Division of Recreation and Parks. Report: A-1415DEP-006

Transcription

1 Division of Recreation and Parks Office of Inspector General Internal Audit Section Florida Department of Environmental Protection February 19, Commonwealth Boulevard, MS 40 Tallahassee, Florida

2 Division of Recreation and Parks Table of Contents Scope & Objective... 1 Methodology... 1 Background... 2 Results & Conclusions... 3 Findings and Recommendations... 9 Division s Response....14

3 The Office of Inspector General (OIG) conducted an audit of Topsail Hill Preserve State Park (Park), Division of Recreation and Parks (Division). This audit was initiated as a result of the Fiscal Year (FY) Audit Plan. Scope & Objective The scope of this audit included select activities of the Park during the period July 1, 2013 through August 30, The objectives of our audit were to determine: The accuracy of reported revenue Whether the Park is in compliance and controls are in place in the following areas: - Cash Collection - Expenditures - State Property - Attendance Methodology - Overnight Accommodations - Volunteers Methodology This audit was conducted under the authority of Section , Florida Statutes, and was conducted in conformance with the International Standards of the Professional Practice of February 19, Page 1 of

4 Internal Auditing, published by the Institute of Internal Auditors. This audit included tests of records provided by the Division and by the Park, along with interviews of their personnel. The sample months chosen for this audit were August 2013 and March Background Topsail Hill Preserve State Park is located in Santa Rosa Beach, 10 miles east of Destin, Florida. The Park was purchased in 1992 and the Recreation Vehicle (RV) resort was added in Funds to buy the property came from the Conservation Acquisition of Recreation Lands (CARL) program. In total, the Park encompasses 1,637 acres. Park ecosystems include freshwater coastal dune lakes, wet prairies, pine flatwoods, marshes, cypress domes, seepage slopes, and 3.2 miles of white sand beaches. The Park offers interpretive programs, hiking trails, and fishing. Items that can be rented at the Park include bikes, canoes, kayaks and paddle boards. A tram transports visitors the half mile from parking to the beach. The Park has 22 tent-camp sites, 156 RV sites, and 32 cabins. The Park currently staffs 12 full-time employees and 4 OPS employees. Generally, 8-12 volunteers work on site. Resident volunteers typically work for a month at a time. Five campsites are allotted for resident volunteers. Camping fees primarily generate revenue for the Park. Park Management estimated that 10-15% of Park attendance is day use. The Park also operates a small store where basic February 19, 2015 Page 2 of 16

5 recreation and camping items are sold. Sales from the store provide revenue to the Park, along with the Park s Citizens Support Organization (CSO). Results & Conclusions Accuracy of Reported Revenue For the sampled months of August 2013 and March 2014, the weekly Deposit Worksheets reflected the total revenue reported to the Division accurately. Daily shift reports reconciled with the validated bank deposit slips with only minor discrepancies. The Park also provided inventory records for store merchandise for the two sample months. The revenue calculated from these records using beginning inventory plus purchases minus ending inventory was compared against the sales receipts from the store register for corresponding months. The results were as follows: August 2013 March 2014 Revenue per Inventory Records $3, $6, Reported Revenue per Receipts $4, $3, Discrepancy ($346.52) $2, Revenue reported to the Division was $ greater than indicated in the inventory report for August For March 2014, inventory records reflected that revenue was $2, greater than the revenue reported to the Division. Park Management stated that possible explanations could include different volunteers performing the physical inventory February 19, 2015 Page 3 of 16

6 count. Given the discrepancies found during the two sample months, merchandise inventory reports were requested for the remainder of the FY However, the reports provided were hand written copies that did not include the number of items sold and purchases made during the month. The lack of complete documentation prevented these reports from being reconciled to monthly receipts. Park Management indicated that inventory reports are primarily used to ensure quantities on hand, rather than as a verification of revenue. Park Management recognizes the need for a sales process that captures daily inventory for the Park store and stated that the Park is currently in the process of updating the inventory system in place. Cash Collection The Park has two points of revenue collection on Park grounds. One source is the Ranger Station at the entrance to the Park where day use fees are collected. The second source is the store within the Park office. Camping revenue is primarily collected online through the central reservation system (Active Network). The following procedures for revenue collection were obtained through interviews with Park personnel and observations at the time of our site visit. Based on interviews with Park Management, standard Park revenue collection control processes are in place. However, during both of our test months, there was only a single shift report sheet for the majority of days. Park Management noted that often, a shift staff member would not collect revenue and therefore not start a new shift report. Without a report for each February 19, 2015 Page 4 of 16

7 shift, Park Management does not have verification of the fiscal activity conducted during each shift, even if no revenues are collected. Park Management indicated this problem has been previously addressed and two shift reports are now produced daily for the Ranger Station, even if revenue is not collected during one of the shifts. Topsail Hill State Park is one of the few Parks in the Park system that operates a gift shop. The Park store is open daily from 8:00 am to 5:00 pm. The Assistant Park Manager opens the register and volunteers operate the store during the day. Revenue from certain items benefits the Park s CSO. These items include firewood, ice, ice cream, and candy. A separate register is maintained for the funds collected for the CSO. The Treasurer for the CSO collects and deposits funds one to two times a week. The volunteers have access to both the CSO register and the Park register. A Ranger verifies funds for both registers at the time of closing, based on the closing receipt. However, the closing receipts generated by the Park register could not be reconciled to inventory reports because the current register does not provide quantities or item codes. The Park register does not record the items sold daily. Rather, at the end of each month, ending inventory is checked against beginning inventory and purchases to determine monthly sale of items. Park Management stated they are currently in the process of updating the store s cash collection system to actively account for inventory. Park Management stated that Park revenue is reconciled each Monday by the Park s Administrative Assistant. The reconciliation process includes preparing the Deposit Worksheet using the supporting documentation including store receipts, credit card closing reports, bank deposit slips, and daily shift reports. Refund reports were examined for both of the sample February 19, 2015 Page 5 of 16

8 months. August 2013 had five refunds totaling $ and March 2014 had seven refunds totaling $ No supporting refund notes were included on the Outdoor Recreation Management System (ORMS) refund report or the corresponding daily shift report. Of the 12 refunds for the two sample months, two were cash refunds. Expenditures We reviewed compliance and the controls in place for Park expenditures in the areas of purchasing card expenses and bulk fuel expenses for the sample months of August 2013 and March Of the 42 total transactions for August 2013, we sampled 14 and of the 36 transactions for March 2014, we sampled 10. Purchases for the sampled transactions were allowable items, as provided in the Department s Purchasing Card Guidelines. Employees submitted documentation/receipts for each purchase. The employees that used purchasing cards were within their pre-determined spending limits and Park Management authorized all purchases. Additionally, select purchases were verified during our site visit. Several large purchases of concrete were made by purchasing card for the repair of RV sites and repairs of these sites were observed at the time of our visit. For our review of bulk fuel, we collected fuel usage logs, fuel receipts, and inventory reports for July and August These months were selected given the time of our site visit. We reconciled purchases, usage, and beginning inventory to the ending inventory reported on the Park s submitted bulk fuel inventory reports. For the two sample months of July and August February 19, 2015 Page 6 of 16

9 2014, records indicated that ending inventory was 13% and 10% lower respectively than indicated on the Park s fuel usage logs, after taking into account purchases and beginning inventory. State Property A complete property listing for the Park was obtained from the Bureau of General Services. The records listed 151 items currently in Park possession. Of the 151 items, 47 were selected to sample. Their property numbers or VIN numbers visually identified all items at the time of the site visit, except for two items that had recently been submitted for surplus. Park Management provided surplus certification for these two items. Additionally, one Park vehicle was unable to be identified due to the vehicle being out of the Park for repairs. Attendance methodology The Park s total daily attendance figure consists of overnight occupants, day use visitors and departing occupants. For the sampled months, Park Management stated a hand clicker operated by the Ranger working the register at the Park s entrance counted day use visitation. Park Management stated that this practice has been discontinued and a new register is in place to maintain day use count at the time of entry. Overnight occupant and departing occupant attendance figures are gathered from Active Network at the end of each day. The reports used by the Park to capture these figures are updated daily and previous day reports cannot be accessed. Park Management stated they do not archive the overnight occupant attendance report. Only reports for departing overnight visitors are kept. We compared the attendance figures from the February 19, 2015 Page 7 of 16

10 departing occupant reports to the figures reported to the Division in Oculus. Park Management could not provide the requested sample months; therefore, August and September 2014 were provided as alternatives. For the two months tested, Oculus and Active Network reconciled each week, except the last week in August. The departing occupant count for the week of August 18, 2014 was also input for the week of August 25, This resulted in an overstatement of attendance by 374 for the week of August 25, Park Management indicated they would correct the issue. Overnight Accommodations Prior to our site visit, tax-exempt reservations from the two sample months were acquired from Active Network records. At the time of our site visit, the Park could not produce the corresponding tax-exempt documentation for the eight reservations who claimed the tax exemption. The Park stated it does not maintain records for tax-exempt reservations. The Division has recognized the need for ensuring that Tax Exempt Certificates are collected, verified, and maintained on file at the Park. The Division has addressed this issue with its personnel. Volunteers During our site visit, we requested to review all sexual predator verifications and completed Volunteer Agreement forms for all active volunteers. Of the 17 volunteers working at the time, Park records supported sexual predator search verifications for 15 volunteers and volunteer agreements for 16 of the volunteers. Park Management stated that all volunteers except February 19, 2015 Page 8 of 16

11 for one were staying on Park premises. We obtained the volunteer scheduling reports maintained by the Park to ensure that the volunteers staying on Park premises were working the required hours, as defined by the Operations Manual. Chapter 2 of the Operations Manual states, The minimum number of work hours an occupied campsite shall contribute for the campground host position is 20 hours a week. The Park Volunteer Coordinator collected volunteer timesheets that are completed and submitted by the volunteers. Based on a review of these timesheets, volunteers that were staying overnight at the Park were working sufficient hours to satisfy the requirement for being a resident volunteer. Findings and Recommendations Finding 1: Cash Collection Controls Sales revenue for the Park-operated store reported to the Division should reconcile to merchandise inventory records maintained by the Park. However, receipts for the two sample months did not reconcile to the inventory reports prepared at the end of each sample month. The Park does not have a method in place to effectively track merchandise inventory for the Park store. Park Management stated inventory reports are not reconciled to sales revenue because the register currently being used does not track items sold. Without proper tracking of store inventory, the Park is exposed to the risk of loss or theft of goods. Mainly volunteers rather than Park employees operate the Park store. February 19, 2015 Page 9 of 16

12 Recommendation We recommend the Division establish procedures for the Park to monitor merchandise inventory of the Park s self-operated store. Merchandise inventory should be tracked on a daily basis and the monthly ending inventory should reconcile to the store s reported revenue for that period. Finding 2: Fuel Log Reconciliation Chapter 5 of the Operations Manual states, Physical inventories of bulk gasoline, diesel fuel, and oil are to be taken on a regular basis and reconciliation documented at least monthly by the Park staff. The Park submits a Monthly Bulk Gasoline and Oil Inventory Report to the District Office, including the corresponding receipts and employee signatures of fuel purchases. However, only the quantity on hand at the end of the month was listed on each of the sampled Monthly Inventory Reports. While the Park maintains receipts and fuel usage records, beginning inventory, purchases, and usage was not completed on the Inventory Report for the two sample months. By not consistently tracking fuel inventory, the Park is running the risk of loss or theft and does not have historical records that would support justification for on-going fuel purchases. Recommendation February 19, 2015 Page 10 of 16

13 We recommend the Park complete the Monthly Bulk Gas and Oil Inventory Report, in order to ensure beginning inventories reconcile to ending inventories, based on reported usage and purchases throughout the month. A monthly reconciliation process should be put in place to document actual fuel on hand at the end of each month. Finding 3: Tax Exempt Documentation Chapter 8 of the Operations Manual states, Florida sales tax exempt organizations must have a copy of their current Florida Consumer's Certificate of Exemption on file at the Park, at the time a deposit for a reservation or a sale is made. At the time of our visit, the Park was unable to provide documentation for reservations that claimed tax exemption during the two months sampled. Currently, the Park does not have a process in place to record the necessary documentation for parties claiming tax exemption. The Department is liable for uncollected tax when documentation verifying tax exemption is not available. The Division has been made aware of this issue in recent months and is taking steps to direct Parks to maintain tax-exempt documentation. Recommendation We recommend the Park put procedures in place to obtain and document valid tax exemption certification for any sales involving organizations that claim tax exemption. Finding 4: Attendance Methodology According to the Operations Manual Chapter 5: Fiscal Procedures, Section 22, Overnight visitors shall be counted on the day they arrive and for each day thereafter. On the February 19, 2015 Page 11 of 16

14 day of departure, overnight visitors shall be counted as day visitors, as they have the potential to enjoy full access to all day-use facilities after checking-out. Park Management stated that overnight visitor attendance figures were collected from Active Network camper reports at day s end. However, these reports could not be reproduced and are not archived by the Park. Therefore, the Park was unable to provide supporting documentation for reported attendance figures for overnight visitors. Recommendation We recommend the Park maintain support documentation for all attendance reports, including camper reports used for tabulating visitor attendance. Finding 5: Volunteer Agreement Forms According to the Operations Manual Chapter 2: Personnel, Section 9, The Volunteer Application/Agreement shall be completed by all individuals serving as a volunteer, and Florida Department of Law Enforcement s Sexual Predator Registry is to be used to check all regular service volunteer applications. At the time of our site visit, of the 17 volunteers working at the time, the Park was unable to provide sexual predator searches for two volunteers and signed Volunteer Agreements for one of the volunteers. The Park is responsible for ensuring these documents are completed and verified prior to volunteers working at the Park. Without keeping record of these documents for each volunteer, the Park cannot confirm whether these actions were performed. February 19, 2015 Page 12 of 16

15 Recommendation In accordance with the Operations Manual, we recommend the Park maintain records of sexual predator searches and signed Volunteer Agreements to help ensure these actions are taken before each volunteer is approved to work at the Park. To promote accountability, integrity, and efficiency in state government, the OIG completes audits and reviews of agency programs, activities, and functions. Our audit was conducted under the authority of Section , F.S., and in conformance with the International Standards for the Professional Practice of Internal Auditing, published by the Institute of Internal Auditors, and Principles and Standards for Offices of Inspector General, published by the Association of Inspectors General. The audit was conducted by Shane Varn and supervised by Valerie J. Peacock. Please address inquiries regarding this report to the OIG s Audit Director by telephone at (850) Copies of final reports may be viewed and downloaded via the internet at Copies may also be obtained by telephone (850) , by fax (850) , in person or by mail at Department of Environmental Protection, Office of Inspector General, 3900 Commonwealth Boulevard, Mail Station #41, Tallahassee, FL Valerie J. Peacock, Director of Auditing Candie M. Fuller, Inspector General February 19, 2015 Page 13 of 16

16 FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION MARJORY STONEMAN DOUGLAS BUILDING 3900 COMMONWEALTH BOULEVARD TALLAHASSEE, FLORIDA RICK SCOTT GOVERNOR CARLOS LOPEZ-CANTERA LT. GOVERNOR JONATHAN P. STEVERSON SECRETARY MEMORANDUM TO: FROM: SUBJECT: Valerie Peacock, Audit Director Office of the Inspector General Donald V. Forgione, Director Division of Recreation and Parks Audit of Topsail Hill Preserve State Park Division of Recreation and Parks DATE: February, 11, 2015 This memorandum will serve as the Division s response to the subject audit findings and recommendations. Findings and Recommendations Finding 1: Cash Collection Controls Sales revenue for the Park-operated store reported to the Division should reconcile to merchandise inventory records maintained by the Park. However, receipts for the two sample months did not reconcile to the inventory reports prepared at the end of each sample month. The Park does not have a method in place to effectively track merchandise inventory for the Park store. Park Management stated inventory reports are not reconciled to sales revenue because the register currently being used does not track items sold. Without proper tracking of store inventory, the Park is exposed to the risk of loss or theft of goods. The Park store is operated mainly by volunteers rather than Park employees. Recommendation We recommend the Division establish procedures for the Park to monitor merchandise inventory of the Park s self-operated store. Merchandise inventory should be tracked on a daily basis and the monthly ending inventory should reconcile to the store s reported revenue for that period. Division Response: The Division is in agreement with the recommendation to establish procedures for the Park to monitor merchandise inventory of the Park s self-operated store. The current Operations Manual section on Park Merchandise Inventories lacks detail to assure accountability and reconciliation with revenue. The Division will convene a small workgroup to include DRP, OTIS and OOO representatives to develop an updated accountability policy. The update to the Operations Manual will be completed by June 1, 2015 and communicated to all parks. Page 14 of 16

17 Valerie Peacock, Audit Director Page 2 February, 11, 2015 Finding 2: Fuel Log Reconciliation Chapter 5 of the Operations Manual states, Physical inventories of bulk gasoline, diesel fuel, and oil are to be taken on a regular basis and reconciliation documented at least monthly by the Park staff. The Park submits a Monthly Bulk Gasoline and Oil Inventory Report to the District Office, including the corresponding receipts and employee signatures of fuel purchases. However, only the quantity on hand at the end of the month was listed on each of the sampled Monthly Inventory Reports. While the Park maintains receipts and fuel usage records, beginning inventory, purchases, and usage was not completed on the Inventory Report for the two sample months. By not consistently tracking fuel inventory, the Park is running the risk of loss or theft and does not have historical records that would support justification for on-going fuel purchases. Recommendation We recommend the Park complete the Monthly Bulk Gas and Oil Inventory Report, in order to ensure beginning inventories reconcile to ending inventories, based on reported usage and purchases throughout the month. A monthly reconciliation process should be put in place to document actual fuel on hand at the end of each month. Division Response: The Division is in agreement and the Park has implemented the recommended method, including monthly reconciliation, for tracking bulk fuel usage. Finding 3: Tax Exempt Documentation Chapter 8 of the Operations Manual states, Florida sales tax exempt organizations must have a copy of their current Florida Consumer's Certificate of Exemption on file at the Park, at the time a deposit for a reservation or a sale is made. At the time of our visit, the Park was unable to provide documentation for reservations that claimed tax exemption during the two months sampled. Currently, the Park does not have a process in place to record the necessary documentation for parties claiming tax exemption. The Department is liable for uncollected tax when documentation verifying tax exemption is not available. The Division has been made aware of this issue in recent months and is taking steps to direct Parks to maintain tax exempt documentation. Recommendation We recommend the Park put procedures in place to obtain and document valid tax exemption certification for any sales involving organizations that claim tax exemption. Division Response: The Division is in agreement with the recommendation and the park has put a procedure in place to obtain and document valid tax exemption certificates. The Park requires visitors to provide their tax exempt certificate in advance and the certificate is kept on file at the park. Finding 4: Attendance Methodology According to the Operations Manual Chapter 5: Fiscal Procedures, Section 22, Overnight visitors shall be counted on the day they arrive and for each day thereafter. On the day of departure, Page 15 of 16

18 Valerie Peacock, Audit Director Page 3 February, 11, 2015 overnight visitors shall be counted as day visitors, as they have the potential to enjoy full access to all day-use facilities after checking-out. Park Management stated that overnight visitor attendance figures were collected from Active Network camper reports at day s end. However, these reports could not be reproduced and are not archived by the Park. Therefore, the Park was unable to provide supporting documentation for reported attendance figures for overnight visitors. Recommendation We recommend the Park maintain support documentation for all attendance reports, including camper reports used for tabulating visitor attendance. Division Response: The Division is in agreement with the recommendation to maintain supporting documentation for attendance reports, where available. The Division considers the Weekly Attendance Report (WAR) the source document. The information provided on the WAR comes from several collection methods including park staff taking visual readings from live snapshot online reports, and traffic, trail and hand counters. Collecting and maintaining validation of all raw data of this nature would create an undue administrative burden and is not of substantial value to the Division. Finding 5: Volunteer Agreement Forms According to the Operations Manual Chapter 2: Personnel, Section 9, The Volunteer Application/Agreement shall be completed by all individuals serving as a volunteer and Florida Department of Law Enforcement s Sexual Predator Registry is to be used to check all regular service volunteer applications. At the time of our site visit, of the 17 volunteers working at the time, the Park was unable to provide sexual predator searches for two volunteers and signed Volunteer Agreements for one of the volunteers. The Park is responsible for ensuring these documents are completed and verified prior to volunteers working at the Park. Without Division Response: The Division is in agreement with the recommendation and will direct the District and Park to ensure sexual predator and sexual offender checks are performed on all volunteers and a copy of the results are maintained in each volunteer s file along with the signed volunteer agreements. Page 16 of 16