Summary

The electronic payment (E-Payment) program is an effort by the Department of Financial Services (Department) to provide merchant card processing services, through a single contractor, to allow State agencies and the Judicial branch to receive and process electronic payments from customers or clients doing business with the State.  Effective November 1, 2001, the Department established a standard contract with Bank of America (Bank) to provide a program for the acceptance of credit card, debit card, and other electronic payments.  To participate in the program, State agencies or the Judicial branch execute separate participation agreements with Bank of America based on the standard contract.

 Our audit, for the period February 2003 through June 2003, with selected actions taken from May 2001, focused on the initial goals and objectives of the E-Payment program, its current status, and the level of overall Statewide coordination efforts relating to the implementation of the program.  We also reviewed the effectiveness of selected controls in promoting and encouraging the achievement of management objectives relating to the E-Payment program at the following State agencies:  Department of Financial Services, Department of Environmental Protection, Department of Highway Safety and Motor Vehicles, Department of Health, Fish and Wildlife Conservation Commission, and Agency for Health Care Administration. 

 As described below, deficiencies were noted concerning the E-Payment program.

 Finding No. 1:  A requirement of the contract with Bank of America, providing sufficient general ledger detail to enable State agencies to automatically update State accounting records, had not been made available, as of the end of our field work in June 2003. 

 Finding No. 2:  We noted instances where documentation was not available to demonstrate that the Department and the STO had performed certain E-Payment program oversight duties, as provided in the Bank of America contract and Florida law.

Finding No. 3:  Agencies collecting revenue through electronic means were not exclusively using the merchant card processing services offered by Bank of America.  Other service providers were being used with the approval of the Department.

 Finding No. 4:  Deficiencies were noted in the protection of credit card numbers at the Department of Financial Services, the Department of Environmental Protection, and the Department of Highway Safety and Motor Vehicles.

The written responses to the audit findings and recommendations are included in their entirety in the audit report on the Auditor General web site.