AUDITORS SAID THE TOURISM AND DEVELOPMENT DEPARTMENT'S SPENDING CONTROLS WERE LAX

SANFORD - A highly critical audit of Seminole County's Tourism and Development Department released Thursday found lax controls on spending have led to unauthorized outlays, questionable billing by contractors and possible income tax violations.

Department Director Jack Wert said he agrees with the audit's findings and recommendations, and blamed the problems on "differing interpretations" of county policies between the Tourism Development Council board and county auditors.

"The changes they've recommended will be implemented," Wert said.

The 18-page draft audit, conducted by County Auditor Maryanne Morse's office, lists several instances, in which money was spent or promised without County Commission approval.

For example, $19,500 was spent on a July 1 performance by Tommy James & The Shondells at Cranes Roost Park in Altamonte Springs without commission approval.

In another instance, $5,000 was pledged by the Tourism Development Council to help the Orlando Area Sports Commission acquire a $60,000 line of credit from a bank for the 1994 Men's Class B Slow Pitch National Championships.

Another area of concern, the audit states, was the lack of monitoring in 18 sponsorship contracts issued by the Tourism Development Council.

"It is our opinion that the tourism development director is not adequately performing this responsibility," the report reads. For example, in 10 of 11 contracts requiring checks and original invoices, none were submitted.

The audit cites discrepancies in contracts with the Greater Seminole County Chamber of Commerce, the Orlando Area Sports Commission and the Lake Brantley High School swimming complex.

Those involved overpayments, failure to obtain quarterly reports or proof of insurance and authorization of payments before contract conditions were met.

Some of the strongest criticism involved the tourism council's media consultants Geiger & Associates.

Expense reports submitted by Geiger for council-related activities had no original receipts for meals, hotel rooms or other expenses.

Further, reports of meals with guests did not identify them, their positions or the business purpose.

Long distance calls were not explained, and stubs without restaurant names were submitted as meal receipts. Tips ranging as high as $35 were routinely listed without explanation.

In a practice that could create problems with the Internal Revenue Service, the audit found the tourism council hired temporary, part-time workers and paid them directly without withholding taxes.

Numerous recommendations were made to tighten up financial control of the office, which receives money from a 3 percent tourist development tax levied on hotel room charges.

Wert has 10 days to respond to the findings in writing.

County Manager Ron Rabun promised to correct the problems as soon as possible and agreed with Wert on the reasons for the problems.

We're anxious to get on with business," he said.

We'll clean up these loose ends expeditiously. We've done a good job on the promotion end, but we can't forget the administrative side."

AUDITORS SAID THE TOURISM AND DEVELOPMENT DEPARTMENT'S SPENDING CONTROLS WERE LAX

SANFORD - A highly critical audit of Seminole County's Tourism and Development Department released Thursday found lax controls on spending have led to unauthorized outlays, questionable billing by contractors and possible income tax violations.

Department Director Jack Wert said he agrees with the audit's findings and recommendations, and blamed the problems on "differing interpretations" of county policies between the Tourism Development Council board and county auditors.

"The changes they've recommended will be implemented," Wert said.

The 18-page draft audit, conducted by County Auditor Maryanne Morse's office, lists several instances, in which money was spent or promised without County Commission approval.

For example, $19,500 was spent on a July 1 performance by Tommy James & The Shondells at Cranes Roost Park in Altamonte Springs without commission approval.

In another instance, $5,000 was pledged by the Tourism Development Council to help the Orlando Area Sports Commission acquire a $60,000 line of credit from a bank for the 1994 Men's Class B Slow Pitch National Championships.

Another area of concern, the audit states, was the lack of monitoring in 18 sponsorship contracts issued by the Tourism Development Council.

"It is our opinion that the tourism development director is not adequately performing this responsibility," the report reads. For example, in 10 of 11 contracts requiring checks and original invoices, none were submitted.

The audit cites discrepancies in contracts with the Greater Seminole County Chamber of Commerce, the Orlando Area Sports Commission and the Lake Brantley High School swimming complex.

Those involved overpayments, failure to obtain quarterly reports or proof of insurance and authorization of payments before contract conditions were met.

Some of the strongest criticism involved the tourism council's media consultants Geiger & Associates.

Expense reports submitted by Geiger for council-related activities had no original receipts for meals, hotel rooms or other expenses.

Further, reports of meals with guests did not identify them, their positions or the business purpose.

Long distance calls were not explained, and stubs without restaurant names were submitted as meal receipts. Tips ranging as high as $35 were routinely listed without explanation.

In a practice that could create problems with the Internal Revenue Service, the audit found the tourism council hired temporary, part-time workers and paid them directly without withholding taxes.

Numerous recommendations were made to tighten up financial control of the office, which receives money from a 3 percent tourist development tax levied on hotel room charges.

Wert has 10 days to respond to the findings in writing.

County Manager Ron Rabun promised to correct the problems as soon as possible and agreed with Wert on the reasons for the problems.

We're anxious to get on with business," he said.

We'll clean up these loose ends expeditiously. We've done a good job on the promotion end, but we can't forget the administrative side."