An internal audit released Aug. 15 found gaps in contract oversight, revenue controls and attendant safety at the Ocean Center parking operation managed by LAZ Parking.

Jonathan Edwards, Volusia County internal auditor, told the county council his team observed mixed pricing, lack of standard operating procedures, shared credit-card logins, inconsistent auditing by the contractor and several on-site safety and staffing problems during four event-day observations in 2024. Edwards said the audit did not detect evidence of theft but found conditions that could facilitate skimming and projected potential annual revenue loss if vulnerabilities were exploited.

Key audit findings included:
- Differences in pricing across Ocean Center and Peabody events and continued cash acceptance at some events after the Ocean Center moved toward cashless transactions.
- LAZ employees using generic logins on shared payment devices and, in at least one observed instance, a cashier describing an off-the-books fix when a machine failed.
- Lack of required audited financial reports and bank statements from the contractor to allow independent verification of reported revenues.
- Safety problems: attendants exposed to heavy traffic, insufficient shelter and no consistent supervisor presence during peak times.

The audit included 17 recommendations for the county and LAZ to strengthen controls, improve safety, and tighten contract oversight. County staff and LAZ responded at the meeting. Lynn Flanders, Ocean Center director, said staff had already begun corrective steps before the audit was released: moving Ocean Center events to cashless payment, standardizing rates, tightening reconciliation procedures and drafting operating procedures. She said LAZ terminated the local manager identified in the audit and installed a replacement the same day the county raised concerns.

LAZ’s regional representative said the contractor had acted quickly to replace staff and is working with the county on long-term technology changes including loop counters and license-plate readers for the surface lots.

Council members pressed staff on timeline and oversight. Staff said automation, handheld payment devices and license-plate recognition for flat lots were targeted by December, with full implementation no later than January; the contract with LAZ still has about three years remaining. Council members asked staff to return with options — including bringing operations in-house — if improvements were insufficient.

What’s next: The county will monitor LAZ’s implementation of the audit recommendations, move to greater automation and report back on progress and any further contract-management options.