Summary

Our audit of contract management focused on activities and transactions for the period July 2004 through January 2006, and selected actions taken through June 7, 2006.  Our audit disclosed:

Finding No. 1:     The Department’s procedures were not effective in reasonably ensuring the recertification of contract managers and the monitoring of contract manager workload.

Finding No. 2:     When procuring contractual services, the Department did not always maintain documentation supporting its procurement decisions, improperly applied statutory competitive procurement exemptions in some instances, and in other instances, used contract amendments improperly to significantly change the scope of goods and services contemplated in original contracts.

Finding No. 3:     Contract disbursements were sometimes made without receipt and approval of deliverables.  Additionally, contrary to Department policy, contract disbursements were recorded in the Florida Accounting and Information Resource Subsystem (FLAIR) without the corresponding contract number.

Finding No. 4:     Several contracts received little or no programmatic or administrative monitoring. 

Finding No. 5:     Significant deficiencies relating to contract procurement, disbursement, and monitoring were identified for a contract between the Department and the University of South Florida.

The Secretary's response is included in its entirety at the end of this report as Appendix B.