In our opinion, the system of quality control related to the Office of Chief Inspector General and the internal audit function of the Florida Board of Regents was generally adequate to reasonably ensure compliance with professional auditing standards, applicable Office of Chief Inspector General policies and procedures, and specific provisions of Section 20.055, Florida Statutes, as of December 31, 1995. A matter which should be addressed by management is discussed below.

Compliance with Specific Provisions of Section 20.055, Florida Statutes

Contrary to the requirements of Section 20.055(5), Florida Statutes, the Chief Inspector General did not conduct audits of the Board of Regents' Central Office.

Section 20.055(5), Florida Statutes, requires inspectors general to conduct financial, compliance, electronic data processing, and performance audits. However, Board of Regents' Rule 6C-1.014, Florida Administrative Code, indicates that the primary duties of the Chief Inspector General are supportive/administrative in nature. While we do not dispute the necessity of the supportive/administrative duties performed, we do not believe that the performance of those duties relieves the Chief Inspector General of the statutory mandate to conduct audits of the Board of Regents. Accordingly, we recommend that the scope of work of the Chief Inspector General include audits of the Board's Central Office. (See paragraphs 15 through 18.)

The Chancellor's written response to the findings and recommendations included in this report is shown as Exhibit F.