Bureau of Internal Audit

Mission

The mission of the Bureau of Internal Audit is to assist the Secretary and the Department in ensuring that: (1) agency goals are met; (2) all resources are used consistent with laws, regulations, and policies; (3) all resources are safeguarded against waste, loss, and misuse; and (4) reliable data is obtained, maintained, and fully disclosed.

Goals

Our primary purpose is to take a proactive approach in meeting our agency's needs and protecting its resources. Toward that end, we have established four key goals:

• Provide quality audits, reviews, studies, and investigations
• Report results to management in a timely manner
• Use agency resources efficiently; and
• Provide adequate audit coverage to mitigate risks.

Internal Audits

The Bureau conducts financial, compliance, electronic data processing, and performance audits per Section 20.055 Florida Statutes. These audits are conducted in accordance with the current Standards for the Professional Practice of Internal Auditing published by the Institute of Internal Auditors (Red Book).

The Bureau employs nine professional auditors with oversight from the Bureau Chief who functions as the Director of Auditing. Staff includes two Certified Public Accountants, three Certified Internal Auditors, one Certified Information System Auditor, a Certified Inspector General and a Certified Fraud Examiner.

Summary of Audits Completed

During FY 1999-2000, the Financial and Compliance Section completed 15 audits and assisted with financial reviews conducted by the Bureau of State Investigations. The audit reports issued during FY 1999-2000 are summarized in the chart below:

Audit Results

The bureau views its audit mandate as an opportunity not only to identify site-specific deficiencies so that local managers can correct them, but also to ferret out system-wide weaknesses which, when addressed by management and corrected, produce long-term improvements benefiting the entire department. Highlights of system-wide improvements generated by bureau activity during the past fiscal year include the following:

Inmate Telephone Contracts

In Audit #20014, we determined that the Department did not have an effective system to verify the accuracy and completeness of inmate telephone revenue received. We also found that Sprint and MCI had not performed as required by the contract and, if remedies had been strictly enforced by the contract language, Sprint could have been liable to the Department for significant penalties. In addition, the Department's internal controls did not reasonably ensure that all telephone commission checks were properly recorded, safeguarded, and deposited in a timely manner. This, combined with late payments by contractors, cost the State of Florida approximately $43,251 in lost interest revenue.

Management agreed with our findings, and will work to ensure that staff is trained in compliance reporting requirements and enforcement. As part of a new contract with MCI, the Department also is implementing a new process to expedite receipt of telephone commissions. Approximately $17 million in annual commissions will be deposited electronically, generating significant new interest revenues for the State.

Performance Measures

This year the bureau began evaluating employee credentials and unit performance data used by other government audit organizations as a measure of professionalism and productivity. The bureau compared its performance with those of all other governmental audit organizations supplying data, and with a comparable audit organization that serves another large state's department of corrections. Using these measures, the FDC's Bureau of Internal Audit compared favorably with its peers:

• Sixty percent of the FDC auditors have professional certifications, compared to an average of only 46 percent of auditors in other government audit organizations, and 25 percent of auditors in a comparable state corrections internal audit organization.
• FDC auditors had an average of 16.4 years' experience, compared with 19.5 years on average for other government audit organizations, and just 8 years in the comparable corrections audit unit.
• The ratio of auditors to employees at FDC is 1:2767, compared to 1:1308 for other government audit organizations, and 1:1521 in the comparable state corrections audit unit.
• Total agency budget dollars per auditor is higher at FDC ($163 million) than at other government agencies ($135 million) or at the comparable corrections audit unit ($100 million).

Operational Review/Contract Monitoring

During FY 2000-2001, Bureau staff coordinated the agency's Operational Review program under which teams of specialists inspected approximately half of all major prisons and work release centers for compliance with specific agency procedural requirements in areas such as security, technology, inmate programs and health services. As part of ongoing reorganization and cost-reductions, responsibility for the Operational Review program was transferred to regional offices in mid-2001.

In response to recent statewide emphasis on outsourcing major operational functions such as food service and health care, the four bureau staff who previously directed Operational Reviews were given a mandate to implement a new contract monitoring program. This program will be fully implemented during the next fiscal year.

American Correctional Association

The Florida Department of Corrections is an active participant in the American Correctional Association (ACA), a nationally recognized organization which sets standards for operation of correctional facilities. The ACA accreditation program offers an opportunity for the Florida Department of Corrections to evaluate its operations against ACA's national standards, to remedy deficiencies and enhance the quality of correctional programs and services. Within the Florida Department of Corrections, ACA accreditation activities are coordinated by the Bureau of Internal Audit's ACA coordinator. As of June 30, 2001, all of the agency's major institutions, work release centers and community corrections offices were fully accredited. A total of 22 FDC facilities were audited and accredited by the Commission on Accreditation for Corrections during FY 2000-2001.