Frequently
Asked Questions about Audits
What does the Audit Section do?
The Audit Section examines and evaluates the adequacy and effectiveness of
the Department's internal controls which are necessary to ensure
accountability. The Audit Section also evaluates program compliance and
efficiency. To this end, the Audit Section provides analyses, research,
recommendations, counsel, and information concerning the activities and issues
reviewed.
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Under what authority are audits conducted?
Section 20.055, Florida Statutes governs the Office of Inspector General
and the Internal Audit Section and establishes OIG as the central point for
coordination of and responsibility for activities that promote accountability.
Audits are conducted in accordance with the current professional practice
framework published by the Institute of Internal Auditors, Inc. (IIA). Where
appropriate, the Audit Section adheres to the standards developed by the
Comptroller General of the United States and codified in the Government
Auditing Standards, Generally Accepted Auditing Principles (GAAP), and
Generally Accepted Auditing Standards (GAAS). All audit reports issued by the
Audit Section contain a statement that the audit was conducted pursuant to the
appropriate standards.
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What types of issues do audits address?
Audits primarily address accountability and sometimes efficiency issues.
The key questions auditors try to answer are: 1) are adequate records
maintained, 2) were funds properly spent, and 3) were amounts properly
recorded. Audit projects which conform to all audit standards account for
approximately twenty-five percent of staff time. The majority of staff time is
spent on other projects such as reviews, research, performance measure
assessments, follow-up on unresolved audit findings, and other projects to
assist Department management in improving the Department’s processes.
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How are audits and other projects selected?
The Director of Auditing coordinates the development of an annual audit
plan. The process used identifies the audit universe (Department programs) and
using risk assessment tools selects topics. These topics are included in the
plan and scheduled for audit based on risk prioritization methodology and
audit resources. A long range "strategic" and a one- year plan are included in
the Audit Plan Report. In addition, the Internal Audit Section responds to
requests from Department management at any time.
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Describe the steps used in conducting an audit project.
The audit process involves planning the audit (which includes completing a
risk assessment), conducting the fieldwork, and writing the report. Before a
final audit report is issued internal QA reviews are conducted and an exit
conference is convened to discuss the draft report with program management.
After the exit conference a preliminary report is provided to management which
has 20 working days to submit a written response. The final report includes
management’s response. Reports are prepared and distributed to the Secretary
and appropriate Department management, Office of the Auditor General, and
other interested parties.
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Does the audit section provide services other than audits?
The Audit Section provides a variety of services in addition to audits. One
of the main areas in addition to audits is assessment of performance measures.
Performance measures are reviewed by audit staff to determine whether measure
data reporting is reliable and valid. These assessments are performed in
accordance with the OIG blueprint developed for that purpose. Other projects
include: organizational assessments, customer satisfaction surveys, reviews,
investigation support, research, management advisory services, and review of
annual single audits received by the agency. The Audit Section responds to the
needs of Department management and designs projects accordingly.
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How many audits and other projects are conducted each year?
The Audit Section completes over 200 projects in a year. These projects can
range from an audit requiring 200 hours, or more, of audit time to providing
advise to management that may require only a few hours.
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How large is the audit section?
The OIG Audit Section consists of 14 staff. This includes: eleven auditor
positions and three supervisory positions. Four of these are Other Personnel
Services (OPS) positions dedicated to the petroleum storage tank cleanup
program.
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If DEP program staff receive a single audit report from a local
government or a non profit organization, what should they do with it?
Department program areas receiving single audit reports should perform any
review procedures necessary to ensure grant compliance and then forward the
reports to the Office of Inspector General, Audit section (Mail Station 41).
The Audit Section reviews these reports to ensure compliance with federal and
state requirements. Copies of schedules of State and federal awards will be
provided to grant management for comparison with program financial records.
Significant findings identified in the reports that relate to Department
grants will be reported to program areas for management decision and follow-up
as appropriate.
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How am I notified if my program, contract or grant is going to be
audited by the Audit Section?
Once an audit or review has been initiated by the Audit Section, an
interoffice memorandum (internal subjects) or a letter (external subjects) is
sent to notify the subject or client of the audit engagement. An entrance
conference may be conducted to discuss the scope and objectives of the audit
or review.
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How will I know what the auditors find during the audit?
Prior to the end of fieldwork, the audit staff will conduct a meeting or
other communication to discuss the tentative finding(s) with Department
management responsible for the area. A written synopsis of the tentative
finding(s) may be provided to the subject or client to correct any
misunderstanding of the facts involving the finding(s). Sometimes the client
has additional information that could change the auditor’s perception of a
tentative finding. Questions regarding tentative finding(s) can be resolved
through this process. For those issues that remain unresolved, the auditor
will prepare a draft report of the audit finding(s). A formal exit conference
will be held to discuss the factual accuracy and content of the draft report.
The Audit Section normally relies on program management to obtain information
from the third party (non-state agency, private firm, not-for-profit firm) for
contract or grant audits.
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How can I get more information about the audit process?
Additional information on the audit process can be obtained from DEP
Directive 260. Information can also be obtained by contacting our office.
The Office of Inspector General is located at 3900 Commonwealth Blvd., MS 41
Tallahassee, Florida 32399-3000. Phone 850-245-3151 or Suncome 205-3151
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