Council auditor and inspector general report city fiscal outlook and audits into tuition reimbursement and P‑card use

The commission heard a fiscal and audit update from the council auditor’s office and the inspector general, who presented a quarterly summary and described ongoing audit and investigatory work.

The council auditor’s office reported that several independent agencies show mixed budget positions. The electric utility (JEA) is projecting expenses that will exceed appropriation authority because of higher fuel costs; the auditor said an amendment to increase appropriation authority by about $28,000,000 is expected and that amendment will reduce the amount of funding sent to capital projects. The Jacksonville Port Authority (JPA) was projected to end the year with a $3,600,000 surplus, and the airport authority (JAA) had a projected surplus of $37,400,000; the auditor noted the JAA projection was prepared before a recent garage fire. Jacksonville Transportation Authority (JTA) was projecting a $2,300,000 surplus overall but also projects exceeding appropriation authority by about $2,400,000; the auditor said that additional spending would be covered by grant dollars but that exceeding appropriation requires a city council budget amendment.

For the city general fund the auditor reported a favorable variance of about $22,300,000 year to date, compared with roughly $300,000 in the first quarter. The auditor attributed part of the change to a $6,800,000 positive variance in personnel costs tied to earlier-than-anticipated appropriation for non‑public‑safety wage increases. Revenue categories with positive variances included utility service taxes, property taxes, communications service taxes and franchise fees; unfavorable variances were reported for state shared revenues and interest earnings. The auditor flagged a negative projected cash balance of $45,800,000 for city venues tied to debt service timing and noted the city’s annual audit has not been completed and could change figures.

Inspector General and audit work

The inspector general told the commission that many investigative files are confidential but outlined several audits and reviews under way. On the audit side, staff are reviewing the city’s tuition reimbursement program, technology solutions department (TSD, formerly ITD) asset tracking and Animal Control and Protective Services (ACPS) response times for high‑priority complaints.

The tuition reimbursement review — a follow‑up to a prior audit — found no evidence of fraudulent payments but identified process weaknesses: supporting documentation was not consistently filed; reimbursements were sometimes delayed; and there was not consistent tracking of employees who left before the one‑year payback window. The auditor said the program was being tracked on a shared Excel spreadsheet stored on a shared drive without password protection, creating an alterable record and a control risk. The inspector general said recommendations included better documentation controls and consideration of a case‑management system, with a planned follow‑up audit next fiscal year to confirm corrective actions.

On P‑cards (purchase cards) the inspector general described a three‑year data analysis that flagged risky transactions. The office examined flagged items and receipts and found instances of personal charges that had been reimbursed before the audit review; many appeared accidental (for example, a city card added to a personal account). The inspector general said the mayor’s office is evaluating near real‑time tracking software that could detect improper use sooner and suggested a policy prohibiting saving government P‑card credentials in personal merchant accounts. The auditor noted the city may pursue corporate accounts (for example, for ride services) to avoid commingling personal and city accounts.

The inspector general also described work with TSD on asset decommissioning and transfers (laptops/PCs) to verify whether transfers and disposals are recorded. For ACPS the audit will focus on dispatch times and resolution timeliness for high‑priority calls.

Process and next steps

Both the auditor’s office and the inspector general said they conduct audits on the city’s fiscal calendar: an audit plan is developed each August–September and implemented starting in October, but staff can add audits during the year when needed. The inspector general said the investigatory team seeks to be proactive and to educate city employees about what complaints the office will and will not accept. The council auditor cautioned that favorable variances reported for some internal services (for example, fleet fuel savings and technology solutions) may not fully materialize as the year progresses.

Votes at a glance

The commission approved the minutes from the May 8, 2025 meeting on a voice vote.