POLICY AND POLITICS

Audit: Solix was a bad deal for state, charities

DMS said a significant decline in contributions was due to a lack of interest in giving. Rep. Alan Williams said the problem is a lack of leadership

James Call
Democrat Capitol Reporter

A Florida lawmaker isn’t buying the bureaucracy’s response to an audit of the state's charitable giving program.

An Auditor General’s report on the Florida State Employees' Charitable Campaign is highly critical of the lack of oversight by the Department of Management Services. An investigation by the Tallahassee Democrat found that most of the money was consumed by  Solix, a New Jersey company hired as the campaign's fiscal agent ,to cover expenses and never made it to the designated charitable organization.

In the audit, DMS attributed a 77 percent decline in contributions to a lack of interest on behalf of state employees. Rep. Alan Williams, D-Tallahassee, all but called that absurd.

"I’m not buying it. They lack leadership,” he said. “We use to have state leaders there doing the work to galvanize the community to support programs to help single moms, hungry children and seniors suffering with Alzheimer’s.”

The report revealed charitable contributions fell from $4.1 million in 2010 to $847,000 in 2015.The decline occurred while contributions nationwide increased by 21.8 percent. The drop coincided with a switch from the United Way of Florida managing the campaign to a new contract with Solix.

Our opinion: Solix contract still a mess

In its response to the audit, DMS said the charity program was “no longer practical or sustainable.” Among the reasons given was a lack of interest by state workers.

“The public is aware now more than ever of the administrative costs that all charities incur before dollars ever go toward the cause” auditors said they were told.

The audit showed that in 2015 53 percent of contributions went to Solix to cover administrative fees. The Democrat investigation revealed that the company was poised to scoop up 71 cents of every dollar to pay overhead costs.

Auditors said DMS failed to document those expenses.

“I’m glad the report shed light on what a bad deal this contract is,” said Williams. “It’s a bad deal for non-profits. It’s a bad deal for state employees. It’s a bad deal for the most vulnerable who depend on the charities.”

DMS concurred with the auditors findings and said it had already implemented the report’s recommendations and that it had renegotiated the Solix contract. The new deal, according to DMS, will save more than $660,000 in contract costs over the next three years.

“The Department of Management Services will remain vigilant in monitoring the performance and compliance of the campaign as we work with the Legislature to determine the practicality of the FSECC,” said DMS Secretary Chad Poppell.