Council auditors flag hologram purchase; IT to move $77,000 in POs to operational account

The finance committee heard an update on a hologram purchase on Jan. 23 after auditors identified that funding had been drawn from an improper account. Kim Taylor, council auditor, told the committee that about $77,000 in purchase orders related to the hologram are being moved out of a building-inspection capital or system project fund and into the IT department’s operational account; payments had not yet been made on those POs, Taylor said.

Taylor said the Office of General Counsel had not taken action once the IT director decided to shift the planned payment to IT’s operating budget; because the payment source has changed and no payments had been issued, the auditor’s office did not pursue further legal review but wanted the committee informed.

Scott Wilson, representing the mayor’s office, said to his knowledge the hologram is still at the airport but he did not have up-to-date confirmation on its physical location. Committee members commended the audit team and the council auditor’s office for discovering the account irregularity. Councilmember Nick Howland specifically thanked the auditors and singled out Brian Parks (audit staff) for the discovery.

Procurement context Committee members later asked procurement staff whether the hologram item had been competitively procured or obtained through an exemption. Procurement staff said the acquisition was a piggyback purchase: staff used an existing competitive contract established by St. Johns County and purchased the hologram as a line item under that piggyback arrangement in accordance with Chapter 126 procurement exemptions.

What the committee recorded: The committee heard the audit update, acknowledged the administrative correction (moving POs to IT’s operational account) and discussed procurement method. No formal policy change or vote on the hologram item itself was recorded in committee minutes; the action reported was the administrative reallocation of planned payments and the procurement-method clarification.

Speakers quoted or referenced: Kim Taylor (council auditor), Scott Wilson (mayor’s office), Councilmember Nick Howland, procurement representative Dustin Freeman.

Ending: The committee’s discussion concluded with members thanking auditors for the discovery; staff said they would follow through on locating the item and completing the payment from the corrected funding source.