Miami

Growing Audit Pains

The DDA seeks an accountant, and braces for the results of an audit

By Angie Hargot

Commissioner Joe Sanchez suspects that the audit could be a doozy

The Miami Downtown Development Authority, the agency charged with revitalizing economic development in downtown Miami, passed a measure Friday authorizing the hiring of a Certified Public Accountant (CPA) or staff accountant to manage the agency’s finances.

The decision came on the heels of a recent audit that board members said contains “concerns.”

The audit, by independent New York accounting firm Watson Rice, LLC, indicated “no wrong-doing or fraud,” according to Executive Director Dana Nottingham, but did contain “four or five points” that need to be addressed.

“We continue to have human error,” Nottingham said. “We’ve gotten to the size where we need professional help day in and day out.”

While Miami City Commissioner and DDA Chairman Joe Sanchez said he has not yet seen the audit but has been briefed by city Auditor General Victor Igwe, Sanchez expected the audit to be released Friday.

“When it is out, this board can address those issues,” Sanchez said. “We will pass the proper polices to ensure [discrepancies] don’t happen again.”

Nottingham added that with the agency’s recent reorganization, office upgrade, staff growth, new projects and increased revenue, the points of concern in the audit would not come as a surprise. According to the DDA’s 2007-2008 annual operating budget, operating expenses, including staffing and special projects, claim more than $6.8 million. The agency expects to bring in a little more than $7 million this year in revenue, according to the budget.

“We’re at a point where we need a CPA on staff,” Nottingham said. “I welcome such an audit. What I’ve seen is the growth of the organization. We need to assign money to the administration and accounting that matches the size and scope of what we do.”

Although the agency currently has a staff accounting clerk and two part-time certified public accounting firms on the payroll, “We can always cut one [outside CPA firm] out,” Sanchez said.

Nottingham indicated that the additional employee would “require some additional dollars,” noting that a qualified certified public accountant would require an annual salary “in the $50,000 to $70,000 range,” while one outside firm currently contracted only costs $30,000.

Once the audit of the agency is released, the executive director and staff will be required to write a response agreeing or disagreeing with the auditors’ findings, and detailing a plan of action for addressing the concerns, Sanchez said.

“I’ve seen plenty of audits,” he said. “There are usually two sides to every story.”

Comments? E-mail angie@miamisunpost.com

 home