HomeMy WebLinkAboutOIG No. 26-09 Follow-up Self-Assessment of Audit RecommendationsPage 1 of 21
To: Honorable Mayor and Members of the City Commission From: Joseph Centorino, Inspector General
Date: June 23, 2026 Name: Follow-up Self-Assessment of Audit Recommendations
OIG No. 26-09
Period: January 1, 2025, through December 31, 2025
It is a best practice in auditing to conduct a follow-up analysis of completed engagements, typically within a year of their issue date, to determine whether the auditee has taken corrective actions to resolve identified deficiencies. Consequently, the City of Miami
Beach Office of the Inspector General (OIG) examined its audit reports issued in the 2025
calendar year, including OIG Nos. 25-01, 25-08, 25-11, 25-21, 25-23, and 25-24, to identify City departments or divisions that were recommended to implement corrective action(s).
Due to the limited audit personnel at the OIG, a follow-up to test the implementation of
corrective actions taken in response to OIG recommendations was not feasible at this time. Instead, the OIG requested that each relevant City department or division carry out a self-assessment of its implementation of OIG recommendations. Some recommendations from issued reports are not included because they pertain to
independent entities such as City contractors rather than City departments or divisions,
involve non-audit activities, or have already undergone follow-up work by the OIG. If time and staff availability allow, the OIG may conduct future testing to evaluate the effectiveness of the reported corrective actions.
Management is solely responsible for its Internal controls. City departments or divisions
have various options to achieve desired outcomes, including accepting the risk without changing current practices, implementing the OIG recommendations, or adopting other compensating controls.
The attachment to this report contains schedules showing the recommendation status of
all self-assessments received from each department.
Proposed Definitions for Implementation Status:
•Not implemented: the relevant parties have not taken any corrective steps since
the audit was completed to reduce the chances that the identified deficiency will
continue.
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•Partially implemented: the relevant parties have taken some steps to address the
issue, but more actions are needed to lower the risk to more acceptable levels.
•Fully implemented: the relevant parties have taken the necessary steps to provide
reasonable assurance that the described deficiency will not persist.
•Will not be implemented: the auditee accepts the risk linked to not following the
recommendation.
Based on the Self-assessment, 21 out of 55 recommendations in this report were fully
implemented, 28 were partially implemented, 3 were not implemented, 1 received no
response, and 2 were addressed with more detailed explanations.
Respectfully submitted,
_________________________________ ______
Joseph M. Centorino, Inspector General Date
_________________________________ ______ Norman Blaiotta, Chief Auditor Date
cc: Eric Carpenter, City Manager Jason Greene, Chief Financial Officer
Mark Taxis, Assistant City Manager
David Martinez, Assistant City Manager Frank Quintana, Chief Information Officer John Noris, Public Works Director Alvaro Rueda, Sanitation Division Director
John Rebar, Parks, Facilities, Fleet, and Beaches
Director
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach 1130 Washington Avenue, 6th Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Hotline: 786.897.1111
Email: CityofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
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Audit Name: Insurance Compliance Controls in BTR Renewals Audit: OIG No. 25-01 Audit Period: Fiscal Year 2024 Report Date: February 5, 2025
Audit Finding: Report Page: Audit Findings Recommendations: Responsible Party (Auditees): Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
1 2 The BTR renewal process does not currently include a step for Risk Management to verify that contractors maintain a policy that meets the City's minimum insurance requirements before the BTR is renewed.
Establish a procedure to place a hold on all BTR renewals requiring insurance verification unless proper insurance coverage is confirmed.
Finance Department- Customer Services Division
Human Resources- Risk Management Division
In July 2025, we will be implementing an automated process for businesses deemed needing RM [Risk Management] review and approval of Certificates of Insurance (COI) on an annual basis.
BTR INSURANCE PROCESS: 1.Plan Module BLPL [Business License Plan]yearly renewal (test configuration) eitherbefore or after BTR renewals2.Customer would then upload a document,which triggers a notification to RiskManagement3.Risk Management performs a review ofinsurance documentation4.Finance does a generic review following5.Finance links BLPL to BTR;6.Finance activates BTR if BLPL is approved,and fees are paid7.Finance will not release BTR by September30th if BLPL is not approved
COI's will be verified by Risk before any BTR requiring insurance is issued If this process cannot be implemented by July 2025, we suggest an annual process for FY 25/26 that is similar to "Parking Impact Fees," in which Planning and Zoning (P&Z) sends Finance a list of all BTRs that cannot be renewed because of outstanding Impact Fees owed to the City. This has worked well with P&Z. We just implemented a similar procedure with Code Compliance (Code) and the Marine & Waterfront Protection Authority.
Partially implemented April 2025, within the EnerGov Test Environment. July 1, 2026 Go-Live
The City of Miami Beach has established a procedure to place a hold on all BTR renewals requiring insurance verification. The Customer Service Team will mail and email BTR renewals to BTR holders requiring insurance verification. These BTR holders will be notified to upload their current COI. Reviews (BLPLs) will be created annually in EnerGov for the BTR renewals
requiring insurance review by Risk Management. The EnerGov Licensing Module will hold any BTRs not approved by Risk Management.
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
1 2 Same as above Customer Services in the Finance Department should notify applicable businesses to provide a COI during the renewal process.
Finance Department- Customer Services Division Human Resources- Risk Management Division
Same as above Partially implemented 7/1/2026 The Customer Service Team will notify applicable businesses to provide a COI during the renewal process. The Customer Service Team will mail and email and notify applicable businesses to upload their current COI. 1 2 Same as above The OIG also recommends that the City Administration ensure that sufficient staff is available to the Risk Management Department to manage this process effectively.
Finance Department- Customer Services Division Human Resources- Risk Management Division
Same as above Partially implemented 7/1/2026 Risk Management will review COI for compliance with requirements, and, if compliant, approve and release the hold on the application. Any staffing shortages will be addressed with temporary staffing during the renewal period.
1 3 Same as above Update the BTR module to include "Certificate of Insurance" in the attachment drop-down list, allowing applicants to upload their COI for review by Risk Management.
Finance Department- Customer Services Division Human Resources- Risk Management Division
Same as above Partially implemented 7/1/2026 Once the BLPL is created, BTR holders can upload their COI through the portal.
1 3 Same as above Develop a procedure to train applicants on the new process, ensuring they understand how to upload the COI into the system. This training should be completed before the new process is implemented.
Finance Department- Customer Services Division Human Resources- Risk Management Division
Same as above Partially implemented 7/1/2026 The City is creating a notice/flyer of the new requirement with instructions on how to upload documents. The notice/flyer will be mailed and emailed to applicable customers.
1 3 Same as above Grant Risk Management access to the BLPL module and provide appropriate training on how to review and approve the BLPL. This training should be completed before the new process is implemented.
Finance Department- Customer Services Division Human Resources- Risk Management Division
Same as above Fully Implemented June 2025 Completed: Risk Management has access to BLPLs for review.
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Audit Name: City of Miami Beach Marina Lease Agreement Audit Audit: OIG No. 25-08 Audit Period: January 1, 2022, through December 31, 2022 Report Date: April 17, 2025
Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
1 5 Miami Beach Marina's gross receipts reported to the State of Florida were $6,504,098, higher than the gross receipts reported to the city, of which $4,883,098 were improperly excluded in violation of lease terms, $2,488,098 of which resulted in an underpayment to the city of $248,810.
The City Manager should consider billing the Miami Beach Marina for the audit cost, as the gross receipts were understated by 30% during the 2022 tax year, in accordance with Article IV (3) of the Lease Agreement.
Asset Management Division The Asset Management Division will bill the Miami Beach Marina the cost of the audit if the City Manager agrees with the findings. However, the Miami Beach Marina has disputed the OIG's calculations and further clarification is needed in order to determine who is correct. The Asset Management Division recommends more frequent audits of this Lease to maintain greater accuracy.
Will not be implemented - Accept the risk
None None
1 5 Same as above Enhanced oversight and more comprehensive annual review processes by the City's Asset Management Division.
Asset Management Division Same as above Fully Implemented N/A This is ongoing.
1 5 Same as above The Asset Management Division should calculate 10% of the gross receipts that were reported to the State of Florida for Sales Tax purposes but not reported to the City. Subsequently, a bill for the outstanding amount should be issued to the MBMA.
Asset Management Division Same as above Partially implemented N/A This is part of a future settlement agreement.
2 7 Lessee expense reimbursement totaling $2,395,000 was improperly excluded from gross receipts during 2022, resulting in underpayment to the city of $239,500
The Asset Management Division should calculate the 10% of gross receipts from the sublessee's expense reimbursements that were excluded from the Lessee's reports for the previous five years and issue a bill to the MBMA for the outstanding amount.
Asset Management Division The Asset Management Division recommends the OIG review the Marina's responses and their position on this finding to determine if these discrepancies are confirmed accurate and billings can take place. If there are no disputed discrepancies, the Asset Management Division will bill the 10% of gross receipts from the sublessee's expense reimbursements that were excluded from the Lessee's reports for the previous [allowed] years and issue a bill to the MBMA for the outstanding amount.
Partially implemented N/A This is part of a future settlement agreement.
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
3 8 Parking gross receipts were underreported to the city, resulting in a $173,496.10 underpayment, the city did not approve the parking sublease, and the annual gross receipt statement was not submitted to the city
1. The Asset Management Division should recalculate the parking gross receipts amounts and issue a bill to the Lessee for any discrepancies found. 2. It is recommended that the Asset Management Division obtain any missing Parking Revenue reports from previous years and verify that 35% of the gross revenue generated from parking has been accurately reported. If any differences are identified, the Lessee should be billed accordingly. 3. The Lessee should implement the necessary changes to ensure accurate reporting of all gross receipts.
Asset Management Division The Asset Management Division recommends the OIG reviews the Marina’s responses and their position on this to determine if these discrepancies are confirmed accurate and billings can take place. It is the Asset Management’s understanding the Marina is paying 35% of gross receipts reported from their parking contractor. It is the OIG’s interpretation that the Marina cannot deduct their parking contractor expenses to net the Gross Receipts. While this is easy to follow in the Lease, it is customary that parking contractors are retained to run a professional parking program. This item should be reviewed further by the City as there does not appear to be malicious intent. If there are no disputed discrepancies by the Marina, the Asset Division will correct the billings, but the Marina has already disputed this interpretation and advised this billing model will put them in the red. Further discussions are needed on this item.
Partially implemented N/A This is part of a future settlement agreement.
4 9 The annual reports provided by the lessee do not fully comply with lease requirements.
The Asset Management Division should ensure that the Lessee complies with the annual audit reporting requirements of Article IV of the Lease Agreement. The accountant performing the audit should certify that all financial information, including the State sales tax return, has been thoroughly examined.
Asset Management Division The Asset Management Division has requested approval to add additional staffing or retaining the services of a third-party auditor to conduct annual audits on behalf of the Asset Management Division.
Fully Implemented N/A None
5 11 Businesses operating without active business tax receipts (BTRs)
MBMA, SMI, and their sublessees at the Miami Beach Marina must obtain the required annual Business Tax Receipts (BTRs) per City Code Section 102-377.
Asset Management Division Yes, they should. Fully Implemented July, 9, 2025 None
5 11 Same as above MBMA should implement procedures to ensure that it and its subtenants maintain an active BTR while operating within the marina
Asset Management Division The Asset Management Division will remind MBMA to communicate with their tenants on the importance of renewing and obtaining BTR's. The Asset Management Division reviews BTRs for all agreements under its purview not for the subtenants. The BTRs for boat slip operators are monitored by the Finance Department, Marine & Waterfront Protection Authority and Code Enforcement. The Asset Division is there to assist.
Fully Implemented N/A None
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
5 11 Same as above MBMA should implement procedures to ensure that it and its subtenants maintain an active BTR while operating within the marina
Asset Management Division The Asset Management Division will remind MBMA to communicate with their tenants on the importance of renewing and obtaining BTR's. The Asset Management Division reviews BTRs for all agreements under its purview not for the subtenants. The BTRs for boat slip operators are monitored by the Finance Department, Marine & Waterfront Protection Authority and Code Enforcement. The Asset Division is there to assist.
Fully Implemented N/A None
5 11 Same as above As recommended in OIG Report No. 24-15, coordination between the Finance Department and Code Compliance Department needs to be enhanced to ensure timely issuance and enforcement of BTRs.
Asset Management Division The Asset Management Division has been directly reviewing compliance of BTR's for its Tenants since 2021. As the Code Compliance Department is short-staffed, the Asset Management Division is also very short-staffed (team of three). The BTRs for boat slip operators are monitored by the Finance Department, Marine & Waterfront Protection Authority and Code Enforcement. However, the Asset Management Division will communicate all infractions it is made aware of to Code Enforcement and/or other relevant City departments.
Select from the list N/A This should be further addressed by Code Compliance and Finance.
6 12 Boat clubs with more than five wet slips are operating at the marina without the consent of the City Manager.
The Lessee should obtain the necessary consent from the City Manager for any boat clubs operating with more than five slips at the marina.
Asset Management Division These Boat Clubs have been operating at the Marina since 2019 (Freedom Boat Club - Dock E) and 2014 (Barton and Grey Boat Club- Dock H). The Asset Management Division Director has reviewed this lease stipulation with the Marina Manager to ensure they are aware of the requirements going forward.
Not implemented N/A This will be addressed accordingly.
6 12 Same as above The Asset Management Division should establish stronger oversight and review processes to ensure that all lease terms, including sublease and assignment requirements, are followed. To implement these changes effectively, the OIG recommends providing additional human resources and training for the Division.
Asset Management Division Same as above Fully Implemented N/A None
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
7 13 Incorrect sales tax rate collected on commercial rent.
The Asset Management Division needs to recalculate the sales tax due and collected during 2022. Sublessees should be credited by the City for any overbilled amounts; the City should seek credits from the State; and future payments to the State should be adjusted accordingly. Additionally, the Asset Management Division should regularly check the Florida Department of Revenue website for updates on any changes to the sales tax rate. This will help ensure that the correct amounts are remitted to the State in the future.
Asset Management Division The Asset Management Division will recalculate the sales tax due and collected during 2022 to issue credits where due. The Asset Management Division does keep track of changes in the state sales tax. However, oversights by human error are always possible.
Partially implemented N/A The credit was pending the final settlement agreement and will be issued in May 2026
7 13 Dockage rate increases not properly approved by the City Manager and discrepancies in billing result in overbilling of $8,135.86.
The Asset Management Division should request that the Lessee, Miami Beach Marina Associates, update its request for dockage rate approval to include all applicable billing rates, ensuring compliance with Article IV of the Lease Agreement. The Division should consistently verify the completeness of information provided by the Lessee. On November 28, 2023, the OIG Auditor promptly informed the Asset Management Division management of this issue.
Asset Management Division The Asset Management Division Notifies the City Manager each year of the request for the dockage rate increase in writing. In November 2023, the Asset Management team notified Sam Chavers at the MBMA of the missing rates for the boat lifts at Docks A & M and they corrected and provided the information immediately. The OIG auditor was provided this update on December 4, 2023.
Fully Implemented December 4, 2023 None
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
9 15 Area for improvement: fair compensation to City for fuel sales.
1. Revised Payment Structure: Update the per-gallon rate to better align with current market values. Consider negotiating a percentage-based fee rather than a fixed rate per gallon, ensuring that compensation adjusts proportionally with sales and market conditions. 2. Indexing for Inflation: Introduce a clause that adjusts the per-gallon rate, or overall compensation, based on an inflation index, ensuring that the City's share remains competitive and relevant in the future. 3. Periodic Reviews: Implement a process for periodic reviews of the lease agreement (e.g., every five years) to ensure that terms reflect current market conditions and fair compensation practices. 4. Capitalize on Current Trends: With the rise in environmental awareness and potential shifts in fuel consumption (such as alternative energy options for vessels), consider diversifying the agreement to include other revenue streams or environmentally sustainable practices that benefit both parties. 5. Reiteration: As highlighted in the "General Opinions" section, the contract should not be renewed until it has been thoroughly reviewed and revised to include modifications that safeguard the City's interests.
Asset Management Division No Response Not implemented N/A This requires an amendment to the Lease or a new Lease. This is part of a future settlement agreement.
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Audit Name: State Beachfront Management Agreement (3595) Operational Audit Report Audit: OIG No. 25-11 Audit Period: October 1, 2022, through September 30, 2023 (Sand Tax Payments) October 1, 2023, through September 30, 2024 (Beachfront Concession Fees) Report Date: June 23, 2025
Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
1 3 Once payments are received, sand tax of $101.09 will be due to the state because revenue was underreported by $6,221.01
The Asset Management Division should bill Penrod Brothers $404.37 to correct the underpayment. Once the payment is received, the City should remit $101.09 in Sand Tax to the State. Further, the Asset Management Division should strengthen its oversight measures through periodic reconciliations or independent verifications to prevent future underpayments to the State.
Asset Management Division We reviewed this with Penrods. The original reports received were in PDF. For purposes of the audit, the Asset Team requested the reports be converted to an excel format and those were sent to the auditor. The excel format picked up names from busboys or Runners, which is already included in the report for the Servers. Penrod's Beach Server report is just a subset of the rent report to show how much was sold on the beach so the City can pay the State the right amount of tax. The way Penrod's tracks who sells on the beach is tracked in this system, which is there because there are servers that don't tip out to Busboys or Runners because they do this themselves. These records were not included in the original reports sent at the time, which are correct. The original calculation is correct and nothing further needs to be done.
Fully Implemented N/A The Asset Response was that the calculation was correct and nothing further needed to be done.
2 4 An incorrect sales tax rate was applied.
(i) The Asset Management Division should implement internal controls to verify that the correct sales tax rate is consistently applied to all transactions.
Asset Management Division No Response Fully Implemented July 1, 2025 We set reminders to check the Florida Revenue site on a monthly basis to track any changes in sales tax and make sure we are applying the correct sales tax rate. 2 4 Same as above (ii) Asset Management Division should refund Boucher Brothers the $2,762.31 in overbilled sales tax and coordinate with the State to request a credit for the excess sales tax remittance.
Asset Management Division The Asset Management Division will credit Boucher Brothers the $2,762.31 in overbilled sales tax and coordinate with the Finance Dept. to credit the State the overpayment.
Fully Implemented July 2, 2025 An invoice adjustment was made to give them a credit
3 5 The Asset
Management Division overbilled $500 in sales tax to Boucher Brothers and overpaid that amount to the state.
(i) The Asset Management Division
should implement stronger controls such as automated tax rate verification and periodic reconciliations.
Asset Management
Division
No Response Fully
Implemented
July 1, 2025 We set reminders to check the Florida
Revenue site on a monthly basis to track any changes in sales tax.
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3 5 Same as above (ii) Issue a refund or credit adjustment of $500 to Boucher Brothers. Asset Management Division This is correct. The Asset Management Division will issue a credit adjustment of $500 to Boucher Brothers and coordinate with the Finance Dept to secure credit for the $500 excess sales tax remittance with the State.
Fully Implemented April 16, 2026 The invoice adjustment was sent to finance for processing. A credit of $500.00 will be on their account.
3 5 Same as above (iii) Coordinate with the State to request a credit for the $500 excess sales tax remittance.
Asset Management Division Same as above Fully Implemented April 16, 2026 Same as above.
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Audit Name: State Beachfront Management Agreement (3595) Operational Audit Report Audit: OIG No. 25-21 Audit Period: October 1, 2023, through September 30, 2024 (Sand Tax Payments) October 1, 2024, through September 30, 2025 (Beachfront Concession Fees) Report Date: December 23, 2025
Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
1 4 Underbilled Beachfront Concession Permit Fees
Strengthen internal controls over the fee assessment and billing processes, including dual-review mechanisms.
Facilities Management Division No response Fully Implemented January 2, 2026 We have confirmed with the upland properties the total number of units where there were discrepancies. This information provides verification from the owner and not solely the information posted in the Property Appraiser. This information is then validated by the Field Supervisor and if adjustments are needed, these are processed accordingly. 1 4 Same as above Implement automated validation within the billing system to cross-check unit counts, permit types, and applicable fees.
Facilities Management Division No response Fully Implemented January 2, 2027 The automated validation currently does not exist in Energov which is the platform utlized for the BFC permits. The Department will continue working with IT to explore viability for this mechanism to be integrated. 1 4 Same as above Develop standardized procedures and checklists for reviewing concessionaire applications.
Facilities Management Division No response Fully Implemented January 2, 2026 We have developed checklist to verify concessionaire applications. Checklist is provided in the Rules and Regulations. 1 4 Same as above Provide training to staff responsible for fee assessments to reduce human error and improve consistency.
Facilities Management Division No response Fully Implemented December 30, 2025 Annual adopted fees and proposed fees were shared with staff.
1 4 Same as above Conduct periodic spot checks between the applications and the billed amounts to ensure billing accuracy throughout the fiscal year.
Facilities Management Division No response Fully Implemented December 30, 2025 We conducted spot checks and reviewed billing throughout the FY. We have issued late fees for any outstanding permits.
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
2 6 Overbilled Beachfront Concession Permit Fees
Strengthen internal controls over the fee assessment and billing processes, including dual-review mechanisms.
Facilities Management Division No response Fully Implemented January 2, 2026 We have confirmed with the upland properties the total number of units where there were discrepancies. This information provides verification from the owner and not solely the information posted in the Property Appraiser. This information is then validated by the Field Supervisor and if adjustments are needed, these are processed accordingly. 2 6 Same as above Implement automated validation within the billing system to cross-check unit counts, permit types, and applicable fees.
Facilities Management Division No response Partially implemented January 2, 2026 The automated validation currently does not exist in Energov which is the platform utlized for the BFC permits. The Department will continue working with IT to explore viability for this mechanism to be integrated. 2 6 Same as above Develop standardized procedures and checklists for reviewing concessionaire applications.
Facilities Management Division No response Fully Implemented January 2, 2026 We have developed checklist to verify concessionaire applications. Checklist is provided in the Rules and Regulations. 2 6 Same as above Provide training to staff responsible for fee assessments to reduce human error and improve consistency.
Facilities Management Division No response Fully Implemented December 30, 2025 Annual adopted fees and proposed fees were shared with staff.
2 7 Same as above Conduct periodic spot checks between the applications and the billed amounts to ensure billing accuracy throughout the fiscal year.
Facilities Management Division No response Fully Implemented December 30, 2025 We conducted spot checks and reviewed billing throughtout the FY. We have issued late fees for any outstanding permits.
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
3 9 Internal Control Deficiency: Missing Application Information
Implement a standardized checklist for application completeness to be used during initial intake. Only complete applications should proceed to the billing.
Facilities Management Division 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 October 2026
Fully Implemented January 2, 2026 We have developed checklist to verify concessionaire applications. Checklist is provided in the Rules and Regulations.
3 9 Same as above Enhance the Energov platform with mandatory field validations and automated prompts for missing documents during application submission.
Facilities Management Division Same as above Partially implemented January 1, 2027 We are working with IT Dept to explore features that can be integrated to allow for this validation.
3 9 Same as above Conduct annual training or outreach sessions for concessionaires to
reinforce submission requirements and reduce error rates.
Facilities Management Division Same as above Partially implemented January 1, 2027 The Department will schedule outreach sessions upon adoption
of the 7th Amended Rules and Regulations.
3 9 Same as above Assign a dedicated permit coordinator to review and verify completeness before issuing the bills.
Facilities Management Division Same as above Fully Implemented January 1, 2026 Due to limited staff we are unable to have a dedicated personnel for this task. We used checklist to verify applications submitted were completed as required. Upland property owners were notified of any missing documents permits would not be invoiced or
processed until all documents / information was provided.
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
3 9 Same as above Develop and enforce a deadline policy for corrections and resubmissions, including rejection of incomplete applications after a prescribed grace period.
Facilities Management Division Same as above Partially implemented January 1, 2027 This will be addressed as part of the outreach training for concessionaires. The Department will schedule outreach sessions upon adoption of the 7th Amended Rules and Regulations. 4 11 Internal Control Deficiency: Numerous Voided Invoices
The IT Department should respond to and perform annual fee updates before invoice processing begins, based upon a calendared schedule each year.
IT Department Facilities Management Division
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.
Select from the list N/A None
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
4 11 Same as above 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.
IT Department Facilities Management Division
Same as above Select from the list N/A None
4 11 Same as above The Facilities Division should establish an internal written protocol for processing permit update requests, including establishing turnaround times and escalation procedures.
IT Department Facilities Management Division
Facilities and Fleet Management Response: 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 intervention.
Select from the list N/A None
4 11 Same as above The Facilities division should validate the billing system rates before initiating each billing cycle.
IT Department Facilities Management Division
Same as above Fully Implemented January 2, 2026 Annual adopted fees and proposed fees were shared with staff.
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Additional response from the IT department provided on May 11, 2026 Following our review of the findings and recommendations contained within the “Beachfront Management Agreement – Audit,” the Information Technology Department would like to provide additional operational context regarding the City’s EnerGov permitting platform, specifically as it relates to application intake, fee configuration, annual renewal processes, and invoice generation. The purpose of this response is to clarify the current system configuration, explain the operational processes that support annual fee management across departments, and provide additional context regarding the Beach Concessions permit workflow. The Information Technology Department administers and supports the annual fee update process for permits and licensing activities across all City departments. This process includes the coordinated review and implementation of more than 7,000 fee entries annually. Each fiscal year, IT provides departments with a detailed export of their current fee schedules beginning in July. Departments review and update their proposed fees for the upcoming fiscal year and return the information to IT for configuration within the test environment. Following configuration, departments are asked to validate the accuracy of the updated fees prior to migration into production. Once departmental validation is completed, the updated fee schedules are promoted into production in advance of the new fiscal year. Historically, certain permit types utilized an automated renewal and invoice generation process designed to issue renewal invoices approximately 90 days prior to the start of the fiscal year. This process was intended to provide customers with sufficient time to renew prior to October 1. The automated renewal process relies on several operational prerequisites: * Departments must provide finalized fee schedules prior to the scheduled automation date. * Required permit data and custom field values must be updated and validated in advance of the automated renewal cycle. * Once the automated process initiates, invoice generation occurs systemically and cannot be modified retroactively without voiding and reissuing invoices. The Beach Concessions permit utilized this automated renewal process during fiscal years 2023 through 2025. For fiscal year 2026, the Beach Concessions billing process transitioned away from automated renewal processing and aligned with the standard manual billing practices utilized by other departments citywide. OIG Finding 1 and Finding 2 Recommendation: Implement automated validation within the billing system to cross-check unit counts, permit types, and applicable fees. IT Response: The EnerGov platform supports configurable fee schedules, permit types, work classes, and application workflows. However, certain fee calculations for Beach Concessions are dependent upon operational data entered during the application review process, including quantities and usage selections that require staff verification. Because these quantities are based on applicant submissions and departmental review, the system does not independently validate the operational accuracy of those values absent manual review. Permit types and associated fee structures are configured within the system based on departmental business rules and operational requirements, with IT responsible for implementing and maintaining the technical configuration. OIG Finding 3 Recommendation: Enhance the EnerGov platform with mandatory field validations and automated prompts for missing documents during application submission. IT Response: The EnerGov platform provides configurable intake forms, required fields, and workflow customization capabilities. The current Beach Concessions permit structure functions as a consolidated application supporting multiple operational categories, including food service, liquor sales, watercraft activities, and beach equipment operations. The platform can support additional segmentation through expanded work classes and required custom fields associated with specific permit categories. However, the current version of the platform does not support advanced conditional logic or dynamic “if/then” field behavior within Civic Access intake forms. IT remains available to work collaboratively with departments to evaluate opportunities for additional workflow standardization and intake enhancements within the capabilities of the platform. OIG Finding 4 Internal Control Deficiency – Voided Invoices IT Response: During fiscal year 2024, several invoices associated with the Beach Concessions permit process were voided following the identification of incorrect invoice amounts generated during the renewal cycle.
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At the time, the renewal process had transitioned away from automated renewal generation due to operational concerns regarding the completeness and accuracy of permit data required for the automation process. The automated renewal configuration was subsequently adjusted to support a manual billing process consistent with standard departmental practices. During this transition, an administrative configuration oversight resulted in automated invoices being generated with incorrect fee values and quantities. Once identified, corrective actions were immediately initiated, including: * Voiding unpaid invoices generated in error. * Coordinating the reissuance of corrected invoices utilizing updated fee schedules and operational quantities. * Creating supplemental manual fee adjustments where necessary to recover underbilled amounts associated with previously paid invoices. As noted previously, portions of the fee calculation process rely upon operational quantity data maintained within permit records. Where those values had not yet been updated prior to invoice generation, invoice totals would not have reflected the intended billing amounts. The Information Technology Department currently maintains annual operational processes supporting fee configuration, testing, validation, and production deployment across all permitting and licensing functions. As part of ongoing process improvement efforts, IT will further formalize change management and approval procedures associated with annual fee updates and permit configuration changes. This will include enhanced documentation, validation checkpoints, and formal departmental approval prior to production deployment. IT will continue supporting departments in the configuration and optimization of permitting workflows within the capabilities of the EnerGov platform, including application intake, workflow configuration, fee management, invoicing processes, and operational reporting.
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Audit Name: Waste Connection Agreement (Non-Exclusive Franchise Contractor) Audit Audit: OIG No. 25-23 Audit Period: January 1, 2022, through December 31, 2024 Report Date: December 29, 2025 Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
1 4 Uncollected Late Fees The Sanitation Division team should calculate applicable late fees and issue contractor bills for any deficiencies. For the future, it is recommended that the Sanitation Division implement stricter billing practices or establish a clear policy regarding late payments to ensure compliance and accountability among contractors.
Public Works-Sanitation Division
We agree with the audit recommendations provided by the OIG. The Sanitation Division will meet with the Finance Department to discuss implementation of late fees being added based on the contractual agreement. Implementation June 30, 2026
Partially implemented April 2026 Waste Management is not able to work with payments through e-check; they are able to implement ACH, however, the City does not collect payments through ACH. Uncollected late fees have been billed from Sanitation. Waste Connections is contesting the fees and the due dates.
2 5 Sustainable Initiatives Fees Overcharged.
The Sanitation Division should review the monthly and annual gross receipts reports for accuracy and compliance with the terms of the agreement. Also, the Sanitation Division should communicate and educate all Sanitation Waste Hauler contractors if errors are noted.
Public Works-Sanitation Division
We agree with the audit recommendations provided by the OIG. The Sanitation Division will have discussions with Finance Department over current procedures and develop a streamlined process. Implementation Date: June 30, 2026
Partially implemented September 2026 Reached out to an independent contractor. The City has a rider contract with RSM (Florida State Contract #: 22-333-05). We are currently is discussions to arrange a proposed service schedule and fees to review the audit findings for accuracy and compliance.
3 7 Questionable Exempt Amounts.
The Sanitation Division team should request Waste Connections to adequately document its recycling activities on customer invoices to ensure that recycling activities are clearly reflected. The Sanitation Division team should review invoices, supporting documentation, and the Contamination Audit to ensure that all exemptions are valid and accurate.
Public Works-Sanitation Division
The Sanitation Division met with Waste Connections Mgmt. team on 12/18/2025 and discussed with them to clearly reflect on their invoices items which are solid waste materials and recycling materials. Waste Connections has agreed to do the changes as discussed in meeting. Implementation Date: June 30, 2026
Partially implemented September 2026 Reached out to an independent contractor The City has a rider contract with RSM (Florida State Contract #: 22-333-05). We are currently is discussions to arrange a proposed service schedule and fees to review the audit findings for accuracy and compliance. 4 9 Non-Compliant Contamination Audits.
The Sanitation Division should implement a formal review and validation process for annual Contamination Audits submitted by contractors. This process should include verifying that audits meet all contractual requirements such as quantifying contamination rates, including supporting documentation, and listing non-compliant accounts.
Public Works-Sanitation Division
We agree with the audit recommendations provided by the OIG. The Sanitation Division will ensure that waste haulers will provide the annual contamination audit report. The Sanitation department is in discussions with the Finance and Legal Departments to address situations where recycling loads are contaminated with trash, and what additional charges or fees may apply in those situations. Implementation Date: June 30, 2026
Partially implemented September 2026 Reached out to an independent contractor The City has a rider contract with RSM (Florida State Contract #: 22-333-05). We are currently is discussions to arrange a proposed service schedule and fees to review the audit findings for accuracy and compliance.
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Waste Management of Florida Inc. Agreement (Non-Exclusive Franchise Contractor) Audit Audit: OIG No. 25-24 Audit Period: January 1, 2022, through December 31, 2024 Report Date: December 29, 2025
Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
1 4 Uncollected Late Fees The Sanitation Division team should calculate applicable late fees and issue contractor bills for any deficiencies. For the future, it is recommended that the Sanitation Division implement stricter billing practices or establish a clear policy regarding late payments to ensure compliance and accountability among contractors.
Public Works-Sanitation Division We agree with the audit recommendations provided by the OIG. The Sanitation Division will meet with the Finance Department to discuss implementation of late fees being added based on the contractual agreement. Implementation June 30, 2026
Partially implemented April 2026 Waste Management is not able to work with payments through e-check; they are able to implement ACH, however, the City does not collect payments through ACH. Uncollected late fees have been billed from Sanitation.
2 5 Sustainable Initiatives Fees Overcharged The Sanitation Division should review the monthly and annual gross receipts reports for accuracy and compliance with the terms of the agreement. Also, the Sanitation Division should communicate and educate all Sanitation Waste Hauler contractors if errors are noted.
Public Works-Sanitation Division The Sanitation Division should review the monthly and annual gross receipts reports for accuracy and compliance with the terms of the agreement. Also, the Sanitation Division should communicate and educate all Sanitation Waste Hauler contractors if errors are noted.
Partially implemented September 2026 Reached out to an independent contractor. The City has a rider contract with RSM (Florida State Contract #: 22-333-05). We are currently in discussions to arrange a proposed service schedule and fees to review the audit findings for accuracy and compliance.
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Audit Finding:
Report Page:
Audit Findings Recommendations: Responsible Party (Auditees):
Management Response: Implementation Status per Management:
Implementation Date: Management Comments:
3 5 Right Of Way Fees Underbilled The Sanitation Division should calculate the difference in right-of-way fees and bill Waste Management accordingly. The Sanitation Division should also review the monthly and annual gross receipts reports to ensure accuracy and compliance with City Code. Furthermore, if any errors are identified, the Sanitation Division should communicate with and educate all Sanitation Waste Hauler contractors.
Public Works-Sanitation Division We agree with the audit recommendations provided by the OIG. The Sanitation Division will have discussions with the Finance Department over current procedures and develop a streamlined process. Implementation Date: June 30, 2027
Partially implemented September 2026 Reached out to an independent contractor. The City has a rider contract with RSM (Florida State Contract #: 22-333-05). We are currently in discussions to arrange a proposed service schedule and fees to review the audit findings for accuracy and compliance.
4 7 Non-Compliant Contamination Audits The Sanitation Division should implement a formal review and validation process for annual Contamination Audits submitted by contractors. This process should include verifying that audits meet all contractual requirements, such as quantifying contamination rates, including supporting documentation, and listing non-compliant accounts.
Public Works-Sanitation Division We agree with the audit recommendations provided by the OIG. The Sanitation Division will ensure that waste haulers will provide the annual contamination audit report. The Sanitation Department will discuss with the Finance and Legal Departments how franchise fees apply to recycling loads that become contaminated and are disposed of as trash. Implementation Date: June 30, 2026
Partially implemented September 2026 Reached out to an independent contractor. The City has a rider contract with RSM (Florida State Contract #: 22-333-05). We are currently in discussions to arrange a proposed service schedule and fees to review the audit findings for accuracy and compliance.
Docusign Envelope ID: 29D2DCD8-DBC7-8D35-8194-0C0EDA50933F