Post on 26-Jun-2020
MIAMI-DADE COUNTY PUBLIC SCHOOLS
Internal Audit Report
■
Hospitality Services
The Financial Statements Were Fairly Stated, Internal Controls Were Satisfactory,
And The Operation Was Fiscally Compliant.
January 2016
THE SCHOOL BOARD OF MIAMI-DADE COUNTY, FLORIDA
Ms. Perla Tabares Hantman, Chair
Dr. Dorothy Bendross-Mindingall, Vice Chair Ms. Susie V. Castillo
Dr. Lawrence S. Feldman Dr. Wilbert “Tee” Holloway
Dr. Martin Karp Ms. Lubby Navarro
Ms. Raquel A. Regalado Dr. Marta Pérez Wurtz
Mr. Alberto M. Carvalho
Superintendent of Schools
Mr. Jose F. Montes de Oca, CPA Chief Auditor
Office of Management and Compliance Audits
Contributors To This Report:
Internal Audit Performed by: Mr. Reginald Lafontant
Property Audit Performed by:
Mr. Rolando Gonzalez
Audits Supervised and Reviewed by: Ms. Maria T. Gonzalez, CPA
Audit Report Prepared by: Ms. Maria T. Gonzalez, CPA
Office of Management and Compliance Audits School Board Administration Building • 1450 N.E. 2nd Ave. • Suite 415 • Miami, FL 33132
305-995-1318 • 305-995-1331 (FAX) • http://mca.dadeschools.net
Chief Auditor José F. Montes de Oca, CPA
January 14, 2016
The Honorable Chair and Members of The School Board of Miami-Dade County, Florida Members of The School Board Audit and Budget Advisory Committee Mr. Alberto M. Carvalho, Superintendent of Schools Ladies and Gentlemen: In accordance with our fiscal year 2015-2016 Annual Audit Plan, we conducted an audit of Hospitality Services for the seven-year audit period July 1, 2008 through June 30, 2015. The objectives of our audit were to express an opinion on the financial statements; evaluate compliance with applicable Florida Statutes, State Board of Education Rules, School Board Policy, as well as general compliance with the Manual of Internal Fund Accounting; evaluate the internal control processes and payroll and property procedures. Based on our audit, we are of the opinion that the financial statements of the internal funds of Hospitality Services present fairly, in all material respects, the changes in fund balances arising from cash transactions during the seven-year period ended June 30, 2015, on the cash basis of accounting. Our assessment of the controls indicated that the internal control structure was generally functioning as designed by the administration. Historically, Hospitality Services has operated for the convenience of staff, business guests, and visitors of Miami-Dade County Public Schools and these services are not only convenient but welcomed. As always, we would like to thank the administration for the cooperation and courtesies extended to our staff during the audit.
Sincerely,
Jose F. Montes de Oca, CPA Chief Auditor Office of Management and Compliance Audits
JFM:mtg
i
TABLE OF CONTENTS Page Number
EXECUTIVE SUMMARY .............................................................................................. 1 INTERNAL CONTROLS ............................................................................................... 2 BACKGROUND ............................................................................................................ 3 CASH/INVESTMENT SUMMARY ................................................................................. 4 ORGANIZATIONAL CHART ........................................................................................ 6 OBJECTIVES, SCOPE, AND METHODOLOGY .......................................................... 7 FINANCIAL STATEMENTS ......................................................................................... 9 PRIOR AUDIT FINDINGS TABLE ............................................................................. 16
1
EXECUTIVE SUMMARY Based on our audit, we concluded that the financial statements of the internal funds of Hospitality Services present fairly, in all material respects, the changes in fund balances arising from cash transactions during the fiscal years 2008-2009 through 2014-2015, based upon the cash basis method of accounting. Our assessment of the controls that are in place to promote compliance with the Manual of Internal Fund Accounting indicated that the internal control structure was generally functioning as designed. Please, refer to the internal control tables on page 2 of this report. For property and payroll, our audit concluded that equipment items with an individual cost of $1,000 or more were properly accounted for and payroll procedures were generally adhered to. Historically, Hospitality Services has operated the School Board Administration Building (SBAB) dining facilities for the convenience of staff, business guests, and visitors of Miami-Dade County Public Schools. Consequently, most of the associated payroll costs were subsidized by the District since this activity does not generate sufficient funds to be self-sufficient. At the present time, the District’s annual budget to operate this facility is approximately $940,000. With respect to the items tested, they were in general compliance with the policies and procedures delineated in the Manual of Internal Fund Accounting and with the Payroll Processing Procedures Manual. When conditions came to our attention that were deemed non-reportable, because they were immaterial or inconsequential, they were, nevertheless, discussed with management for their information and follow-up.
2
INTERNAL CONTROLS Our overall evaluation of internal controls for Hospitality Services is summarized in the table below.
INTERNAL CONTROLS RATING CRITERIA SATISFACTORY NEEDS
IMPROVEMENT INADEQUATE
Process Controls
x
Policy & Procedures Compliance
x
Effect x Information Risk x
External Risk (Image) x INTERNAL CONTROLS LEGEND
CRITERIA SATISFACTORY NEEDS IMPROVEMENT
INADEQUATE
Process Controls
Effective Opportunities exist to improve effectiveness
Do not exist or are not reliable
Policy & Procedures Compliance
Non-compliance issues are minor
Non-Compliance Issues may be systemic
Non-compliance issues are pervasive, significant, or have severe consequences
Effect Not likely to impact operations or program outcomes
Impact on outcomes contained
Negative impact on outcomes
Information Risk Information systems are reliable
Data systems are mostly accurate but can be improved
Systems produce incomplete or inaccurate data which may cause inappropriate financial and operational decisions
External Risk (Image) None or low Potential for damage
Severe risk of damage
3
BACKGROUND General Operation Hospitality Services generates revenue from the sale of food items and beverages at its dining facilities. It also receives vendor commissions from the six vending machines located throughout the School Board Administration Building (SBAB) and Annex buildings. The main dining facility is located on the seventh floor of the SBAB and is currently operational. An additional dining facility located in the Annex Building operated until it closed in August 3, 2011 to accommodate expansion of instructional areas in the Annex Building. The revenues generated from these activities are deposited into an internal funds checking account managed at the site by the Director of Hospitality Services. These funds are primarily utilized to purchase provisions used in the preparation of meals. They are also used to purchase cafeteria supplies, equipment, and related miscellaneous expenses; and to subsidize hospitality-related expenses incurred by the District. In addition, they are used to pay for the overtime and hourly payroll of cafeteria employees not otherwise covered with District funds. In addition to the sale of food items and beverages, Hospitality Services is responsible for subsidizing complimentary hospitality on behalf of the District during official meetings and special events. Vendor commissions from the six vending machines and revenues generated from food sales are utilized to subsidize the related expenses. Staff and Administration As of June 2015, Hospitality Services employed 19 full-time employees and one part-time employee. This includes administrative, clerical, and food handling staff members (refer to organizational chart on page 6). Payroll expenditures are covered with District’s funds. Use of Cash and Investments To maximize interest earnings, internal funds not used in the day-to-day operations of the facility are invested in the MDCPS-Money Market Pool Fund, which was earning interest at the rate of 1.29%, 0.76%, 0.57%, 0.54%, 0.50%, 0.62% and 0.64% at the end of each of the respective fiscal years under audit. Similarly, for each of the years under audit, the fund balance deposited in both the interest-bearing checking account and the MDCPS-Money Market Pool Fund amounted to $63,553.19, $807,292.51, $953,418.12, $1,008,293.28, $1,032,707.77, $1,068,123.56 and $1,074,799.44 (refer to the following table for this facility’s cash and investment summary and pages 9-15 of this report for the financial statements).
HO
SPIT
ALI
TY S
ERVI
CES
IN
TER
NA
L FU
ND
S--C
ASH
AN
D/O
R IN
VEST
MEN
TS S
UM
MA
RY
20
08-2
009
THR
OU
GH
201
4-20
15 F
ISC
AL
YEA
RS
FRO
M J
ULY
1, 2
008
TO J
UN
E 30
, 201
5
4
INTE
RNAL
FUN
DS-
CASH
AND
/OR
INVE
STME
NTS
SUMM
ARY
Matu
rity
Date
In
tere
st
Rate
6/3
0/09
6/30/1
0 6/3
0/11
6/30/1
2 6/3
0/13
6/30/1
4 6/3
0/15
Chec
king
Acco
unt:
W
acho
via B
ank,
N. A
. --
0.10
$ 57
,805.4
8 $
82,15
4.67
W
acho
via B
ank,
N. A
. --
0.05
$ 45
,553.4
5
W
ells F
argo
Ban
k, N.
A.
-- --
$
41,0
96.66
$ 4
3,481
.61$
28,1
87.97
$ 2
5,489
.01In
vest
men
t:
MDC
PS-M
oney
Mar
ket P
ool F
und
Open
-end
1.2
9 63
,553.1
9
M
DCPS
-Mon
ey M
arke
t Poo
l Fun
d Op
en-e
nd
0.76
80
7,292
.51
M
DCPS
-Mon
ey M
arke
t Poo
l Fun
d Op
en-e
nd
0.57
953,4
18.12
M
DCPS
-Mon
ey M
arke
t Poo
l Fun
d Op
en-e
nd
0.54
1,0
08,29
3.26
M
DCPS
-Mon
ey M
arke
t Poo
l Fun
d Op
en-e
nd
0.50
1,032
,707.7
7
M
DCPS
-Mon
ey M
arke
t Poo
l Fun
d Op
en-e
nd
0.62
1,0
68,12
3.56
M
DCPS
-Mon
ey M
arke
t Poo
l Fun
d Op
en-e
nd
0.64
1,074
,799.4
4 TO
TAL
$ 121
,358.6
7$ 8
89,44
7.18
$ 998
,971.5
7 $1
,049,3
89.92
$1,07
6,189
.38$1
,096,3
11.53
$1,10
0,288
.45
5
2007‐08 738,355Receipts
821,413
666,642 670,002
525,598 485,690
521,203 506,739
2007‐08673,069
Disbursements
754,064
536,735
560,477
475,180 458,890
501,081 502,763
0
67,349
197,256
306,781
357,199 383,999
404,121 408,097
‐
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15
Hospitality ServicesReceipts/Disbursements/Increase In Fund Balance
For FYs 2008‐09 Through 2014‐15(When Compared to 2007‐08 FY)
Receipts
Disbursements
Increase FundBalance
For fiscal years ended June 30, 2009 to June 30, 2015, operational cash receipts and disbursements processed through the internal funds of Hospitality Services were reflected in the following graph1: In 2007-2008, cash receipts and disbursements amounted to $738,355 and $673,069, respectively, while the internal funds balance amounted to $692,192. From this graph, it can be noted that since the end of the 2007-2008 fiscal year, cash receipts decreased by approximately $231,600, while disbursements decreased by approximately $170,300. Nevertheless, the fund balance continued to increase since 2007-2008. As of the end of 2014-2015, the fund balance (totaling $1,100,288) experienced an overall increase of approximately $408,100.
1 During June 2009, the Internal Funds-General Fund had a balance of $639,182. Before the closing of the year, on June 26, 2009, Hospitality Services transferred $638,182 to the District. This transaction (which left the Internal Funds-General Fund with a balance of $1,000) was part of a district-wide effort to satisfy a receivable from the Schools' Internal Funds created during the 2007-2008 closing to assist with the District’s financials. The District restored the funds to all locations including Hospitality Services in August 2009. In the internal funds records of Hospitality Services, these transactions (on a cash basis) were recorded as a disbursement in 2008-2009 when remitted to the District, and as a receipt in 2009-2010 when restored by the District; thus overstating operational revenues and disbursements for the respective fiscal years. Consequently, the graph above reflects totals in the corresponding fiscal years that were adjusted to exclude these transactions in order to more accurately represent the receipts/disbursements generated by Hospitality Services’ normal operating activities.
H
OSP
ITA
LITY
SER
VIC
ES
OR
GA
NIZ
ATI
ON
AL
CH
AR
T
6
Albe
rto M
. Car
valho
Su
perin
tende
nt of
Scho
ols
Char
les D
. McM
illon
Dire
ctor
SBAB
Dpt.
of H
ospit
ality
Servi
ces
Jaim
e G. T
orre
ns
Chief
Fac
ilities
Offic
er
Sch
ool F
acilit
ies
John
Whit
ehea
d As
sistan
t Sup
erint
ende
nt Of
fice o
f Sch
ool F
acilit
ies
Ivette
Gar
cia
Senio
r Sec
retar
y Br
uce J
acks
on
SBAB
Con
cess
ion M
anag
er
Marth
a Diaz
Ac
coun
ting S
pecia
list
Debb
ie Mc
Intos
h Ad
minis
trativ
e Ass
istan
t
Deisy
Plas
encia
Co
nces
sion W
orke
r Na
ncy R
omer
o Co
nces
sion W
orke
r Si
lfrida
Cas
tro
Assis
tant C
once
ssion
Ma
nage
r
Wilb
er B
errio
s As
sistan
t Con
cess
ion
Mana
ger
Pat M
urph
ree
SBAB
Con
cess
ion
Spec
ialist
II Fran
ces J
ohns
on
SBAB
Con
cess
ion
Spec
ialist
I
Felic
ia Ri
cks
SBAB
Con
cess
ion
Spec
ialist
I
Enem
encia
Nun
ez
Part-
Time S
BAB
Conc
essio
n Sp
ecial
ist I
Mary
Blan
c SB
AB C
once
ssion
Sp
ecial
ist I
Pedr
o Gar
cia
Conc
essio
n Wor
ker
Odaly
s Hod
elin
Conc
essio
n Wor
ker
Nelva
Flor
es
Conc
essio
n Wor
ker
Beatr
iz Ba
stida
s Co
nces
sion W
orke
r An
a Men
doza
Co
nces
sion W
orke
r Be
linda
Wrig
ht Co
nces
sion W
orke
r
7
OBJECTIVES, SCOPE, AND METHODOLOGY The objectives of our audit were to:
• express an opinion on the financial statements; • evaluate compliance with applicable Florida Statutes, State Board of Education
Rules and School Board Policy, and policies and procedures prescribed in the Manual of Internal Fund Accounting;
• evaluate internal controls to determine the extent to which the control components promote compliance with the policies and procedures prescribed by the Manual of Internal Fund Accounting;
• provide assurance to the administration regarding compliance with current payroll procedures prescribed in the Payroll Processing Procedures Manual; and
• determine whether all property items with an individual value of $1,000 or more were accounted for, and whether policies and procedures prescribed by the Manual of Property Control Procedures where adhered to.
Our review of internal funds and property records covered the seven-year fiscal period of July 2008 through June 2015. The scope of the payroll audit was the 2014-2015 fiscal year. Procedures performed to satisfy audit objectives were as follows:
• interviewed staff and reviewed the organizational structure of the facility; • examined, on a test basis, a representative sample of receipts and disbursements,
as well as other subsidiary records; • reviewed the checking account and subsidiary documentation; • reviewed the bookkeeping and cashiering functions; • reviewed policies and procedures regarding the food operation and the hospitality
account; • reviewed vending machine contracts; • visually inspected the dining facilities and the vending machines located throughout
the administrative building; • reviewed payroll records; • reviewed inspection reports and food handler certifications; • verified the inventory of all property items with an individual value of $1,000 or more
assigned to this location; and • performed other audit procedures as deemed necessary.
We conducted our audit in accordance with generally accepted government auditing standards issued by the Comptroller General of the United States of America. The results of our property audit was in all material respects similarly conducted in accordance with the generally accepted government auditing standards, with the exception of the continuing professional education requirement not followed by our property auditors.
8
FINDINGS AND RECOMMENDATIONS None cited/recommended.
FINANCIAL STATEMENTS
9
The following are the internal funds’ annual financial reports for each audited fiscal year. Refer to page 4 for the cash and/or investments summary:
Funds Beginning Balance Receipts Disbursements Net Transfers Ending Balance
Trust 12,729.34$ 193,274.61$ 181,086.04$ (18,714.64)$ 6,203.27$ General 681,830.26 20,394.20 675,202.15 (26,022.31) 1,000.00 Food Service (2,368.00) 607,744.04 535,957.59 44,736.95 114,155.40 Total 692,191.60$ 821,412.85$ 1,392,245.78$ -$ 121,358.67$
Checking: 57,805.48$ Investments: 63,553.19$ Total: 121,358.67$
Miami-Dade County Public Schools
School Internal Funds-Annual Financial ReportAs of June 30, 2009
Hospitality Services--Location No. 9026
FINANCIAL STATEMENTS
10
Funds Beginning Balance Receipts Disbursements Net Transfers Ending Balance
Trust 6,203.27$ 64,485.18$ 41,875.10$ (15,130.49)$ 13,682.86$ General 1,000.00 643,816.09 8,549.67 241,797.90 878,064.32 Food Service 114,155.40 596,522.64 486,310.63 (226,667.41) (2,300.00) Total 121,358.67 1,304,823.91 536,735.40 - 889,447.18
Checking: 82,154.67$ Investments: 807,292.51$ Total: 889,447.18$
Miami-Dade County Public Schools
School Internal Funds-Annual Financial ReportAs of June 30, 2010
Hospitality Services--Location No. 9026
FINANCIAL STATEMENTS
11
Funds Beginning Balance Receipts Disbursements Net Transfers Ending Balance
Trust 13,682.86$ 80,067.05$ 41,146.98$ (35,760.00)$ 16,842.93$ General 878,064.32 6,180.06 4,196.92 104,381.18 984,428.64 Food Service (2,300.00) 583,754.44 515,133.26 (68,621.18) (2,300.00) Total 889,447.18 670,001.55 560,477.16 - 998,971.57
Checking: 45,553.45$ Investments: 953,418.12$ Total: 998,971.57$
Miami-Dade County Public Schools
School Internal Funds-Annual Financial ReportAs of June 30, 2011
Hospitality Services--Location No. 9026
FINANCIAL STATEMENTS
12
Funds Beginning Balance Receipts Disbursements Net Transfers Ending Balance
Trust 16,842.93$ 57,995.79$ 32,550.84$ (29,642.13)$ 12,645.75$ General 984,428.64 18,864.44 22,957.27 58,408.36 1,038,744.17 Food Service (2,300.00) 448,737.95 419,671.72 (28,766.23) (2,000.00) Total 998,971.57 525,598.18 475,179.83 - 1,049,389.92
Checking: 41,096.66$ Investments: 1,008,293.26$ Total: 1,049,389.92$
Miami-Dade County Public Schools
School Internal Funds-Annual Financial ReportAs of June 30, 2012
Hospitality Services--Location No. 9026
FINANCIAL STATEMENTS
13
Funds Beginning Balance Receipts Disbursements Net Transfers Ending Balance
Trust 12,645.75$ 43,495.19$ 30,628.48$ (12,511.84)$ 13,000.62$ General 1,038,744.17 4,731.50 3,577.95 25,291.04 1,065,188.76 Food Service (2,000.00) 437,463.22 424,684.02 (12,779.20) (2,000.00) Total 1,049,389.92 485,689.91 458,890.45 - 1,076,189.38
Checking: 43,481.61$ Investment: 1,032,707.77$ Total: 1,076,189.38$
Miami-Dade County Public Schools
School Internal Funds-Annual Financial ReportAs of June 30, 2013
Hospitality Services--Location No. 9026
FINANCIAL STATEMENTS
14
Funds Beginning Balance Receipts Disbursements Net Transfers Ending Balance
Trust 13,000.62$ 65,605.48$ 30,514.80$ (33,760.76)$ 14,330.54$ General 1,065,188.76 5,415.79 11,682.47 25,058.91 1,083,980.99 Food Service (2,000.00) 450,181.83 458,883.68 8,701.85 (2,000.00) Total 1,076,189.38 521,203.10 501,080.95 - 1,096,311.53
Checking: 28,187.97$ Investment: 1,068,123.56$ Total: 1,096,311.53$
Miami-Dade County Public Schools
School Internal Funds-Annual Financial ReportAs of June 30, 2014
Hospitality Services--Location No. 9026
FINANCIAL STATEMENTS
15
Funds Beginning Balance Receipts Disbursements Net Transfers Ending Balance
Trust 14,330.54$ 40,192.95$ 32,088.70$ (8,824.34)$ 13,610.45$ General 1,083,980.99 6,675.88 3,786.19 1,807.32 1,088,678.00 Food Service (2,000.00) 459,870.63 466,887.65 7,017.02 (2,000.00) Total 1,096,311.53 506,739.46 502,762.54 - 1,100,288.45
Checking: 25,489.01$ Investment: 1,074,799.44$ Total: 1,100,288.45$
Miami-Dade County Public Schools
School Internal Funds-Annual Financial ReportAs of June 30, 2015
Hospitality Services--Location No. 9026
HO
SPIT
ALI
TY S
ERVI
CES
—PR
IOR
AU
DIT
FIN
DIN
GS
TAB
LE
16
Pr
ior A
udit
Find
ings
Fo
llow-
Up o
f Hos
pita
lity S
ervic
es
Audi
tor’s
Com
men
t Re
com
men
datio
ns
Corre
ctive
Act
ion
by M
anag
emen
t 1.
Hosp
italit
y Ser
vices
Su
bsid
ized
By T
he G
ener
al Fu
nd
Need
s To
Be E
valu
ated
In
Ligh
t of t
he D
istric
t’s
Dete
riora
ting
Fina
ncial
Co
nditi
on
1. In
the sh
ort te
rm co
nside
r ad
justin
g pric
es an
d red
ucing
co
sts. F
or th
e lon
g ter
m,
coor
dinate
with
Pro
cure
ment
Mana
geme
nt Se
rvice
s the
iss
uanc
e of a
Req
uest
for
Infor
matio
n in o
rder
to ga
in an
un
derst
andin
g of th
e pote
ntial
bene
fits of
outso
urcin
g foo
d se
rvice
s at th
e Sch
ool B
oard
Ad
minis
tratio
n (SB
AB) B
uildin
g an
d the
Ann
ex B
uildin
g.
To in
creas
e rev
enue
s, Ho
spita
lity S
ervic
es be
gan o
fferin
g ho
t lunc
h ser
vices
in th
e Ann
ex di
ning f
acilit
y in D
ecem
ber
of 20
05. In
Mar
ch, 2
008,
Hosp
itality
Ser
vices
adjus
ted ov
er
80%
of its
men
u pric
es fo
r bre
akfas
t and
lunc
h item
s. In
Ja
nuar
y 200
9, an
aver
age 7
.5% in
creas
e for
lunc
h entr
ée
spec
ials a
nd an
aver
age 1
7% in
creas
e for
dess
ert p
rices
wa
s effe
cted.
Hosp
itality
Ser
vices
will
conti
nue t
o rev
iew
menu
price
s per
iodica
lly an
d mak
e adju
stmen
ts to
conti
nue
incre
asing
reve
nue w
hile p
rovid
ing se
rvice
s tha
t cus
tomer
s ex
pect.
The
Hos
pitali
ty Se
rvice
s Dire
ctor w
ill re
view
price
ad
justm
ent r
ecom
mend
ation
s with
his i
mmed
iate s
uper
visor
pr
ior to
imple
menta
tion.
Of
fice o
f Sch
ool F
acilit
ies an
d Hos
pitali
ty Se
rvice
s will
work
with
Proc
urem
ent M
anag
emen
t Ser
vices
to ex
plore
the
feasib
ility o
f outs
ourci
ng pa
rt or
all o
f its o
pera
tions
to a
comm
ercia
l food
servi
ce ve
ndor
.
The a
dmini
strati
on ha
s de
termi
ned t
o con
tinue
op
erati
ng th
e SBA
B Di
ning
facilit
y as a
servi
ce to
sta
ff/adm
inistr
ation
; how
ever
, the
Ann
ex D
ining
facil
ity
close
d in A
ugus
t 3, 2
011 d
ue
to ex
pans
ion of
instr
uctio
nal
spac
es in
Ann
ex B
uildin
g and
re
ducti
on of
perso
nnel.
2. In
adeq
uate
Con
trols
Over
Pu
rcha
sing
And
D
isbur
sem
ents
2.1.
Hosp
itality
Ser
vices
shou
ld co
ordin
ate w
ith P
rocu
reme
nt Ma
nage
ment
Servi
ces t
o ne
gotia
te an
d ente
r into
food
Hosp
itality
Ser
vices
conc
urs w
ith th
e rec
omme
ndati
on in
the
Aud
it Rep
ort to
ensu
re co
mplia
nce w
ith th
e Dist
rict’s
pu
rchas
ing an
d disb
urse
ment
contr
ols. H
ospit
ality
Servi
ces h
as re
viewe
d all c
urre
nt Di
strict
bids
relat
ed to
Reco
mmen
datio
ns
imple
mente
d and
issu
es of
co
ntrac
ts an
d bids
show
ed
grea
t impr
ovem
ent d
uring
the
HO
SPIT
ALI
TY S
ERVI
CES
—PR
IOR
AU
DIT
FIN
DIN
GS
TAB
LE
17
Pr
ior A
udit
Find
ings
Fo
llow-
Up o
f Hos
pita
lity S
ervic
es
Audi
tor’s
Com
men
t Re
com
men
datio
ns
Corre
ctive
Act
ion
by M
anag
emen
t
contr
acts
or ob
tain v
endo
r qu
otes f
or ite
ms pu
rchas
ed
not o
n con
tract.
Othe
rwise
, the
purch
asing
proc
edur
es
estab
lishe
d in t
he M
anua
l of
Inte
rnal
Fund
Acc
ount
ing
shou
ld be
follo
wed.
food s
ervic
e ope
ratio
n. H
ospit
ality
Servi
ces i
s cur
rentl
y wo
rking
with
Pro
cure
ment
Mana
geme
nt sta
ff to i
ssue
bids
ac
cord
ing to
the M
anua
l of I
nter
nal F
und
Acco
untin
g pr
oced
ures
for g
oods
and s
ervic
es re
quire
d by H
ospit
ality
Servi
ces b
ut cu
rrentl
y not
avail
able
on D
istric
t bids
. Ho
spita
lity S
ervic
es is
also
wor
king w
ith P
rocu
reme
nt Ma
nage
ment
staff t
o obta
in qu
otes f
or pr
oduc
ts tha
t do n
ot ex
ceed
the D
istric
t thre
shold
requ
iring f
orma
l bidd
ing. T
he
Dire
ctor o
f Hos
pitali
ty Se
rvice
s will
revie
w wi
th Pr
ocur
emen
t Man
agem
ent S
ervic
es al
l quo
tes re
ceive
d for
co
mplia
nce w
ith th
e Dist
rict’s
purch
asing
polic
ies.
curre
nt au
dit.
Mino
r disc
repa
ncies
re
gard
ing so
me of
the
vend
ors u
tilize
d wer
e note
d. Th
is wa
s disc
usse
d with
the
Dire
ctor t
o ens
ure c
ompli
ance
go
ing fo
rwar
d.
2.2.
Hosp
itality
Ser
vices
shou
ld ma
intain
copie
s of fo
od
contr
acts,
quote
s and
any
other
docu
menta
tion
supp
ortin
g the
se pu
rchas
es.
Hosp
itality
Ser
vices
now
maint
ains i
n its
files c
opies
of al
l cu
rrent
M-DC
PS bi
d awa
rds u
sed t
o mak
e pur
chas
es
relat
ed to
its fo
od se
rvice
oper
ation
. The
Dire
ctor o
f Ho
spita
lity S
ervic
es w
ill be
resp
onsib
le for
main
tainin
g co
pies o
f all c
urre
nt bid
awar
ds, c
ontra
cts, q
uotes
and
relev
ant d
ocum
ents
in the
Hos
pitali
ty Se
rvice
s offic
e file
s.
Fully
imple
mente
d. Bi
ds an
d qu
otes o
n file
.
2.3.
Ensu
re th
at all
requ
ired
signa
tures
are a
ffixed
to th
e ch
ecks
prior
to pr
oces
sing
paym
ent.
Hosp
itality
Ser
vices
conc
urs w
ith th
e rec
omme
ndati
on in
Au
dit R
epor
t that
all si
gnatu
res m
ust b
e affix
ed to
chec
ks
prior
to is
suan
ce of
paym
ent. C
ontro
l mea
sure
s hav
e bee
n im
pleme
nted a
ccor
ding t
o the
Man
ual o
f Int
erna
l Fun
d Ac
coun
ting
proc
edur
es to
assu
re th
at all
requ
ired s
teps a
re
follow
ed fo
r pay
ment
to ve
ndor
s for
good
s and
servi
ces.
Fully
imple
mente
d. No
ins
tance
s note
d dur
ing
curre
nt au
dit.
3. Ma
nage
men
t Of
Ve
ndin
g Ma
chin
es
Cont
ract
s Ne
eds
Stre
ngth
enin
g
3.1.
Proc
urem
ent M
anag
emen
t Se
rvice
s mus
t stre
ngthe
n the
co
ntrac
t app
rova
l pro
cess
to
A co
ntrac
t-app
rova
l pro
cess
was
in pl
ace t
o req
uire V
endin
g Ma
chine
Agr
eeme
nts to
be si
gned
by P
rocu
reme
nt Ma
nage
ment
Servi
ces,
prior
to ex
ecuti
on, in
orde
r to e
nsur
e
Fully
imple
mente
d. Cu
rrent
bid w
ith se
lected
ve
ndor
up to
June
2016
.
HO
SPIT
ALI
TY S
ERVI
CES
—PR
IOR
AU
DIT
FIN
DIN
GS
TAB
LE
18
Pr
ior A
udit
Find
ings
Fo
llow-
Up o
f Hos
pita
lity S
ervic
es
Audi
tor’s
Com
men
t Re
com
men
datio
ns
Corre
ctive
Act
ion
by M
anag
emen
t
ensu
re th
at su
bmitte
d co
ntrac
ts ar
e tim
ely re
viewe
d an
d sub
mitte
d to t
he
Attor
ney’s
Offic
e for
final
revie
w an
d app
rova
l.
that a
ll req
uirem
ents
of the
Agr
eeme
nt we
re m
et by
the
vend
or an
d wou
ld the
n also
be av
ailab
le for
offic
ial
reco
rding
. How
ever
, due
to th
e neg
otiati
ons o
f a co
ntrac
t wi
th DD
Mar
ketin
g, Inc
., for
reve
nue-
gene
ratin
g op
portu
nities
for b
ever
ages
in ve
nding
mac
hines
distr
ict-
wide
, the A
gree
ments
for H
ospit
ality
were
plac
ed on
hold.
Ina
smuc
h as t
he pr
opos
ed re
venu
es by
DD
Marke
ting,
Inc.
were
not in
the b
est in
teres
t of th
e Dist
rict, t
he co
ntrac
t was
re
jected
by th
e Boa
rd. S
ubse
quen
t to th
e reje
ction
of th
e ma
rketin
g con
tract,
the r
outin
g pro
cess
was
not c
omple
ted.
The
Ven
ding M
achin
e Agr
eeme
nt for
m, w
hich w
as
prev
iously
appr
oved
by th
e Atto
rney
’s Of
fice a
s to l
egal
form
and s
uffici
ency
, was
fully
enfor
ceab
le. A
log o
f all V
endin
g Ag
reem
ents
proc
esse
d will
be m
aintai
ned t
o avo
id thi
s oc
curre
nce i
n the
futur
e. Ho
spita
lity S
ervic
es w
ill co
ordin
ate w
ith P
rocu
reme
nt Ma
nage
ment
staff i
n a tim
ely m
anne
r for
revie
w an
d su
bmiss
ion of
all v
endin
g mac
hine c
ontra
cts. H
ospit
ality
Servi
ces h
as es
tablis
hed a
log t
o tra
ck th
e stat
us of
each
ve
nding
mac
hine c
ontra
ct it s
ubmi
ts to
Proc
urem
ent
Mana
geme
nt sta
ff for
their
revie
w an
d app
rova
l.
3.2.
Inves
tigate
the i
ssua
nce o
f a
bid ba
sed u
pon A
cces
s Fee
Co
ncep
t to ha
ve be
tter
contr
ol ov
er co
mmiss
ions
rece
ived.
Proc
urem
ent M
anag
emen
t Ser
vices
agre
es w
ith th
e re
comm
enda
tion a
nd ha
s met
with
Food
and N
utritio
n staf
f to
draft
a bid
for a
fixed
-fee a
rrang
emen
t for v
endin
g ma
chine
s. T
his bi
d will
also i
nclud
e the
beve
rage
-vend
ing
mach
ines o
pera
ted by
the H
ospit
ality
Depa
rtmen
t. The
sp
ecific
ation
s of th
e bid
will i
nclud
e sep
arate
acco
untin
g re
spon
sibilit
ies fo
r Foo
d and
Nutr
ition a
nd th
e Hos
pitali
ty
Fully
imple
mente
d. At
pres
ent
one v
endo
r ser
vices
ma
chine
s and
subm
its
month
ly ac
cess
fixed
-fee.
Howe
ver,
numb
er of
ma
chine
s dec
reas
ed re
sultin
g in
lower
vend
ing
HO
SPIT
ALI
TY S
ERVI
CES
—PR
IOR
AU
DIT
FIN
DIN
GS
TAB
LE
19
Pr
ior A
udit
Find
ings
Fo
llow-
Up o
f Hos
pita
lity S
ervic
es
Audi
tor’s
Com
men
t Re
com
men
datio
ns
Corre
ctive
Act
ion
by M
anag
emen
t De
partm
ent, a
nd is
sche
duled
to be
pres
ented
for t
he
Boar
d’s co
nside
ratio
n in J
une 2
009.
comm
ission
s.
4. Gu
ideli
nes F
or P
rovid
ing
Com
plim
enta
ry H
ospi
talit
y
Upd
ated
But
Not
For
mall
y
App
rove
d
4.1.
Upda
te an
d for
mally
appr
ove
curre
nt gu
idelin
es to
ensu
re
cons
isten
cy in
the p
rovis
ion of
co
mplim
entar
y hos
pitali
ty se
rvice
s.
As no
ted in
the A
udit R
epor
t, in o
rder
to re
duce
cost,
Ho
spita
lity S
ervic
es re
vised
the g
uideli
nes f
or pr
ovidi
ng
comp
lemen
tary r
efres
hmen
t ser
vices
. Stric
ter gu
idelin
es
were
imple
mente
d by H
ospit
ality
Servi
ces i
n Apr
il 200
8. Th
e rev
ised g
uideli
nes f
or pr
ovidi
ng co
mplim
entar
y ser
vices
ha
ve no
w be
en ap
prov
ed by
senio
r man
agem
ent.
Guide
lines
will
be re
viewe
d fro
m tim
e to t
ime.
Fully
imple
mente
d. Gu
idelin
es ha
ve be
en
revis
ed.
HO
SPIT
ALI
TY S
ERVI
CES
—PR
IOR
AU
DIT
FIN
DIN
GS
TAB
LE
20
Pr
ior A
udit
Find
ings
Fo
llow-
Up o
f Hos
pita
lity S
ervic
es
Audi
tor’s
Com
men
t Re
com
men
datio
ns
Corre
ctive
Act
ion
by M
anag
emen
t 4.2
. Re
visit t
he cu
rrent
$40,0
00
comp
limen
tary h
ospit
ality
thres
hold
to de
termi
ne
wheth
er th
e exp
endit
ures
sh
ould
be cu
rtaile
d goin
g for
ward
.
It is a
nticip
ated t
hat r
ecen
t red
uctio
ns in
perso
nnel
assig
ned
to the
Sch
ool B
oard
Adm
inistr
ation
Com
plex w
ill re
sult i
n low
er ve
nding
mac
hine r
even
ues.
Con
sequ
ently
, to en
sure
ex
pens
es fo
r com
plime
ntary
servi
ces a
re ad
equa
tely
funde
d, Ho
spita
lity S
ervic
es ha
s set
a bud
get fo
r the
se
servi
ces t
hat is
10%
below
the v
endin
g mac
hine p
rofits
du
ring f
iscal
year
2007
-08.
This
repr
esen
ts a r
educ
tion o
f ne
arly
$2,60
0 dur
ing 20
08-0
9 for
an an
nual
budg
et of
appr
oxim
ately
$23,2
00.
Going
forw
ard,
the an
nual
budg
et wi
ll be 1
0% be
low th
e pr
eviou
s yea
r’s re
venu
es. T
he D
irecto
r of H
ospit
ality
Servi
ces w
ill be
resp
onsib
le for
mon
itorin
g exp
ense
s mo
nthly
and,
base
d on t
he re
venu
es re
ceive
d thr
ough
ve
nding
mac
hine o
pera
tions
, mak
e fur
ther r
educ
tions
that
may b
e nec
essa
ry thr
ough
out th
e yea
r.
Hosp
itality
servi
ces t
otaled
be
twee
n $23
,830 a
nd
$44,8
74 du
ring t
he se
ven-
year
perio
d. W
hile i
t is
evide
nt tha
t the d
eman
d for
Ho
spita
lity S
ervic
es ha
s inc
reas
ed, in
contr
ast,
vend
ing co
mmiss
ions h
ave
dimini
shed
due t
o les
s ve
nding
mac
hine a
ctivit
y and
low
er nu
mber
of m
achin
es in
bu
ilding
s. Th
erefo
re, v
endin
g co
mmiss
ions w
ill no
long
er be
ab
le to
cove
r the
Hos
pitali
ty ne
eds o
f the D
istric
t and
re
venu
es fr
om fo
od sa
les ar
e re
quire
d to c
over
the s
hortf
all.
The D
irecto
r of H
ospit
ality
Servi
ces c
losely
mon
itors
volum
e and
expe
nses
mo
nthly
to en
sure
amou
nts
spen
t are
reas
onab
le an
d do
not e
xcee
d Dist
rict g
uideli
nes.
4.3
. Lis
ts of
the na
mes o
f mee
ting
atten
dees
shou
ld be
inclu
ded
Hosp
itality
Ser
vices
shall
requ
est a
ll nam
es of
mee
ting
atten
dees
to be
inclu
ded w
ith re
ques
t for s
ervic
es. T
he
Imple
mente
d. Mi
nor
discre
panc
ies di
scus
sed w
ith
HO
SPIT
ALI
TY S
ERVI
CES
—PR
IOR
AU
DIT
FIN
DIN
GS
TAB
LE
21
Pr
ior A
udit
Find
ings
Fo
llow-
Up o
f Hos
pita
lity S
ervic
es
Audi
tor’s
Com
men
t Re
com
men
datio
ns
Corre
ctive
Act
ion
by M
anag
emen
t as
part
of the
docu
menta
tion.
na
mes o
f all m
eetin
g atte
ndee
s will
be ke
pt on
file w
ith
comp
limen
tary s
ervic
e req
uests
. Non
-comp
lianc
e by a
ny
requ
estin
g dep
artm
ent w
ill be
brou
ght to
the a
ttenti
on of
the
corre
spon
ding m
embe
r of S
uper
inten
dent’
s Cab
inet fo
r ap
prop
riate
actio
n.
Dire
ctor o
f Hos
pitali
ty Se
rvice
s for
conti
nued
co
mplia
nce.
4.4.
Prep
are a
nd m
aintai
n on f
ile
price
lists
relat
ed to
the
comp
limen
tary h
ospit
ality
items
.
Hosp
itality
Ser
vices
has i
n its
file a
price
list fo
r co
mplim
entar
y ser
vices
. The
Dire
ctor o
f Hos
pitali
ty Se
rvice
s wi
ll per
iodica
lly re
view
with
senio
r man
agem
ent th
e pric
ing
struc
ture f
or co
mplem
entar
y ser
vices
and m
ake
adjus
tmen
ts ac
cord
ingly.
In
closin
g, Ho
spita
lity S
ervic
es m
anag
emen
t rec
ogniz
es th
e im
porta
nce o
f adh
ering
to es
tablis
hed M
-DCP
S pu
rchas
ing
guide
lines
and b
est b
usine
ss pr
actic
es. S
taff w
ill en
deav
or
to re
duce
oper
ating
costs
and i
ncre
ase r
even
ues w
hile
conti
nuing
to pr
ovide
quali
ty se
rvice
s to D
istric
t Offic
e em
ploye
es an
d visi
tors.
List is
avail
able
and u
pdate
d. Ho
weve
r, no
t app
rove
d by
supe
rviso
r of D
irecto
r of
Hosp
itality
Ser
vices
.
Anti-Discrimination Policy
Federal and State Laws The School Board of Miami-Dade County, Florida adheres to a policy of nondiscrimination in employment and educational programs/activities and strives affirmatively to provide equal opportunity for all as required by: Title VI of the Civil Rights Act of 1964 - prohibits discrimination on the basis of race, color, religion, or national origin. Title VII of the Civil Rights Act of 1964 as amended - prohibits discrimination in employment on the basis of race, color, religion, gender, or national origin. Title IX of the Education Amendments of 1972 - prohibits discrimination on the basis of gender. Age Discrimination in Employment Act of 1967 (ADEA) as amended - prohibits discrimination on the basis of age with respect to individuals who are at least 40. The Equal Pay Act of 1963 as amended - prohibits gender discrimination in payment of wages to women and men performing substantially equal work in the same establishment. Section 504 of the Rehabilitation Act of 1973 - prohibits discrimination against the disabled. Americans with Disabilities Act of 1990 (ADA) - prohibits discrimination against individuals with disabilities in employment, public service, public accommodations and telecommunications. The Family and Medical Leave Act of 1993 (FMLA) - requires covered employers to provide up to 12 weeks of unpaid, job-protected leave to "eligible" employees for certain family and medical reasons. The Pregnancy Discrimination Act of 1978 - prohibits discrimination in employment on the basis of pregnancy, childbirth, or related medical conditions. Florida Educational Equity Act (FEEA) - prohibits discrimination on the basis of race, gender, national origin, marital status, or handicap against a student or employee. Florida Civil Rights Act of 1992 - secures for all individuals within the state freedom from discrimination because of race, color, religion, sex, national origin, age, handicap, or marital status. Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA) - prohibits discrimination against employees or applicants because of genetic information. Boy Scouts of America Equal Access Act of 2002 – no public school shall deny equal access to, or a fair opportunity for groups to meet on school premises or in school facilities before or after school hours, or discriminate against any group officially affiliated with Boy Scouts of America or any other youth or community group listed in Title 36 (as a patriotic society). Veterans are provided re-employment rights in accordance with P.L. 93-508 (Federal Law) and Section 295.07 (Florida Statutes), which stipulate categorical preferences for employment. In Addition: School Board Policies 1362, 3362, 4362, and 5517 - Prohibit harassment and/or discrimination against students, employees, or applicants on the basis of sex, race, color, ethnic or national origin, religion, marital status, disability, genetic information, age, political beliefs, sexual orientation, gender, gender identification, social and family background, linguistic preference, pregnancy, and any other legally prohibited basis. Retaliation for engaging in a protected activity is also prohibited. Revised: (07.14)
MIAMI-DADE COUNTY PUBLIC SCHOOLS
INTERNAL AUDIT REPORT HOSPITALITY SERVICES
JANUARY 2016
Office of Management and Compliance Audits 1450 N. E. 2nd Avenue, Room 415
Miami, Florida 33132 Tel: (305) 995-1318 ● Fax: (305) 995-1331
http://mca.dadeschools.net