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****PRELIMINARY AND TENTATIVE FINDINGS****
<br />Executive Committee, or a designated representative when "there is no reasonable alternative." We noted
<br />five departures from this policy as follows:
<br />• One instance in which the most economical seat on an airline was not purchased. A reimbursement to
<br />the CEO for his trip to the 2014 Keys Strategic Planning Workshop included $626 for roundtrip airfare
<br />from Orlando to Key West. However, the tickets were for "Business Select," while a fellow FMPA
<br />employee purchased a standard ticket on the same flight for $495. FMPA records did not evidence the
<br />lack of a reasonable alternative (i.e., purchase of a standard ticket), contrary to the Travel Policy.. In
<br />response to our inquiry, FMPA staff indicated that the "Business Select" tickets were fully refundable and
<br />were purchased by the CEO in case he was not able to attend the event; however, such explanation was
<br />not documented in the FMPA records at the time of the ticket purchase.
<br />• Four instances, totaling $287, of charges for "preferred" or "choice" seating, three of which were paid to
<br />the employees as travel reimbursements and one paid directly to the airline using an FMPA credit card.
<br />FMPA records did not evidence the lack of a reasonable alternative (i.e., standard seating), contrary to the
<br />Travel Policy.
<br />Contractor Travel. The FMPA paid $6,343, coded as "travel" in its accounting system, for consultant's fees
<br />of $4,950 and travel costs of $1,393. The contract with the consultant stated that, "All invoices shall be
<br />accompanied by reasonable supporting information in a manner sufficient for FMPA to verify the services
<br />performed by the Consultant." However, the travel costs invoiced, which were comprised of $833 for airfare,
<br />$236 for rental car and gas, $272 for lodging, $36 for meals, and $16 for miscellaneous expenses, were not
<br />supported by receipts or other documentation. Absent such documentation, the FMPA could not
<br />substantiate the reimbursement requested and paid.
<br />y Vehicle Allowances and Mileage Reimbursements. The FMPA has authorized ten employee positions to
<br />receive vehicle allowances, which are paid in biweekly installments. Of these ten positions, nine are
<br />authorized at the annual rate of $5,877, and one position is authorized at the annual rate of $9,396. In
<br />addition, the FA/P/1 Police and Employee Manual allows for these employees to also receive mileage
<br />reimbursement in the amount of half of the approved mileage rate paid to employees not receiving a vehicle
<br />allowance, although the employment contract of the employee authorized a vehicle allowance at an annual
<br />rate of $9,396 indicated the employee should receive full mileage reimbursement at the approved rate.
<br />During the period October 2012 through June 2014, the employees were paid a total of $93,495 for vehicle
<br />allowances and $47,052 for travel reimbursements, which includes other travel reimbursements in addition to
<br />mileage reimbursements. FMPA records did not evidence the basis for the established travel allowance
<br />amounts. In addition, it is not apparent why employees receiving vehicle allowances to compensate them for
<br />business use of their personal vehicles also receive full or partial mileage reimbursement for business use of
<br />their personal vehicles.
<br />Recommendation: The FMPA should consider amending its Travel Policy to include a cap on per -meal
<br />costs. The FMPA should also enhance its procedures to ensure compliance with its policies regarding
<br />family member travel expenses and most economical cost of air travel, and to require supporting receipts for
<br />out-of-pocket expenses incurred by contractors. In addition, the FMPA should discontinue providing
<br />mileage reimbursements to employees who also receive vehicle allowances.
<br />All Requirements Project (ARP) Contract Provisions
<br />Finding No. 13: Peak Shaving
<br />ARP monthly rates are primarily comprised of three components: demand charge, energy charge, and transmission
<br />charge. The demand charge is comprised of fixed costs, the largest of which, is debt service costs. Schedule B-1, Part
<br />5, of the ARP power supply project contract specifies that the demand charge cost component is to be allocated based
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