If he graded it, it would get a “D-“.
That’s from the man who has spent months on a forensic audit of Jacksonville’s Police and Fire Pension Fund- Edward Siedle, with Benchmark Financial Services, Inc. Siedle released his findings today, while noting that there will likely be supplements that come, because he says the PFPF hasn’t been getting him all the information he’s requested.
“Forensic investigations are never fun, but they’re necessary,” he says.
Even with the limited documents he was able to obtain, Siedle says he uncovered serious concerns. That’s something your City Councilmen are angry about.
“With all the needs in this City I’ve witnessed in my over four years on the Council, the revelations in this report are reprehensible,” says Finance Chair Bill Gulliford.
Gulliford says he’s troubled by the audit finding potentially hundreds of millions of dollars in missed opportunity because it says the Fund wasn’t as closely monitored as it should have been.
"From higher pay to police officers, firefighters, general employees, to Downtown development, neighborhood revitalization, children's programs, better streets, whatever the needs- we don't have the money. Why? Because of a huge, unfunded, bloated, and excessively expensive pension fund that nobody was properly watching," Gulliford says.
The audit further finds millions in overpaid fees, management concerns, high and unnecessary risks with investments, a lack of some insurance, and conflicts of interest which could have cost even more money.
While his feelings range from anger to "profound sadness", Gulliford says it's important to not just take the bad out of this, but apply it when looking at how to move forward.
“The way forward is tough, but collectively, as a community, we will solve it and make it stronger for the future,” he says.
The Chair of the Fund has asked Gulliford for a sit-down- which I’m told has been scheduled for Monday. It could possibly include other PFPF trustees, City Council members, and those serving on the current Mayoral administration. We reached out to the Fund for a response to this audit but haven’t yet heard back.
Gulliford says the City and Fund Board have already shown an ability to work together through the recent reform deal which was passed, but they need to keep pushing for new solutions.
The audit recommends the City consider asking the Governor to investigate the PFPF, also noting that the FBI, DOJ, and Florida Bar may be interested as well. Gulliford expects the Finance Committee to consider that at their next meeting.
State Representative Janet Adkins- who has previously asked the Governor to intervene- was on hand today to thank the Council for commissioning the audit. She says it’s an important first step in reestablishing public trust.
The City Council has already moved to subpoena the records which Siedle says he wasn’t getting through the PFPF. Jacksonville General Counsel Jason Gabriel says those subpoenas have been issued.