The Florida Accounting Information Resource Subsystem (FLAIR) is the State of Florida’s accounting system.  Pursuant to Florida Law[1]^,[2], FLAIR is a subsystem of the Florida Financial Management Information System and the Department of Financial Services (Department) is the functional owner of FLAIR.  FLAIR’s functions, as provided in Florida law, include accounting and reporting so as to provide timely data for producing financial statements for the State in accordance with generally accepted accounting principles and for auditing and settling claims against the State.

Our audit of FLAIR focused on evaluating selected information technology (IT) functions, applicable to the system during the period July 1, 2004, through June 30, 2005, including selected actions through August 15, 2005, and determining the status of selected prior audit deficiencies.

The results of our audit are summarized below:

Finding No. 1:         A current, comprehensive risk analysis of the Department’s data and information technology resources had not been performed at the Department, as required by Florida law[3].

Finding No. 2:         We noted instances where the Department did not timely remove the access privileges of terminated employees.  The Department also allowed certain unused access privileges to remain active in the system.

Finding No. 3:         We continued to note instances where the Department’s application access policies and procedures for the Departmental Accounting Component needed enhancement.

Finding No. 4:         We noted certain deficiencies in the Department’s security control features and Federal law compliance in addition to the matters described in Findings No. 2 and 3. 

Finding No. 5:         Aspects of the Department’s Continuity of Operations (COOP) plan, which was still under review by the Department of Community Affairs, Division of Emergency Management (DEM), had not been kept current and the plan had not been tested.

Finding No. 6:         As a result of an error correction not being completely applied for certain employees, the year-to-date net pay amount for calendar year 2004 in the FLAIR Payroll Component’s employee year-to-date file was understated, for a total of $443,463.

Finding No. 7:         For purchases initiated in MFMP, FLAIR did not accurately record the date that applicable vouchers were received for pre-auditing by the Department.  This created inaccuracies in a FLAIR report used by the Department to monitor agency compliance with the prompt payment law[4].  

The Chief Financial Officer 's response is included in its entirety at the end of this report.