SUMMARY
This operational audit of the
BACKGROUND
The
Pursuant to Section 11.45(3)(a), Florida Statutes, we conducted an operational audit of the District for the period
FINDINGS AND RECOMMENDATIONS Finding 1: Land Acquisition
Previously Reported
The District needs to establish policies and procedures to ensure that land acquisitions are made at the best value for the District.
We recommended that the District establish policies and procedures to ensure that land acquisitions are made at the best value for the District. We also recommended that such policies and procedures prohibit individuals with ownership interests in any property being considered for acquisition from participating in the acquisition decision-making process, require documented cost-benefit analyses to evaluate the District's land acquisition options, and require independent site appraisals for consideration before land acquisitions are made.
Results of Follow-Up Procedures
District actions corrected this finding. Our examination of District records disclosed that the Board approved an updated land acquisition policy in
* Prohibits individuals with ownership interests in any property being considered to participate in the acquisition decision-making process.
* Requires an appropriate needs study to support the acquisition and evaluation of the District's land acquisition options, taking into account all lead times and existing facilities and their major components.
* Requires consideration of independent site appraisals before land acquisitions are made.
During the period
Previously Reported
The organizational independence of the District's audit and compliance functions could be improved.
We recommended for the District to enhance the organizational independence of the audit and compliance functions by having the Director of Internal Audit (DIA) and the Chief Compliance Officer (CCO) administratively report to, and be evaluated by, the
Results of Follow-Up Procedures
The District had not corrected this finding. Our examination of District records and discussions with District personnel disclosed that, in
In
The internal audit services contract requires the audit firm to follow International Standards for the Professional Practice of Internal Auditing (IIA Standards) published by
* Did not prohibit District management from canceling the contract.
* Did not require the FAC to be solely responsible for approval of the internal audit services plan and related scope.
In response to our inquiries, the CFO indicated that the FAC is to approve the services plan and that the services plan scope is to be a collaborative effort between District senior management, the audit firm, and the FAC based upon the internal auditor risk assessment. Notwithstanding, by such collaborative efforts, District management could participate in influencing internal audit services and the services did not appear to be organizationally independent of that influence.
In addition, according to the District organization chart, the CCO reports directly to the CEO and indirectly to the QPSCC. While the
In response to our inquiries to determine whether the CCO was organizationally independent of the internal audit and compliance functions, District personnel referenced a Federal publication,4 which indicated that a compliance officer may report directly to the CEO or the Board but should not report to the CFO or legal counsel. Notwithstanding this reference, requiring the CCO to administratively report to the QPSCC would better demonstrate that the CCO is free from interference when determining the scope of compliance monitoring activities, performing the work, and communicating the work results.
Recommendation: The District should:
* Amend the internal audit services contract to require the audit staff to administratively report to, and be evaluated by, the FAC or the Board.
* Amend the internal audit services contract to specify that only the FAC or the Board has the authority to cancel the contract.
- Enhance the organizational independence of the compliance function by requiring the CCO to administratively report to, and be evaluated by, the QPSCC or Board. Finding 3: Procurement Procedures
Previously Reported
District procurement procedures could be enhanced.
We recommended that the District enhance procurement procedures by requiring personnel responsible for making procurement decisions to routinely review and consider the information reported on required statements of financial interests and completed District Conflict of Interest (COI) Forms. In addition, we recommended that the District seek an advisory opinion from the
Results of Follow-Up Procedures
The District partially corrected this finding. Our examination of District records disclosed that the Board revised the COI Policy and Procedure in
Although procurement procedures were enhanced, discussions with District personnel disclosed that the District did not seek an advisory opinion from the COE regarding whether the District violated State law by paying
Notwithstanding, seeking an advisory opinion from the
Recommendation: We continue to recommend that the District seek an advisory opinion from the COE regarding the
Previously Reported
To provide for the full recovery of helicopter air ambulance services costs, the District needs to establish and implement cooperative agreements with other applicable government authorities and public and private entities for helicopter services provided outside of
We recommended that the District establish cooperative agreements with other government authorities and public and private entities outside
Results of Follow-Up Procedures
The District partially corrected this finding. Our review of District records and discussion with District personnel disclosed that, during the period
* One entity signed and returned the agreement, which commenced
* Two entities refused to sign the agreements and responded in writing that they would not accept the financial responsibility for uninsured or underinsured patients.
* Six entities failed to respond in writing and, when subsequently contacted, verbally refused to sign an agreement that financially obligated the entities for unpaid patient costs.
According to District records, during the period
Recommendation: The District should continue efforts to establish cooperative agreements with other government authorities and public and private entities outside
OBJECTIVES,
Pursuant to Section 11.45(3)(a), Florida Statutes, we conducted an operational audit of the
We conducted this follow-up audit from
This audit was designed to identify, for those programs, activities, or functions included within the scope of the follow-up audit, weaknesses in management's internal controls; instances of noncompliance with applicable laws, rules, regulations, contracts, grant agreements, and other guidelines; and instances of inefficient or ineffective operational policies, procedures, or practices. The focus of this audit was to identify problems so that they may be corrected in such a way as to improve government accountability and efficiency and the stewardship of management. Professional judgment has been used in determining significance and audit risk and in selecting the particular transactions, legal compliance matters, records, and controls considered.
As described in more detail below, for those programs, activities, and functions included within the scope of our follow-up audit, our audit work included, but was not limited to, communicating to management and those charged with governance the scope, objectives, timing, overall methodology, and reporting of our audit; obtaining an understanding of the program, activity, or function; exercising professional judgment in considering significance and audit risk in the design and execution of the research, interviews, tests, analyses, and other procedures included in the audit methodology; obtaining reasonable assurance of the overall sufficiency and appropriateness of the evidence gathered in support of our audit findings and conclusions; and reporting on the results of the audit as required by governing laws and auditing standards.
Our audit included transactions, as well as events and conditions, occurring during the audit period
In conducting our audit we:
* Reviewed applicable laws, rules, regulations, contracts, and District policies and procedures, and interviewed District personnel to gain an understanding of the District's processes related to the scope of the audit.
* Reviewed the updated land acquisition policy to determine if the policy:
* Prohibited individuals with ownership interests in any property being considered for acquisition from participating in the acquisition decision-making process.
* Required documented cost-benefit analyses to evaluate the District's land acquisition options.
* Required independent site appraisals for consideration before land acquisitions are made.
* Inquired of the Chief Executive Officer (CEO) and examined the District's meeting minutes for the audit period, and the minutes of selected meetings prior and subsequent to the audit period, to determine if the District purchased or discussed any plans to purchase land since our prior audit.
* Reviewed the
* Interviewed the FAC Chair and evaluated the reasonableness of a cost-benefit analysis and other documentation supporting the District's decision to outsource the internal audit functions.
*
* Examined the CCO's
*
* Determined whether the District sought an advisory opinion from the
*
* Reviewing copies of correspondence sent by the District to nine public and private entities located outside of
* Examining cooperative agreements executed with applicable entities.
* Communicated on an interim basis with applicable officials to ensure the timely resolution of issues involving controls and noncompliance.
* Performed various other auditing procedures, including analytical procedures, as necessary, to accomplish the objectives of the audit.
* Prepared and submitted for management response the findings and recommendations that are included in this report and which describe the matters requiring corrective actions. Management's response is included in this report under the heading MANAGEMENT'S RESPONSE.
AUTHORITY
Pursuant to the provisions of Section 11.45, Florida Statutes, I have directed that this report be prepared to present the results of our follow-up procedures designed to determine the District's progress in addressing the findings and recommendations included in our operational audit of the
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