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,REPORT OF INVESTIGATION
Cofrectional Privatization Commission
Major Maintenance & Repaif Funds

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Office of Fiscal Integrity
Division of Accounting and Auditing
Department offinancial Services

DEPARTMENT OF FINANCIAL SERVICES (DFS)
OFFICE OF FISCAL INTEGRITY (OFI)
REPORT OF INVESTIGATION

DATE: March 5, 2004

CASE NUMBER:

IV20030100002

CASEN,AME:

Correctional Privatization Commission (CPC) - M�jor Maintenance
. and Repair (MM & R) Funds

INVESTJGATOR:

TomWade .

OfflCE:

Tallahassee ·

DATE OPENED:

January 2, 2003

RECEIVED FROM:

Co�troller's referral of 1_2/23/02.letter from the Police.Benevolent
Association (PBA) to·office ofFiscal Integrity.
December 23, ·2002 PBA letter to Florida Comptroller requested a
formal investigation into CPC MM & R Funds; (Exlu"bit A)
· Specifically, two questions were requested to be resolved:

PREDICATE:

1.

''Did the. CPC illegally expend funds from the Major Maintenance ·
and Repair Funds because the·Fund is not le�al?"

2. ''Did th� CPC .violate the provis:j.on.oftheir contracts with the
v�ndors by not following �e provi$ions within the contracts· as to
how these fun!is were to be appropriated?"
ISSUE#l:
·

Finding: The Fund was not legally authorized by statute or by legislative
Appropr.iation. Because contractors ofCPC were requiri,d to pay
moneys into the Fund, beca'1Se CPC had legal ownership ofmoneys in
th�· Fund, anci because CPC exercised control over the moneys in the
fund; the moneys in the Fund constituted state moneys that ate subject
to the requirements ofSection 215 .31, Florida Statutes. This means that
the CPC should have had legislative authority for the Fund. Refer to
Dec�mber 11; 2002 Bob Spooner,. ChiefBureau of Auditing,. letter on
·
this subject. (Exhibit B)
Corrective Action:
The Legislature in Section 27 ofthe 2003 Appropriation Bill has the
following wording: ''The Correctional Priv.atization Commission shall
'deposit $1,654,360 from unencumbered funds received for the purpose
ofrepairs and maintenance to the Grants and Donations:Trust Fund in
Services:" (Exhibit C)
the Department Management
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