,rather than the $30,982 cited in the audit report.
Based on the spreadsheet provided by the OIG,the following discrepancies require correction:
1)Permit BFC210030:The Miami-Dade Property Appraiser records indicate 231 units;
however,the beachfront upland property confirmed in writing via email that the actual unit count
is 580.This information was verified,and this confirmation has been uploaded to Energov for
reference.Accordingly,the $11,168 identified as overbilling is incorrect and reflects the correct
amount that should have been billed for this property.
2)Permit BFC210056:The Miami-Dade Property Appraiser records indicate 88 units;however,
the Beachfront property confirmed in writing via email that the actual unit count is 267.This
communication has been uploaded into Energov for reference.Accordingly,the $5,728 identified
as overbilling is incorrect.There was no overbilling for this permit.
3)Permit BFC210090:This property is non-commercial.The fees were added in error;however,
no invoice was ever issued nor paid.The Beachfront property confirmed in writing via email that
they only provide chairs for their residents,and this communication has been uploaded into
Energov for reference.Consequently,the $1,126 identified as overbilling is not accurate.
Consequently there was no overbilling generated for this permit.
Of the 9 of 12 permits where overbilling has been confirmed,the Department will process the
appropriate credits and refunds accordingly.
Implementation Date:December 30,2025
The Office of Inspector General (OIG):
The OIG was aware that the Facilities Division team made corrections of certain billings and
payments after the OIG noted the discrepancies and after the audit began.
Permit BFC210030,when notified of the issues,the Facilities Department re-validated the
concessionaire's application data after the audit period had begun.The information was not
documented accurately during the audit period.
Permit BFC210056,the Facilities Department re-validated the concessionaire's application data
after the audit period had begun.The information was not documented accurately during the audit
period.
Permit BFC210090,the Facilities and Fleet Management Department's response corrected the
issue;after the OIG notified the Department of the error.During audit fieldwork,the department
did not document the information correctly as required by the application.The OIG issue stands.
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FINDING #3:Internal Control Deficiency:Missing Application Information
Condition:
The Facilities and Fleet Management Department uses the following permit issuance process:
1.The Upland Property Owner registers with the City through the Energov platform,and
once registered,submits the application for a Beachfront Concession (BFC)Permit.
2.The concessionaire submits a BFC renewal application package for the upcoming fiscal
year via email to BFCAdmin@miamibeachfl.gov.
3.The Finance Team at the Facilities Division reviews the application package and issues a
new invoice to the concessionaire via the Energov platform.
4.Upon receipt of an invoice from the Facilities Division,the concessionaire should remit
payment to the City online as directed on the invoice.
5.Once the permit invoice is paid,the renewed permit becomes available for viewing and
download via the Energov platform.
The OIG auditors verified that the applications submitted by the Upland Property owners for the
BFC Permits and Upland Fees for the period from October 1,2024,to September 30,2025,were
accurate and complete.However,the review revealed multiple deficiencies in the billing process.
The OIG noted that seventeen permit applications were identified as missing important
information necessary for processing.These incomplete applications accounted for 25%of the
total applications tested,which highlights a significant rate of error and underscores the need for
improved submission procedures to ensure completeness and accuracy.
Criteria:
According to the City of Miami Beach's Application requirements for beachfront concession
operations,applicants must comply with several pre-permitting mandates as listed in the Sixth
Amended and Restated Rules and Regulations for Beachfront Concession Operations,page 27
Application requirements:
1)All required signatures are obtained and notarized.
2)All required certificate(s)of insurance is (are)provided.
3)Evacuation Plan is fully completed.
4)Operational Plan is fully completed,including the number of chairs,equipment,etc.which
you are requesting to place on the beach.
5)Beachfront Concession Layout (drawing)ofyour operation,including the dimensions of the
beachfront area that you intend to use,is specific.
6)All regulatory approvals and legal requirements in connection with the operation of the
Beachfront Concession including,without limitation,review and approval by the City's
Planning Department,as part of the Design Review Process,for the Beachfront Concession
Facilities which will be placed on the Concession Area.
7)In the event there is an existing authorized and properly licensed watersport operation and
Applicant desires to continue operating said service,Applicant will be required to submit a
new application,with all the required documentation and approvals,for consideration by the
City.
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Effect:
This internal control deficiency in the billing process creates the following negative impacts on the
permitting process:
1.Delay in permit processing and issuance.
2.Increase in re-work and workload for Facilities division personnel.
3.Increase in the risk of non-compliance with City ordinances and regulations governing
beachfront operations.
4.Creates the potential for lost revenues from delays in cash payments.
5.Undermines the integrity and efficiency of the permit process.
Cause:
The deficiencies were primarily due to the following:
1.Lack of a standardized checklist or other internal control to verify application completeness
before billing.
2.Absence of automated validations or required field checks in the Energov system.
3.Absence of training provided to applicants regarding complete submission requirements.
4.No formal tracking or escalation procedure for incomplete submissions.
Recommendations:
To address the identified issues,the OIG recommends the following:
1.Implement a standardized checklist for application completeness to be used during initial
intake.Only complete applications should proceed to the billing.
2.Enhance the Energov platform with mandatory field validations and automated prompts
for missing documents during application submission.
3.Conduct annual training or outreach sessions for concessionaires to reinforce submission
requirements and reduce error rates.
4.Assign a dedicated permit coordinator to review and verify completeness before issuing
the bills.
5.Develop and enforce a deadline policy for corrections and resubmissions,including
rejection of incomplete applications after a prescribed grace period.
Facilities and Fleet Management Department Response:
The Facilities and Fleet Management Department,through its response agreed with the OIG
auditor for this finding.The Facilities and Fleet Management Department will implement further
internal controls for the issuance of beachfront concession permits.This includes a standardized
checklist for application completeness to be used during initial intake or renewals.In partnership
with the IT Department,the Facilities and Fleet Management will work to enhance the Energov
platform to address validation,provide notifications,and automate as much as possible the permit
application and annual renewal process.This will ensure that beachfront concessionaires are
responsible for validating their data and billing contact information,thereby expediting payment
and reducing administrative errors.The Department also intends to streamline the process for
billing late fees when applicable,ensuring timely collection and mitigate manual intervention.
Implementation Date:October 2026
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FINDING #4:Internal Control Deficiency:Numerous Voided Invoices
The OIG audit identified a significant number of voided invoices during the testing period.
Condition:
A significant number of voided invoices were identified during the testing period.Out of the 131
invoices tested,45 were voided due to incorrect billing rates,accounting for 34%of the population
tested.
The Facilities and Fleet Management Department prepares permit owner invoices using the
Energov permitting platform.Prior to billing,City Commissioners approve new permit rates each
fiscal year.On May 2,2024,the Facilities Division team sent the newly-approved rates for the
24/25 fiscal year to the Information Technology (IT)Department with a request to update the
Energov system's rates.The IT Department is responsible for uploading the new rates,so the
new rates will be properly reflected on the invoices for the coming fiscal year.
According to emails provided by the Facilities team,during the time frame after May 2,2024,and
prior to the issuance of the invoices,on July 2,2024,there were numerous emails and one face-
to-face meeting regarding the permit rate updates and the invoice issuance process.Despite this,
the IT department did not update the permit rates in a timely manner,prior to the actual issuance
of the permit invoices on July 2,2024.
Criteria:
Standard billing practice requires that the most current approved fee schedule be used for
invoicing.Additionally,IT is responsible for timely system updates following the Facility Division's
requests to ensure billing accuracy and compliance.
The City of Miami Beach FY2025 Fee Schedule,Chapter 102.Taxation provides as follows:
1.Upland Unit and Additional Property Fee -$32/Unit a.Maximum Cap for 2024 -2025 -
$21,299
2.Beach Furnishings -$1,126
3.Water Sports-$1,126
4.Food and Non-Alcoholic Beverage Service -$1,126
(Service from Upland Property)
5.Parasail -Existing $1,126
Cause:
The Facilities and Fleet Management Department submitted requests to the IT Department to
update billing rates in the system in accordance with the latest fee schedule.The dates of these
requests are May 2,2024,and June 21,2024.However,the updates were not processed by IT
before the billing cycle began.As a result,invoices were generated using outdated rates.
Effect:
The use of outdated rates has led to:
1.A high volume of reversal and reissuance of invoices.
2.Operational inefficiencies and increased administrative workload for the Facilities team.
3.Increased risk of financial inaccuracy and a failure of internal controls.
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Recommendations:
To address the identified issues,the OIG recommends the following:
1.The IT Department should respond to and perform annual fee updates before invoice
processing begins,based upon a calendared schedule each year.
2.The IT Department should inform the Facilities Division when the rates have been updated
so the Facility Division can perform system testing procedures prior to the issuance of the
invoices to concessionaire.
3.The Facilities Division should establish an internal written protocol for processing permit
update requests,including establishing turnaround times and escalation procedures.
4.The Facilities division should validate the billing system rates before initiating each billing
cycle.
Information Technology Department Response:
The department listed the summary of the Annual Fee Update Process Beginning July 2,IT issues
each department a spreadsheet listing their current fees.Departments then update this
information for the upcoming fiscal year.This review period typically requires two to six weeks.IT
enters the updated fees into the test environment and requests departmental validation before
promotion to production.Once departments confirm accuracy,the updates are deployed by
October 1st.
The Beach Concession permit used this automated renewal process for fiscal years 2023,2024,
and 2025.For fiscal year 2026,the permitting workflow for Beach Concessions was aligned with
the same manual billing practices used by other departments.This was a normal and acceptable
operational choice,simply reflecting a preference for consistency in process.
The department (IT)indicates the reason for voided invoices,In 2024,some invoices were
generated incorrectly due to a configuration oversight following the transition away from
automated renewals.Although the renewal feature was intended to be disabled,the automation
still ran.Once identified,IT voided all unpaid invoices and coordinated with departmental staff to
issue corrected invoices.Where customers had already paid,manual adjustments were created
to reconcile differences in the amounts due.In some cases,fee calculations depended on custom
field data that was not fully updated before the automation date,which also contributed to
inaccuracies.
Annual fee updates and departmental validations already provide a structured review process,
but IT agrees that additional formalization will strengthen internal controls.To improve
consistency,IT will begin transitioning fee and configuration updates from email-based
communication to the existing structured Change Management workflow that includes
departmental approval prior to promotion from test to production.
Implementation Date:October 1,2025
Facilities and Fleet Management Observation:
In partnership with IT,Facilities Management is working to automate as much as possible the
permit application and annual renewal process.This will ensure that beachfront concessionaires
are responsible for validating their data and billing contact information,thereby expediting
payment and reducing administrative errors.The Department also intends to streamline the
process for billing late fees when applicable,ensuring timely collection and reducing manual
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intervention.
OIG Final Remarks:
The audit noted that a payment of $27,403.00 for one of the permits was received approximately
eight months after billing.A second permit showed a remaining open balance of $22,150.00 due
to a non-sufficient funds (NSF)check reversal dated 09/23/2024.This delay in payment collection
and the NSF reversal issue indicate a breakdown in internal controls over permit billing and
collections.Additionally,the timing of the payment raises concerns that services may have been
provided while the Concessioner lacked a valid BFC Permit,potentially risking non-compliance
with the City's permitting requirements.This highlights the need for improved oversight of permit
validation and stronger enforcement of payment terms to ensure timely revenue collection and
6rlpliance with regulations.
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Date
cc:Eric Carpenter,City Manager
Jason Greene,Chief Financial Officer
Lissette Garcia Arrogante,Tourism and Culture Department,Director
Elizabeth Miro,Facilities and Fleet Management Department,Assistant Director
Ozzie Dominguez,Asset Management Division,Director
Carlos Berriz,Fleet Management Division,Director
Frank Garcia,Facilities Management Division,Director
Frank Quintana,Chief Information Officer
Ozzy Macias,Chief Technology Officer
OFFICE OF THE INSPECTOR GENERAL,City of Miami Beach
1130 Washington Avenue,6"Floor,Miami Beach,FL 33139
Tel:305.673.7020 •Fax:305.587.2401 •Hotline:786.897.1111
Email:CityofMiamiBeachOIG@miamibeachfl.gov
Website:www.mbinspectorgeneral.com
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