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AnonymousInactivehttp://www2.tbo.com/content/2010/apr/24/na-auditor-county-overpaid-office-depot/
OFFICE DEPOT OVER-CHARGES $ 1M. TO
ANOTHER FLORIDA COUNTY
TAMPA –
Hillsborough County may join a chorus of local governments across the
state and nation alleging that retail giant Office Depot has been
overcharging for supplies.In a report released Friday, county auditor
Jim Barnes said a preliminary review of the county’s purchases from
Office Depot shows that the county may have been overcharged by as much
as $1 million since February 2007. That includes $200,000 from July to
December 2008.Like many local governments in Florida, Hillsborough
doesn’t have a contract with Office Depot but piggybacks on one the
state has with the Boca Raton-based company.Figures provided in the
report indicate that from February 2007 through December, the county
spent about $4 million on office supply purchases from the company.Alternative
vendors
In a memo to county commissioners, Barnes wrote that it
would be in the county’s “best interest” to seek alternative vendors
while conducting a “detailed and more comprehensive” audit of the
county’s purchases from Office Depot.”Once this audit is completed,
actions should be initiated to seek a full refund from Office Deport for
any overcharges and the cost of the audit,” Barnes wrote.In March 2009,
County Clerk Pat Frank’s office conducted an audit of Office Depot
purchases during the period from July through December 2008 and
concluded that “with few exceptions of both higher and lower
discrepancies, overall in accordance with the prices established by the
State of Florida’s contract.”In a statement, Office Depot said
Barnes’s report “contains material errors and fails to maintain the
objectivity and fairness required of such reports” and said the
company’s review of the period in question shows the county actually was
undercharged $4,246.”We find it objectionable that an auditor would
provide this information to the media and other third-parties, including
a former Office Depot employee, without first providing us an
opportunity to review and comment,” the company said in the
statement.That employee is David Sherwin, who managed contracts for the
retailer for more than a decade before he became a whistleblower about
the company’s pricing practices.”He is a disgruntled former employee
bent on promulgating false and misleading information about Office
Depot,” the company said.In recent years, multiple contracts between the
retailer and state and local governments have come under scrutiny.
Attorneys general in six states – Florida, Colorado, Missouri,
California, Ohio and Texas – are investigating the company’s pricing
practices.A closer look in Florida
Several counties and
public school districts in Florida and elsewhere have done audits of
their office supply contracts, some of them after finding discrepancies
in their charges. In January, Naples received a $12,000 refund from
Office Depot.More recently, Clearwater decided to seek a
$166,000 refund for overbilling.
Tampa is conducting an audit to
determine whether the city has been overcharged, but officials said
recently that a preliminary review of its purchases didn’t find any
discrepancies.Hillsborough County Commissioner Kevin White, who
requested the Office Depot audit, said he agrees with Barnes’s
recommendation and wants the county to conduct a comprehensive
audit.White said Barnes’s review of the county’s purchases, which was
requested several months ago, had been delayed because Office Depot had
not been cooperative.”Office Depot has not been willing to cooperate
with us, so we’ve had to go to other municipalities to get the
information that we need to conduct an audit,” he said. -
AuthorMay 17, 2010 at 1:28 PM
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