City Audit Reveals Widespread Weaknesses in Daytona Beach Travel Spending Controls

DAYTONA BEACH, FL — A sweeping internal audit of the City of Daytona Beach’s travel expenditures has uncovered a series of systemic weaknesses, outdated policies, and questionable spending practices that auditors say put taxpayer dollars at unnecessary risk and weaken public confidence in the city’s financial stewardship.

The audit—conducted to evaluate the adequacy of the city’s internal controls, policies, and procedures governing travel spending and reimbursements—reviewed the entirety of Fiscal Year 2024 expenditures. It assessed compliance with Florida Statutes, Government Auditing Standards (GAGAS “Yellow Book”), and Governmental Accounting Standards Board (GASB) principles of accountability and transparency.

Auditors concluded that Daytona Beach’s policies and practices fall far short of modern standards. Their review revealed poor documentation, inadequate oversight, excessive spending, and a travel policy written in 1999 that has never been updated.

While the examples cited in the report represent only a small sample, auditors emphasized that even a single incident of wasteful or unnecessary spending is unacceptable, given that all public funds are held in trust for the community.

“Every dollar must be used prudently and in alignment with the City’s policies and fiscal responsibility standards,” the report states. “Allowing even isolated cases of wasteful or unnecessary spending to go unchecked can set a poor precedent and erode public confidence.”

Key Findings at a Glance

Across 24 pages, auditors detailed nine major findings—each pointing to an urgent need for reform.

1. Travel Policy Outdated by 25 Years

The city’s travel policy, last updated in 1999, contains no meal caps, no lodging limits, and no clear per diem standards. Departments were left to set their own rules, leading to inconsistent decisions and, in some cases, excessive spending.

Auditors noted that modern best practices and Florida Statute §112.061 require clearly defined allowable rates and uniform standards.

“Viewing the travel policy merely as paperwork undermines its true purpose,” auditors wrote, adding that a sound policy is a “cornerstone of accountability.”

2. Missing Receipts and Poor Documentation

Auditors reported that the city could not provide centralized, complete documentation for many travel expenses—an internal control failure that prevents verification of spending accuracy.

The lack of a unified system meant auditors had to chase records across multiple departments. Some receipts, authorization forms, and supporting documents were never located.

The report calls the city’s documentation system “inefficient and costly,” and questions the CFO’s oversight role.

3. Nearly $100,000 in Budget Variance

While the city budgeted $218,670 for travel in FY 2024, only $121,746 was spent—a variance of 44%.

Though underspending may appear positive, auditors warn that it instead reflects poor forecasting, inaccurate budgeting, and weak expenditure monitoring.

“Nearly $97,000 in unused funds could have supported other priority programs,” the report notes.

4. Excessive Meal Costs, Upgrades, Premium Car Rentals, Valet Parking

Multiple examples highlight travel costs auditors deemed unreasonable or wasteful:

• A $135.71 single dinner in Orlando.

• $70.79 dinners on consecutive nights in Jacksonville—more than double typical market cost.

• Valet parking at $40.66 per day despite cheaper self-parking.

• A Chevy Suburban rental for $114/day when standard vehicles were available at far lower rates.

• A $90.89 dinner charged without an itemized receipt—preventing verification of prohibited purchases such as alcohol.

The report notes these practices “raise concerns about fiscal discipline and adherence to City policies.”

5. Missing Travel Requests and Approval Signatures

Several trips were taken without proper justification, signatures, or documented approval—including among senior staff.

Some employees traveled multiple times per year without explaining the necessity or benefit to the city.

“Without proper authorization, it is not possible to determine whether expenses were legitimate business expenditures,” auditors warned.

6. Business-Class Airline Ticket Purchased with Taxpayer Funds

One senior staff member purchased a business-class airline ticket without justification, despite numerous economy options below $300 available the same day.

The employee’s explanation—that they always choose the “lowest refundable fare”—was proven incorrect by auditors.

City administration attempted to defend the decision by citing Southwest’s Business Select refundability. However, auditors found that no other city official has flown business class, undermining the explanation.

The report calls the justification “inaccurate, misleading, and inconsistent with reasonable travel practices.”

7. Inflated Mileage Reimbursements

Mileage reimbursements were overstated in several cases, including one instance showing a nearly 97-mile overstatement.

Some employees improperly calculated mileage from their home address instead of City Hall.

8. Non-Itemized Meal Receipts & Risk of Unallowable Purchases

Numerous employees submitted credit card slips without itemization, preventing verification of whether prohibited items—such as alcohol—were purchased with public funds.

Auditors cited one example of a $90.89 meal with no detail provided.

9. Travel to Training Events Despite Free Virtual Alternatives

Some employees attended in-person training—even when identical virtual courses were available for free.

Additionally, no certificates of completion were submitted, leaving auditors unable to confirm whether the employees actually completed the training.

CFO’s Office Criticized for Defensiveness, Delays

Beyond financial controls, auditors raised concerns about professional conduct within the Chief Financial Officer’s office.

The report describes:

• delayed responses to document requests,

• a pattern of uncooperative or defensive behavior, and

• a “we know better” attitude toward Commissioners’ inquiries.

Auditors stated that the environment was “hostile” at times and warned that such behavior undermines transparency and must be addressed.

Overall Conclusion: Systemic Weaknesses and Elevated Risk

The audit outlines a troubling set of deficiencies affecting every stage of the travel expenditure process:

• outdated policies,

• unclear cost limits,

• poor documentation,

• weak approval procedures,

• decentralized oversight, and

• examples of wasteful spending.

Together, these issues “significantly increase the risk of waste, fraud, and misuse of public funds,” auditors wrote.

Recommendations for Reform

Auditors issued several key recommendations, including:

1. Modernize the travel policy with clear per diem and cost caps.

2. Centralize documentation under the CFO’s office.

3. Strengthen approval, review, and monitoring procedures.

4. Enhance budget forecasting to improve spending accuracy.

5. Provide training and enforce compliance through periodic audits.

6. Justify all training travel, especially when virtual options exist.

The report notes that if proper controls had been in place, the city may have avoided much of the $121,000 in travel spending from FY 2024.

A Call for Cultural Change

The audit closes with a pointed reminder of the public trust placed in city employees.

“Working for the City of Daytona Beach is a privilege,” auditors wrote. “All employees share a responsibility to uphold the highest standards of integrity and stewardship of public resources.”

The findings will now move to city leadership and potentially the City Commission for review, discussion, and policy action in the months ahead.