(The Center Square) – A report by the Florida auditor general’s office found numerous issues with the city of Mexico Beach in northwest Florida.
The city, devastated by Category 5 Hurricane Michael in 2019, was docked by auditors for turnover in key management positions; not filing audited financial reports as required by state law; procurement issues; and no procedures for communicating and investigating fraud.
From 2020 to 2024, the positions of city administrator, clerk and accountant were either the subject of a firing or a resignation three times for the administrator and accountant positions and twice for the clerk. The administrator position went 78 days at a stretch unfilled, while it took more than a year (495 days) to fill the accountant role.
The report cited a negative work environment and additional duties related to relief from Hurricane Michael as the reasons for the turnover.
Turnover in the city’s three main administrative positions also contributed to late financial reporting, which is required by state law. The city filed its fiscal 2020-21 report 173 days late and 2021-22 report 362 days late.
The fiscal 2022-23 report hadn’t been filed by August and was two months late at that point.
Auditors also examined the city’s procurement policies from October 2022 to this month and found $564,092 in purchases weren’t competitively bid. Most of that came for disaster debris removal and disposal ($250,000), fuel ($130,772), yard waste collection ($110,260), software ($58,060) and paving ($15,000).
State officials also found $977,280 in procurement that wasn’t advertised for bids during the same period. The biggest items included marina and boat ramp repairs ($369,406) and professional engineering services ($355,368).
The city hired a part-time city accountant in 2020 and paid them through the city’s accounting system without deducting federal taxes since officials considered the accountant to be an independent contractor.
The report said that policy could lead to “an increased risk that the city may misclassify employees as independent contractors and be subject to employment taxes and penalties.”
The city also paid the accountant $45,280 for services provided and disbursed travel totaling $3,351 without a signed agreement.
Auditors found issues with city-created computer accounts, including an account for a city administrator that hadn’t been used in a decade after the employee had left city service.
In a response letter, city officials detailed their actions to correct the issues detailed by the audit and thanked the office for its “invaluable recommendations.”
