Summary

This operational audit focused on selected operational aspects of the People First system, as tested at the 16 State agencies listed below, for the period July 1, 2005, through January 31, 2006, and selected actions taken through September 18, 2006.

The implementation of People First, the State of Florida’s Web-based enterprisewide suite of services designed to manage the administration of payroll, benefits, human resources, and staffing, began in May 2003.  From the outset, significant problems were experienced by users, including overpayments and underpayments of salaries and wages, missing salary and wage payments, and difficulties with the administration of employee benefits.  Consequently, the time required to address these and other operational issues has increased State agency workloads and costs.

According to DFS records, for the 2005-06 fiscal year, nearly $4 billion were paid to State employees via 3.71 million transactions.  Recognizing the importance of the People First initiative and its Statewide implications, we performed an audit of selected functionalities of People First at 16 State agencies, focusing on the administration of payroll and human resources, as well as agency use of key system components.  Our audit included observations and reviews of agency processes and procedures; interviews with, and surveys of, appropriate agency and DMS staff; tests of payroll transactions; and performance of other audit procedures as determined necessary to evaluate controls related to People First and other selected  human resource matters.

The success of the People First initiative largely depends upon the commitment of DMS to enhancing system functionalities and of State agencies to increasing effective system utilization.  Our audit determined that People First, as currently designed and implemented, has made progress in many operational areas across the system’s functionalities.  Agencies’ knowledge and use of People First continue to grow and, in concert with the implementation of new performance metrics and standards; improvements in project organization, management, and communication; and continued progress in system enhancements, overall operational functionality has improved.  However, significant deficiencies remain, both with People First and with agency use of People First.  These deficiencies are summarized below:

Finding No. 1:   Self-Approved Time Sheets

As a result of People First errors, electronic time sheets for employees assigned certain People First user role codes were either improperly self-approved or improperly placed in an approved status upon submission.

Finding No. 2:   Incorrect Employee Pay

While the vast majority of tested payroll transactions processed through People First were accurate and supported by adequate documentation, some exceptions were found that indicated payroll processing issues still exist.

Finding No. 3:   Agency Payroll Audits

Agency payroll audit procedures could be enhanced to help ensure the accurate processing of State agency payrolls.

Finding No. 4:   Leave Payout Screen and Leave Payments

A functional People First Leave Payout Screen has not been available to agencies since July 12, 2005, increasing agency personnel time and effort involved in processing and tracking terminal leave benefits and contributing to certain inaccurate and untimely leave payouts noted during our audit.  Additionally, DMS has not issued formal guidance to assist agencies in the proper proration and payment of terminal annual leave benefits for Selected Exempt Service and Senior Management Service employees.

Finding No. 5:   Leave Balance Overview Screen

Errors existed in People First Leave Balance Overview Screen data.

Finding No. 6:   Leave Balance Discrepancies

Differences were disclosed between People First leave balances and agency-audited leave balances.

Finding No. 7:   Paper-Based Personnel Action Request Approval Process

A paper-based Personnel Action Request approval process was used at multiple State agencies despite increased efficiencies that may be gained through use of delivered People First functionality.

Finding No. 8:   People First Data Warehouse Reliability and Access

Issues regarding the accuracy and reliability of People First Data Warehouse information and standard reports were noted.  Also, use of a query tool to obtain data from the Warehouse requires specialized knowledge and training, burdening agencies with additional time, effort, and financial costs.

Finding No. 9:   Security Guidelines

Although People First was implemented in phases from May 2003 through January 2005, it was not until March 2006 that a written Statewide security guidelines manual for People First was established to address such issues as the assignment of user role codes, performance of security audits, proper handling and disclosure of sensitive information, and requirements for background checks.

Finding No. 10:   Payroll Processing Measures

An examination of DFS payroll measures, such as the number of monthly electronic fund transfer cancellations, demonstrates that problems with the production of State agency payrolls increased dramatically after the implementation of People First.  However, while the number of cancellations continued to substantially exceed pre-People First levels, recent data suggests a decreasing need for agencies to cancel erroneous salary and wage payments.

Finding No. 11:   Components to be Implemented

While most planned components of People First are currently operational and available for agency use, certain key components have not been fully implemented.  Consequently, agencies have been required to use workarounds to supplement the absent People First functionality.

The agencies' responses are included in their entirety as Appendix A.