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Rick Scott, Governor
Florida Department of Corrections, Secretary Michael D. Crews

Florida Department of Corrections
Timothy H. Cannon, Interim Secretary

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Bureau of Internal Audit

Mission

The mission of the Bureau of Internal Audit is to support the Secretary and our Department by ensuring that: (1) agency goals are met; (2) agency resources are used consistent with laws, regulations, and policies; (3) 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 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/review coverage to mitigate risks. .

Bureau Organization and Responsibilities

The Bureau of Internal Audit comprises three sections: Audit, Information Technology and Contract Review. These sections report to the Bureau Chief who functions as the Director of Auditing. The Bureau conducts compliance, performance and information technology audits and contract reviews per Section 20.055 Florida Statutes. Audits are conducted in accordance with the current International Standards for the Professional Practice of Internal Auditing published by the Institute of Internal Auditors.

Compliance/Performance Audit Section
The Audit Section employs an Audit Supervisor and six auditors. Staff includes a Certified Internal Auditor (CIA), a Certified Government Audit Professional (CGAP), and a Certified Fraud Examiner (CFE). During FY 2007-08, the Audit Section completed 12 audits, eight follow-up audits and five reviews. The reports are listed by issue date below:

FY 2007-08 Audit Section
Report Number Project Title Report Issue Date

A07016

Inmate Property at Reception Centers

7/3/2007

R07021

Hendry Tool, Fencing and Arsenal Inventory

7/5/2007

A07007

Key Control and Locking Systems

8/16/2007

A07011

Inmate Random Drug Testing Program

8/16/2007

A08007F

Follow-up of OPPAGA Report Number 07-15

9/6/2007

A08011F

Follow-up of Auditor General Report No. 2007-087

9/6/2007

R06020

Allegations Related to Prison Industries Program

9/20/2007

A08005F

Follow-up of OPPAGA Report Number 07-13

9/20/2007

A08010F

Follow-up of Auditor General Report No. 2007-076

9/20/2007

A08012F

Follow-up of Vending Services Contracts

9/20/2007

A08008F

Follow-up of OPPAGA Report Number 07-16

9/24/2007

A07020

Farm and Edible Crops Program

9/25/2007

A08009F

Follow-up of OPPAGA Report Number 07-17

10/18/2007

A08002

Cellular Phone Costs and Monitoring

11/14/2007

R08017

Wakulla Keefe Canteens

11/16/2007

R08014

Review of Overtime for Circuit 11-1

11/20/2007

R08015

Review of Motor Vehicles Assign and Use

11/28/2007

A08006F

Follow-up of OPPAGA Report Number 07-14

1/15/2008

A08001

DC Purchasing Card Program

1/16/2008

A08004

Procurement – Commodities and Services

2/11/2008

A08003

DC Real Property Lease Program

2/26/2008

A08018

Health Services Performance Measures

4/2/2008

A08013

Specialty Underwriters

5/2/2008

A08019

PRIDE – Accounts Receivable

5/2/2008

A08021

Shisa, Inc. Inmate Bank Accounts

6/30/2008

IT Audit Section
The newly-created Information Technology Section is staffed by an Audit Supervisor who is a Certified Information Systems Auditor (CISA). This section conducts IT audits/reviews and provides technical and analytical support for audits, contract reviews and investigations.

Contract Management Review Section
The Contract Management Review Section (CMR) employs an audit supervisor and two auditors.  Staff includes a Certified Internal Auditor (CIA).  During FY 2007-08, the section completed seven contract reviews and one follow-up.  The reports are summarized below:

FY 2007-08 Contract Management Review Section
Report
Number
Project Title Report
Issue Date

CMR 07-006

Non-Secure Inc. – Pensacola PRC

9/20/2007

CMR 07-007

The Salvation Army – PRC

9/25/2007

CMR 07-010F

Bridges of America – Polk (follow-up)

10/9/2007

CMR 08-001

TCC –100-Hour Transition Program

11/1/2007

CMR 08-002

MHM Solutions

2/11/2008

CMR 08-003

DACCO – Tampa

6/27/2008

CMR 08-004

Bridges of America – Turning Point

6/16/2008

CMR 08-005

Bridges of America – Jacksonville

6/30/2008


Selected Bureau Reports With System-Wide Impact

The Bureau views its audit/contract review mandate as an opportunity to not only identify site specific deficiencies and problems with a statewide impact, but also to identify areas that are well designed and are meeting management's goals. Three of the reports with statewide impact conducted by the Bureau of Internal Audit this fiscal year included:

DC Purchasing Card Audit

We found that purchases made with the purchasing card were for approved purchasing card items and were not for “types” listed on the Departments prohibited merchant category list.  Our audit also indicated that the current purchasing card control environment provides reasonable assurance that the program is operating as intended by management and that internal controls exist that adequately prevent, deter, and detect fraud.  However, we did identify issues involving controls over the closure of purchasing card accounts that need to be addressed by the Office of Administration.

PRIDE – Accounts Receivable Audit

The Bureau of Finance & Accounting has made improvement with regard to the collection of PRIDE accounts receivable.  In our prior audit (Report # A03004 issued February 17, 2003), we found an unpaid balance owed by PRIDE of $816,966.  Sixty-eight percent (68%) of that amount was over six months old.  During the most recent audit we found the unpaid balance as of November 30, 2007 to be $70,465.55.   However, the monitoring and collection efforts by the Bureau of Finance and Accounting and the Bureau of Institutional Support Services with regard to the billing process still need improvement. All of the findings discussed below were control weaknesses noted in our prior audit that still have not been addressed and need management’s attention and action. 

  • Finding 1 - DC failed to identify and invoice all PRIDE facilities.
  • Finding 2 - An individual has not been designated as contract/lease manager responsible for monitoring the PRIDE lease agreements.
  • Finding 3 - The lease agreements do not contain specific language identifying the utilities and other fees to be invoiced to PRIDE.

100-Hour Inmate Transition Program Contract Review

Florida Statue 944.7065 requires the Department provide 100-hours of pre-release transition training to assist inmates with re-entry to the community. The Department contracted with Tallahassee Community College (TCC), at a cost of approximately $1.2 million annually, to assist in meeting this mandate.

Our review found several material weaknesses including:

  • The contractor failed to meet contract staffing requirements
  • The Department failed to provide adequate contract oversight, staff training, and classroom supplies.
  • The Deparment's allocation of funds for this program was inadequate to meet the state mandate.

As a result of the review, management agreed to more effectively monitor the contract and to implement changes designed to improve contractor performance and program quality.