Auditor General conducting follow-up to City of Gainesville audit report earlier than expected

BY JENNIFER CABRERA

GAINESVILLE, Fla. – The Auditor General of the State of Florida notified the City of Gainesville on June 1 that the follow-up to the January 2022 audit report will begin tomorrow.

City Manager Cynthia Curry indicated at the June 1 City Commission meeting that the follow-up was expected in July: “For those that don’t know, we have been asked to advance the review of the State Auditor’s findings by a month. As opposed to coming here in July, they’re here, June 1.”

The letter states that the Auditor General is required by statute to follow up “no later than 18 months” from the release date of the audit report for the purpose of determining the progress the City has made on the 18 findings.

The letter states that the team from the Auditor General’s office must have unrestricted access to City records and personnel, and working space must be provided for staff members.

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The original findings, many of which have been corrected, dealt mainly with GRU debt levels, the transfer of funds between GRU and General Government, Reichert House Youth Academy, the City’s internal financial reporting controls, the City’s budgetary controls, transparency of Ironwood golf course operations, transparency of the Gainesville Community Reinvestment Area, City policies and procedures regarding background checks and performance evaluations, controls over purchasing cards (P-cards), and travel policies and procedures.

The Joint Legislative Audit Committee’s scrutiny of the City of Gainesville, and particularly Gainesville Regional Utilities, began when they heard a presentation on the audit findings at their February 23, 2023, meeting.

Following the presentation, Alternating Chair Rep. Mike Caruso (R-Boca Raton) said, “These are major, major items that the audit has revealed.” He said he was concerned with the golf course findings, the Reichert House, and particularly the findings on internal controls, but “I think the audit doesn’t go far enough… If we could have sound effects in here with lightning and fire and thunder, I think that would more appropriately show the magnitude of what this audit has touched light on.”

Caruso said the audit “inadequately addresses the fact that the GRU is not sustainable.” He said GRU has $1.7 billion in debt, which “technically may be in default for breach of the anti-subsidizing clause.” He said the City is “using the GRU as its own piggy bank, without consideration of its own fiscal responsibility… without consideration of the hardship it places on GRU customers… I don’t think the magnitude of all this has been addressed.”

Caruso told Mayor Harvey Ward and City representatives, “I’m telling you, go back and make those bold moves, or we will take action. What action? We will write letters to the governor, ask him to remove you from office and put people in that will take the bold actions to save GRU, to save the utility, to ultimately save the City.”

In April, the City Commission set a formula for the General Fund Transfer, now known as the Government Services Contribution, and cut it by about $19 million. Since then, they have had a series of budget meetings that so far have added $6,338,585 to the City’s General Government budget, but the City has signaled that property taxes will increase by at least one mill.

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