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City auditor flags recordkeeping and preneed trust problems at municipal cemeteries; staff to seek new software
Summary
A city performance audit found weak controls after the cemeteries were brought in‑house in 2018, including no permanent cemetery management software, late revenue postings and unresolved preneed trust transfers. Staff plans a new software procurement and data cleanup.
The Fort Lauderdale city auditor presented a performance audit on Feb. 18 that concluded the administration of the city’s four municipal cemeteries lacked adequate internal controls and reliable recordkeeping after the cemeteries moved from private management to city operations in 2018.
What auditors found: Patrick Riley, city auditor, said the cemeteries — which operate Woodland, Evergreen, Sunset Memorial Gardens and Lauderdale Memorial Park across about 98 acres — have a perpetual care trust balance of roughly $30.5 million and a preneed trust holding about $5.4 million. The audit said staff never completed the full implementation of cemetery accounting software purchased in 2020 and instead relied on spreadsheets and ad‑hoc processes that left invoices and receivables posted late, complicated collections, and created uncertainty about outstanding balances.
Why it matters: The auditor warned the absence of a stable, searchable cemetery management system increases the risk of lost documents, errors in posted revenues and unresolved preneed fund accounting. The audit also flagged large withdrawals from the perpetual‑care trust in prior years that, while permitted by board action, merited clearer policy and documentation so reserves are preserved for long‑term maintenance.
Preneed trust issue: Auditors reported there is an unresolved reconciliation with third‑party preneed funds — funds collected by a contractor prior to the 2018 management change. The third‑party preneed account holds funds for previously sold preneed services; auditors warned the city lacks a documented pathway to obtain those funds without either acquiring a preneed license or contracting a third party to manage preneed sales.
Auditor recommendations and staff response: Auditors recommended the city immediately select and implement a modern cemetery software package, centralize and digitize hard‑copy cemetery records, and consider outsourcing data conversion and legacy cleanup. Parks and Recreation director Carl Williams and interim city manager Susan Grant told the commission staff is preparing to terminate the current vendor agreement and will solicit demonstrations for cemetery accounting software, pursue a plan to clean and migrate legacy data, and return with procurement steps in March.
Board oversight and trust spending: The auditors asked for clearer policies governing transfers from the perpetual‑care trust and better documentation so the cemetery board and council can assess whether past withdrawals were necessary. The audit noted withdrawals totaling about $6 million over several years for “maintenance reimbursements” even while operating income had been available in those years.
Next steps: City staff said they will bring an agenda item in March to terminate the existing software contract, will present demonstrations from prospective cemetery software providers, and aim to start a data‑cleanup and migration program before summer. Commissioners asked staff to include options for outsourcing the preneed accounting and to return with a timeline and cost estimate for cleaning legacy records so that preneed receivables can be reconciled.
