Summary

This operational audit of the Department of Legal Affairs (Department) for the period July 2005 through February 2007, and selected actions taken through June 14, 2007, focused on selected administrative functions and follow-up on selected prior audit findings.  As summarized below, our audit disclosed that controls could be improved in various administrative areas.

Legal Services

Finding No. 1:    The Department did not have records supporting the basis for the calculation of hourly rates used for billing legal services to State agencies.

Finding No. 2:    Application Development and Administration programming staff were assigned incompatible system-related duties.

Finding No. 3:    The Department did not obtain appropriate approval from the Executive Office of the Governor for a temporary transfer of moneys.  Additionally, the Department did not properly account for interfund transfers made to offset temporary operating resource deficiencies in the Legal Services Trust Fund.

Cash Receipts and Receivables

Finding No. 4:    The Department did not ensure proper controls were in place for cash collections.

Finding No. 5:    Program areas did not always timely provide to Finance and Accounting documentation concerning the establishment of accounts receivable.

Finding No. 6:    Department accounting processes for the write-off of receivables did not provide for the separation of incompatible duties.  Additionally, Department accounting policies and procedures did not provide for sufficient supervisory approval of receivable write-offs.

Other Administrative Functions

Finding No. 7:    The Legislature should consider amending or repealing provisions of Section 16.58, Florida Statutes, related to the Statewide legal research bank.

Finding No. 8:    The Department did not consistently ensure that all employees affirmed the Department’s Code of Ethics for Public Officers and State Employees upon hire and annually thereafter.

Finding No. 9:    The Department did not always ensure compliance with established policies and procedures for the use of cellular telephones.  Additionally, policies and procedures for the use of wireless communication devices should be enhanced to include independent or supervisory review of usage.

Finding No. 10:    The Department did not obtain appropriate approvals for changes to the Purchasing Card Agency Plan and did not maintain a current Plan.  Furthermore, some single transaction limits appeared to be higher than necessary.

Finding No. 11:   The Department had not obtained legislative clarification regarding the statutory maximum fund balance allowable in the Legal Affairs Revolving Trust Fund.

Finding No. 12:    Improvements in internal controls related to revolving fund subaccounts were needed.

Other Matters:

The Department, in response to prior audit findings, made substantial progress in implementing control policies and procedures for settling cases, processing the resulting payment distributions, and addressing statutory responsibilities relating to controlled substances.

The Attorney General's response is included at the end of this report as APPENDIX A.