Daytona Beach 'excessive' P-card spending under criminal investigation
DAYTONA BEACH, Fla. - Months following Daytona Beach's initial financial audit, city leaders are looking for who is responsible for allowing the excessive spending.
After some commissioners claim the responsibility falls under the city manager, they voted to extend the manager's contract.
What we know:
On May 6, city commissioners voted in favor of extending City Manager Deric Feacher's contract.
Feacher's current contract was set to expire this month.
Some commissioners argued that the spending issues began before he took over the position, while others argued it's his job to uncover when policies aren't being followed, FOX 35's Chancelor Winn reported.
Previously, Commissioner Stacy Cantu previously motioned to provide a 30-day notice for the termination of City Manager Deric Feacher's contract. The motion failed.
A series of financial audits show excessive spending in Daytona
Timeline:
- In December, a city audit uncovered under-documented spending on expensive meals, business-class plane tickets, valet and more.
- In March, city leaders discussed over $50,000 spent by the Daytona Beach fire department on fast food and restaurant meals.
The backstory:
The audit follows a P-card investigation launched by the city last year, which uncovered discrepancies in spending and highlighted that many of the policies governing credit card use had not been updated in years.
Officials say the lack of clear, modern guidelines contributed to confusion and inconsistent enforcement.
Problematic spending in Daytona? Officials under criminal investigation
After problematic spending through the use of city-issued purchasing cards were identified in a Daytona Beach audit, officials met to discuss a criminal investigation. Now, prosecutors are requiring access to all emails, texts and communication of several city leaders.
Under criminal investigation
On May 6, the Daytona Beach fire chief, Dru Driscoll, entered city hall to meet with prosecutors who are conducting an investigation that could end with criminal charges, FOX 35's Chris Lindsay reported.
The state issued several subpoenas – including to the city clerk, deputy city manager, chief financial officer and Mayor Derrick Henry – requesting access to emails, texts and other forms of communication from several city leaders.
"You shouldn't be allowed to take a city credit card and use it wherever you feel fit," Cantu told FOX 35.
The state is also conducting a full audit on Daytona Beach's spending.
Who's authorized to use a P-card?
According to Cantu, approximately 300 of the city’s more than 900 employees—as well as contractors—currently hold these cards.
Cantu is calling for increased oversight and updated policies regarding city credit card usage.
City officials said transactions are reviewed regularly, with a $3,000 spending limit per card. Supervisors maintain final approval over purchases.
An ‘outdated’ policy
An audit 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.
Feacher acknowledged that existing rules need to be strengthened.
"We will continue to establish clear timelines, monitor progress, and hold ourselves accountable for results. Strengthening internal controls is not optional, it is a fundamental responsibility of management," Deric Feacher said in a statement sent to FOX 35. He said, as of February 2026, several policy changes have been implemented to provide more clear instructions and guidelines.
What's next:
The case is now in the hands of federal prosecutors who are also looking into the mayor's Math and Fitness Bootcamp and $125,000 2024 Child Obesity Grant, the subpoenas show.
The Source: Information in this story was gathered from previous reporting by FOX 35's Manny Martinez, Chris Lindsay and Chancelor Winn.