annual report and work plan 2001
TRANSCRIPT
-
7/30/2019 Annual Report and Work Plan 2001
1/45
Office of Inspector General
Annual Report and Work Plan
-
7/30/2019 Annual Report and Work Plan 2001
2/45
-
7/30/2019 Annual Report and Work Plan 2001
3/45
TABLE OF CONTENTS
Introduction
Mission of the Office of Inspector General ........................................................ 2
Historical Overview ............................................................................................ 2
Organization and Staff ........................................................................................ 3
Summary of Major Activities
External Audit ..................................................................................................... 6
Internal Audit .................................................................................................... 10
Investigations .................................................................................................... 16
Best Practices..................................................................................................... 21
Other OIG Activities .......................................................................................... 21
2001-2002 OIG Work Plan ............................................................................... 23
Appendices ............................................................................................................ 33
-
7/30/2019 Annual Report and Work Plan 2001
4/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
2
The Departments Office of Inspector General (OIG) is statutorily assigned
specific duties and responsibilities for its audit and investigation functions. Section 20.055(2), F.S., requires the appointment of an Inspector General by the agency head and specifies the
Inspector Generals responsibilities.
The OIGs responsibilities include advising in the development of performance measures,
standards, and procedures for the evaluation of agency programs; reviewing actions taken by the
agency to improve program performance and meet program standards; providing direction for
and coordinating audits, investigations, and management reviews relating to the programs and
operations of the agency; recommending corrective action concerning fraud, abuses, and
deficiencies; reporting on the progress made in implementing corrective action; reviewing rules
relating to the programs and operations of the agency; and ensuring that an appropriate balance is
maintained between audit, investigative, and other accountability activities.
Included in the statute is a requirement that the Inspector General furnish the agency head an
annual report by September 30 summarizing the activities of the OIG during the immediate
preceding state fiscal year.
The OIG also performs duties unique to the Department as set forth in Section 20.23(3)(h), F. S.
This statute includes specific duties such as reviewing major parts of the Departments
accounting and Central Office monitoring functions, assessing the Departments management
information systems, and performing audits of contracts and agreements between the Department
and other public or private entities.
The OIG assists the Department in accomplishing its mission by providing
independent review, assessment or investigation of Department activities
and programs. The OIGs mission is to promote integrity, accountability,
and process improvement in the Department. Our vision is to be key and
indispensable players on the Departments team.
The term inspector general has been historically associated with
maintaining and improving the operational efficiency of our nations
armed forces. In the 1970s, Congress adopted the idea and created civilian
inspectors general to address fraud, waste, abuse, and corruption in federal
agencies.
An audit function was established in the Department in the 1960s. This function evolved into
audits and investigations and in the 1980s was designated the Office of Inspector General. In
1994, amendments to Section 20.055, F. S., required an Office of Inspector General in each state
agency.
MissionStatement
HistoricalOverview
Office of Inspector General
-
7/30/2019 Annual Report and Work Plan 2001
5/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
3
OIG employee task teams recommended the OIG be re-engineered to
better align our resources with the Departments changing business
environment. Three of the more visible areas in need of consideration
when deciding to employ our resources were the Departments Strategic
Plan and Strategic Objectives, Claims and Supplemental Agreements, andPrivatization. A role for the OIG was identified relating to three of the
Departments Strategic Objectives:
Percent of Avoidable Supplemental Agreements,
Percent of Avoidable Time Charges; and
Percent of Key Processes with Control Systems in Place.
Considering its role in assisting the Department in achieving its strategic objectives, the OIG
assessed the offices functional structure and staffing. In order to more effectively carry out the
duties and responsibilities of the Office, in FY 2001 the OIG reduced its organization from five
operating functions to three operating functions. The three functional areas created were:
External Audit, Internal Audit, and Investigations. This realignment allowed us to develop teams
to better focus on our objectives, reduce our staff size and position the OIG to be key and
indispensable.
Our audit of Construction Contract Claim Settlements drew attention to the need for greater OIG
involvement with claim settlements. To achieve this, a Construction Services Unit was
established within the External Audit Function. The unit was charged with the review and
evaluation of contract modifications and construction claim packages and included the
performance of quality assurance reviews of the construction contracting process. This unit was
formally established in December 2000 and was fully staffed by May 2001.
Within the Internal Audit Function, we evaluated our statutory responsibilities identified in
20.055, F. S., and determined that a greater emphasis needed to be placed on the Departments
financial management systems. Based on our evaluation, a Financial Services Audit Section was
established within Internal Audit. Organizationally, the Financial Services Audit Section was
established in December 2000. In July 2001 staff members were hired and the Financial Services
Audit Section began operations. This section has responsibility for reviewing major parts of the
Departments accounting systems and for assisting the Department with financial analysis of
programs and areas of concern.
These new activities have positioned the OIG to continue to serve our external and internalcustomers as key and indispensable elements of the DOT team.
Privatization increased during Fiscal Year 2000-2001. As the Department contracts out more of
its activities, the OIG incorporated more oversight of prioritization activities within our new
organizational structure and modified our annual work plan to be a key partner in the
Departments oversight activities.
OIGOrganization
and Staff
-
7/30/2019 Annual Report and Work Plan 2001
6/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
4
To accomplish our goals, personnel resources were allocated as shown in the graph below:
Staff Resources
Investigations
8 External Audit
19
Internal
Audit
16
The broad objective of each of these functions is described below:
Internal Audit: This function provides independent appraisals of the performance of
Department programs and processes, including the appraisal of managements performance in
meeting the Departments information needs while safeguarding its information technology
resources.
External Audit: This function ensures that costs proposed and charged to the Department
through contracts and agreements with external entities are accurate and reasonable and comply
with applicable federal and state procurement regulations.Investigations: This function works to deter, detect and investigate crimes or misconduct
impacting the Department.
Special Projects: This section assists the OIG in developing systems and reviewing processes
for office production and administration.
During FY 2000-2001, the OIG issued reports by functional area
as follows:
Function No.
External Audit 267
Internal Audit 104
Investigations 150
-
7/30/2019 Annual Report and Work Plan 2001
7/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
5
To achieve our mission, the OIG has a staff of 46
professional/technical positions and 3 administrative and support
positions. Our organizational structure is as follows:
Andra P. Higgins
Support Services
N. Joe Peet
Special Projects
Lisa L. Evans
External Audit
Marlys J. Eichhoefer
Internal Audit
Robert E. Clift
Investigations
Cecil T. Bragg, Jr., C.P.A.
Inspector General
Thomas F. Barry, Jr., P.E.
Secretary
Technical expertise within the OIG covers a variety of disciplines with
employees being technically qualified in auditing, accounting, engineering,
investigations, legal, and information systems. Staff members continually
seek to augment their professional credentials, further enhancing their
abilities and the contributions they can make. Staff members participate in
a number of professional organizations to maintain proficiency in their
certifications and profession.
Certifications No.
Advanced Degrees 13
Certified Fraud Examiner 5
Certified Government Financial Manager 4
Certified Information Systems Auditor 5
Certified Inspector General 2
Certified Internal Auditor 6
Certified Public Accountant 9
Certified Management Accountant 1
OrganizationalStructure
OIG StaffCertifications
-
7/30/2019 Annual Report and Work Plan 2001
8/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
6
The External Audit Section performs audits, reviews, and special analyses
to ensure that costs charged to the Department by consultants, contractors,
and other external groups are accurate and reasonable, and comply with
applicable federal and state procurement requirements. Department
managers request a number of the audits. Staff schedules these audits and
reviews to optimize the efficiency and effectiveness of audit resources forDepartment contracting operations and to maximize audit coverage of
agency risk.
A summary of the major activities of the External Audit Section is reflected in the following
table:
Audit/Review Type No. AmountQuestioned
Costs
Construction Claim Reviews 10 $22.2M $ 6.0M
Preaward Reviews 177 381.0M 1.4M
Consultant Final Audits 39 79.0M 0.3M
Rail Audits 2 8.1M 0.5M
Special Project Audits 39 ----- ----
Total 267 $490.3M $8.2M
During FY 2000-01, the External Audit Section issued 267 reports covering over $490.3 million
of actual or proposed costs. These audits resulted in approximately $8.2 million in questioned
costs. This 241% increase in questioned costs from the prior year is due primarily to
emphasizing reviews of contractor claims. Contract auditors within the External Audit Section
also reviewed the accounting systems of 19 consulting firms applying to do business with the
Department and completed 28 other audits or reviews of various types.
The External Audit Section expanded its involvement in special projects. Staff members were
involved in not only Department special projects but also projects with the Federal Highway
Administration, and the Transportation Research Board.
The External Audit Section also participated in training and outreach both within the Department
and within the consultant/construction industry. This included participation in industry forums,
presentations at conferences, participation in process improvement task teams, and trainingprograms for Department personnel. These efforts were intended to enhance communication and
understanding between the Department and its business partners and to result in continuous
process improvement.
ExternalAudit
-
7/30/2019 Annual Report and Work Plan 2001
9/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
7
Following are highlights of some of the audits, reviews, and special
projects completed during the past year.
Construction Claim Reviews: These reviews determine whether elements within claims areconsistent with project records and justified based on federal and state rules and regulations,
contract provisions, and accounting standards. Elements reviewed generally include contractor
job-site and home-office overhead, as well as equipment rental or ownership costs. During the
second half of FY 2000-01, we completed 6 reviews covering $8.9 million and questioned $6
million. We also reviewed 4 claims covering $13.3 million and were unable to reach a
conclusion of entitlement and/or value due to insufficient contractor documentation.
Consultant Preaward Reviews: These reviews determine if consultant cost proposals arereasonable and comply with federal and state procurement rules and regulations. During FY
2000-01, 177 consultant preaward reviews were conducted covering $381 million in proposed
contract costs. These reviews resulted in approximately $1.4 million in questioned costs. Also,during FY 2000-01, the Florida DOT Preaward Review Process was revised. In order to improve
the efficiency and effectiveness of the Preaward Review Process, the mandatory ceiling amount
for the selection of reviews was increased and the sample selection method was changed. The
External Audit Section will continue to do Preaward Reviews from each district; however, the
concentration will be placed on the areas of risk based on a three-year history. Although the
number of Preaward Reviews will be reduced, the cost coverage should not be reduced.
Consultant Final Audits: These audits determine whether costs billed to the Department arereasonable, in accordance with contract provisions, and in compliance with federal and state
procurement requirements. Our audit coverage includes contract cost data that provides district
and Central Office officials better information for future contract negotiations. External Audit
staff provided useful information in this area, especially where lump sum contracts were
involved and the scope requirements were not well defined. During FY 2000-01, we performed
39 final audits covering $79 million. This resulted in approximately $.3 million in questioned
costs and a number of recommendations implemented to improve job cost accounting systems,
which is vital for accountability of incurred costs.
Accounting System Reviews: These reviews determine whether a consultants accountingsystem appears adequate to accumulate and record costs in a job cost method that allows for
accurate billings to the Department. During FY 2000-01, 19 on-site accounting systems reviews
were performed. This area continues to be a significant part of the External Audit Sectionsworkload due to the interest that new consultant firms have in doing business with the
Department.
Rail Labor Additive Rates: These audits determine if elements of rail companies laboradditive rates are reasonable and allowable. We completed two Rail Labor Additive Rate audits
during FY 2000-01. Of the two, one involved one of the largest railroads in the country. The
audited rates are used by 20 other state DOTs.
ExternalAuditHighlights
-
7/30/2019 Annual Report and Work Plan 2001
10/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
8
Department Billing Rate Development: These audits are performed to determine if costallocation methods are reasonable and comply with federal regulations for billing to federal and
state-funded projects. During the year, we completed two audits of the Departments cost
allocation plan and one of the State Materials Office rates.
The graph below depicts personnel resource utilization during FY 2000-01:
External Audit PTO Programs11%
Consultant
Preawards
23%
Special
Projects
12%
Construction
Services
21%
Consultant
Finals
33%
Requests for audit assistance outside External Audits standard areas of
coverage continued to be significant during FY 2000-01. The requests ranged
from assisting the Federal Highway Administration (FHWA) in a review of the
Federal indirect billing, working on a synthesis study of highway practices with
the Transportation Research Board, and participating on a Quality Financial
Management Improvement Project with the Federal Highway Administration
(FHWA) in developing an overhead audit guideline book that is to be adopted
nationwide by American Association of State Highway Transportation
Officials (AASHTO).
We also participated in a Claims Task Team to evaluate and recommend improvements to the
claim settlement process based on recommendations from the OIGs audit of Construction Claim
Settlements. The task team included personnel from the Office of Construction, the General
Counsels Office, and the districts. The team recommended a series of changes to the
Construction Project Administration Manual (CPAM). The recommendations were accepted and
the CPAM was revised in the Spring of 2001.
The External Audit Section performed quality assurance activities in three
areas during the year. These areas were the consultant contract award
process, district rail review process and the single audit review process.
In accordance with our preaward sampling agreement with the Departments eight districts, wereviewed the consultant negotiation process in each district on preaward requests not statisticallyselected for review. The districts were generally following the preaward requirements.
The primary purpose of the district rail invoice reviews was to determine if adequate information
was provided so the Department could reasonably verify incurred costs. This review indicated a
systemic weakness in the methods used by the districts to review rail invoices.
OtherExternal Audit
Activities
Quality
Assurance
-
7/30/2019 Annual Report and Work Plan 2001
11/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
9
In accordance with the recipient/subrecipient single audit procedure, we performed quality
reviews on the single audit review process of each district and provided related training. Federal
funding for many of these projects flowed through the Department to the recipients and the
projects were covered by the requirements of the U.S. Office of Management and BudgetCircular A-133.
We also assisted the Investigations Section on assignments where actual Consultant costs on
agreements were needed and financial evaluations were necessary.
-
7/30/2019 Annual Report and Work Plan 2001
12/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
10
The objective of the Internal Audit Section is to provide an independentappraisal of the adequacy and effectiveness of the Departments processand control system and the overall quality of the system's performance.Internal auditing furnishes top management with analysis, appraisals,
recommendations, counsel, and information concerning the activitiesreviewed.
Internal audits encompass financial, information technology and operational activities. TheInternal Audit Section provides Department managers with Assurance Services (auditing),Computer Forensic Services, Consulting Services, Performance Measure Assessment andProcedure Reviews.During FY 2000-01, we completed six major audits, nine major Information Technology
Resource (ITR) reviews, 10 minor ITR reviews, and nine offices were provided consultant
services. Additionally, the 26 Performance Measures and 47 proposed Performance Measures
were assessed. The results of the units work are grouped by the type of service provided.
Assurance services are the review of the control processes designed bymanagement to assure the reliability and integrity of information,compliance with policies and regulations, safeguarding of assets,economical and efficient use of resources, and achievement ofestablished operational goals and objectives.
Norton AntiVirus Compliance Audit (10B-0006): The purpose of this audit was to evaluate
controls established to prevent and/or detect the presence of viruses and determine compliance
with anti-virus requirements. The audit included all districts, the State Materials Office and the
Office of Toll Operations. The audit encouraged management to develop and implement a
comprehensive anti-virus process with the objective of ensuring appropriate enterprise-wideprotection.
Acquisition and Use of Information Technology Consultants Audit (140-0029): The primary
objective of this audit was to evaluate the internal control structure for acquiring and using
Information Technology (IT) consultants. This audit was planned and conducted concurrently
with six other agencies, in coordination with the Chief Inspector General, Executive Office of the
Governor. We determined the Department awarded some contracts without approved
Information Resource Requests (IRRs) and did not establish adequate management controls to
monitor Minority Business Enterprise (MBE) contracts. The Departments senior staff agreed
with our recommendations which included revision to the Acquisition of IT procedure to require
all IRRs be submitted to the Departments Central and district information services offices, andstrengthen internal control practices to ensure the MBE contract award population is identified,
monitored and reported.
Alternative Contracting Methods Audit (04B-0001): The objectives of the audit were to
determine whether alternative contracting methods were working and if the program could be
improved. An analysis of 51 centrally let and completed alternative contracts showed the
alternative contracts were completed in less time and with fewer cost overruns than the other 357
completed construction contracts for FY 1998-99. CEI contract costs in the sample were 4.5
InternalAudit
Assurance ServicesAuditing
-
7/30/2019 Annual Report and Work Plan 2001
13/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
11
percentage points lower than the average CEI costs for all contracts in FY 1998-99. However,
the Department could improve the alternative contracting program by 1) developing standardized
formulas for Bonuses and Incentives/Disincentives; 2) establishing more consistency in criteria
used to select projects for alternative contracting; and 3) pursuing adoption of proposed revisions
to eliminate the step guidelines in Section 14-93.003, F.A.C.
Local Area Network Backup Audit (10E-0001): The purpose of the audit was to evaluate
compliance of the Offices of Information Systems (OIS) and Computer Aided Drafting and
Design (CADD) offices with Department LAN Backup requirements. The audit included OIS in
all districts plus the State Materials Office and the Office of Toll Operations (10 OIS offices).
The audit also included CADD offices in all districts and the State Materials Office (9 CADD
offices). Most district offices visited had implemented steps to regularly backup pertinent data
on LAN servers; however, half of the district offices did not comply with off-site storage
requirements. Also, most offices had not fully complied with Department procedures for
documenting local backup processes.
Program Change Management Audit (10D-0002): The purpose of the audit was to evaluate
controls for moving application software and databases from test to production. The intent of
these controls is to prevent untested, defective, or improper versions from being introduced into
production libraries. The audit included legacy mainframe, Web enabled, and client/server
applications. The audit disclosed that each project area had developed procedures in various
forms to ensure only properly tested and approved changes are introduced into the production
environment. However, the Department had not developed a standard method for promoting
software from test to production.
Cost Distribution to Work Program Projects-Full Job Costing (09L-0005): The objective of
the audit was to determine if District-wide and General Consultant costs could be tracked to theircomponent projects. We concluded that Department financial systems are not being used, except
in limited cases, to track these costs to their component projects. As a result, financial systems do
not fully reflect what it costs to complete a project. Financial systems detail what it costs to
complete the contract, not the projects. The Departments senior staff agreed with our
recommendation that a task team be appointed to evaluate the cost benefit of, and potential
criteria for, full job costing of District-wide and General Consultant contract costs.
Computer Forensic ServicesInformation Technology Resource (ITR) Compliance Reviews are
conducted using computer forensic techniques. The purpose of these
reviews is to determine if statutes, Department rules, and Department
procedures concerning the use of ITR have been followed.
Management uses these reports to take appropriate personnel action that
ranges from counseling sessions to employee termination.
The resources devoted to computer forensic services continue to increase. The purpose of these
19 reviews was to determine if State statutes, Department rules, and Department procedures
concerning the use of ITR were violated. Computer forensics services were provided to OIS,
-
7/30/2019 Annual Report and Work Plan 2001
14/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
12
OTO, MCCO, Environmental Office, State Construction Office, State Materials Office, Roadway
Design, and Districts 4, 5, 6, and 7. Management took appropriate personnel action that ranged
from counseling sessions to employee termination.
The process for performing Consulting Services is much the same asconducting an audit. The difference is the focus of the engagement.
Audits are traditionally conducted after the fact and report on what went
wrong whereas consulting services occur prior to or concurrent with an
activity and provide more timely information to management to make
proper decisions and avoid costly mistakes which may expose the
Department to risks (financial, legal, public perception, etc.). These
engagements are referred to as Proactive Auditing.
Finance & Administration
Direct vs. Indirect Cost Trends Memorandum (140-0026): In this memorandum we analyzed
the trends in Direct Cost and Federal Reimbursement over a four-year period. This analysisshowed that the only meaningful trends were at the district or functional area level. The detailed
trend results were provided to management and action thereon is expected.
Office of Comptroller
P-Card/Travel Voucher Reconciliation: This memorandum covered the ability of the
Disbursement Operations' review of charge card receipts attached to travel reimbursements to
identify fraud, waste, and abuse; Disbursement Operations' identification of high-risk
transactions, making certain types of travel transactions mandatory for Purchasing Card (i.e., air
fare), statistical sampling issues, and follow-up work on identified areas of concern. We
concluded that the Department has a unique opportunity to use the Purchasing Card for travel.
This use will shift the responsibility for travel-related payments from the employee to the
Department. If properly implemented, the Department can expect to gain a number of benefits
including alleviation of the need for travel advances and associated administrative processes.
Office of Information Systems/State Technology Office
Risk of Outsourcing Information Technology Functions Memorandum (10A-0002a): This
memorandum summarizes risks associated with converting the Departments technology
environment from in-house to out-sourced and provides some ways to mitigate or minimize those
risks.
Telemate.net
NetSpective
Proxy Reporting Tool Installation (10B-1003): Thismemorandum advised management of the OIGs monitoring of the Security Administrations
installation of Telemate.net NetSpective for COs Microsoft Proxy reporting tool.
Windows 2000Active Directory Services (10E-0003):Memorandums addressing contractor
selection and naming conventions document and project scope were provided to the OIS team
determining the Department active directory structure. The Active Directory Structure is
awaiting STO approval. We are currently assisting with the development of test plans for the
various designs options.
ConsultingServices
-
7/30/2019 Annual Report and Work Plan 2001
15/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
13
Business Impact Analysis Survey (10B-1004): This memorandum summarizes our review of
OISs survey and provides recommendations regarding Critical Business Functions, Software or
Procedural Changes, Contacts and Funding.
Lotus NotesPrivate E-Mail Usage (10J-1011): This memorandum disclosed that use of privateelectronic mail accounts to conduct Department business circumvents Department policy and
recommends management consider the risks involved.
Office of Inspector General
Construction Contract Audit Hooks (10G-1002): This project developed reports for retrieving
contracts in a cost or time over-run condition from the Departments Contract Reporting System
for use by the OIG Construction Contract Claims Audit Section.
Internet Usage Audit Hooks (10E-1003): Issued memorandums providing OIG management
Netspective Reports detailing Internet activity of office employees.
Assistance to Investigations District 7 (10J-1010): Retrieved and provided information
obtained from the employees hard drive and e-mail.
Assistance to Performance Audit District 4 (10J-1016): Reviewed materials distributed by a
District 4 employee and found no violation of Department policies.
State Maintenance Office
Motor Vehicle Usage: The purpose of this assignment was to analyze the motor vehicle usage
report completed by the State Maintenance Office (SMO) in accordance with Section 287.17(5),
Florida Statutes, and reported to the Office of Program Policy Analysis and Government
Accountability (OPPAGA). We completed a limited assessment of the report and concluded that
the SMO used reasonable methodology in conducting their review. We also concluded that
while the report issued by the SMO contained some inaccurate vehicle data, the inaccuracies
were not significant.
Districts
Miami Intermodal Center (MIC): District 6 The MIC is a $1.3 billion project that will be
similar to a Grand Central Station offering various forms of transportation. Scheduled for
development in several phases, the first phase of the MIC will include roadway improvement
projects and a consolidated rental car facility. The MIC Core, a transportation hub where local
and regional transportation will converge, will also be included in Phase I. The OIG will monitorthe progress of the MIC. Based on this work, the OIG will perform specific audits, reviews, and
other services to evaluate aspects of the project.
District 4 Complaints (140-1001): The OIG issued a series of letters related to allegations of
retaliation, irregularities, illegal acts and mismanagement in the Department. None of the
allegations proved to be founded.
-
7/30/2019 Annual Report and Work Plan 2001
16/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
14
District 7 (10J-1019): Assisted the District CADD Manager in obtaining hard drive information.
District 2 (10J-1015): At the request of District 2 management, provided Netspective Reports
detailing Internet activity for a district employee.
Section 20.055(2)(b), F.S., requires that Inspectors General assess
the reliability and validity of the information provided by their
agencies on performance measures and standards identified under
the performance-based program budgeting process.
Performance Measures Validity and Reliability (07D-1008): This report
fulfilled the Inspector Generals statutory responsibility to assess the reliability
and validity of the information provided for the 26 approved Department Fiscal
Year 2000-2001 performance measures and standards. The reliability and
validity of the 47 proposed performance measures for Fiscal Year 2001-2002
were also assessed.
The purpose of procedure reviews is to ensure integrity, accountability, and
process improvements are addressed in Department procedures. A properly
conducted review will provide management assurance that:
The intent of the document is clearly identified;
The procedure is clear, concise, well-written, and functional;
Associated documents are appropriately referenced;
The procedure identifies, communicates, and prioritizes desired outcomes
of the process.
The primary concern of the OIG in reviewing these documents is the presence of internal
controls, evidence of an adequate audit trail, and consistency of procedures throughout the
Department. Forty-four Department procedures were reviewed during the year.
Established the Financial Services Audit section within the Internal
Audit function.
Verified Corrective Actions
Developed Mission/Vision Statement
Prepared Audit Resumes for staff
Refined the Audit Process Established Team Audit Review Process (TARP) as Standard
PerformanceMeasure Assessment
ProcedureReview
Other Internal
Audit Activities
-
7/30/2019 Annual Report and Work Plan 2001
17/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
15
The graph below depicts personnel resources utilization during FY 2000-
01.
Personnel Resource Uitilization
Planning
6% Construction
13%
Information
Systems
45%
Financial
Management
21%
Admin/Support
Services
4%
Performance
Measures
3%
Special Projects
8%
-
7/30/2019 Annual Report and Work Plan 2001
18/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
16
The mission of the Investigations Section is to deter, detect, and investigate crimes or misconduct
impacting the Department.
The Investigations Sections primary objective is to aggressively pursue any
attempt by Department employees, members of the public, contractors,
subcontractors, or intermediaries to gain financial or other benefit to which they
are not properly entitled in their association with the Department. Awareness
briefings, referrals of minor allegations to management, and substantive
investigations are methods used to accomplish this objective. The section also
investigates allegations of employee misconduct. Employee misconduct
investigations typically involved reports of conflict of interest, theft, and improper
use of Department resources.
The Investigations Section opened 149 new cases, closed 148 ongoing or
new cases, and forwarded 47 incomplete cases into FY 2001-02. For the
majority of cases initiated in FY 2000-01, allegations centered on
employee conduct standard violations; however, 28 of these cases alleged
procurement fraud victimizing the Department. In 26 of the 148
completed cases, the allegation was classified as proved, and
administrative sanctions from reprimand to termination were imposed.
Most significant employee misconduct investigations are conducted exclusively by the
Investigations Section. However, Florida law requires that Inspectors General notify law
enforcement authorities whenever a criminal law violation is believed to have occurred. Rather
than merely meeting the statutory responsibility for notification, the Investigations Section
proactively solicits assistance of law enforcement and prosecutorial agencies for involvement in
cases that impact the Department. Once partnerships are established, the investigation proceeds
jointly to a logical conclusion with OIG investigators and law enforcement agents working side-
by-side with prosecutors.
This approach is beneficial for several reasons. First, the Department itself actively pursues
cases involving the protection of State Transportation Trust Fund dollars. Secondly,investigators who are familiar with functions and personnel in the Department can most
effectively uncover investigative details within the Department. Thirdly, major events planned in
any case, such as near-term indictments or arrests, can become known at the proper time to the
Departments senior managers before they become headlines in the press. Finally, Department
managers in a position to correct weaknesses in internal processes can act promptly as a result of
details uncovered as a part of a criminal investigation. As evidence of the success of partnering,
this year the Investigations Section has continued to pursue cases jointly with criminal justice
agencies such as the Florida Department of Law Enforcement, and prosecutive agencies such as
the United States Attorneys Office, the Office of Statewide Prosecution for crimes such as grand
Investigations Deter Detect Investi ate
Case Loadand
Distribution
-
7/30/2019 Annual Report and Work Plan 2001
19/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
17
theft, money laundering and organized schemes to defraud.
To most effectively utilize the limited trained and experienced staff, substantive cases have
emphasized procurement fraud matters where there is the greatest need for specialized
investigative expertise.
The following table depicts case distribution across organizational elements by number of cases:
*(Central Office includes the Motor Carrier Compliance Office and Tolls)
Case types are assigned to an investigation at the intake stage and dictate
the process used to resolve the allegation. Examples of case types are
substantive initiation, referral to management, and memorandum for
record. Case categories are also assigned to an investigation at the intake
stage. These describe the kind of allegation that is being made. Examples
of case categories are contract fraud, misconduct, and theft of property.
FY 2000-01 Case Distribution
DistrictCarriedForward
InitiatedFY00-01
TotalActive
CompletedFY00-01
Forward toFY01-02
1 3 3 6 1 5
2 2 20 22 20 2
3 12 13 25 21 44 4 18 22 16 6
5 3 13 16 11 5
6 3 9 12 9 3
7 7 12 19 16 3
Turnpik 0 2 2 2 0
CO* 8 44 52 39 13
Statewide 4 15 19 13 6
Total 46 149 195 148 47
Case Type andCase Category
-
7/30/2019 Annual Report and Work Plan 2001
20/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
18
The following charts depict FY 2000-01 cases spread across type and category by number of
cases:
Case Type External
Larceny byFraud 5
InternalLarceny by
Fraud 2
Workplace
Violence 2
Contract
Fraud 28
Improper
Use/Diversion
of Resources
11
Misconduct
56
Theft of
Property 11
Awareness
Briefing 29
Other 5
Case Category
Substantive
Case 45
Prleiminary
Inquiry
3
Request forAssistance
5
Monitor Case
1
Memo for
Record
63
Referral to
Management
32
The Investigations Section continued their objective of presenting fraud
and employee misconduct awareness briefings to Department personneland industry partners. Over 4,000 people received indoctrination into
fraud and ethical awareness presented around the state by investigators
traveling in the completion of their other case related responsibilities. As
a corollary benefit, these briefings keep the OIG forward in the thoughts of
Department personnel who can then call on the OIG for audit or
investigative services.
Fraud andEmployee
MisconductAwareness
-
7/30/2019 Annual Report and Work Plan 2001
21/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
19
White Construction Company, Inc., (WCC): WCC won bids on threeseparate but adjoining projects on Interstate 75 in Marion County, Florida,
valued at $34 million. The projects were to increase four lanes of traffic to
six lanes of traffic. After completion, WCC filed a $30 million suit
against the Department for additional work and associated delays. In
January 1998, just before the civil trial, WCC and the Department settled
for $6.875 million. This joint investigation by the OIG, the Florida
Department of Law Enforcement (FDLE), and the USDOT OIG disclosed
that portions of the additional work claimed to have been performed by
WCC had not been completed at all and the value of some work that had
been completed was billed two and three times. The Office of Statewide
Prosecution presented information to the Statewide Grand Jury. TheGrand Jury handed down a twelve-count indictment against WCC and
William Cooper (WCCs claims specialist). Eleven counts were for felony
grand theft, and one-count was for racketeering. Cooper entered a plea of
Guilty to Grand Theft and, in a simultaneous administrative agreement, he
agreed he would never prepare claims to be submitted to the Department
in the future. A criminal trial on the charges against WCC is pending.
Seminole Gulf Railway, LP.: This joint investigation by the OIG and the FDLE, disclosed that
on seven railroad signalization projects, Seminole Gulf Railway, L.P. officials submitted
certifications to the State asserting the company incurred expenses for project materials when, in
fact, no materials had been purchased. The Office of Statewide Prosecution filed criminal Felonycharges. The corporation and its president, Gordon Fay, entered into plea agreements with the
State. Seminole Gulf Railway, L.P. pled guilty to Grand Theft and agreed to repay the
Department $340,000 as well as the Departments investigative costs of over $46,000. The
company will serve a three-year probation during which time the terms of a special
administrative agreement will be in force to govern the companys working relationship with the
Department. Fay pled No Contest to Grand Theft charges.
HJ Trucking/Tarand Transport/Miller and Sons Trucking: This joint
investigation by the OIG, the FDLE, and the USDOT OIG disclosed that a
DBE trucker, the minority owner of HJ Trucking, prostituted his DBE
status and allowed non-DBE truckers to perform the work he was to
perform for agreed upon kickbacks. The case was briefed to the Office of
the United States Attorney, Middle District of Florida. The United States
Attorneys Office used a Federal Grand Jury to assist in the investigation.
This Grand Jury handed down a 34-count indictment charging conspiracy
to defraud the United States, conspiracy to commit money laundering,
using false documents, mail fraud and money laundering against HJ
Trucking and its owner, Miller and Sons Trucking and its owner, and
RepresentativeCase
Examples
ContractFraud
-
7/30/2019 Annual Report and Work Plan 2001
22/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
20
Tarand Transport and its owners. Tarand Trucking and its owners were
convicted of 31 charged counts. HJ Truckings owner was convicted of 13
charged counts. Miller and Sons Trucking and its Vice-President pled
guilty to one count in a plea agreement reached before trial. Sentencing
for all those convicted is pending. This noteworthy investigationrepresents the first time an offense reported by a Department employee,
initially investigated by the OIG and then joined by state and federal law
enforcement officers, was indicted by a Federal Grand Jury and convicted
in federal court.
Bartow District Office: This investigation disclosed a District 1 building
maintenance crew supervisor, entrusted with valuable tools and
equipment, stole tools and converted them to his personal use. This
employee also gave Department equipment to his local church and used
his employees to complete woodworking projects for himself, his churchand for acquaintances. Over $8,000 in Department property was
recovered. This case was coordinated with the 10th Judicial Circuit State
Attorneys office. The Department employee was charged with theft,
made restitution, and was placed in a pretrial diversion program.
Department managers terminated the supervisors employment.
Pensacola Construction: This investigation disclosed four District 3 employees that comprised
a crew of construction inspectors, became involved in the extensive misuse of state time and
equipment for personal purposes. Examples included a supervisor using weeks of an employees
time (to include authorizing overtime payments) to change out an engine in his personal vehicle,
towing personal vehicles with Department vehicles, taking a girlfriend on a state trip in a statevehicle, and certifying inspections on construction projects that did not take place. Two
employees were terminated and two employees resigned in lieu of termination.
Pompano Maintenance: This investigation disclosed a District 4 centerline striping crew
supervisor destroyed State property valued at nearly $2,000 to create an enclosure for a non-
Department trailer he discovered abandoned at the side of the roadway. This supervisor misused
his cellular telephone, took a Department vehicle home without authorization and signed
inaccurate time sheets on his crewmembers. This case was coordinated with the Broward County
Sheriffs Office who arrested the employee. A criminal trial and Department disciplinary action
is pending against the employee.
West Palm Beach Maintenance: This investigation disclosed an engineer in a District 4
maintenance facility used Department time and his assigned Department computer to operate his
personal business. IT Audit Section participation in this investigation provided extensive
evidence of the unauthorized use of Department IT resources. The Department terminated the
engineers employment. This termination was appealed to the Public Employee Relations
Commission (PERC). The PERC hearing officer concurred with the termination.
EmployeeMisconduct
-
7/30/2019 Annual Report and Work Plan 2001
23/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
21
The Florida Department of Transportation, Office of Inspector General,strives for continual improvement. In doing so, we have adopted sometechniques that could be considered best practices. These include:
The OIG participates in the Florida Inspectors General Network. This Web site was created toprovide a central location for information for the Inspector General (IG) community working inFlorida State Government Agencies/Departments. One component of this site is Audit BestPractices. This is a collection of audit tools and techniques used by internal auditors who workfor the State of Florida.
There are five Audit Best Practices categories: Audit Management, Project Planning,Fieldwork, Reporting and Follow-Up, and Other Activities. Nine DOT practices wereconsidered to be best practices.
External Audit representatives worked on a Quality Financial Management Improvement
Program Team to develop a Southeastern Overhead Guideline Book. State auditors as well as
public accountants utilize the book in the performance of consultant overhead audits. The bookis also used as a training tool for new audit personnel. Representatives are currently working on
a committee to develop a national audit guide, to be used by state auditors and public
accountants. It should be adopted in December 2001.
Several processes and practices in our Investigations unit have been recognized worthy of
emulation by other Inspector General functions in other agencies and by the Chief Inspector
Generals Office. Specific ones they have benchmarked include:
Interviews and Interrogation
Case Initiation
Investigative Reporting Case File Numbering System
During FY 2000-01, the OIG was involved in a number of other Department
and external agency activities. This section summarizes some of these
activities, including OIG coordination with other agencies, and a listing of
other agencies audits of Department activities during FY 2000-01.
The efforts included arranging for and monitoring Office of the Auditor General and OPPAGA
audits and reviews. The OIG was not operationally involved in these audits other than arranging
for and monitoring the audits and coordinating the Departments responses.
Strike Force Against Fraudulent Enterprises (SAFE) SAFE is a multi-agency projectdesigned to identify and address allegations of fraud in a coordinated manner, using the expertise
of law enforcement, regulatory agencies, and prosecutors as a team. The Inspector General and
the Director of Investigations actively participate in the SAFE initiative.
Get Lean Hotline The OIG handles complaints from the State Comptrollers Get LeanHotline. In most cases, these complaints are forwarded to the Investigations Section where they
Other OIGActivities
BestPractices
-
7/30/2019 Annual Report and Work Plan 2001
24/45
OFFICE OF INSPECTOR GENERALANNUAL REPORT FORFISCAL YEAR2000-2001
22
become the foundation for inquiries that are referred to management or substantive cases
conducted by the Investigations Section staff.
Staff Development During FY 2000-01 OIG staff participated in a variety of professionaltraining including courses to meet the Government Auditing Standards (GAS) requirements.
GAS standards require each auditor to complete 80 hours of continuing education and
training that contributes to the auditors professional proficiency, every two years.
Office-wide training provided during the year included training in areas such as audit
risk assessment, technical report writing, and computer software skills.
The Strike Force Against Fraudulent Enterprises (SAFE), in conjunction with the
North Florida Chapter of the Association of Certified Fraud Examiners, hosted a two-
day CFE review course designed to prepare participants for the certification
examination. In support of the Inspector Generals priority on fraud deterrence and
detection, eight members of the staff completed the course and are pursuing their
certification.
The OIG will continue to provide staff the training needed to ensure high quality service.
-
7/30/2019 Annual Report and Work Plan 2001
25/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
23
The purpose of the OIG Work Plan is to identify and select audit service topics and plan for
managing the Offices anticipated workload. A primary consideration in developing the WorkPlan is to provide the greatest possible benefit to the citizens of Florida and the Department from
our audit and investigative resources.
Specifically, this Work Plan details products to be delivered from two of the three functional
units within the OIG. The exception is the Investigations unit, whose work products and
workload are based primarily on allegations of wrongdoing received from Department staff,
contractor personnel, and citizens, as well as, requests by management.
The External Audit portion of the Work Plan is designed to ensure that costs charged to the
Department through contracts and agreements with outside entities are allowable and
appropriate. The Internal Audit portion of the Work Plan is designed to achieve balanced auditcoverage of the Department's financial, operational, and information systems operations.This Work Plan has many purposes and intended benefits. They include:
Assisting the Department in meeting its mission by planning our activities through a risk-
based process to provide the most effective coverage of the Departments programs,
processes, systems and contracts with outside entities;
Informing Department managers, outside agencies and entities of our mission, activities
and planned audit coverage; and
Familiarizing staff, both within the OIG and within the Department, with the functionsand services we provide.
Questions regarding the Work Plan may be directed to the applicable functional director
identified in the chart on page five of this report.
In addition to audits underway, the following External Audit projects have
been identified for inclusion in the FY 2001-02 OIG Work Plan:
Construction Contracting and Claims Audits: Claims audits arenormally performed on a request basis to determine whether financialelements of claims for additional project costs are justified based on
federal and state rules, regulations, and contract provisions.
Dispute Review Boards Audit: The Department and contractors use Dispute ReviewBoards (DRBs) to resolve claims and contractual disputes between the parties. The DRBs
consider both testimonial and documentary information provided by each party and recommend a
ExternalAudit
2001-2002 OIG
Work Plan
-
7/30/2019 Annual Report and Work Plan 2001
26/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
24
settlement to resolve the dispute. The DRB member fees are shared by the Department and the
contractor. This audit would review the recommended settlements of the DRBs and the elements
that form the basis for the recommendations (legal, contractual, cost information, factual
circumstances). The objective of the audit would be to determine if recommendations made by
the DRBs are appropriately documented and supported and clearly define the basis upon which
the recommendation was made.
Review of Self Certifications: Under the recently revisedRule 14.75, FloridaAdministrative Code (FAC), consultants doing minor project level work will be required to
submit an informal, self-certified overhead report and statement describing their accounting
system using a Department prescribed format. These reviews will be performed on selected
consultant certifications to determine the adequacy and reliability of information submitted.
Accounting System Reviews: These reviews determine whether a consultants accountingsystem can accumulate and record costs in a job cost method that allows for accurate billings to
the Department.
Consultant Overhead Audit Reviews of CPA Work Papers: These reviews areperformed on selected independent CPA audits that establish consultant annual overhead rates
for indirect costs. Rule 14.75, FAC, requires that identified consultants submit an acceptable
overhead audit as part of the prequalification process to conduct business with the Department.
Consultant Final Audits: These audits determine whether costs billed to the Department arereasonable, in accordance with contract provisions, and in compliance with federal and state
procurement regulations. Consultant Final Audits are planned in the areas of Design,
Construction Engineering Inspection, Project Development and Environment, and Right-of-Way.
Consultant Preaward Reviews: These reviews are required by the Federal HighwayAdministration to determine if preaward consultant cost proposals appear reasonable and comply
with federal and state procurement rules and regulations.
Railroad Labor Additive Rates: These audits determine if the elements of rail companieslabor additive rates are reasonable and allowable. CSX is the major rail company audited.
Utility Company Overhead Rate Certifications: These are reviews of utility certificationsto the Department that certain unallowable overhead costs are not allocated directly or indirectly
to reimbursable Department utility relocation projects.
Process Reviews and Monitoring The External Audit Section will perform QualityAssurance Reviews on three areas during the year. These areas will be the District Rail Reviews,
Single Audit Monitoring Reviews, and Consultant Negotiation Process Reviews.
Assist Internal Audit on MIC Project Provide assistance to the Internal Audit Section onmonitoring the Miami Intermodal Center (MIC) project.
-
7/30/2019 Annual Report and Work Plan 2001
27/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
25
Special Projects These requests cover many areas including providing assistance to theGovernors Chief Inspector General, Bid Proposal Reviews, Investigation assistance, and
Financial Reviews from various managers.
Single Audit Procedure: The External Audit Section will be in charge of revising the SingleAudit Procedure (Topic No. 450-021-001-c) for the Department. The purpose of this procedureis to detail the Departments responsibility to ensure compliance with Section 215.97 F. S., andthe U.S. Office of Management and Budget Circular No. A-133.
-
7/30/2019 Annual Report and Work Plan 2001
28/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
26
The following table summarizes the External Audit Work Plan. This information is alsoreflected in the graph at Appendix A, Page 34.
Project TopicEst.
Hours
PlannedAudit
Reviews
Construction Services:
Claims Reviews 4000 15
Construction Project Audits 1200 5
Dispute Review Boards 800 1
Claims Education / Awareness Sessions 300 8
Consultant Contracting:
Final Audits 6400 40
Preaward Reviews 2880 90
Review of Self Certifications 400 10
CPA Work Paper Reviews 240 15
Accounting System Reviews 640 20
Consultant Negotiation Process Reviews 320 8
Public Transportation Office Reviews:
Railroad Labor Additive Rates 800 2
Single Audit Procedure Revision 400 1
Toll Facilities Trust Fund Review 200 1
Utility Company Overhead Certif ications 150 1
District Rail Reviews 300 1
Process Reviews and Monitoring:
Professional Service Task Force Assistance 600 2
CITS Phase III Assistance 400 1
Determining Cost For Geotech Services 300 1
Assist Internal Audit on MIC Project 1600 2
Single Audit Monitoring Reviews 500 10
Special Projects:
Job Costs Database Development 600 1
Single Audit Automation 600 1
FDOT Cost Allocation Plan Audit 200 1
FDOT Aerial Photo Lab Rate 100 1
Gainesville Test Lab Rate 100 1
Audit Assistance (including Investigations, EOG andFHWA Assistance)
1170 10
Total 25,200 249
-
7/30/2019 Annual Report and Work Plan 2001
29/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
27
In addition to audits underway, the following Internal Audit
projects have been identified for inclusion in the FY 2001-
02 OIG Work Plan:Construction Training and Qualification Program Audit: The Department outsourced the
Construction Training and Qualification programs to the University of Florida. This program
was to be run as a self-sufficient program. The objectives of this assignment will be to
determine if the programs fees are reasonable and cover its costs.
Federal-Aid Current Bill System: The Departments federal-aid billings are processed through
the Financial Management System. This assignment will be an application control and financial
audit of the FM system. Objectives to include assuring adequate controls and oversight are in
place to prevent ineligible costs from being claimed on the Federal-aid current bill, and that
reimbursement requests are adequately supported.
State Materials Office: Local Area Network audit to include data center risk assessment,
licensing, server implementation, security, backup, recovery plan, and LAN administration.
Hazardous Materials: Performance and compliance audit to determine the adequacy and
effectiveness of the Departments processes to handle hazardous materials.
Norton Antivirus Follow-up Audit: The use of antivirus software is one of the Departments
fundamental protections of the information technology infrastructure. The objective of this audit
will be to determine if the configurations implemented as a result of the prior audit are currently
providing optimal protection.
Standard Operating System Audit: The standard operating system (SOS) defines how the
Department is managed through policies, procedures and directives. The objective will be to
assure at a high-level that all major department programs and office have adequate policies and
procedures incorporated into the SOS.
Recovery of Unclaimed Funds: Two outside companies claim to have identified unclaimed
funds from eminent domain lawsuits belonging to the Department in court accounts. This
financial related audit will attempt to identify those funds and include an evaluation of controls
over deposits into court registries.
Miami Intermodal Center (MIC): This proactive audit will monitor the progress of the MiamiIntermodal Center Project and develop specific audits and reviews to evaluate various aspects of
the project.
Computer Forensics Services: The computer forensics services are
primarily performed at the request of management. Recent
implementations of the Departments infrastructure have allowed the use
of audit hooks to identify areas of misuse and abuse.
InternalAudit
AssuranceServices
Assignments
ComputerForensicServices
Assignments
-
7/30/2019 Annual Report and Work Plan 2001
30/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
28
Client/Server System Development: Assist the Office of Information
Systems in the development or adaptation of client/server standards.
Consultant Invoice Transmittal System Phase III is a candidate for this
audit due to the use of COOL: Gen development tool.
Governmental Accounting Standards Board (GASB-34): The purpose of GASB-34 is to
provide better financial reports giving an overall financial health of the agency. Our initial
review focused on methodology and assumptions used to compute figures needed for the
accounting change. This project will focus on the processes used to collect data to include data
definitions and data integrity.
Outside Sales Review: The objective of this review will be to evaluate the methodology used
by Survey and Mapping in determining costs of outside sales.
Purchasing Card Statistical Sampling Plan: Assist the Office of Comptroller in development
of a statistical sampling plan to sample and pre-audit Purchasing card for travel transactions.
Service Level Agreements with State Technology Office: The objective of this assignment
will be to evaluate the accuracy of the baseline level of current service. Monitor deliverance of
service level objectives to see if they comply with the agreement. This may involve developing
service level metrics.
Warehouse Closing Implementation: The Department is closing the Central Warehouse.
Management has asked our assistance in monitoring inventory and other procedures involved in
closing the warehouse.
Web System Development: The objective of this assignment will be to assist the OIS in the
development or adaptation of standards for Web applications. The replacement for RCI is the
most likely candidate for this audit because it: 1) Is a core production system, 2) Will provide
data to multiple systems, and 3) Will have a Web browser interface.
Annual Performance Measure Assessment: In accordance with Section
20.055(2)(b), F.S., the Office of Inspector General will assess the
reliability and validity of information for the 46 proposed measures for
Fiscal Year 2002-2003.
Time and Cost Overruns: The traditional performance measure assessment work is at a highlevel. This work will focus on the detailed processes used to collect data for performance
measures and will include process flow mapping, data definitions, and data integrity. It will
evaluate whether everyone uses the appropriate data in performing analyses of time and cost
overruns. Time and cost overruns ties directly to the Departments Strategic Objective 2.1
Improve Project Delivery Performance. This work will help us determine any areas that need
expanded tests of internal controls and data.
Consulting
Services
Assi nments
PerformanceMeasure
AssessmentAssignments
-
7/30/2019 Annual Report and Work Plan 2001
31/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
29
Periodic Procedure Reviews: Procedure Review is an accountability
activity to help ensure integrity, accountability, and process improvement
are addressed in Department programs. The OIG participates in
Preliminary, Executive, Task Team and Periodic reviews of the
Departments SOS. The focus of this years procedure reviews will be anin-depth analysis of procedures, which tie to the Departments
performance measures.
Risk Assessments: Risk Assessment is a systematic process for assessing
and integrating professional judgments about probable adverse conditions
and/or events. The risk assessment process provides a means of organizing
and integrating professional judgments for development of work
schedules. The result can be used to schedule limited audit resources and
provided to management as a service to allow them to place resources in
areas of highest risk.
Grant Programs: Proper management of grants is a perennial high-risk area for state agencies.
The focus of this assignment will be to update the Departments universe of grants and perform a
risk assessment on the various grant programs.
Remote Access Risk Assessment: The focus of this assignment will be to determine the
universe of the methods and number of remote accesses into the Departments information
technology infrastructure. The method with the highest risk factors will become the topic of a
separate audit.
ProcedureReviews
RiskAssessment
ServicesAssignments
-
7/30/2019 Annual Report and Work Plan 2001
32/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
30
The following table summarizes the Internal Audit Section Work Plan. This information is also
reflected in the graph at Appendix B Page 35.Carry Forward Project Topics by Core Service Category
EstimatedHours
MajorArea
Assurance ServicesCADD PC Replacement 60 10H
Access Authorization 50 10B
COBIT 50 10A
E-Commerce 800 10E
Internet Phone Charges 50 10E
Computer Aid, Inc. 250 7N
GCIE Purchase Card 900 7N
Miami Internodal Center (MIC) - CommuniKatz, Inc. 300 1B
Computer Forensics Services
ITR Reviews 400 10J
Consulting Services
GASB-34 300 9F
Special Projects
Laboratory Information Management System Complaint 300 7B
TOTAL CARRY FORWARD HOURS 3,460
New Project Topics by Core Service CategoryEstimated
HoursMajorArea
Assurance Services
Construction Training and Qualifications Program 800 4E
Recovery of Unclaimed Funds 300 3H
T21 Funds 500 9D
Employee Benefit Fund 200 9F
GCIE - Interagency Audit 480
Gainesville Materials Lab Data Center 400 10E
Norton Antivirus Follow-up 300 10B
GCIE - Interagency Audit 480
Standard Operating System 200 7O
Hazardous Materials 500 8D
GCIE - Interagency Audit 480
Computer Forensics Services
ITR Reviews 1,800 10J
Consulting Services
GASB-34 750 9FLease vs. Purchase of Vehicle Fleet 300 7J
Outside Sales Review 200 9G
P-Card Statistical Sampling Plan 80 9D
Warehouse Closing Implementation 300 7H
Client/Server System Development 400 10G
Security Awareness Presentations 200 10B
Service Level Agreements with STO 200 10A
Web System Development 400 10G
Miami Intermodal Center (MIC) 900 1B
-
7/30/2019 Annual Report and Work Plan 2001
33/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
31
Performance Measures Assessment Services
Reliability and Validity Review 1,000 7D
Construction Time and Cost Overruns 800 7D
Procedure Review Services
Policy and Procedure Reviews 1,000 7ORisk Assessment Services
Grant & Joint Participation Agreement Programs 756 9D
Remote Access Risk Assessment 478 10B
Special Projects
Reserved for Management Requests 2,936
Total Hours for New Projects 17,140
Total Carry Forward Hours 3,460
Total Available Hours 20,600
-
7/30/2019 Annual Report and Work Plan 2001
34/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
32
This page isintentionally blank.
-
7/30/2019 Annual Report and Work Plan 2001
35/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
33
APPENDICES
A. External Audit FY 2001-2002 Work Plan ...................................................... 34
B. Internal Audit FY 2001-2002 Work Plan ....................................................... 35
C. Internal Audit FY 2002-2003/2003-2004 Work Plan ..................................... 38
D. Risk Factors ..................................................................................................... 39
E. Distribution List .............................................................................................. 40
F. Work Plan Committee .................................................................................... 41
G. How to Contact the OIG ................................................................................. 42
H. Significant Reports Issued During FY 1999-2000 .......................................... 43
-
7/30/2019 Annual Report and Work Plan 2001
36/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
34
APPENDIX A
External Audit FY 2001-2002 Work Plan
Construction
Services
25%
Consulting
Contracting
44%
Special
Projects
11%
Process
Reviews and
Monitoring
13%
Public
Transportation
Office Reviews
7%
-
7/30/2019 Annual Report and Work Plan 2001
37/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
35
APPENDIX B
Internal Audit FY 2001-2002 Work Plan
By Service Category
Special Projects
16% Assurance
Services
33%
Computer
Forensic
Services
11%Consulting
Services
20%
Performance
Measures
Assessment
Services
9%
Procedure
Review Services
5%
Risk
Assessment
Services
6%
-
7/30/2019 Annual Report and Work Plan 2001
38/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
36
APPENDIX B (continued)
IT Audit FY 2001-2002 Work PlanBy Program Area
Software
Applications
Development
12%
Other
8%
Procedure
Management
1%
Special Projects10%
Telecommunications
/ Networking
18%
Security
15%Computer Forensics
32%
IT Planning
4%
-
7/30/2019 Annual Report and Work Plan 2001
39/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
37
APPENDIX B (continued)
Performance Audit 2001-2002 Work PlanBy Program Area
Quality
Management
Efforts
27%
Contracting
4%
Multi-Modal
Planning
17%
Other
7%
Purchasing
17%
Procedures
Management
10%
Industrial Safety
7%
Special Projects
11%
Financial Services Audit 2001-2002 Work Plan
By Program Area
Hazardous Material
Management
4%
Materials &
Research
12%
Warehouse
Operations
4%
Mobile Equipment
4%
ProcedureManagement
6%
Disbursement
Management
19%
Financial Reporting
18%
Cost Accounting
3%
Other
7%
Special Projects
23%
-
7/30/2019 Annual Report and Work Plan 2001
40/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
38
APPENDIX C
Internal AuditFY 2002-2003/2003-2004 Work Plan
Project TopicMajor
Area
New Projects Fiscal Year 2002-2003
State Technology Office Service Level Agreements 10A
Virtual Private Network 10A
One Florida 8C
SunPass 9E
New Projects Fiscal Year 2003-2004
Intelligent Transportation Systems 10A
Date Repository 10G
Bridge Management System (post implementation) 10G
Business Damages/ROW Acquisition 3C
Local Agency Program 9C
MCCO Terminal Audits 5D
-
7/30/2019 Annual Report and Work Plan 2001
41/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
39
APPENDIX D
Risk Factors
Management/Outside Interest
Department management
Transportation Commission
Upcoming legislation
Required by law to be audited by outside entitiessuch as State Auditor General's Office (OAG)Concern of Governor's Office, State Comptroller's Office, etc.
Metropolitan Planning Organizations (MPO), Cities/CountiesVendors
Prior Coverage
Coverage of External Auditors (OAG, Federal, etc.)
Previous Audit(s): Topics, Results, Dates
Quality Improvement/Assurance/Task Team Efforts
Timing
Do we have a target of opportunity? Is it a hot topic?
Perishability of issue
VulnerabilityFraud, waste, abuse (potential, prior instances)
Inherent risk
Legal liability
-
7/30/2019 Annual Report and Work Plan 2001
42/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
40
APPENDIX E
Distribution ListTom Barry, Secretary
Ken Morefield, Assistant Secretary for Transportation Policy
Cris Speer, Assistant Secretary for Finance and Administration
David Brown, Chairman, Florida Transportation Commission,
Attention: Bill Ham
William Monroe, Auditor General, Office of the Auditor General,
Attention: L. R. Weathermon
David Twiddy, Secretary, District 1
Aage Schroder, Secretary, District 2
Edward Prescott, Secretary, District 3
Rick Chesser, Secretary, District 4Michael Snyder, Secretary, District 5
Jose Abreu, Secretary, District 6
Ken Hartmann, Secretary, District 7
Jim Ely, Secretary, Turnpike District
Pamela Leslie, General Counsel
Freddie Simmons, State Highway Engineer
Ysela Llort, State Transportation Planner
Marion Hart, Jr., State Public Transportation Administrator
Dick Kane, Public Information Administrator
Robin Naitove, Comptroller
Nelson Hill, STO Chief Operating Officer
Vicki Bradford, Acting Chief, Information Officer
Deborah Stemle, Director of Toll Operations
Annette Dann, Director of Management and Budget
Ruth Dillard, Director of Office of Administration
Sarah Porter, Legislative Programs Administrator
Bill Kynoch, Budget Officer
Marcia Cooke, Governor's Chief Inspector General, Attention: James Thomas
Chairman, Senate Transportation Committee, Attention: Reynold Meyer
Chairman, House Committee on Transportation, Attention: Phillip Miller
Chairman, Senate Budget Committee, Attention: Tom Barrett
Chairman, House Transportation and Economic Development, Appropriations
Committee, Attention: Eliza HawkinsChairman, Joint Legislative Auditing Committee, Attention: Terry Shoffstall
John Turcotte, Director, Office of Program Policy Analysis and Government
Accountability
James E. St. John, Division Administrator, FHWA
-
7/30/2019 Annual Report and Work Plan 2001
43/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
41
APPENDIX F
Work Plan Committee
Committee Members:
Cecil Bragg
Joe Peet
Lisa Evans
Robert Clift
Marlys Eichhoefer
Nancy Moon
-
7/30/2019 Annual Report and Work Plan 2001
44/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
42
APPENDIX G
How to Contact the OIG
Mail:Florida Department of TransportationOffice of Inspector General605 Suwannee Street, MS-44Tallahassee, Florida 32399-0450
Internet E-mail:
Web Sites:
External to DOT:
http://www.dot.state.fl.us/inspectorgeneral/
Internal DOT INFONET:
http://infonet.dot.state.fl.us/inspectorgeneral/
Fraud Hotline:
1-800-255-8099 (within Florida)
Telephone:
(850) 410-5800SUNCOM 210-5800
Fax:
(850) 488-4417
SUNCOM 278-4417
-
7/30/2019 Annual Report and Work Plan 2001
45/45
OFFICE OF INSPECTOR GENERALWORKPLAN FORFISCAL YEAR2001-2002
APPENDIX
Significant ReportsIssued In FY 2000-2001
Report No. Project Topic TypeDate
Issued
04B-0001-00 Alternative Contractin Methods Audit 09/29/00
O4F-0004-00 Su lemental A reement Process
10A-0002a-00 Risk of Outsourcin Information Technolo Memo 09/14/00
10B-0006-00 Norton AntiVirus Com liance Audit 07/28/00
10B-1004-00 Business Im act Anal sis Surve Memo 03/07/01
10D-0002-00 Pro ram Chan e Mana ement Audit 12/18/00
10E-0001-00 Local Area Network Backu Audit 10/19/00
140-1025-00 FDOT Indirect Cost Allocation Rates FY 01-02 Audit 07/03/01
140-1027-00 Gainesville Test Lab Rates FY 01-02 Audit 06/25/01
140-1029-00Acquisition and Use of Information Technology
Consultants Audit 08/31/00
140-1030-00 Aerial Photo Rates FY 01-02 Audit 08/08/01
300-1001-00 Florida East Coast Rate Audit 05/11/01