Photo by BrandonK
Jan. 7, 2025
The office conducted a review of the 2022-23 Safety and Crime Reduction Small Grant Program, established by the City Council in 2022.
The legislation allocated $330,000 from the Safety and Crime Reduction Contingency Account and authorized grant agreements between the city and 41 nonprofits.
Additionally, an agreement was made with the Nonprofit Center of Northeast Florida Inc. to provide compliance training intended to help the organizations with budgeting and ensure they complied with the grant award requirements.
The program was designated explicitly for small organizations that generally did not have significant assets. One requirement was that the organizations have an annual budget of $75,000 or less to qualify for the grant.
The investigation determined that two organizations received grant funds totaling $16,440; however, they reported expenditures in their IRS Form 990 filings that significantly exceeded the $75,000 threshold.
Thirty-two organizations received grant funds totaling $256,800; however, they could not provide the investigators the required supporting documentation of completed criminal background checks on their staff and volunteers who interacted with juveniles, youth and vulnerable adults.
The Nonprofit Center provided the OIG with the training program agenda, presentation and attendee list. The training focused on program and evaluation strategies, grant readiness, research and writing.
While reviewing the attendee list, it was noted that some organizations did not sign in. However, the Nonprofit Center confirmed that all organizations were present at the training.
Investigators contacted the Council Auditor’s Office to assess whether any of the organizations had established a distinct accounting system for their allocated funds. The Council Auditor’s Office verified that none of the organizations sought authorization to implement a separate budgetary accounting system for the city grant funds.
The final report recommended corrective actions including strengthening the program by requiring organizations to submit budget status records before qualifying and clearly communicating to the participating organizations the importance of compliance and policies, specifically regarding criminal record checks.
Jan. 31
In August 2024, OIG self-initiated a management review to determine how the Jacksonville Aviation Authority, Jacksonville Electric Authority, Jacksonville Port Authority and Jacksonville Transportation Authority handled allegations of contract mismanagement ($5,000 or more), fraud, theft, bribery and other law violations.
Based on a review of each agency’s policies and procedures and interviews with relevant personnel, each agency had mostly sufficient policies, procedures, and practices.
However, the OIG made recommendations for each agency to strengthen its existing policies and procedures. It should also be noted that during the management review, some of these independent agencies and authorities sought advice and/or training from the OIG and proactively made changes to strengthen their existing policies and procedures.
Jan. 17
In February 2023, the OIG began reviewing the city’s Emergency Rental Assistance Program.
From March 2021 through March 2023, the city appropriated $72.4 million in federal funds to provide emergency rent and utility assistance to eligible households in Duval County through various subrecipients.
The longest-standing primary subrecipient was Civitas LLC based in Mount Pleasant, South Carolina.
In February 2023, the OIG requested records from related to all fraud cases identified by Civitas. In March 2023, Civitas provided the OIG with records indicating that nine counterfeit checks totaling $21,683.86 were identified.
Civitas reported the checks to Truist Bank and Mount Pleasant Police Department, but no further action was taken.
The OIG discovered that Civitas failed to report these checks to the OIG, the city or Florida law enforcement agencies.
The OIG also requested records from other subrecipients related to all fraud cases suspected and identified.
A review focused on subrecipients’ responses to the OIG’s records request from Civitas, LJD Jewish Family Children Services, Downtown Ecumenical Services Council, Beaches Emergency Assistance Ministry, Wealth Watchers Inc. and Catholic Charities Bureau Inc.
The OIG’s review determined that the city failed to adequately assess the subrecipients and also failed to adequately monitor performance and maintain funds for record retention.
The inspector general recommended that city contracts be updated to include the retention of files and to require city contractors to complete and provide proof of fraud detection training.
March 22
In October 2023, OIG began an investigation regarding city purchasing card transactions for the Supervisor of Elections Office.
Supervisor of Elections Jerry Holland responded to the OIG, “Upon taking office I came to realize there was over $138,000 of P-Card purchases without receipts. I have had staff working for the last 3 months to try to recreate those records.”
The OIG met with Holland regarding the purchasing card transactions. Holland identified the former chief elections assistant and a purchasing cardholder who amassed more than $138,000 of questionable purchasing card transactions with no corresponding receipts over the past several years.
According to elections officials, those transactions should have been approved with receipts by the previous supervisor of elections and then approved by the city Finance and Administration Department.
Holland told investigators that he had rehired the employee in July 2023, after his retirement, as a part-time special assistant without access to the purchasing card.
As a part of his part-time job duties, the special assistant reconciled questionable purchasing card transactions by obtaining missing receipts and submitting corrected expenditures to Holland for approval.
The OIG investigation concluded that the chief elections assistant failed to submit transactions totaling $139,187.85 made from March 2020 through December 2023 through reconciled statements with attached receipts to his manager for approval; that he failed to provide original receipts for all purchasing card transactions; and he failed to use the purchasing card specifically for elections office-related matters.
The investigation also determined that the former Supervisor of Elections failed to receive, review and compare the assisant’s statements and receipts to electronic/paper reports from Commercial Card Expense Reporting after the assistnat approved the transaction.
According to Holland, the assistant admitted using the purchasing card for approximately $300 of personal purchases, which was reimbursed.
July 1
The Clara White Mission LLC is a nonprofit that works to feed and house homeless people, provide vocational training programs and military veteran assistance initiatives within Duval County.
From September 2018 to October 2023, the city awarded the organization 11 grants totaling $3,647,260.
The OIG reviewed the contracts, corresponding grant proposals and documents related to contract compliance.
In 2021, several mission board members resigned and publicly accused the mission of poor leadership and mismanaging its funding.
This led to the OIG opening an investigation to review the allegations, which was later turned over to the FBI.
The FBI closed its case in 2023 without publishing a disposition or finding.
In the same year, the mission received two additional city grants: a $300,000 direct-award, emergency grant to assist in funding vocational training programs at its White Harvest Farms location and a separate $150,000 emergency public service grant for its feeding the homeless initiative.
The OIG conducted a review of the mission’s management of city funds and the city’s oversight methods.
Between 2018 and 2024, the city awarded seven Public Service Grant contracts to the mission totaling $1.2 million to support employee salaries that assist with basic operations. Two $100,000 grants also were awarded for specific maintenance and building repair needs.
Oversight for the agreements was assigned to the Division of Grants and Contract Compliance. During that time frame, an additional $1,747,090 contract was awarded to the mission to assist with building and general operations of White Harvest Farm. Oversight for that contract was assigned to the city Office of Economic Development.
The OIG reviewed each of the contracts, corresponding grant proposals and all documents related to contract compliance. During this review, significant deficiencies in city oversight related to the Division of Grants and Contract Compliance were discovered.
The OIG recommended that the city should strengthen document collection processes to oversee nonprofits receiving city grant funding so that current operating procedures are followed more rigorously.
July 16
The city Solid Waste Department collects and disposes of garbage, yard waste and recyclable items. It operates Monday through Saturday, with services only interrupted on Sundays, Thanksgiving Day and Christmas Day. Due to the workload, many employees receive significant overtime hours.
In October 2023, the OIG began an investigation regarding alleged falsification of overtime hours by Solid Waste Division employees.
According to allegations received by the OIG, two employees worked on other individuals’ personal vehicles while on duty and were then allowed to falsely claim overtime hours they had not worked.
The employees claimed all the work was done during their breaks and denied that they claimed more overtime hours than they worked.
There was not sufficient witness testimony or records to substantiate the allegations.
During the investigation, the OIG received additional information that other employees could have also falsely claimed more overtime hours than they worked.
The OIG review revealed that 15 Solid Waste employees earned more than $50,000 in overtime pay. Of the 15 employees, 10 were truck drivers or senior truck drivers. Solid Waste drivers must complete reports that document information such as the driver and work crew, the date and time frame of travel and submit them to their supervisors.
The investigation concluded that the allegation of falsification of overtime records was not substantiated.
However, OIG recommended that the Solid Waste Department identify positions likely to earn significant amounts of overtime and develop internal controls to confirm employees are working the hours they claim and require supervisors to verify hours worked by their employees and maintain accurate records.
Aug. 14
In June 2024, OIG received information that an automated external defibrillator at Duval County Public Schools Consolidated Warehouse was not operational when needed due to a depleted battery.
AEDs are devices that shock the heart to restore a normal heartbeat after a life-threatening irregular rhythm including sudden cardiac arrest.
It was revealed that the DCPS Risk Management Department was aware of the incident and had conducted an internal investigation. Based on their investigation, the AED indicated a 25% battery life and the device was fully operational.
The OIG requested DCPS Safety Inspection Reports conducted from 2019 to 2024. DCPS provided information that indicated nothing noted in their Safety Inspection Reports that AEDs were inspected. In addition, no DCPS Safety Inspection Checklists for AEDs were provided.
Per DCPS, safety inspection reports only annotate code-based deficiencies. Since no code exists to reference AEDs, annotating a deficiency is not required.
OIG recommended to improve the DCPS AED Program Guidelines by implementing a Safety Equipment Inspection Checklist and requiring that they be completed for all DCPS Safety Equipment during safety inspections.
Sept. 17
In July 2020, a contract was awarded to two vendors totaling $282,117 to provide janitorial services at restrooms in 89 city parks.
In July 2024, OIG received a complaint that the restrooms were not being adequately cleaned according to the standards required in the city contract.
The OIG reviewed the contracts and conducted random inspections of restrooms in city parks on days they were required to be cleaned. Based on those inspections, some restrooms appeared clean and others did not.
The OIG contacted the Parks, Recreation and Community Services Department and requested all daily reports, written reports, quality assurance inspection reports and records.
The department responded that the contracts did not require daily reports, written reports or quality assurance inspection reports.
Recommendations included posting a bathroom cleaning log in each restroom and random inspections to ensure compliance.
Oct. 29
The city-owned electric and water utility, JEA, held an emergency board meeting April 15, 2024. During that meeting, board member Joseph DiSalvo was named the new board chair, and CEO Jay Stowe formally announced his resignation.
Moments after Stowe made his announcement, DiSalvo motioned for retired JEA employee and board liaison Vickie Cavey to assume an interim CEO role. After a brief discussion, the board voted 4 to1 to approve the motion.
Board member A. Zachary Faison viewed the discussion in an online forum but was unable to participate in the vote.
Cavey’s contract would later be unanimously approved at the May 2024 meeting.
The OIG received allegations that the board members violated Florida Sunshine Law guidelines when they communicated about JEA’s transition in leadership outside of the scheduled public meetings.
The investigation determined that some members did communicate with each other outside of publicly noticed meetings during the transition process.
All board members were asked about their communications relating to JEA business. Bobby Stein, the outgoing chairperson, and DiSalvo said they engaged in two brief phone conversations via telephone while DiSalvo was working out of state.
One conversation centered on the need to schedule an Invitation to Negotiate meeting for the audit of projects that ballooned in cost. Stein advised DiSalvo that information given to the board for review needed to be simplified so members could better understand it at the upcoming meeting.
The second conversation took place when the two briefly discussed that an emergency meeting needed to be scheduled to announce Stowe’s resignation and the need to appoint an interim CEO at that meeting.
Stein and board member John Baker also admitted to briefly discussing some JEA matters outside of a public meeting.
Baker and board member Marty Lanahan also engaged in an in-person conversation in November 2023. Lanahan stated she was visibly upset with Stowe after the November board meeting. She and Baker met for lunch, and Lanahan told Baker she was considering resigning from the board. Baker encouraged her to meet with Stowe and discuss her concerns. Lanahan resigned from the board.
OGC Attorney Regina Ross conducts annual Sunshine Law and Public Records Laws training for JEA board members and management-level employees.
She explained that the state of Florida’s Sunshine Law prohibits two or more members of the same board from discussing business, which should be limited to publicly noticed meetings.
Topics prohibited by this law include any items that could potentially be subjected to a board vote or that have already been voted on by board members because there is always potential for reconsideration.
When asked about Baker and Lanahan’s conversation, Ross said it did not violate the Sunshine Laws because the board does not take any action when a member resigns, nor does it consider filling member vacancies; the mayor or City Council appoints candidates. She further noted that Lanahan expressed her frustrations with Stowe and some of his staff openly and at length in many board meetings before her lunch with Baker. Simply reiterating that she was still frustrated would not be a violation.
Ross also stated that the CEO’s resignation was not something the board would vote on or discuss further. Notifying other board members of Stowe’s decision to resign would not be a violation. She added that Stein can delegate assignments to other board members as the outgoing board chairperson without violating sunshine laws. She would normally advise against delegating assignments via phone, but if that was all that was said between Stein and Baker and Stein and DiSalvo, she believed the conversations did not rise to the level of a sunshine violation.
Recommended corrective actions were to implement an enforceable policy against Sunshine violations and continue Sunshine Law training for board members.
A subsequent investigation by the State Attorney’s office found no Sunshine Law violations were committed by board members.
Nov. 21
In February 2024, OIG initiated an investigation regarding alleged contract improprieties by Families of Slain Children Inc. related to city contracts between it and Kids Hope Alliance.
FOSCI is a Jacksonville nonprofit founded in 2006 to support family members of a homicide victim with psychological, emotional, social, educational and economic interventions following a homicide.
Two city contracts indicated the nonprofit administered youth services from August 2023 through May 2024. According to allegations received by OIG, the nonprofit failed to comply with its city contracts in various ways including mismanagement of city funds, failure to pay subcontractors and report fiscal accountability, and operating without a solicitation permit.
Based on the investigation, the allegations were found to be either unfounded, outside of the OIG’s jurisdiction or handled by the appropriate agency.
Dec. 12
In October 2023, the OIG learned that the city terminated a contract agreement awarded to Bridges to the Cure LLC, which was selected to oversee the Cure the Violence Program.
The city initiated the Cure the Violence Health Model Site Implementation in May 2019. This program was designed by Cure the Violence Global, a Chicago-based nonprofit that developed a program to help communities prevent violence.
The city purchased this program from the nonprofit and hired it to provide training and oversight to three contractors selected to implement the program.
The total value of all the contracts the city awarded to BTTC was $3,450,500, although the amount received by BTTC was significantly less than the total value.
In May 2019, the BTTC received a $275,000 single-source contract from the city to implement the Cure the Violence Program in Northwest Jacksonville.
Subsequent awards were received in October 2019 for $710,500, October 2020 for $800,000, October 2021 for $800,000 and October 2022 for $865,000.
The contract was canceled in March 2023.
An investigation was conducted to determine why the contract was canceled, evaluate contract oversight and examine whether the contractor abided by the terms of the agreement.
Investigators found deficiencies with the city’s oversight, including failure to review contractor invoices, perform site visits and secure property purchased by the contractor with city funds.
Issues with the contractor regarding transparency, use of contract funds, adherence to reporting requirements, records retention and cooperation with the city also were found.
Representatives of Bridges to the Cure were offered an opportunity to speak with investigators regarding the findings, but declined to provide a sworn statement.