Daytona Beach audit: Claims of 'free-for-all' spending spark calls for accountability
Audit finds Daytona Beach city spending policies ignored
An audit has found that Daytona Beach city officials have largely ignored purchasing policies in place since 2006, raising concerns over accountability and oversight.
DAYTONA BEACH, Fla. - An audit has found that Daytona Beach city officials have largely ignored purchasing policies in place since 2006, raising concerns over accountability and oversight.
The audit centers on the city’s use of purchasing cards, or P-cards. According to Commissioner Stacy Cantu, approximately 300 of the city’s more than 900 employees—as well as contractors—currently hold these cards.
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The report suggests that the purchasing policy established in 2006 has been largely ignored. The city auditor, Abinet Belachew, found that rather than using traditional invoices and checks, which require a rigorous paper trail, the department frequently used P-cards for major expenses.
This included more than half a million dollars in vehicle maintenance, car washes, and uniforms. Without the proper paper trail, it makes it tough to verify the validity of the purchases.
The audit revealed that some city-funded vehicles were being driven without the required "Exempt" government license plates or official city markings, creating what Cantu says is a transparency issue, as they are indistinguishable from personal cars.
Furthermore, because the vehicles used standard tags, the city was reportedly paying for registration decals—expenses from which government entities are typically exempt.
Motion to Terminate City Manager
Cantu argued that City Manager Deric Feacher should be held responsible for the breakdown in policy, given that the city charter places department heads directly under his supervision.
During the marathon session Wednesday night, which didn't conclude until 1:30 a.m., a motion was brought forward to provide a 30-day notice for the termination of Feacher’s contract.
While the motion ultimately failed to pass, it highlighted a divide within the commission. Feacher remains in his seat for now, but his long-term future with the city is still in question.
Commissioners indicated they plan to conduct a formal evaluation of the City Manager's performance before his current contract expires in May.
Other leaders, like Commissioner Paula Reed, voted to keep the city manager in his seat for the time being but emphasized that the pressure is officially on. Reed noted that while she wasn't ready to cut ties yet, the expectation for immediate change has been set.
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What they're saying:
Cantu described the chaotic nature of the current spending habits and the lack of adherence to purchasing policy established in 2006.
"No one is going by these policies. It’s like a free for all," said Cantu. "Why is everyone using the P-card because we should be writing checks, invoices, it should go through our purchasing."
Cantu questioned the systemic breakdown of financial oversight and how it affects everyday purchases like clothing.
"How do you know these are not personal shirts and pants since there’s no checks and balances?" Cantu asked. "There’s policies put in place to protect the taxpayer’s money, and we are doing a lousy job."
Regarding the waste of city funds on registration for city vehicles that should be exempt from such costs, Cantu noted the burden on the public.
"The citizens are paying taxes on these and to renew decals. City Government is tax exempt," Cantu said. "A manager that works for city government should know the laws. So I don’t see how that’s an oversight."
Reed explained her decision to vote against the termination, opting instead to give the manager a chance to rectify the audit's findings.
"We need to hold him accountable and if he doesn’t do the job now that we are presenting to him what needs to be done, then we need to talk about letting him go," Reed said.
Local small business owner Lee Fox reflected on how the lack of receipts would be handled in the private sector.
"I own a small business and if one of my employees went out and said, 'hey I got 20 in gas and [instead] bought beer.' How would I know without the receipts?" Fox said. "That’s our money and they should be keeping track of it."
What's next:
While the city continues to grapple with the internal findings, a larger investigation is looming. The Florida Auditor General is currently conducting a state-level audit of Daytona Beach’s finances, which is expected to be finalized by the end of the year.
Cantu stated that if that investigation uncovers evidence of fraud, she will push for a formal criminal investigation.
The Source: This story was written with information gathered by FOX 35 reporter Chancelor Winn.