david w. martin, cpa annual report auditor … report 2013.pdfthis annual report provides a summary...

Annual Report of the Auditor General

November 1, 2012, Through October 31, 2013

About Our Office 1

Recommended Statutory and Fiscal Changes 6

Work Plan 9

Overview of Audit and Accountability Activities 12

State Government 12

Educational Entities 19

Information Technology 31

Other Audits and Accountability Activities 34

Annual Report Exhibits 39

David W. Martin, CPA Auditor General

LEGISLATIVE AUDITING COMMITTEE

Alternating Chair

Joseph Abruzzo

Rob Bradley

Alan Hays

Jeremy Ring

Wilton Simpson

Alternating Chair

Lake Ray

Daphne D. Campbell

Gayle B. Harrell

Daniel D. Raulerson

Ray Rodrigues

Cynthia A. Stafford

AUDITOR GENERAL STATE OF FLORIDA

G74 Claude Pepper Building 111 West Madison Street

Tallahassee, Florida 32399-1450

November 27, 2013 The Honorable Don Gaetz President of the Senate 409 The Capitol Tallahassee, Florida 32399-1100 The Honorable Will W. Weatherford Speaker of the House of Representatives 420 The Capitol Tallahassee, Florida 32399-1300 Dear President Gaetz and Speaker Weatherford: This Annual Report provides a summary of the audits and other accountability activities performed by our Office during the 12-month period November 1, 2012, through October 31, 2013. The audits and other accountability activities summarized in this report include the assignments made to our Office both in law and by legislative directive. During this reporting period, we issued 193 audit reports including 92 financial audits, 77 operational audits, and 24 attestation engagements. Pursuant to Section 11.45(7)(h), Florida Statutes, this Annual Report includes recommended statutory changes for consideration by the Legislature and our Projected Two-Year Work Plan identifying the audit and accountability activities expected to be undertaken during the 2014-15 and 2015-16 fiscal years. The Projected Two-Year Work Plan is a risk-based plan meeting the audit frequency requirements in law and incorporating information obtained from the Legislature and other sources concerning areas of interest and operational risks. I am pleased to announce that in October 2013, as required by Government Auditing Standards, a team from the National State Auditors Association completed an independent review of our Office’s work and issued an unmodified (clean) opinion on our system of quality control. Attached herewith is a copy of the peer review team’s report. Please let us know if you have any questions regarding the contents of this Annual Report or if we can be of any additional assistance to you in your service to the citizens of Florida. Respectfully, David W. Martin c: Members of the House and Senate Chiefs of Staff

Council and Committee Directors

DAVID W. MARTIN, CPA AUDIT OR GEN ERAL

PHON E: 850-412-2722 FAX: 850-488-6975

About Our Office

Mission

Pursuant to Article III, Section 2 of the State Constitution and Section 11.42, Florida Statutes, the Auditor General is appointed by a majority vote of the members of the Legislative Auditing Committee, subject to confirmation by both houses of the Legislature. As the State’s independent auditor, the Auditor General provides unbiased, timely, and relevant information that the Legislature, Florida’s citizens, public entity management, and other stakeholders can use to promote government accountability and stewardship and improve government operations. Specifically, the Auditor General:

Audits financial statements to provide the Legislature and other users of financial statements independent assurance of the reliability of the financial statement information provided by government managers.

Identifies and audits those operating units, programs, activities, functions, and transactions considered most vulnerable should a significant breakdown in internal control occur.

Communicates, by an on-site presence and through examination, the Legislature’s expectation that public entity management and employees are accountable for the proper administration of public funds and the achievement of entity objectives.

Reports on whether expenditures of Federal, State, and local funds serve a public purpose and are made in compliance with applicable laws, rules, and regulations and whether government programs, activities, and functions are administered in an economic, efficient, and effective manner.

Reports on whether governmental entities have established proper internal controls that reasonably ensure that financial reports and records are reliable; assets are safeguarded; and fraud, waste, abuse, and noncompliance are prevented and detected.

Statutory Responsibilities

Sections 11.42 through 11.45, Florida Statutes, set forth the general authority and duties of the Auditor General. Independently, and in accordance with applicable professional standards, the Auditor General:

Conducts financial audits of the accounts and records of State government, State universities, State colleges, and school districts.

The Auditor General is:

A Constitutional Officer

A Legislative Officer

A Certified Public Accountant

The State’s Independent External Auditor

Annual Report of the Auditor General Page 1

About Our Office

Conducts operational and performance audits of public programs, activities, and functions and information technology systems and performs related duties as prescribed by law, concurrent resolution of the Legislature, or as directed by the Legislative Auditing Committee.

Adopts rules, in consultation with the Florida Board of Accountancy, for audits performed by independent certified public accountants of local governmental entities, charter schools, charter technical career centers, school districts, and certain nonprofit and for-profit organizations.

Conducts reviews of audit reports of local governmental entities, charter schools, charter technical career centers, school districts, and certain nonprofit and for-profit organizations.

Conducts examinations of school districts’ and other entities’ records, as appropriate, to evaluate compliance with State requirements governing the determination and reporting of full-time equivalent (FTE) student counts reported to the Department of Education and used to determine Florida Education Finance Program and Student Transportation funding allocations.

Conducts quality assessment reviews of the internal audits performed by State agency offices of inspectors general.

Organizational Structure

The organizational structure of the Auditor General’s Office consists of three divisions: the State Government Audits Division, the Educational Entities and Local Government Audits Division, and the Information Technology Audits Division. Each Division is led by a Deputy Auditor General. Management and staff of the organizational units work in coordination to meet the Auditor General’s goals and objectives. Contact information for the Auditor General, Deputy Auditor Generals, and other Auditor General management with reporting responsibilities is included as Exhibit D.

Standards and Core Values

The Auditor General performs audits and other engagements in accordance with generally accepted government auditing standards as set forth by the Comptroller General of the United States in Government Auditing Standards. Government Auditing Standards are applicable to financial and performance audits and attestation engagements and incorporate applicable auditing standards promulgated by the American Institute of Certified Public Accountants. Government Auditing Standards require that, in all matters relating to audit work, the Auditor General and each individual auditor must maintain independence and avoid

David W. Martin Auditor General

State Government Audits Deputy Auditor General

Sherrill F. Norman

Educational Entities and Local Government Audits

Deputy Auditor General Ted J. Sauerbeck

Information Technology Audits

Deputy Auditor General Dorothy R. Gilbert


About Our Office

situations that could lead reasonable and informed persons to conclude that the auditors are not independent. Our independence and core values, along with the collective knowledge and skills of our staff, provide the basis for our credibility.

The Auditor General’s organizational core values are:

Integrity – Commitment to ethical conduct and truthfulness in all relationships.

Accountability – Holding ourselves accountable and being responsible for our actions, taking pride in our professionalism, striving for efficiency in our performance, and committing to the highest performance standards.

Objectivity – Being mindful of the reliance that is placed on our work and, therefore, taking a fact-based, nonpartisan, unbiased, fair, and balanced approach to all activities.

We are required by Government Auditing Standards to undergo an independent review of our system of quality control at least once every three years. In October 2013, a team from the National State Auditors Association completed such a review. The team issued an unmodified (clean) opinion on our system of quality control, which means that the Auditor General’s system of quality control in effect for the period September 1, 2012, through August 31, 2013, provided reasonable assurance that our Office’s work conformed with Government Auditing Standards. The peer review team’s report is included in this Annual Report and is available on our Web site. Our next external peer review will be conducted in the Fall of 2016.

Strategic Goals and Objectives

In recognition of our statutory duties and mission and within the framework of our core values, our work is planned and managed to address strategic objectives established to assist us in accomplishing the following two primary goals.

Our Professional Services Goal is to provide timely, quality information to the Legislature and Florida’s citizens relative to the financial accountability and stewardship of public officials.

Auditor General Strategic Objectives

Objective 1 Improve the operations and accountability of public entities.

Objective 2 Identify and audit essential government topics of specific interest to the Legislature.

Objective 3 Conduct audits and other engagements (examinations and other attestations) in accordance with applicable professional auditing standards.

Objective 4 Conduct all engagements in a timely and cost-efficient manner.

Objective 5 Recruit and retain highly qualified, highly skilled staff.

Objective 6 Provide staff with an organizational environment and professional opportunities that promote job satisfaction.

Objective 7 Provide staff with the training, opportunities, technology, and encouragement needed to enhance professional competencies and effectively and efficiently complete audits and other assignments.

Objective 8 Continue to build on the Auditor General’s reputation as a leader in the auditing and government financial reporting communities.


About Our Office

This goal encompasses multiple services directed toward financial reporting, legal compliance, and government operations.

Our Professional Development Goal is to maximize the value of the Auditor General’s work by continuing to promote quality, professionalism, and productivity. The Auditor General encourages all staff to pursue professional certifications and requires that all management staff with responsibilities for audits or attestations hold applicable certifications, such as certified public accountant (CPA) or, when appropriate, certified information systems auditor (CISA). Approximately 70 percent of our professional staff hold professional licenses or certifications.

Reports and Findings

Our audits and other accountability activities focus on executive branch (State) agencies, judicial branch entities, educational entities, local governmental entities, and certain other organizations. A listing of all reports released during the period November 1, 2012, through October 31, 2013, is included as Exhibit A. An overview of our audits and other accountability activities completed during the period November 1, 2012, through October 31, 2013, begins on page 12 of this Annual Report. Copies of audit and other reports are available at www.myflorida.com/audgen/ and are distributed as appropriate and upon request to:

Legislative members and staff Governing boards and management of governmental entities Federal Government officials Bond rating agencies Florida’s citizens Media Other interested parties

Strategic Work Process Initiatives

Strategic work process initiatives are focused upon the development of policies, practices, and technology that will allow us to maintain a high level of proficiency, maximize efficiency of resource use, and ensure that we remain on the cutting edge of the auditing profession. Initiatives emphasized during the most recent audit cycle are described in the following paragraphs.

Electronic Working Papers – The benefits to maintaining working papers in an electronic format include providing a convenient and efficient means for keeping information in a secured environment, reducing the amount of physical storage space needed for working papers, providing additional flexibility in the supervisory review and monitoring of the work, and promoting consistency in the documentation of work. During 2013, we completed the implementation process of an electronic working paper application and completed the transition of the use of the application to all Office projects. We also continued to make enhancements to improve the efficiency of the electronic working paper application.


https://flauditor.gov/

About Our Office

Auditing Standards – The Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) began a significant effort in 2004 to make U.S. generally accepted auditing standards (U.S. GAAS) easier to read, understand, and apply. Additionally, the ASB sought convergence of U.S. GAAS with the International Standards on Auditing, while avoiding unnecessary conflict with Public Company Accounting Oversight Board standards. As a result of this process, all currently effective provisions of U.S. GAAS have been or are being revised. For the most part, the revised standards were effective for audits of financial statements for periods ending on or after December 15, 2012. Audits of governments must also be conducted in accordance with Government Auditing Standards, and those standards have also been recently updated. We have updated our quality control policies and procedures to address the revised standards, as needed, and continue to monitor the application of such policies and procedures to ensure our continued adherence to applicable standards.


Recommended Statutory and Fiscal Changes

Various provisions of Florida law require that the Auditor General conduct audits, examinations, or reviews of government programs, activities, and functions and report the results thereof to the President of the Senate; the Speaker of the House of Representatives; the Legislative Auditing Committee; senior management of the audited entity; and, as applicable, Federal grantor agencies. These reports have been provided as required by law, and many include findings and recommendations focusing on the need for management actions to improve the audited entities’ level of legal compliance and internal controls relevant to legal compliance, economy and efficiency, financial reporting and records, and the safeguarding of assets. In addition, Section 11.45(7)(h), Florida Statutes, provides in part that the Auditor General shall annually compile and transmit to the President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee by December 1 of each year a list of statutory and fiscal changes recommended by the Auditor General.

The following recommended statutory and fiscal changes are provided to the President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee for consideration. These recommendations either were included in our audit reports during the last two audit cycles or arose during the course of performing the duties assigned to the Auditor General. The recommendations are presented by policy area to facilitate their use by the various legislative committees. Auditor General staff are available to brief legislative members and staff on these recommendations. Contact information for the management staff referenced below is provided as Exhibit D.

POLICY AREAS: SENATE EDUCATION; HOUSE EDUCATION

Charter Schools. The Legislature should consider revising Section 1002.345(1), Florida Statutes, to require sponsors to notify the Commissioner of Education of those charter schools that are subjected to expedited reviews. The Legislature should also consider revising Section 1002.345(3), Florida Statutes, to specify the date by which the report of charter schools that were subjected to a financial recovery plan or corrective action plan should be filed with the State Board of Education.

Audit Report Number: 2014-002 Audit Manager: Marilyn D. Rosetti, CPA

School Districts. Academically high-performing school districts, pursuant to Section 1003.621(1)(a)3., Florida Statutes, must have no material weaknesses or instances of material noncompliance noted in the annual financial audit conducted pursuant to Section 218.39, Florida Statutes. The Legislature should consider revising Section 1003.621(1)(a)3., Florida Statutes, to also reference to annual financial audits of school districts conducted pursuant to Section 11.45, Florida Statutes.

Deputy Auditor General: Ted J. Sauerbeck, CPA



Virtual Instruction Programs. The Legislature should consider clarifying the intent of Section 1002.45(3)(d), Florida Statutes, as it relates to providing computing resources to virtual instruction program students.

The Legislature should also consider amending Section 1002.45(2)(a)3., Florida Statutes, to clarify the intended purposes of the virtual instruction program private providers’ Florida administrative offices and establish applicable minimum requirements for the offices’ operations.

Audit Report Number: 2013-094 Audit Manager: Arthur B. Hart, CPA

POLICY AREAS: SENATE GOVERNMENTAL OVERSIGHT AND ACCOUNTABILITY; HOUSE STATE AFFAIRS

Florida State University – Northwest Regional Data Center (NWRDC). The Legislature should consider amending Section 1004.649, Florida Statutes, to clarify the governance structure and expectations for the NWRDC as a primary data center, including whether the NWRDC is subject to State primary data center system requirements as set forth in Section 282.203(1), Florida Statutes.

Audit Report Number: 2013-012 Audit Manager: Arthur B. Hart, CPA

Internal Controls. The Legislature should consider amending applicable Florida Statutes to establish in law the responsibility of each State and local government for the maintenance of internal controls designed to prevent and detect fraud, waste, and abuse; ensure the administration of assigned public duties and responsibilities in accordance with applicable laws, rules, contracts, grant agreements, and best practices; promote and encourage economic and efficient operations; ensure the reliability of financial records and reports; and safeguard assets.

Deputy Auditor General: Sherrill F. Norman, CPA; Ted J. Sauerbeck, CPA

POLICY AREAS: SENATE HEALTH POLICY; HOUSE HEALTH AND HUMAN SERVICES

Department of Children and Families. The Legislature should consider requiring the Department of Children and Families, with the cooperation of other agencies of State government, to conduct a study of the feasibility and cost-effectiveness of the centralization and consolidation of the public assistance application and eligibility determination processes.

Audit Report Number: 2013-133 Audit Manager: Lisa A. Norman, CPA



POLICY AREAS: SENATE JUDICIARY; HOUSE JUDICIARY

Clerks of the Court. To eliminate statutory conflicts and inconsistencies, the Legislature should consider revising various laws regarding the Clerks’ collection of moneys and remittance thereof to the Department of Revenue and the distribution of remitted moneys to State funds. Additionally, the Legislature should consider amending Sections 28.246 and 938.30, Florida Statutes, to prescribe the manner in which the indigent determinations are to be made, including the financial information that should be considered.

The Legislature should consider revising Section 28.35, Florida Statutes, to require certified public accountants conducting audits of counties pursuant to Section 218.39, Florida Statutes, to report as part of the audit whether or not Clerks have complied with the court fees remittance requirements.

The Legislature should consider revising Section 28.245, Florida Statutes, to clarify whether or not the Clerks can remit interest earned net of related costs.


Judicial Agencies. The Legislature should consider requiring the Justice Administrative Commission and the agencies it administratively supports to jointly employ an internal auditor or provide for internal audit services by interagency agreement with a State agency. An internal auditor should have the same qualifications and perform the applicable duties of State agency directors of auditing as provided in Section 20.055, Florida Statutes.



Work Plan

Types of Engagements

Various statutory provisions provide the framework for the development of our work plan. Pursuant to law, we perform three major types of audits – financial, operational, and attestation examination engagements. When specifically directed by law, we also perform performance audits. Descriptions of these major types of engagements are presented below:

Financial Audits. Government managers are responsible for the stewardship of financial resources and preparing financial statements that conform to accounting principles promulgated by the Governmental Accounting Standards Board. Our audits of the various entities’ financial statements provide the Legislature, Florida’s citizens, investors, bond rating agencies, and other users of the financial statements independent assurance of the reliability of the financial statement information provided by government managers. Such independent assurance is given in the form of an opinion on the financial statements and is preceded by the performance of a rigorous examination of the entity’s financial records and related representations made by government officials. The nature, timing, and extent of the work performed are governed by professional standards issued by the AICPA (U.S. GAAS) and the Comptroller General of the United States in Government Auditing Standards (GAS). Under those standards, consideration of information technology controls is often an essential and significant part of the financial audit process because public entity operations and business processes are usually dependent on information technology.

Financial audits may include audit procedures to evaluate the entity’s compliance with requirements that could have a direct and material effect on each major Federal program and the effectiveness of internal controls established by management to consistently ensure compliance therewith. That is because, as a condition of receiving Federal funds, the United States Office of Management and Budget (OMB) requires a Single Audit of the recipient’s financial statements and major Federal awards programs. The audit is referred to as a Single Audit because it is an organizationwide audit that includes within its scope work designed to meet the oversight needs of many Federal and pass-through grantors and State accountability officials. The Single Audit is performed in accordance with audit requirements cited in OMB Circular A-133, as well as applicable U.S. GAAS and GAS.

Operational Audits. The purpose of an operational audit is to evaluate management’s performance in establishing and maintaining internal controls, including controls designed to prevent and detect fraud, waste, and abuse, and in administering assigned responsibilities in accordance with applicable laws, rules, contracts, grant agreements, and other guidelines. Operational audits examine internal controls, including information technology controls, that are designed and placed in operation to promote and encourage the achievement of management’s control objectives in the categories of compliance, economic and efficient operations, reliability of financial records and reports, and safeguarding of assets, and identify weaknesses in those internal controls. An operational audit may also include comparisons of the performance of a program, activity, or function of a governmental


Work Plan

entity to specific criteria. Our operational audits include a broad array of areas and are conducted in accordance with applicable GAS. The areas of operations included within the scope of operational audits are determined through risk assessment processes that, among other steps, include inquiries of legislative staff concerning areas of concern and interest to the Legislature.

Performance Audits. A performance audit examines a program, activity, or function of a governmental entity with respect to issues such as, economy, efficiency, and effectiveness of a program; the adequacy of a program to meet the needs identified by the Legislature or governing body; alternative methods of providing program services or products; the accuracy or adequacy of public documents, reports, or requests prepared under a program by the public entity; and compliance of a program with appropriate policies, rules, or laws. Performance audits are conducted in accordance with applicable GAS.

Attestation Examinations. An attestation examination consists of obtaining sufficient, appropriate evidence to express an opinion on whether the subject matter of the examination is based on (or in conformity with) specified criteria in all material respects or an assertion is presented, in all material respects, based on the specified criteria. Examination engagements are conducted in accordance with the Standards for Attestation Engagements issued by the AICPA and applicable GAS. Our evaluations of school district compliance with State requirements governing the determination and reporting of full-time equivalent students under the Florida Education Finance Program and the number of students transported are attestation examination engagements.

Work Plan Development Process

Initially, in the development of our work plan, we consider legal requirements establishing the frequency of the audits and other accountability activities. We are to conduct annual financial audits of the State of Florida, State universities, State colleges, and school districts in counties with populations of less than 150,000. We are to conduct financial audits of school districts in counties with populations of 150,000 or more every three years.

For various other audits and accountability activities, a minimum frequency is also established in law. For example, operational audits of each State agency, State university, State college, school district, and water management district, the Florida Clerks of Court Operations Corporation and the Florida School for the Deaf and the Blind are required to be conducted at least once every three years. In planning for these audits, we obtain information from the Legislature and other sources concerning areas of interest and operational risks. Operational risks refer to the characteristics of government operations that may make the program more susceptible to instances of fraud, waste, abuse, or material reporting errors or noncompliance with governing requirements. This information is used to develop a risk-based plan that provides audit coverage of each entity during the three-year cycle.


Work Plan

2013-14 Work Plan

Our 2013-14 Work Plan encompassed a wide variety of programs, activities, and functions administered by many entities. Some of the unique projects on our 2013-14 Work Plan include an operational audit of the Southwood Shared Resource Center and multi-agency operational audits to evaluate payroll and personnel and the procurement and expenditure procedures of several State agencies. Additionally, subsequent to the publishing of our 2013-14 Work Plan, we initiated operational audits of the Florida Virtual School, the City of Starke, the City of Hampton, the Delray Beach Community Redevelopment Agency, the Okaloosa County Board of County Commissioners and the Clerk of the Circuit Court, the Sunshine Water Control District, and the South Florida Workforce Investment Board. An overview of our audits and other accountability activities completed during the period November 1, 2012, through October 31, 2013, begins on page 12 of this Annual Report. A listing of all reports released during the period November 1, 2012, through October 31, 2013, is included as Exhibit A. Additionally, a listing of reports released or scheduled to be released subsequent to October 31, 2013, and before March 31, 2014, is included as Exhibit B.

Projected Two-Year Work Plan – 2014-15 and 2015-16

Section 11.45(7)(h), Florida Statutes, provides, in part, that the Auditor General shall transmit to the President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee by December 1 of each year a projected two-year work plan identifying the audits and other accountability activities to be undertaken by the Auditor General. Our Projected Work Plan encompassing the work planned during the 2014-15 and 2015-16 fiscal years is included as Exhibit C. As appropriate, modifications to the work plan may be made in response to law changes, legislative requests, and other considerations.


Overview of Audit and Accountability Activities

State Government Financial Statements. Pursuant to Section 11.45,(2)(b), Florida Statutes, and the Federal Single Audit Act, the Auditor General is responsible for the audit of the State’s financial statements, including consideration of compliance with laws of potential material impact on the financial statements. We found that the financial statements for the fiscal year ended June 30, 2012, were presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our independent auditor’s report on the financial statements is addressed to the President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee and was published by the Chief Financial Officer in the State’s 2012 Comprehensive Annual Financial Report.

Our report on the audit of the State’s financial statements included 13 findings and recommendations involving internal control over financial reporting, including material weaknesses1 at five State entities. The material weaknesses pertained to controls relevant to the completeness, accuracy, or classification of receivables, revenues, assets, expenditures, liabilities, net assets, and fund balance accounts, as well as cash flow statements and financial statement note disclosures. Our report on internal controls over financial reporting is included in our report titled State of Florida –

Compliance and Internal Controls over Financial Reporting and Federal Awards (report No. 2013-161).

Separate from our audit of the State’s financial statements, we conducted audits of the financial statements of the Department of the Lottery (Lottery) and the State Board of Administration’s (SBA) Local Government Surplus Funds Trust Fund (Florida PRIME). In both audits, we

1 A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected on a timely basis.

State Government Audit Impact Measures

Total asset values upon which financial statement opinions were rendered $349.2 billion

Total revenues upon which financial statement opinions were rendered $137.2 billion

Total Federal awards expenditures for major programs audited (1) $32.5 billion

Total American Recovery and Reinvestment Act Federal award expenditures audited (1) $1.4 billion

Total number of major Federal programs audited (1) 42

Number of audit reports released

Financial 2

Financial and Federal Awards 1

Operational (2) 23

Total number of audit reports released 26

Number of audit findings and recommendations 284

Number of findings identifying opportunities for cost recovery, savings, or loss avoidance 119

Total amount identified for cost recovery, savings, or loss avoidance $198.8 million

(1) Includes Federal award expenditures and major Federal programs of State universities and State colleges.

(2) Excludes Information Technology Operational Audits discussed later in this Annual Report under the heading Information Technology.



found that the respective financial statements were fairly presented in accordance with generally accepted accounting principles.

For the Lottery, we also examined internal control over financial reporting as of June 30, 2012, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). We found that the Lottery maintained, in all material respects, effective internal control over financial reporting as of June 30, 2012, based on the established criteria. In our report, we also noted the need for enhancements to the Lottery’s information technology (IT) control practices in several areas; that the Lottery, despite certain efforts, had not complied with all statutory requirements governing minority retailer participation by minority type; and the need for an accurate reporting of the transactions and balances of marketing and research support funds maintained by certain gaming service vendors.

Our audit of the SBA’s Florida PRIME disclosed that $221 million in Securities and Exchange Commission Rule 144A securities had been purchased during the 2011-12 fiscal year, despite a restriction against such purchases in the Florida PRIME Investment Policies. We also noted that controls to prevent and detect such purchases had not been effectively implemented.

Federal Awards. The Single Audit of the State of Florida includes State agencies, State universities, State colleges, judicial branch entities, and various other government entities for which the State is financially accountable. State agencies, universities, and colleges administered approximately 650 Federal awards programs or program clusters. The Federal Single Audit Act requirements mandate that the auditor evaluate compliance with requirements applicable to each major program and the effectiveness of internal controls established by management to consistently ensure compliance. The results of our Single Audit of the State of Florida for the fiscal year ended June 30, 2012, are described in report No. 2013-161.

We audited the State’s compliance with governing requirements for the 42 Federal awards programs or program clusters that we identified as major programs for the fiscal year ended June 30, 2012. Expenditures for these major programs comprised approximately 94 percent of the $34.7 billion in total Federal awards expenditures reported by the State for the fiscal year ended June 30, 2012. Our Federal awards audit findings are tabulated by area in Table 1 and briefly summarized in the following paragraphs.

We found that State agencies, State universities, and State colleges materially complied with requirements governing major Federal programs, except with respect to compliance with certain requirements for seven programs administered by State agencies for which we qualified our opinions. For the following programs, we found that the applicable State agencies did not comply with requirements applicable to the programs:



Table 1 Tabulation of Federal Awards

Findings by Audit Area

Audit Area

Number of

Findings

Number of State

Agencies

Number of State

Universities and State Colleges

Cash Management 4 3 0

Cost Accounting Standards 6 N/A 5

Electronic Benefit Transfer Administration 1 1 N/A

Eligibility and Claims Payments 13 6 0

Expenditures and Supporting Documentation 7 5 0

Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting 9 10 N/A

Information Technology Controls 12 7 12

Matching, Level of Effort, and Earmarking 7 4 0

Medicaid Program Administration 6 2 N/A

Payroll Charges and Personnel Records 7 4 2

Record Systems and Reporting 5 3 0

Schedule of Expenditures of Federal Awards 1 1 0

Statewide Cost Allocation Plan 1 3 N/A

Student Financial Aid Administration 20 N/A 13

Subawards and Monitoring 6 4 0

Block Grants for Prevention and Treatment of Substance Abuse

Medicaid Cluster Temporary Assistance for Needy

Families Cluster Vocational Rehabilitation Cluster

Additionally, we qualified our opinions with respect to compliance with certain requirements for the programs listed below because the applicable State agencies either could not provide or had not accumulated the information needed to demonstrate compliance:

Adoption Assistance Special Education Cluster Supplemental Nutrition Assistance

Program Cluster Temporary Assistance for Needy

Families Cluster

We also reported material weaknesses in internal control over compliance2 for the following nine programs:

Adoption Assistance Federal Transit Cluster Low-Income Home Energy Assistance Medicaid Cluster Refugee and Entrant Assistance – State

Administered Programs State-Administered Community

Development Block Grant Cluster Temporary Assistance for Needy

Families Cluster Vocational Rehabilitation Cluster Weatherization Assistance for

Low-Income Persons

2 A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented or detected and corrected on a timely basis.



Other instances of noncompliance and internal control deficiencies were found at 15 State agencies, 6 State universities, and 14 State colleges. Some of the instances of noncompliance resulted in audit determinations of questioned costs. Questioned costs include costs of goods or services charged to one or more Federal programs that are not allowed under the applicable grant terms, not clearly supporting the Federal program’s purposes, not documented in the manner prescribed by applicable Federal cost principles or State policies, or not incurred during the grant period. Such costs are subject to adjustment or disallowance by Federal grantor officials.

Operational Audits. During the period November 1, 2012, through October 31, 2013, we released 23 operational audit reports on State governmental entities. Our reports addressed a broad array of programs, activities, and functions. For example, among the programs, activities, and functions addressed in the operational audits were: internal management, financial, and operational controls and processes, as well as, selected programmatic decision making processes of the Florida Housing Finance Corporation; eligibility determination processes utilized in State-administered public assistance programs; the Office of Early Learning and selected early learning coalitions; primary governmental entity data centers’ compliance with applicable laws, rules, and guidelines for capturing costs, billing customers, and establishing cost-recovery methodologies; the administration of the Florida Biomedical Research Program; oversight of security operations at State correctional institutions and private correctional facilities by the Department of Corrections; Medicaid facility reimbursement rates, and certain other activities related to the Medicaid Program; and Department of Health central pharmacy services.

Many of our operational audit findings pertained to weaknesses in internal controls. Internal controls are those processes put in place by agency management to prevent and detect fraud, waste, and abuse and to provide reasonable assurance that financial reports are reliable, operations are economical and

Table 2 Tabulation of State Government

Operational Audit Findings by Audit Area

Audit Area

Number of

Findings

Number of

Entities Capital Assets, Equipment, and

Inventory 8 6

Central Pharmacy Administration 7 1

Contractual Services and Contract Management 10 8

Early Learning Coalition Funding 1 1

Eligibility and Financial Assistance Payments 19 13

Expenditures and Disbursements 8 5

Financial Management and Record Keeping 17 9

General Oversight or Governance 5 4

Information Technology Resources 21 13

Local Government Retirement System Monitoring 2 1

Payroll and Personnel 6 4

Performance Measures Reporting 2 1

Program Administration, Oversight, and Monitoring 35 13

Purchasing Practices 4 4

Regulatory Oversight and Monitoring 2 1

Revenue and Cash Collections 7 3

Risk Management 1 1

Safeguarding of Social Security Numbers 2 2



efficient, applicable laws are followed, and assets are safeguarded against loss. In short, effective internal controls prevent adverse events from happening and detect them when they do. Our operational and performance audit findings are tabulated by audit area in Table 2. Several of our audits are also summarized in the following paragraphs.

Florida Housing Finance Corporation. As required by Chapter 2012-127, Laws of Florida, we conducted a joint audit and review of the programs and operations of the Florida Housing Finance Corporation (Corporation) with the Office of Program Policy Analysis and Government Accountability (OPPAGA). The Auditor General’s primary responsibility was for audit of the Corporation’s assets, liabilities, income, and operating expenses and the internal management and financial and operational controls employed. Our audit disclosed areas in which enhancements in Corporation controls and operational processes were needed to better promote and encourage compliance, economic and efficient operations, and the safeguarding of assets. For example, we noted: 1) the Corporation did not submit to the Governor and the presiding officers of each house of the Legislature annual compliance audits for all of its programs; 2) improvements were needed in the Corporation’s internal audit activity to better ensure compliance with applicable State laws and internal auditing standards and promote accountability, integrity, and efficiency in Corporation operations; 3) the Corporation’s reporting of Unrestricted Net Assets should be enhanced to provide greater transparency related to the Corporation’s planned use of unrestricted resources; 4) the Corporation should establish procedures for monitoring Corporation investments that are managed by external investment management companies; 5) the Corporation’s oversight of its advisor agencies was not sufficient to ensure that the agencies obtained the required documentation for the Hardest Hit Funds Program eligibility determinations or timely and properly notified applicants of their Program ineligibility; and 6) the Corporation’s purchasing guidelines needed enhancing to better protect the interests of the Corporation and the State and to ensure compliance with applicable State law.

Public Assistance Eligibility Determination Processes. We conducted an operational audit focused on the eligibility determination processes utilized in 43 State-administered public assistance programs through which the administering State agencies provided approximately $45.8 billion in public assistance during the period July 1, 2010, through December 31, 2011. Our audit objectives included evaluating the efficiency and effectiveness of the State’s processes for determining eligibility for public assistance programs and determining whether sufficient processes were in place to prevent and detect eligibility determination errors and related improper payments, including those that may be caused by fraud. Our audit disclosed: 1) opportunities to improve the efficiency and effectiveness of the eligibility determination processes; 2) records relied upon by agencies, such as Office of Vital Statistics death records and Department of Corrections (DOC) offender records, to detect ineligible recipients of public assistance were, in some cases, incomplete and unreliable; 3) some instances in which payments had been made to or on behalf of ineligible individuals, including individuals who were deceased, incarcerated, or in juvenile detention; and 4) deficiencies in procedures that led to agency failures to detect improper payments.

Early Learning Programs. Our operational audit of the Office of Early Learning (OEL) and selected early learning coalitions focused on evaluating the status of actions taken by the OEL and coalitions to



correct deficiencies disclosed in prior audit findings. We applied audit procedures at the OEL and select audit procedures with respect to ten of the State’s early learning coalitions. Our audit disclosed that, while steps had been taken by the OEL and early learning coalitions to address the prior audit findings, opportunities continued to exist to enhance the efficiency and effectiveness of early learning program administration and accountability. Among the findings included in our report, we noted at the OEL that: 1) data matches between School Readiness Program and Reemployment Assistance data to identify potential payments to ineligible recipients had not been conducted; 2) the formula utilized for allocating School Readiness Program funds among the coalitions for the 2012-13 fiscal year did not appear to fully comply with the statutory framework or be consistent with legislative intent; and 3) the Early Learning Information System project incurred costs totaling an estimated $3.4 million that may have been avoidable. At the early learning coalitions, among other matters, our audit disclosed that: 1) the Miami-Dade/Monroe Coalition’s School Readiness Program waiting list did not appear to have been managed in accordance with applicable Federal regulations and OEL Rules; 2) some coalitions did not maintain documentation demonstrating that all employees timely received background screenings as a condition of employment and continued employment; and 3) some coalition tangible personal property records did not include information required by Federal regulations and OEL guidance and some coalition tangible personal property procedures did not include all the Federal, State, and OEL requirements.

Primary Data Centers. Sections 1004.649, 282.204, and 282.205, Florida Statutes, establish the Northwest Regional Data Center (NWRDC), Northwood Shared Resource Center (NSRC), and Southwood Shared Resource Center (SSRC) as primary data centers (PDCs) to serve as information system utilities for customers. Our operational audit of the PDCs focused on the PDCs’ compliance with the applicable laws, rules, and guidelines for capturing costs, billing customers, and establishing cost-recovery methodologies and also included a follow-up on selected prior audit findings. Our audit disclosed the following deficiencies: 1) lack of documentation supporting the determination and allocation of final estimated costs of various NSRC services, costs which formed the basis for NSRC customer billing rates; 2) lack of documentation to evidence the SSRC Board of Trustees’ timely submission of a plan to the Legislative Budget Commission for a new cost allocation methodology; 3) NWRDC adjustments to customer accounts not in accordance with State law; 4) SSRC adjustments to customer accounts not always based on actual activity or appropriately allocated; and 5) the lack of NSRC and SSRC cost-recovery methodology policies and procedures.

Florida Biomedical Research Program. The Department of Health (DOH), Division of Community Health Promotion, Public Health Research Section, administers the Florida Biomedical Research Program (Program). The Program included two grant funding programs: the James and Esther King Biomedical Research Program and the Bankhead – Coley Cancer Research Program. Our operational audit focused on the DOH’s administration of the Program and noted that improvements could be made in the following areas: 1) written policies and procedures to provide for the continuity of efficient and effective Program operations; 2) contract and grant management, particularly the proper administration of the administrative services provider’s contract and appropriate monitoring of Program grant agreements and recipients; and 3) procedures related to program expenditures, including



the identification and tracking of administrative expenditures to ensure compliance with statutory limits.

Department of Corrections. Pursuant to Section 944.151, Florida Statutes, the DOC is responsible for the security of correctional institutions and facilities. Our operational audit focused on the DOC’s oversight of security operations at State correctional institutions and private correctional facilities and included a follow-up on prior audit findings related to court-ordered payments. We reported that: 1) the Security Review Committee required by Section 944.151(1), Florida Statutes, did not function as intended by State law; 2) the DOC did not have a centralized tracking mechanism to ensure that all security audits, reviews, and follow-up visits were timely performed and that security deficiencies were timely corrected; 3) the DOC did not always appropriately document its security oversight efforts or utilize tools to promote the completeness and tracking of such efforts; 4) the DOC had not performed annual security audits of work release centers in accordance with State law; 5) logical access controls related to a critical IT application needed enhancement; and 6) certain deficiencies still existed in the court-ordered payment process.

Medicaid Program. The Agency for Health Care Administration (AHCA) is responsible for the administration of the Medicaid Program. We conducted an operational audit to determine the status of AHCA’s actions taken to correct prior audit findings related to Medicaid facility reimbursement rates; contract management; third-party liability program administration; nonemergency transportation (NET) services; and various administrative activities. Our audit disclosed that certain AHCA functions, including those related to the Medicaid Program, still needed improvement. We reported that: 1) AHCA’s instructions to hospitals related to reimbursement rates were not up-to-date, claims were not always reimbursed at the correct rates due to a lack of timely data entry, and rate changes resulting from cost report audit adjustments were not always timely processed; 2) contract procurement and management procedures could be enhanced; 3) sufficient documentation of the reasonableness of administrative fees paid for NET services was needed; and 4) the safeguarding of tangible personal property could be improved.

Department of Health – Central Pharmacy Services. This operational audit of the Department of Health (DOH) focused on the central pharmacy services program (Central Pharmacy) and the status of DOH actions taken to correct prior audit findings regarding Children’s Medical Services contracting and selected administrative matters. In our audit report, we noted that: 1) all drug formularies were not reviewed, certified, or approved; 2) management controls over both the pharmaceutical inventory and damaged, overstocked, and expired drugs could be enhanced, as could the documentation of insurable values for pharmaceuticals; 3) Medicaid billing and pharmaceutical budget and expenditure allocation procedures could be enhanced; and 4) expanded use of the Section 340B Pricing Program could be considered. Our audit also disclosed various administrative activities upon which the DOH could improve.

A listing of all State Government audit reports released during the period November 1, 2012, through October 31, 2013, is included in Exhibit A of this Annual Report.



Page No. School Districts .............................................................................................. 20

Florida Education Finance Program FTE Students and Student Transportation ................................................. 24

Higher Education - State Universities and State Colleges ............................ 26

Other Educational Entities and Programs .................................................... 29

Educational Entities Pursuant to law, the Auditor General has extensive audit responsibilities involving educational entities, including school districts and State universities and State colleges. These responsibilities include audits of financial statements, compliance with requirements of Federal awards, and selected operations. We also perform examinations of school district and other entity compliance with selected laws applicable to the Florida Education Finance Program FTE Students and Student Transportation funding. An overview of our audit activities is included on the following pages:



School Districts

Financial Statements. We audited the financial statements of 47 school districts and compliance with laws of potential material impact on the financial statements. We found that, generally, the school districts’ financial statements for the fiscal year ended June 30, 2012, were presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. We modified our opinion on the financial statements for two of the school districts because of certain deficiencies in financial reporting procedures and in reporting school internal funds. We also reported conditions involving internal control, including material weaknesses3 at six school districts. The material weaknesses involved financial statement accuracy and completeness, controls to ensure that ad valorem tax levy proceeds are expended for authorized capital outlay related purposes, and school internal funds collections.

Federal Awards. In our audits of the 47 school districts, we examined the school districts’ compliance with laws, regulations, and contracts

and grants governing the use of Federal funds. The Federal Single Audit Act mandates that the auditor evaluate compliance with requirements applicable to each school district’s major programs and the effectiveness of internal controls established by management to consistently ensure compliance. For most of the 47 school districts, the number of major programs ranged from three to eight. School districts spent $68.4 million of funds provided pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA) for the 2011-12 fiscal year, which is $448.3 million less than the $516.7 million spent for the 2010-11 fiscal year. Our Federal awards audits resulted in 45 findings. In summary, our audits of the various major Federal programs disclosed the following:

Four school districts did not comply with compliance requirements considered material to one or more major programs resulting in qualified opinions on those major programs.

3 See Footnote 1.

School Districts Audit Impact Measures



Total Federal awards expenditures for major programs audited $441.8 million

Number of audit reports released

Financial, Federal Awards, and Operational 41

Financial and Federal Awards 6

Operational 8

Total number of audit reports released 55


Number of findings identifying opportunities for cost recovery, savings, or loss avoidance

204




Internal controls over compliance with Federal awards requirements needed improvement at 26 school districts where we noted material weaknesses (5 findings) or significant deficiencies (40 findings) in internal controls.4 Noncompliance was noted for these 26 school districts in several areas including, but not limited to, documenting personnel costs, maintaining required fiscal effort, approving and documenting expenditures of Federal funds prior to payment, and providing private schools the opportunity to participate in Federal programs.

Questioned costs were cited in 23 findings for 16 school districts. Questioned costs include costs of goods or services charged to one or more Federal programs that are not allowed under the applicable grant terms, not clearly supporting the Federal program’s purposes, not documented in the manner prescribed by applicable Federal cost principles or State or school district policies, or not incurred during the grant period. Four of the findings involved the use of ARRA funds. A school district may have to repay from non-Federal sources the questioned costs should the applicable grantor disallow such costs.

Operational Audits. We conducted operational audit procedures for 49 school districts and considered the school districts’ performance with respect to a variety of areas including internal control systems and those identified in specific laws or Appropriations Act provisos. For example, our operational audits evaluated processes relating to information technology; adult education enrollment reporting to the Department of Education (DOE); the use of ad valorem tax levy proceeds, other capital outlay funds, and Workforce Development funds; personnel compensation and administration; procurement and construction practices; and electronic funds transfers. Our operational audit findings are tabulated by audit area along with the financial and Federal awards findings in Table 3. For several areas, similar findings were noted at multiple school districts. Our findings for some of those areas are briefly described below:

Information Technology Controls – For 36 school districts, we reported that enhancements were needed regarding information technology (IT) controls for financial and related systems. Examples of recommended enhancements to IT controls included timely deactivating the IT access privileges of former employees, restricting IT access privileges to only what is needed to perform assigned job duties, improving user authentication controls, logging and monitoring of significant system activity, and establishing written policies and procedures to govern significant IT functions. Additional needed enhancements involved developing effective controls to address management’s security-related responsibilities, including risk assessment, security awareness training, data loss prevention, and security incident response.

Adult Education Hourly Reporting – Our audits disclosed that 24 school districts needed to enhance internal controls over the reporting of Adult General Education instructional contact hours to the DOE. We noted instances in which contact hours were overreported for various reasons, such as oversight errors, the use of incorrect enrollment and withdrawal dates, and data entry errors. We also noted instances in which documentation was not maintained in support of reported enrollments.

4 A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.



Ad Valorem Taxation and Capital Outlay – For 17 school districts, records did not evidence that the use of certain capital outlay moneys was consistent with applicable statutory provisions. For example, we questioned expenditures ranging from $8,500 to $2.9 million for purposes contrary to Section 1011.71, Florida Statutes, such as insurance premiums, unallowable salaries and benefits, groundskeeping expenses, moving expenses, gift cards, and purposes not specified in the advertised tax levy notice. School districts that violate the expenditure restrictions of Section 1011.71, Florida Statutes, may have an equal dollar reduction in Florida Education Finance Program funds appropriated to the school district in the fiscal year following the audit citation. We also questioned whether expenditures ranging from $104,000 to $3.3 million of sales surtax proceeds were allowable under Section 212.055(6), Florida Statutes.

Personnel Compensation – Our audits disclosed that 34 school districts had not established a documented process to identify instructional personnel or school administrators entitled to differentiated pay using the factors prescribed in Section 1012.22(1)(c)4.b., Florida Statutes. Pursuant to that Section, differentiated pay for instructional personnel and school administrators is to be based on factors determined by the school district, including but not limited to, additional responsibilities, school demographics, critical shortage areas, and level of job performance difficulties.

Construction and Related Activities – For 18 school districts, we reported that controls over facilities construction and maintenance could be improved. Examples of control improvements needed included properly procuring or monitoring construction, architectural, or subcontractor services; the inclusion of appropriate penalty clauses in construction contracts; the maintenance of appropriate insurance coverage for

Table 3 Tabulation of School District Audit


Audit Area

Number of

Findings

Number of

Districts Ad Valorem Tax Program and

Capital Outlay 19 17

Adult General Education Course Hours Reporting 24 24

Board Policies and Actions 3 3

Capital Assets, Equipment, and Inventory 6 6

Cash and Cash Collections 12 12

Charter Schools 3 3

Construction and Related Activities 24 18

Direct-Support Organization Audits 3 3

Electronic Funds Transfers 17 17


Facilities 1 1

Federal Awards 45 26

Financial Management and Budgetary Controls 15 11

Financial Reporting 21 20

Information Technology Controls 103 36

Insurance 8 7

Investments 1 1


Purchasing Practices and Contractual Services 22 18

Social Security Number Collection Notice 2 2

Student Records 1 1

Student Tuition and Fees 1 1

Workforce Development Funds 2 2



design professionals or total program managers; proper review and approval of construction contract change orders; the development of policies and procedures requiring periodic evaluations of techniques for alternative construction methods and performing significant maintenance-related jobs; and the development of goals and objectives for the facilities planning and maintenance departments to identify efficiency or cost-effectiveness outcomes. The expenditures associated with the construction and related activities audit findings ranged from $2 million to $239.7 million.

Purchasing Practices and Contractual Services – For 18 school districts, our audits disclosed that improvements were needed in controls over certain purchasing practices. We noted instances in which monitoring of the procurement and payment of contractual services could be strengthened, including, for example, competitively bidding contracts for services, such as legal, energy savings performance, and energy education training; as well as monitoring payment processing to ensure that services had been received and properly documented, in accordance with the contract, prior to payment. We also noted that controls over purchasing card programs at certain school districts could be enhanced. The expenditures associated with the purchasing practices and contractual services audit findings ranged from $50,000 to $8.7 million.

Electronic Funds Transfers – For 17 school districts, our audits disclosed that enhancements were needed in internal controls over electronic funds transfers (EFTs) and compliance with related State laws and rules. For example, certain school districts lacked board-approved written policies prescribing the accounting and control procedures for EFTs, including the use of electronic signatures; lacked records evidencing an agreement with the bank to identify personnel authorized to initiate and authorize transfers or documentation signed by the initiator and authorizer of EFTs; had EFT agreements with banks that omitted critical information, such as the signatures of employees authorized to initiate EFTs or of the school board chair; or had outdated EFT agreements that authorized former employees to initiate EFTs and former officials to establish those employees authorized to initiate EFTs. The cash and cash equivalent amounts available at the school districts for EFTs ranged from $650,000 to $345 million.

A listing of all school district audit reports released during the period November 1, 2012, through October 31, 2013, is included in Exhibit A of this Annual Report.



Florida Education Finance Program (FEFP) FTE Students

and Student Transportation

For the 2011-12 fiscal year, net State FEFP funding (net of local school district funding) totaled approximately $5.6 billion including Student Transportation funding. During the period November 1, 2012, through October 31, 2013, we examined the records of 24 school districts to evaluate compliance with State requirements governing the determination and reporting of full-time equivalent (FTE) students for FEFP and the number of students transported for Student Transportation funding, for the fiscal year ended June 30, 2012. Our examinations disclosed that 23 school districts did not materially

comply with State requirements. Table 4 summarizes the material noncompliance areas. Generally, we considered noncompliance to be material when sample error rates equaled or exceeded 10 percent of the sample population for one or more funded programs. The most common area of material noncompliance pertained to the preparation and maintenance of records for students in the English for Speakers of Other Languages (ESOL), Exceptional Student Education (ESE) Support Levels 4 and 5, and Career Education 9-12 On-the-Job Training (OJT) Programs.

Specifically, regarding FTE students, our examinations disclosed:

Lack of written student attendance policies and procedures.

Incomplete, incorrect, or untimely prepared records.

Failure to sign and date records.

Records that could not be located.

We also reported material noncompliance regarding teacher qualifications and student transportation. For example, we reported instances in which teachers did not meet State requirements governing certification, out-of-field teacher assignments were not approved by the school board, parents were not notified regarding teachers’ out-of-field status, and teachers did not earn the required in-service training points in ESOL strategies. Material noncompliance regarding student transportation involved students’ reported ridership categories or eligibility for State transportation funding.

FEFP FTE Students and Student Transportation Audit Impact Measures

Total FTE reported upon which a compliance opinion was rendered 674,987

Total FTE funding for entities examined $1.2 billion

Total Student Transportation funding for entities examined $115.9 million

Number of compliance examination reports released

24

Number of reports disclosing material noncompliance 23

Table 4 Tabulation of FEFP FTE Students

and Student Transportation Material Noncompliance Areas

Material Noncompliance Area

Number of

Entities Preparation and Maintenance of

Student Records 23

Teacher Qualifications 9

Classification and Funding Eligibility of Transported Students 12



The DOE is responsible for resolving proposed adjustments reported in examinations and computing the financial impact of such proposed adjustments for application against the school districts’ current or future funding. School districts are permitted to request informal conferences to appeal the examinations’ proposed adjustments to the DOE. The resulting informal conference panels’ recommendations are presented to the Commissioner of Education for acceptance.

A listing of all FEFP FTE Students and Student Transportation reports issued during the period November 1, 2012, through October 31, 2013, is included in Exhibit A of this Annual Report.



Higher Education State Universities and State Colleges

Financial Statements. During the period November 1, 2012, through October 31, 2013, we audited the financial statements of 11 State universities and 27 State colleges and compliance with laws of potential material impact on the financial statements for the fiscal year ended June 30, 2012. Additionally, we audited the financial statements of four State colleges for the fiscal year ended June 30, 2013. We found that the State universities and State colleges presented fairly, in all material respects, the financial

statements for the applicable fiscal year(s) in accordance with accounting principles generally accepted in the United States of America.

We also reported conditions involving internal control deficiencies at two State colleges and one State university for the 2011-12 fiscal year. The internal control deficiencies pertained to declining financial condition, enhancements needed in financial statement reporting, the expenditure of restricted capital outlay funds for unauthorized purposes, and certain transactions and accountability controls relating to direct-support organizations. Our financial audit findings are summarized with other audit findings by audit area in Table 5.

Federal Awards. We audited the Federal awards expenditures of the State universities and State colleges as part of our State of Florida Single Audit. The Student Financial Assistance Programs Cluster administered by State universities and State colleges was a major Federal program for the State. Additionally, the Research and Development Programs Cluster administered by the State universities was a major Federal program for the

State. A description of our State of Florida Single Audit begins on page 13 and the related findings are described by audit area in Table 1 on page 14.

State Universities and State Colleges Audit Impact Measures



Total Federal awards expenditures for major programs audited $4.5 billion

Number of audits reports released

Financial

42

Operational 16

Total number of audit reports released

58


Number of findings identifying opportunities for cost recovery, savings, or loss avoidance 42




Operational Audits. During the period November 1, 2012, through October 31, 2013, we released operational audit reports of two State universities and eight State colleges for the 2011-12 fiscal year. We also released operational audit reports of one State university and five State colleges for the 2012-13 fiscal year.

Our operational audits focused on several areas involving Board oversight, such as policies regarding electronic payments and electronic funds transfers and presidents’ employment agreements and compensation. Our audits also encompassed internal controls over a variety of operational areas and compliance with applicable Florida Statutes and other requirements. For example, we tested selected information technology controls; the assessment and use of tuition and fees including, but not limited to, those pertaining to Florida residency requirements and the tuition differential, distance learning, and continuing education fees at State universities; construction and related activities; procurement practices including purchasing card (credit card) usage; textbook affordability; and controls over the administration of payroll and personnel. We also tested State colleges’ reporting of adult general education enrollment to the DOE.

Our audit findings disclosed in reports released during the period November 1, 2012, through October 31, 2013, are tabulated by audit area in Table 5. Some findings that were reported at several State universities or State colleges are also summarized below:

Information Technology Controls – For 11 institutions, we reported that enhancements were needed regarding information technology (IT) controls for financial and related systems. Examples of recommended enhancements to IT controls included timely removing IT access privileges of former employees, restricting IT access privileges to only what is needed to perform assigned job duties, improving user authentication controls, logging and monitoring of significant system activity, developing a written IT security incident plan, and enhancing and testing a disaster recovery plan.

Table 5 Tabulation of State University and

State College Audit Findings by Audit Area

Audit Area

Number of

Findings

Number of

Institutions

Adult General Education Course Hours Reporting 3 3

Board Policies and Actions 6 4

Capital Assets, Equipment, and Inventory 2 2

Collection of Protected Information 8 7

Construction and Related Activities 9 4

Electronic Payments and Funds Transfers 12 12


Financial Management 6 5

Information Technology Controls 27 11


Purchasing Practices and Contractual Services 8 6

Textbook Affordability 4 4

Tuition and Fees 9 7



Purchasing Practices and Contractual Services – Six institutions needed to improve procedures for monitoring consultant performance or payment, procuring goods and services, and monitoring the purchasing card or vendor credit card program.

Collection of Protected Information – Seven institutions had not fully implemented an identity theft prevention program, required by the Federal Trade Commission for creditors who hold consumer accounts designed to permit multiple payments or transactions or any other account for which there is a reasonable foreseeable risk of identity theft.

Payroll and Personnel – Six institutions needed to improve compliance with State law regarding the President’s compensation and payroll function procedures. For example, we reported that five institutions included provisions regarding severance pay in the President’s employment agreement that were contrary to State law.

Tuition and Fees – For seven institutions, improvements were needed in controls over student tuition or fee assessment, or over the expenditure of certain fees, or written procedures related to certain fees either had not been adopted or needed enhancement. For example, for three of these institutions, we reported a lack of support for reclassifying out-of-State students as Florida residents for tuition purposes. For five of these institutions, instances were noted in which certain fees were not properly assessed, supported, or for which the institutions lacked policies. These fees included laboratory fees, student activity and service fees, technology fees, parking fees, and other user fees.

Electronic Payments and Funds Transfers – Twelve institutions had either not established written policies prescribing accounting and control procedures for electronic transactions, contrary to Section 1010.11, Florida Statutes, or needed to enhance such policies and procedures.

A listing of all State university and State college audit reports released during the period November 1, 2012, through October 31, 2013, is included in Exhibit A of this Annual Report.



Other Educational Entities and Programs

Virtual Instruction Programs. We conducted an operational audit which focused on the administration and oversight of the State’s virtual instruction programs (VIPs) and compliance with selected provisions in Sections 1002.45 and 1002.455, Florida Statutes. Audit procedures were performed at the DOE, 12 of the 67 Florida school districts (Alachua, Brevard, Broward, Calhoun, Duval, Glades, Hillsborough, Jackson, Leon, Miami-Dade, Polk, and Volusia), and 2 of the DOE-approved private VIP providers (K12, Inc. and PLATO Learning, Inc. [EdOptions]).

At the DOE, our audit focused on the application, evaluation, and approval process for private VIP providers. We also evaluated whether the DOE, for private VIP providers, had established methods for data tracking and transparency, as well as accountability measures, in accordance with State law and whether appropriate VIP guidance was provided to school districts, parents, and other stakeholders. Additionally, we examined other statutory compliance issues and selected IT controls. Our findings at the DOE recommended the adoption of rules to provide a standard private VIP provider contract template for use by the school districts and the development, in conjunction with the school districts, of a mechanism to report and analyze the reasonableness of private VIP provider student and teacher information, including student-teacher ratios.

At the school districts, we determined whether the school districts complied with State law and designed and implemented adequate controls over VIP operations. Our procedures included tests for VIP options, parental notifications, fees and funding, curriculum requirements, employee background checks, teacher certifications, student eligibility, attendance, testing, student receipt of computing resources and instructional materials, and contract provisions. Our findings at the school districts included a recommendation related to developing and maintaining comprehensive, written VIP policies and procedures. The absence of such policies and procedures may have contributed to the instances of school district noncompliance and control deficiencies disclosed in the audit. We noted that: 1) the statutorily required VIP options were not always offered by the school districts; 2) timely, written parental notifications of the options were not always provided; 3) ineligible students were reported for VIP funding and supporting eligibility documentation was not always available for audit review; 4) in certain instances, school districts could not provide documentation of required employee and contracted personnel background screenings; 5) certain VIP instructional personnel were not certified to teach in Florida and, in some instances, could not be identified to courses taught; 7) adequate documentation of VIP student eligibility and compulsory attendance could not always be provided; 8) notification of and accountability for computing resources and instructional materials for qualified VIP students could be improved; and 9) statutorily required and other necessary provisions were not included in contracts with private VIP providers.

For the private VIP providers, our procedures included the examination and evaluation of interfaces and data transfer mechanisms; authentication controls; selected access privileges; selected security controls including antivirus, firewall, and intrusion detection, as well as provisions for continuity of data center operations, including data backup provisions and performance monitoring; the mechanism used to



differentiate between data from different school districts as well as other states; the background screening process for teachers and staff; and private VIP providers’ compliance with Florida administrative offices statutory requirements. In our findings, we noted that: 1) access to the private VIP providers’ Florida administrative offices was limited; 2) data quality improvements were needed to allow for sufficient audit analysis; 3) private VIP providers did not obtain independent service auditor reports; 4) improvements could be made in security controls related to user authentication and the protection of sensitive and confidential information; 5) inappropriate or unnecessary IT access privileges existed; 6) improvements were needed in performance monitoring procedures, disaster recovery planning, and backup procedures; 7) the private VIP providers could not always provide documentation of employee background screenings; and 8) one provider did not always provide the audit team with complete and timely access to information requested.

Florida School for the Deaf and Blind. We conducted an operational audit of the Florida School for the Deaf and the Blind (School) that disclosed the following deficiencies: 1) the School’s legislative budget request for the 2013-14 fiscal year was not adequately supported by its Facilities Master Plan with respect to Campus Infrastructure, Building Maintenance, and Campus Wide Site; 2) controls over purchasing cards, subcontractor selection for construction management projects, and review of construction manager invoices needed improvement; 3) School records did not always document compliance with Department of Management Services’ rules regarding dual employment compensation, classification actions, and pay supplements; and 4) procedures governing the use of Student Bank advances were not always consistently applied.

A listing of audit reports released during the period November 1, 2012, through October 31, 2013, is included in Exhibit A of this Annual Report.



Information Technology

Information Technology Audits

Public entities rely heavily on information technology (IT) to achieve their missions and business objectives and to record, process, maintain, and report essential financial and program information. The widespread use of IT, without proper safeguards, can lead to vulnerabilities that allow the introduction of errors by employees in their daily work processes and actions by persons with malicious intentions. As such, IT controls are a critical component of public entity internal control systems. Public entity management, therefore, has an important stewardship responsibility for establishing effective IT controls that provide reasonable assurance of the achievement of management’s control objectives, including, in particular, assuring the confidentiality, integrity, and availability of data and IT resources. The absence of effective IT controls can result in significant risks to public entity operations and assets, such as risk of unauthorized or erroneous disclosure, modification, or destruction of financial information and IT resources.

The Auditor General evaluates the effectiveness of controls over IT in financial audits and in many operational audits. Consideration of IT controls is an essential and significant part of the audit process in these audits because public entity business processes that are relevant to the audit objectives are usually dependent on IT.

State Government. We released six IT operational audits during the period November 1, 2012, through October 31, 2013. These audits encompassed data center operations at the Northwood Shared Resource Center and critical or complex systems at four State agencies including:

The Florida Accounting Information Resource Subsystem (FLAIR) (the State of Florida’s accounting system that maintains State agency accounting and State budget control records and processes the State’s payroll);

The Integrated Retirement Information System (IRIS) (supports the business processes relating to the retirement life cycle of employees covered by the Florida Retirement System);

Selected financial systems used by the State Board of Administration (SBA) for investment and financial accounting; and

The Unemployment Compensation (UC) System (used to determine eligibility and calculate benefit amounts for individuals seeking unemployment compensation).

Table 6 Tabulation of Information Technology Operational Audit State Government


Audit Area

Number of

Findings

Number of

Entities

Access Controls 21 5

Business Process Controls 3 2

Configuration Management 5 3

Contingency Planning 1 1

Data Center Operations 4 1

Security Management 4 3



Our findings and recommendations reported in the IT operational audits primarily pertained to controls underlying the overarching principles for data integrity, data confidentiality, and data or IT resource availability and are tabulated by control area in Table 6. Most of the control areas related to general controls; however, we also noted some application control findings in the areas of business process controls. Some of the frequent findings and recommendations related to the following:

Excessive access privileges granted to employees and contractors.

Untimely removal of access privileges for employees and contractors.

Insufficient review of the appropriateness of access privileges for employees and contractors.

Inadequate security settings.

Insufficient logging and monitoring of system activity.

Inadequate configuration management.

Additionally, we noted sensitive matters related to security control. In these instances, we did not disclose specific details of the findings and recommendations in the audit reports to avoid the possibility of compromising entity data and IT resources. The specific details were separately communicated to entity management and frequently involved multiple security control deficiencies relating to various topics such as security management, access controls, contingency planning, and protection of confidential and exempt information.

In our audit of the data center, we reported that improvements were needed for data center operations including performance monitoring and capacity planning, backup procedures and facilities, and service-level agreements. We also reported that the data center did not have system management software installed on some of the midrange systems that it managed for customer entities and, as a result, it was not able to maintain a complete inventory of those systems.

Educational Entities. During the period November 1, 2012, through October 31, 2013, we evaluated IT controls as a part of financial and operational audits of educational entities, including school districts and State universities and State colleges. These evaluations disclosed a significant number of internal control deficiencies and departures from best practices. Such matters were reported in the financial or operational audits of the respective school district or State university or State college. (See audit findings summaries for school district operational audits on page 21 and for State university and State college operational audits on page 27.)

Analytical and Automated Procedures and Audit Applications

In addition to IT audits, extensive IT support is provided to the Office’s financial and operational audit and attestation examination engagements through computer-assisted audit techniques (CAATs) services. Such services are focused, allow for extensive analysis in an efficient manner, and are accomplished by obtaining detailed information that can be used to prepare reconciliations, summaries, samples of detailed



transactions, range reports, and other analytical tools for our audit staff. The use of CAATs leads to increased audit coverage, more thorough and consistent analysis of data, and reduction in risk.

Custom computer application systems are maintained to support various audit activities. Examples include applications for analyzing and compiling financial statement adjustments and for support of our reviews of local government, school district, and charter school audit reports prepared by private sector certified public accountants.

A listing of all IT audit reports released during the period November 1, 2012, through October 31, 2013, is included in Exhibit A of this Annual Report.



Other Audits and Accountability Activities Local Government Audits

Okaloosa County Board of County Commissioners’ Oversight of the Tourist Development Council and Use of Tourist Development Taxes and Funds Received from British Petroleum. This operational audit focused on the Okaloosa County Board of County Commissioners’ (OBCC) oversight of the Okaloosa County Tourist Development Council (TDC) and use of tourist development taxes and funds received from British Petroleum (BP). The OBCC created the TDC in 1986 by adopting Okaloosa County Ordinance No. 86-06. Pursuant to Section 125.0104(4)(e), Florida Statutes, the TDC’s primary purpose is to act in an advisory capacity to the OBCC in matters relating to tourism and to review expenditures of tourist development taxes to ensure that they are made for authorized purposes. Following the Deepwater Horizon oil spill of April 2010, Okaloosa County received $10.2 million in funds from BP for, among other things, lost tourist development taxes and tourist promotion grants, which were administered by the OBCC’s Tourist Development Department. Our audit disclosed that the OBCC and TDC needed to improve internal control in several areas including: (1) organizational oversight; (2) fraud controls and control risk assessments; (3) the procurement of goods and services, as well as the administration of the purchasing card program and controls over travel expenditures; (4) written policies and procedures relating to special events grants and sponsorships; (5) the use of restricted resources; (6) recording and signing minutes of TDC meetings; and (7) controls over accounting records, data and information technology resources, electronic funds transfers, and motor vehicle fuel cards.

City of Hollywood and Hollywood Community Redevelopment Agency. The Legislative Auditing Committee directed us to conduct this operational audit to address financial-related issues and concerns facing the City of Hollywood (City). Our audit disclosed that the City: (1) did not include all available funds in its determination to declare a financial urgency; (2) needed to develop a formal plan to replenish General Fund reserves in accordance with its fund balance policy, establish minimum target levels of working capital to be maintained for certain funds, and adopt a funding policy for its defined benefit pension plans; (3) needed to improve financial and budget management and monitoring; and (4) needed to improve controls related to bank account reconciliations, fuel and fleet management systems, and City Commission meeting and workshop minutes. The audit also disclosed that the Hollywood Community Redevelopment Agency (HCRA) could improve controls over its budget preparation, the expenditure of HCRA funds, and the disposition of unexpended HCRA trust fund moneys at year-end.

Economic Development Activities Administered by the Hardee County Industrial Development Authority, Hardee County Economic Development Authority, and Hardee County Board of County Commissioners, and Other Administrative Matters. This operational audit focused on the economic activities administered by the Hardee County Industrial Development Authority (IDA), the Hardee County Economic Development Authority (EDA), and the financial relationships of these entities’ with the Hardee County Board of County Commissioners (HBCC). The IDA is authorized to study the advantages, facilities, resources, products, attractions, and conditions relative to the



encouragement of economic development in Hardee County, and to use such means and media as the IDA deems advisable to publicize and to make known such facts and material which would reasonably result in encouraging desirable economic development in Hardee County. The EDA’s purpose is to solicit, rank, and fund projects that provide economic development opportunities or infrastructure within the geographic boundaries of Hardee County, and to otherwise maximize the use of Federal, local, and private resources as provided by Section 211.3103(6), Florida Statutes, and for its administrative and other costs as further provided in law.

The audit disclosed that the IDA could improve controls in areas such as: (1) grant issuance and monitoring; (2) financial reporting and administration; and (3) construction administration. The audit also disclosed that the EDA did not ensure that grant reimbursement requests for two grants were adequately supported and only included expenditures related to the applicable project, and that the HBCC financial statements did not include the IDA as a component unit, contrary to governmental accounting and financial reporting standards.

Delray Beach Community Redevelopment Agency. This operational audit disclosed that the Delray Beach Community Redevelopment Agency (DCRA) needed internal control improvements related to: (1) compliance with the Community Redevelopment Act regarding expenditures for promotional activities and funding provided to nonprofit organizations for promotional and socially beneficial programs, payments to the City for services provided and property leases, and the disposition of unexpended DCRA trust fund moneys at year-end; (2) the administration of grants and funding; (3) fraud and ethics controls; (4) budgetary controls; (5) cash controls and administration; (6) procurement of goods and services; (7) acquisition of real property; (8) contractual services; and (9) travel expenditures.

Water Management District. We performed an operational audit of the St. Johns River Water Management District (District) and reported that the District should pursue improvements in: (1) general management controls and fraud policies; (2) the payment of leave to terminating employees in accordance with law; (3) the competitive procurement of construction contractors and the administration of construction change orders; (4) written policies, inventory systems, and work order systems related to motor vehicles owned by the District; and (5) calculating the taxable value of employees’ personal use of District vehicles.



Other Audits

Florida Clerks of Court Operations Corporation. We conducted an operational audit of the Florida Clerks of Court Operations Corporation (CCOC) that disclosed the following: 1) incompatible duties were performed by the Executive Assistant, resulting in an increased risk that errors or fraud could occur without timely detection; 2) controls over the use of purchasing cards and processing of travel vouchers needed improvement; 3) controls over tangible personal property needed improvement; 4) property insurance coverage had lapsed for nearly three years; 5) task assignments and contract deliverables agreed to between the CCOC and contractors were not always documented in writing; 6) the CCOC’s methodology for calculating the clerks’ allocable share of State appropriations was not consistent with the requirements in law; 7) efforts to ensure clerks submit performance measures reports in a timely manner needed to be enhanced; and 8) fluctuations in assessment and collection data reported by the clerks could be better monitored and evaluated by enhancing review techniques.

During the 2013 Legislative session, the Legislature passed Chapter 2013-44, Laws of Florida, which significantly changed the operations of both the CCOC and the clerks. The effect of this legislation on our audit findings is discussed in our operational report, as applicable.

Rules of the Auditor General

To promote audit quality, the Auditor General promulgates rules in conjunction with the Florida Board of Accountancy and provides technical assistance to local educational entities, local governments, nonprofit and for-profit organizations, and CPAs. These Rules (Chapters 10.550, 10.650, 10.700, 10.800, and 10.850) are updated annually and are readily accessible from the Auditor General Web site. The Auditor General also provides guidelines for reviewing audit reports of charter schools, charter technical career centers, school districts, and local governments. Additionally, the Auditor General provides technical assistance to the Department of Education with respect to its compliance supplement for financial audits of school districts.

Reviews of Audit Reports

Section 11.45(7)(b), Florida Statutes, requires the Auditor General to review all audit reports submitted pursuant to Section 218.39, Florida Statutes. Section 218.39, Florida Statutes, requires that for each year that the Auditor General does not conduct a financial audit of a charter school, charter technical career center, school district, county, and certain municipalities and special districts, the entity shall provide for an annual financial audit conducted by private sector certified public accountants (CPAs) and submit a copy of the audit report to the Auditor General. We review the audit reports prepared by the CPAs to determine whether:

The auditors’ reports comply with Government Auditing Standards and Rules of the Auditor General; The accompanying financial statements comply with generally accepted accounting principles; and The audit reports were prepared by independent CPAs properly licensed by the Florida Board of

Accountancy.



Additionally, Section 215.97(11)(f), Florida Statutes, requires the Auditor General to perform ongoing reviews of a sample of financial reporting packages filed pursuant to Section 215.97, Florida Statutes (the Florida Single Audit Act), to determine compliance with the reporting requirements of the act and applicable Rules of the Department of Financial Services and Rules of the Auditor General.

Significant Financial Trends and Findings. In conjunction with our review of the audit reports, we also compile and transmit to the Legislature summaries of significant financial trends and findings identified in audit reports of school districts, charter schools, charter technical career centers, and local governments.

Other Activities

Required Notifications. We are required by law to notify the Legislative Auditing Committee of any charter school, charter technical career center, school district, State university, State college, or local government, as applicable, that:

Failed to comply with the Section 218.39, Florida Statutes, audit requirements;5 Failed to take full corrective action in response to a recommendation included in a financial audit

report that was also included in the two preceding financial audit reports;6 Failed to provide significant items omitted from audit reports submitted to us; Failed to provide evidence of corrective action taken for noncompliance with Section 218.415,

Florida Statutes, as noted by independent CPAs; Failed to comply with transparency requirements; Met one or more of the conditions specified in Section 218.503(1), Florida Statutes.7

Quality Assessment Reviews. Pursuant to Section 11.45(2)(i), Florida Statutes, the Auditor General conducts quality assessment reviews of the State agencies’ Offices of Inspector General (OIGs) internal audit activities. We released reports on 12 OIGs, which disclosed that the quality assurance program related to 11 of the 12 OIGs’ internal audit activities, as designed and implemented during the applicable review periods, provided reasonable assurance of conformance to applicable professional auditing standards. For the OIG of the Department of Environmental Protection, the internal audit activities did not document compliance with all applicable professional auditing standards for one financial audit. Also, for the OIG of the Board of Governors, we noted that, while not material to overall conformance to professional standards, the Board of Governors’ internal audit activity can better ensure that OIG personnel maintain and enhance their professional proficiency and technical competence by requiring and maintaining records of appropriate continuing professional development. Additionally, we noted that 11 of the 12 OIGs generally complied with those provisions of Section 20.055, Florida Statutes, governing the operation of OIGs’ internal audit activities. However, we noted that, in some instances, the Board of

5 For special districts, we are also required to notify the Department of Economic Opportunity. 6 For State universities and State colleges, this requirement applies to both financial and operational audits conducted pursuant to Section 11.45, Florida Statutes. 7 For charter schools, charter technical career centers, and school districts, we are also required to notify the Commissioner of Education. For local governments, we are also required to notify the Governor.



Governors and its OIG did not demonstrate such compliance. Specifically, we noted that to enhance statutory compliance, the Board of Governors’ management and the Inspector General should address matters related to the conduct of audits and preparation of audit reports; maintenance of an appropriate balance between audit, investigative, and other accountability activities; educational credentials; and the development of a long-term audit plan based on periodic risk assessments.

Professional Activities. To help accomplish our Professional Services Goal, we communicate and work with professional associations to improve governmental accounting, auditing, and financial reporting and to promote the efficient use of government resources. The Auditor General serves on the United States Comptroller General’s Advisory Council on Government Auditing Standards. Additionally, staff of the Auditor General participated in National and State standards-setting processes and served as members of various National, State, and local professional organization boards and committees.

A listing of audit reports and reports on other accountability activities released during the period November 1, 2012, through October 31, 2013, is included in Exhibit A of this Annual Report.


Exhibit A

As additional information, we have included four exhibits that are listed and described below:

Exhibit A – Reports Released During the Period November 1, 2012, Through October 31, 2013

The Reports Released During the Period November 1, 2012, through October 31, 2013, Exhibit lists each report issued. Report information is provided generally by entity type (State Government; Educational Entities, including School Districts, State Universities, and State Colleges) or by other activity.

Exhibit B – Reports Released or Scheduled to be Released Subsequent to October 31, 2013, and Before March 31, 2014

The Reports Released or Scheduled to be Released Subsequent to October 31, 2013, and Before March 31, 2014, Exhibit provides information on audit activities completed or in progress subsequent to the October 31, 2013, cutoff date for this Annual Report. Reports are posted to our Web site www.myflorida.com/audgen/ as the reports are issued.

Exhibit C – Projected Work Plan for 2014-15 and 2015-16

The Projected Work Plan for 2014-15 and 2015-16 Exhibit represents our projected two-year work plan for the 2014-15 and 2015-16 fiscal years based on our analyses as of November 26, 2013. Modifications to the work plan may be made in response to law changes, legislative requests, or other considerations. For information on our methodology for establishing our work plan, see pages 9 through 11.

Exhibit D – Auditor General Contact Information

The Auditor General Contact Information Exhibit includes the names and telephone numbers of Auditor General management and the areas of reporting responsibility. Contact information may also be located in each audit report. Additionally, this Exhibit provides information on how copies of audit reports may be obtained.



Exhibit A

Reports Released During the Period


Report Number Audited Entity and Report Title

Report Release

Date State Government

2013-052 Agency for Enterprise Information Technology - Operational Audit 12/10/2012 2014-001 Agency for Health Care Administration - Prior Audit Follow-up - Operational Audit 07/09/2013 2014-016 Department of Children and Families - Independent Living Transition Services, Foster

Care Licensing, and Provider Performance Measures - Operational Audit 10/03/2013

2014-004 Department of Citrus - Contract Management and Other Administrative Matters - Operational Audit

08/08/2013

2013-074 Department of Corrections - Oversight of Security Operations and Prior Audit Follow-Up - Operational Audit

01/03/2013

2013-107 Department of Economic Opportunity - Reemployment Assistance Program - Information Technology Operational Audit

02/25/2013

2014-020 Department of Financial Services - Division of Risk Management - State Employee Workers’ Compensation - Operational Audit

10/10/2013

2013-078 Department of Financial Services - Florida Accounting Information Resource Subsystem (FLAIR) - Information Technology Operational Audit

01/10/2013

2014-033 Department of Financial Services - Florida Accounting Information Resource Subsystem (FLAIR) - Information Technology Operational Audit

10/31/2013

2014-014 Department of Health - Central Pharmacy, Selected Administrative Activities, and Prior Audit Follow-Up - Operational Audit

09/26/2013

2014-025 Department of Health - Florida Biomedical Research Program - Operational Audit 10/14/2013 2014-015 Department of Juvenile Justice - Juvenile Justice Information System and Selected

Administrative Activities - Operational Audit 10/03/2013

2013-123 Department of Legal Affairs - Victim Services, Legal Services Rates, and Follow-up on Prior Audit Findings - Operational Audit

03/08/2013

2013-042 Department of Management Services - Division of Retirement - Integrated Retirement Information System (IRIS) - Information Technology Operational Audit

11/27/2012

2013-090 Department of Management Services - Lease Management, Cost Allocations, and Prior Audit Follow-Up - Operational Audit

02/04/2013

2014-030 Department of Management Services - Monitoring of Local Government Retirement Plans and the MyFloridaMarketPlace Contract - Operational Audit

10/22/2013

2013-034 Department of Revenue - Administration of Ad Valorem Tax Program - Performance Audit

11/08/2012

2013-089 Department of the Lottery - Financial Audit 01/30/2013 2013-066 Department of Transportation - Commission for the Transportation Disadvantaged,

Public-Private Partnerships, Loans to Expressway and Bridge Authorities, and Purchasing Cards - Operational Audit

12/19/2012

2014-007 Department of Veterans' Affairs - Operational Audit 08/15/2013 2013-047 Florida Housing Finance Corporation - Audit Performed Pursuant to Chapter 2012-127,

Laws of Florida 11/30/2012

2013-182 Northwood Shared Resource Center - Data Center Operations - Information Technology Operational Audit

05/22/2013

2013-087 Office of Early Learning and Selected Early Learning Coalitions - Follow-Up on Prior Audit Findings - Operational Audit

01/28/2013


Exhibit A




Report Release

Date State Government - Continued

2014-009 Office of Insurance Regulation - Operational Audit 08/30/2013 2013-033 Parole Commission - Restoration of Civil Rights, Information Technology Controls, Payroll

and General Expenditure Processes, and Prior Audit Follow-Up - Operational Audit 11/06/2012

2014-005 Primary Data Centers Cost Allocation Processes - Operational Audit 08/12/2013 2013-133 Public Assistance Eligibility Determination Processes at Selected State Agencies -

Operational Audit 03/14/2013

2013-082 Public Service Commission - Selected Administrative Issues - Operational Audit 01/22/2013 2013-095 State Board of Administration - Fund B Surplus Funds Trust Fund - Operational Audit 02/07/2013 2013-092 State Board of Administration - Local Government Surplus Funds Trust Fund (An External

Investment Pool) - Financial Audit 02/06/2013

2013-180 State Board of Administration - Selected Financial Systems - Information Technology Operational Audit

05/21/2013

2013-161 State of Florida – Compliance and Internal Controls Over Financial Reporting and Federal Awards (1)

03/28/2013

School Districts 2013-126 Alachua County District School Board - Financial, Operational, and Federal Single Audit 03/11/2013 2013-079 Baker County District School Board - Financial, Operational, and Federal Single Audit 01/15/2013 2013-084 Bradford County District School Board - Financial, Operational, and Federal Single Audit 01/23/2013 2013-135 Brevard County District School Board - Operational Audit 03/15/2013 2013-160 Broward County District School Board - Financial, Operational, and Federal Single Audit 03/26/2013 2013-077 Calhoun County District School Board - Financial, Operational, and Federal Single Audit 01/09/2013 2013-164 Citrus County District School Board - Financial, Operational, and Federal Single Audit 03/27/2013 2013-156 Clay County District School Board - Financial, Operational, and Federal Single Audit 03/25/2013 2013-053 Collier County District School Board - Financial, Operational, and Federal Single Audit 12/11/2012 2013-136 Columbia County District School Board - Financial, Operational, and Federal Single Audit 03/15/2013 2013-158 DeSoto County District School Board - Financial, Operational, and Federal Single Audit 03/26/2013 2013-115 Dixie County District School Board - Financial, Operational, and Federal Single Audit 03/05/2013 2013-142 Flagler County District School Board - Financial, Operational, and Federal Single Audit 03/19/2013 2013-159 Franklin County District School Board - Financial, Operational, and Federal Single Audit 03/26/2013 2013-167 Gadsden County District School Board - Financial, Operational, and Federal Single Audit 03/28/2013 2013-099 Gilchrist County District School Board - Financial, Operational, and Federal Single Audit 02/12/2013 2013-127 Glades County District School Board - Financial, Operational, and Federal Single Audit 03/11/2013 2013-048 Gulf County District School Board - Financial, Operational, and Federal Single Audit 12/03/2012 2013-147 Hamilton County District School Board - Financial, Operational, and Federal Single Audit 03/21/2013 2013-165 Hardee County District School Board - Financial, Operational, and Federal Single Audit 03/27/2013 2013-131 Hendry County District School Board - Financial, Operational, and Federal Single Audit 03/13/2013 2013-083 Hernando County District School Board - Comprehensive Annual Financial Report and

Federal Single Audit 01/24/2013

(1) Our independent auditor’s report on the State of Florida’s financial statements was published in the State’s 2012

Comprehensive Annual Financial Report.


Exhibit A




Report Release

Date School Districts - Continued

2013-044 Hernando County District School Board - Operational Audit 11/28/2012 2013-168 Highlands County District School Board - Financial, Operational, and Federal Single Audit 03/28/2013 2013-132 Holmes County District School Board - Financial, Operational, and Federal Single Audit 03/14/2013 2013-055 Indian River County District School Board - Comprehensive Annual Financial Report and


2013-050 Indian River County District School Board - Operational Audit 12/04/2012 2013-130 Jackson County District School Board - Financial, Operational, and Federal Single Audit 03/13/2013 2013-154 Jefferson County District School Board - Financial, Operational, and Federal Single Audit 03/22/2013 2013-096 Lafayette County District School Board - Financial, Operational, and Federal Single Audit 02/11/2013 2013-141 Levy County District School Board - Financial, Operational, and Federal Single Audit 03/19/2013 2013-146 Liberty County District School Board - Financial, Operational, and Federal Single Audit 03/20/2013 2013-140 Madison County District School Board - Financial, Operational, and Federal Single Audit 03/19/2013 2013-046 Martin County District School Board - Comprehensive Annual Financial Report and


2013-040 Martin County District School Board - Operational Audit 11/26/2012 2013-108 Miami-Dade County District School Board - Operational Audit 02/27/2013 2013-170 Monroe County District School Board - Financial, Operational, and Federal Single Audit 03/29/2013 2013-150 Nassau County District School Board - Financial, Operational, and Federal Single Audit 03/21/2013 2013-121 Okaloosa County District School Board - Financial, Operational, and Federal Single Audit 03/06/2013 2013-148 Okeechobee County District School Board - Financial, Operational, and Federal Single

Audit 03/21/2013

2013-073 Polk County District School Board - Comprehensive Annual Financial Report and Federal Single Audit

01/07/2013

2013-071 Polk County District School Board - Operational Audit 12/20/2012 2013-166 Putnam County District School Board - Financial, Operational, and Federal Single Audit 03/28/2013 2013-070 Sarasota County District School Board - Comprehensive Annual Financial Report and


2013-068 Sarasota County District School Board - Operational Audit 12/19/2012 2013-171 St. Lucie County District School Board - Financial, Operational, and Federal Single Audit 03/29/2013 2013-109 Sumter County District School Board - Financial, Operational, and Federal Single Audit 02/28/2013 2013-119 Suwannee County District School Board - Financial, Operational, and Federal Single Audit 03/06/2013 2013-129 Taylor County District School Board - Financial, Operational, and Federal Single Audit 03/12/2013 2013-162 Union County District School Board - Financial, Operational, and Federal Single Audit 03/27/2013 2013-049 Volusia County District School Board - Comprehensive Annual Financial Report and


2013-039 Volusia County District School Board - Operational Audit 11/20/2012 2013-169 Wakulla County District School Board - Financial, Operational, and Federal Single Audit 03/28/2013 2013-137 Walton County District School Board - Financial, Operational, and Federal Single Audit 03/18/2013 2013-120 Washington County District School Board - Financial, Operational, and Federal Single

Audit 03/06/2013

Other Educational Entities and Programs 2014-006 The Florida School for the Deaf and the Blind - Operational Audit 08/15/2013 2013-094 Virtual Instruction Programs - Operational Audit 02/07/2013


Exhibit A




Report Release

Date Florida Education Finance Program

2013-175 Bay County District School Board - Florida Education Finance Program 04/17/2013 2013-091 Citrus County District School Board - Florida Education Finance Program 02/05/2013 2014-003 Clay County District School Board - Florida Education Finance Program 08/05/2013 2013-176 Columbia County District School Board - Florida Education Finance Program 04/23/2013 2013-189 Hardee County District School Board - Florida Education Finance Program 06/24/2013 2014-011 Highlands County District School Board - Florida Education Finance Program 09/20/2013 2013-179 Indian River County District School Board - Florida Education Finance Program 05/20/2013 2014-029 Lake County District School Board - Florida Education Finance Program 10/21/2013 2014-021 Madison County District School Board - Florida Education Finance Program 10/10/2013 2013-190 Martin County District School Board - Florida Education Finance Program 06/28/2013 2013-177 Monroe County District School Board - Florida Education Finance Program 05/10/2013 2014-018 Nassau County District School Board - Florida Education Finance Program 10/08/2013 2013-117 Okaloosa County District School Board - Florida Education Finance Program 03/05/2013 2013-181 Okeechobee County District School Board - Florida Education Finance Program 05/22/2013 2013-183 Palm Beach County District School Board - Florida Education Finance Program 05/24/2013 2013-185 Pinellas County District School Board - Florida Education Finance Program 05/29/2013 2013-163 Putnam County District School - Florida Education Finance Program 03/27/2013 2013-174 Santa Rosa County District School Board - Florida Education Finance Program 04/16/2013 2013-186 Seminole County District School Board - Florida Education Finance Program 06/19/2013 2013-178 St. Lucie County District School Board - Florida Education Finance Program 05/16/2013 2013-173 Sumter County District School Board - Florida Education Finance Program 04/15/2013 2013-086 Suwannee County District School Board - Florida Education Finance Program 01/28/2013 2013-184 Wakulla County District School Board - Florida Education Finance Program 05/24/2013 2013-110 Washington County District School Board - Florida Education Finance Program 02/27/2013

State Universities 2013-149 Florida Agricultural and Mechanical University - Financial Audit 03/21/2013 2013-103 Florida Agricultural and Mechanical University - Operational Audit 02/19/2013 2013-037 Florida Atlantic University - Financial Audit 11/19/2012 2013-124 Florida Gulf Coast University - Financial Audit 03/08/2013 2014-027 Florida Gulf Coast University - Operational Audit 10/16/2013 2013-116 Florida International University - Financial Audit 03/05/2013 2013-072 Florida State University - Financial Audit 12/21/2012 2013-100 New College of Florida - Financial Audit 02/12/2013 2013-098 University of Central Florida - Financial Audit 02/12/2013 2013-051 University of Central Florida - Operational Audit 12/07/2012 2013-063 University of Florida - Financial Audit 12/19/2012 2013-139 University of North Florida - Financial Audit 03/18/2013 2013-113 University of South Florida - Financial Audit 03/04/2013 2013-101 University of West Florida - Financial Audit 02/13/2013

State Colleges 2013-088 Broward College - Financial Audit 01/29/2013 2013-112 Chipola College - Financial Audit 02/28/2013 2013-138 College of Central Florida - Financial Audit 03/18/2013 2013-054 College of Central Florida - Operational Audit 12/13/2012 2013-080 Daytona State College - Financial Audit 01/22/2013


Exhibit A




Report Release

Date State Colleges - Continued

2014-026 Daytona State College - Operational Audit 10/15/2013 2013-152 Edison State College - Financial Audit 03/22/2013 2014-012 Edison State College - Operational Audit 09/23/2013 2013-134 Florida Gateway College - Financial Audit 03/15/2013 2013-151 Florida Keys Community College - Financial Audit 03/22/2013 2013-125 Florida State College at Jacksonville - Financial Audit 03/08/2013 2013-076 Gulf Coast State College - Financial Audit 01/08/2013 2013-157 Hillsborough Community College - Financial Audit 03/26/2013 2014-034 Hillsborough Community College - Operational Audit 10/31/2013 2013-032 Indian River State College - Financial Audit 11/06/2012 2013-104 Lake-Sumter Community College - Financial Audit 02/21/2013 2013-041 Lake-Sumter Community College - Operational Audit 11/27/2012 2014-024 Lake-Sumter State College - Financial Audit 10/11/2013 2013-155 Miami Dade College - Financial Audit 03/25/2013 2013-075 Miami Dade College - Operational Audit 01/08/2013 2013-145 North Florida Community College - Financial Audit 03/20/2013 2014-028 North Florida Community College - Financial Audit 10/16/2013 2013-043 North Florida Community College - Operational Audit 11/28/2012 2013-081 Northwest Florida State College - Financial Audit 01/22/2013 2013-106 Palm Beach State College - Financial Audit 02/22/2013 2013-036 Palm Beach State College - Operational Audit 11/16/2012 2013-105 Pasco-Hernando Community College - Financial Audit 02/21/2013 2013-118 Pensacola State College - Financial Audit 03/06/2013 2013-153 Polk State College - Financial Audit 03/22/2013 2013-038 Polk State College - Operational Audit 11/20/2012 2013-143 Santa Fe College - Financial Audit 03/20/2013 2013-045 Seminole State College of Florida - Financial Audit 11/28/2012 2014-022 Seminole State College of Florida - Operational Audit 10/11/2013 2013-122 South Florida Community College - Financial Audit 03/07/2013 2014-032 South Florida State College - Financial Audit 10/28/2013 2014-010 South Florida State College - Operational Audit 09/19/2013 2013-097 St. Johns River State College - Financial Audit 02/12/2013 2013-114 St. Petersburg College - Financial Audit 03/05/2013 2013-144 State College of Florida, Manatee-Sarasota - Financial Audit 03/20/2013 2013-064 State College of Florida, Manatee-Sarasota - Operational Audit 12/18/2012 2013-128 Tallahassee Community College - Financial Audit 03/12/2013 2013-111 Valencia College - Financial Audit 02/28/2013 2014-017 Valencia College - Financial Audit 10/04/2013 2013-035 Valencia College - Operational Audit 11/09/2012

Other Audits and Accountability Activities 2013-062 Agency for Health Care Administration - Office of Inspector General’s Internal Audit

Activity - Quality Assessment Review 12/18/2012

2013-188 Board of Governors - Office of Inspector General's Internal Audit Activity - Quality Assessment Review

06/25/2013

2013-093 City of Hollywood and Hollywood Community Redevelopment Agency - Operational Audit 02/07/2013


Exhibit A




Report Release

Date Other Audits and Accountability Activities - Continued

2014-013 Delray Beach Community Redevelopment Agency - Operational Audit 09/23/2013 2013-069 Department of Agriculture & Consumer Services - Office of Inspector General's Internal

Audit Activity - Quality Assessment Review 12/19/2012

2013-057 Department of Business and Professional Regulation - Office of Inspector General's Internal Audit Activity - Quality Assessment Review

12/17/2012

2013-056 Department of Elder Affairs - Office of Inspector General's Internal Audit Activity - Quality Assessment Review

12/17/2012

2013-172 Department of Environmental Protection - Office of Inspector General's Internal Audit Activity - Quality Assessment Review

04/12/2013

2013-058 Department of Legal Affairs - Office of Inspector General's Internal Audit Activity - Quality Assessment Review

12/17/2012

2013-059 Department of Management Services - Office of Inspector General’s Internal Audit Activity - Quality Assessment Review

12/17/2012

2013-060 Department of the Lottery - Office of Inspector General’s Internal Audit Activity - Quality Assessment Review

12/17/2012

2013-061 Department of Transportation - Office of Inspector General’s Internal Audit Activity - Quality Assessment Review

12/18/2012

2013-102 Economic Development Activities Administered by the Hardee County Industrial Development Authority, Hardee County Economic Development Authority, and Hardee County Board of County Commissioners, and Other Administrative Matters – Operational Audit

02/14/2013

2014-008 Florida Clerks of Court Operations Corporation - Operational Audit 08/21/2013 2013-067 Office of Financial Regulation - Office of Inspector General's Internal Audit Activity -

Quality Assessment Review 12/19/2012

2013-065 Office of Insurance Regulation - Office of Inspector General's Internal Audit Activity - Quality Assessment Review

12/18/2012

2013-085 Okaloosa County Board of County Commissioners' Oversight of the Tourist Development Council and Use of Tourist Development Taxes and Funds Received from British Petroleum - Operational Audit

01/23/2013

2014-002 Report on Significant Financial Trends and Findings Identified in Charter School and Charter Technical Career Center 2011-12 Fiscal Year Audit Reports

08/05/2013

2014-023 Report on Significant Financial Trends and Findings in 2011-12 Fiscal Year Audits of District School Boards

10/11/2013

2013-187 Review of Charter, School, Charter Technical Career Center, and District School Boards 2011-12 Fiscal Year Audit Reports Prepared by Independent Certified Public Accountants

06/21/2013

2014-031 Review of Nonprofit, For-Profit, and Other Entity Audit Reports Prepared By Independent Certified Public Accountants Pursuant to The Florida Single Audit Act For Fiscal Years Ended October 31, 2011, Through September 30, 2012 - Operational Audit

10/23/2013

2014-019 St. Johns River Water Management District - Operational Audit 10/10/2013


Exhibit B

Reports Released or Scheduled to Be Released Subsequent to October 31, 2013, and Before March 31, 2014

State Government Audit Entity Scope/Areas of Operations

Agency for Health Care Administration Health Care Facility Licensing Function Selected Administrative Issues and Prior Audit Follow-Up

Agency for Persons with Disabilities iBudget Florida and Prior Audit Follow-Up Department of Children and Families Domestic Violence Program and Telework Management

Florida Safe Families Network – Information Technology Inspector General – Internal Audit Quality Assessment Review

Department of Corrections Inspector General – Internal Audit Quality Assessment Review Selected Administrative Activities and Prior Audit Follow-Up

Department of Economic Opportunity Selected Administrative Activities and Prior Audit Follow-Up Department of Education Class Size Reduction, Information Technology Controls, and Prior Audit

Follow-Up Department of Environmental Protection Beach Erosion Control Program Department of Financial Services Division of Public Assistance Fraud

Unclaimed Property – Information Technology Department of Highway Safety and Motor Vehicles Selected Administrative Activities and Prior Audit Follow-Up Department of Law Enforcement Firearm Purchase Program Department of the Lottery Financial Statements and Related Reports

Selected Administrative Activities and Prior Audit Follow-Up Department of State Inspector General – Internal Audit Quality Assessment Review

Voting System Administration and Prior Audit Follow-Up Department of Transportation Electronic Estimate Disbursement System – Information Technology Division of Emergency Management Disaster Resource Management and Prior Audit Follow-Up Executive Office of the Governor State Budgetary Processes

Inspector General – Internal Audit Quality Assessment Review Fish and Wildlife Conservation Commission Inspector General – Internal Audit Quality Assessment Review Multi – Agency Payroll and Personnel Processes

Procurement and Expenditures State Board of Administration Local Government Surplus Funds Trust Fund – Financial Statements State Courts System Inspector General – Internal Audit Quality Assessment Review State of Florida Financial Statements and Federal Awards Southwood Shared Resource Center Data Center Operations – Information Technology

Educational Entities Audit Entity Scope/Areas of Operations

Florida Bright Futures Scholarship Program Selected Areas of Operation Florida Education Finance Program - Selected District School Boards and Other Entities

Compliance with Reporting Requirements

Florida Virtual Campus Financial Statements Florida Virtual School Selected Areas of Operation Selected School Districts Financial, Federal Awards, and Selected Areas of Operations State Colleges Financial and Selected Areas of Operations State Universities Financial and Selected Areas of Operations

Other Audit Entity Scope/Areas of Operations

City of Hampton Selected Areas of Operation City of Starke Selected Areas of Operation County Value Adjustment Boards Selected Areas of Operation Florida Housing Finance Corporation Inspector General – Internal Audit Quality Assessment Review Islamorada, Village of Islands Follow-Up on Report No. 2012-169 Local Governments Audit Report Reviews

Significant Financial Trends and Findings


Exhibit B

Reports Released or Scheduled to Be Released Subsequent to October 31, 2013, and Before March 31, 2014

Other (Continued) Audit Entity Scope/Areas of Operations

Okaloosa County Board of County Commissioners and Clerk of the Circuit Court

Selected Areas of Operation

South Florida Water Management District Selected Areas of Operation South Florida Workforce Investment Board Selected Areas of Operation Southwest Florida Water Management District Selected Areas of Operation Sunshine Water Control District Selected Areas of Operation Suwannee River Water Management District Selected Areas of Operation


Exhibit C

Audits (FYE 6-30-2014): Financial • Department of the Lottery • Florida Virtual Campus • Local Government Surplus Funds Trust Fund • School Districts, including Federal Awards Audits (47) • State Colleges (28) • State Universities (12) • State of Florida Reporting Entity, including Federal Awards

and Performance Audits: Operational• Agency for Health Care Administration • Department of Agriculture and Consumer Services • Department of Business and Professional Regulation • Department of Children and Families • Department of Corrections • Department of Economic Opportunity CONNECT Information Technology Audit • Department of Elder Affairs • Department of Health • Department of Management Services • Department of Military Affairs • Department of Revenue • Department of Transportation • Fish and Wildlife Conservation Commission • Florida Accounting and Information Resource Subsystem (FLAIR) Information Technology Audit • FLORIDA System Information Technology Audit • Florida Virtual Campus

• Follow-Up of Local Government Entity Audits Pursuant to Section 11.45(2)(j), Florida Statutes • Information Technology Audits of Selected Major Systems • Judicial-Related Agencies • Local Government Financial Reporting System • Northwest Florida Water Management District • Northwest Regional Data Center Information Technology Audit

• Office of Early Learning • Primary Data Centers Cost Allocation Processes • School Districts (49) • Selected Virtual Education Providers • State Board of Administration • State Colleges (13) • State Universities (4)


Exhibit C

FEFP Examinations (FYE 6-30-2014): • School Districts and Selected State University-Affiliated Developmental Research Schools (26)

Accountability Activities: Other• Annual Reviews of Audit Reports of Charter Schools, Charter Technical Career Centers, School Districts,

Local Governments, and Certain Nonprofit and For-Profit Entities• Compilations of Summary of Significant Financial Trends and Findings• Offices of Inspector General Quality Assessment Reviews of Internal Audit Activity (13) • Per Diem Cost Certifications Upon Department of Management Services or Department of Corrections

Request • Technical Advice and Rule and Guideline Maintenance


Exhibit C

Audits (FYE 6-30-2015): Financial

• Department of the Lottery • Florida Virtual Campus • Local Government Surplus Funds Trust Fund • School Districts, including Federal Awards Audits (47) • State Colleges (28) • State Universities (12) • State of Florida Reporting Entity, including Federal Awards

and Performance Audits: Operational• Agency for Health Care Administration • Agency for Persons with Disabilities • Citizens Property Insurance Corporation • Department of Children and Families • Department of Corrections • Department of Economic Opportunity • Department of Economic Opportunity CONNECT Information Technology Audit • Department of Education • Department of Environmental Protection • Department of Financial Services • Department of Health • Department of Juvenile Justice • Department of Legal Affairs • Department of Lottery • Department of Revenue Ad Valorem Tax Program • Division of Emergency Management • Florida Accounting and Information Resource Subsystem (FLAIR) Information Technology Audit • Florida Board of Governors • Florida Clerks of Court Operations Corporation • Florida School for the Deaf and the Blind • FLORIDA System Information Technology Audit

• Follow-Up of Local Government Entity Audits Pursuant to Section 11.45(2)(j), Florida Statutes • Information Technology Audits of Selected Major Systems • Judicial-Related Agencies • Northwood Shared Resource Center Information Technology Audit • Office of Financial Regulation • Parole Commission • Primary Data Centers Cost Allocation Processes • Public Service Commission • St. Johns Water Management District

• School Districts (47) • Selected Virtual Education Providers


Exhibit C

and Performance Audits (Continued): Operational

• South Florida Water Management District • Southwood Shared Resource Center Information Technology Audit

• State Colleges (11) • State Universities (6)

FEFP Examinations (FYE 6-30-2015): • School Districts and Selected State University-Affiliated Developmental Research Schools (25)

Accountability Activities: Other• Annual Reviews of Audit Reports of Charter Schools, Charter Technical Career Centers, School Districts,

Local Governments, and Certain Nonprofit and For-Profit Entities• Compilations of Summary of Significant Financial Trends and Findings• Offices of Inspector General Quality Assessment Reviews of Internal Audit Activity (12) • Per Diem Cost Certifications Upon Department of Management Services or Department of Corrections

Request • Technical Advice and Rule and Guideline Maintenance


Exhibit D

State Government Audits Division

Deputy Auditor General: Sherrill F. Norman, CPA (850) 412-2922 Audit Managers:

Christi V. Alexander, CPA: Agriculture and Consumer Services, Business and Professional Regulation, Economic Opportunity, Education, Management Services, Office of Early Learning, Parole Commission, State (850) 412-2786 Jane H. Flowers, CPA: Governor, Health Care Administration, Legal Affairs, Statewide Federal Audit (850) 412-2757 Lisa A. Norman, CPA: Children and Families, Elder Affairs, Health, Financial Regulation, Financial

Services, Insurance Regulation, Persons with Disabilities (850) 412-2831 Matthew J. Tracy, CPA: Citrus, Military Affairs, Veterans’ Affairs (850) 412-2749 David R. Vick, CPA: Corrections, Emergency Management, Environmental Protection, Fish and

Wildlife Conservation Commission, Highway Safety and Motor Vehicles, Juvenile Justice, Law Enforcement, Public Service Commission,

Transportation (850) 412-2817 Kathryn D. Walker, CPA: Citizens Property Insurance Corporation, Lottery, Revenue,

State Board of Administration, Statewide Financial Statement Audit (850) 412-2781

Educational Entities and Local Government Audits Division

Deputy Auditor General: Ted J. Sauerbeck, CPA (850) 412-2889

Audit Managers:

Gregory L. Centers, CPA: District School Boards (850) 412-2863

Marilyn D. Rosetti, CPA: Judicial, Local Government, Real Property, and Charter Schools (850) 412-2881

James R. Stultz, CPA: Colleges and Universities (850) 412-2869

Information Technology Audits Division

Deputy Auditor General: Dorothy R. Gilbert, CPA (850) 412-2921

Audit Managers:

Jennifer D. Gruber, CISM: Information Technology Audit Support (850) 412-3030

Arthur B. Hart, CPA: Information Technology Audits (850) 412-2923

J. David Hughes, CPA: Florida Education Finance Program (850) 412-2971

Auditor General Contact Information

David W. Martin, CPA Phone: (850) 412-2722

Address: G74 Claude Pepper Building 111 West Madison Street Tallahassee, Florida 32399-1450 FAX: (850) 488-6975 E-mail: [email protected]

Web Site: www.myflorida.com/audgen

Reports may be obtained by:

Writing the Auditor General

Calling (850) 412-2722

E-mailing [email protected] or

Visiting our Web site at www.myflorida.com/audgen

(Reports available in downloadable PDFformat.)


mailto:[email protected]


mailto:[email protected]


david w. martin, cpa annual report auditor … report 2013.pdfthis annual report provides a summary...

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