The Florida Auditor General’s Office has released its audit report of the Okaloosa County Commission’s oversight of the Tourist Development Council and the TDC’s use of bed taxes and BP funds.
The report points out the lack of oversight by the county commission and TDC board over its executive director and advertising firms. The Auditor General offers specific recommendations for the county.
For Pensacola residents, the findings may resurface discussions about the wisdom of Mayor Ashton Hayward’s choice of The Zimmerman Agency as his marketing firm.
While the Auditor General’s report doesn’t specifically cite The Zimmerman Agency, the county’s own internal audit report, which was done after former TDC executive director Mark Bellinger committed suicide when allegations of misuse of funds surfaced in May 2012, identified Zimmerman and Mobile-based Lewis Communications as the TDC’s two advertising firms.
Last spring, Pensacola Mayor Ashton Hayward announced The Zimmerman Agency, which is based in Tallahassee, as his hand-picked marketing firm that would takeover all the city’s marketing, including the Energy Services of Pensacola (later renamed by Hayward and Zimmerman “Pensacola Energyâ€), Port of Pensacola (still called by that name) and Pensacola International Airport (whose name Hayward had changed without Zimmerman’s help).
Local ad agencies protested the selection, as did several Pensacola City Council members.
When the Bellinger’s misuse of TDC funds surfaced, it was discovered that Zimmerman had been a pass-through for several improperly authorized purchases, including a $710,000 yacht, $181,000 in motorcycles and $45,359. Zimmerman was also funding two TDC employees through its agency.
Lewis Communications was a pass-through on transactions that bought a house for Bellinger and his wife.
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The Auditor General cited the two advertising firms in its findings, which were released yesterday:
Finding No. 7
The County did not consistently follow prescribeed policies and procedures relating to the competitive procurement of goods and services, including the selection of two advertising and marketing firms.Finding No. 8:
The County negotiated and entered into contracts that did not contain adequate provisions
to effectively protect the County’s interests.Finding No. 9:
The County did not perform an adequate review or pre-audit of invoices submitted by two advertising and marketing firms, including a comparison of payment requests to the provisions of contracts. As a result, the County paid two advertising and marketing firms $12.1 million without obtaining adequate documentation supporting the goods or services received, including payments of several invoices that incorrectly or inadequately described the actual goods or services purchased.Finding No. 10:
The County did not ensure that goods or services acquired through two advertising and marketing firms were competitively procured.Finding No. 11:
The County paid for certain goods and services in advance of their receipt, including certain goods and services acquired through two advertising and marketing firms, contrary to law and the State Constitution. Some services for which the County paid in advance were not subsequently provided.Finding No. 12:
The County did not consistently follow prescribed policies and procedures relating to the approval of purchases, including purchases made through two advertising and marketing firms.
Read report-24 Auditor General
While Mayor Hayward was turning over the city’s marketing to Zimmerman and paying them over a million dollars a year, the Okaloosa Board of County Commissioners were terminating its relationship with the firm.
When the commissioners rated the firm low in the RFP selection process, The Zimmerman Agency protested and said that the commissioners had incorrectly believed that the firm represented the city of Pensacola and Visit Pensacola outside of the Pensacola area.
Curtis Zimmerman, president of The Zimmerman Agency, wrote last October a viewpoint in the Northwest Florida Daily News, titled “Zimmerman Agency: We just want a fair chance.â€
Zimmerman wrote, “The Zimmerman Agency does not represent Visit Pensacola. We do work for the city of Pensacola. We do ads about city services targeted to residents and business in Pensacola.â€
The viewpoint was in direct conflict with Carrie Zimmerman’s statements to the Pensacola City Council the prior month. She outlined the firm’s primary objective of luring businesses that are looking to relocate. They described Pensacola as a “small town that has a big future,†a “blank slate†that needs to position itself to “capture a larger share of the future.â€
In October, Mayor Hayward hired Tamara Fountain as a consultant for $60,000. City spokesman Derek Cosson told the Independent News reporter Jeremy Morrison that one of her duties is to manage The Zimmerman Agency.
It was State Sen. Don Gaetz and his son, Rep. Matt Gaetz, who requested the Auditor General to audit the TDC. Florida Auditor General’s Office will make a presentation on the findings of its audit to the Northwest Florida’s legislative delegation on Jan. 30 fro 5 to 6:30 p.m. at Niceville City Hall.