Summary

This operational audit of the Department of Military Affairs (Department) for the period July 2005 through February 2007, and selected actions through June 2007, focused on the Department’s administration of selected agency programs, construction contracts, and other administrative functions, and follow-up on selected prior audit findings.  Our audit disclosed the following:

Administration of Agency Programs

Finding No. 1:      The Department did not document its determination of whether St. Petersburg College was a subrecipient or a vendor in operating and managing the Multi‑Jurisdictional Counterdrug Task Force Training Program, nor was it clearly evident from the contract terms and conditions that a determination had been made.

Finding No. 2:      Family Readiness Program procedures did not ensure that documentation demonstrating that Program assistance was used for the intended and authorized purpose was timely obtained and retained.

Finding No. 3:      The Department had not adopted rules for its education assistance programs under the rulemaking requirements of Section 120.54, Florida Statutes.  Section 250.10(7)(c), Florida Statutes, requires that the Adjutant General, together with the State Board of Education, adopt rules for the overall policy, guidance, administration, implementation, and proper utilization of its education assistance programs.

Finding No. 4:      Department administration of the Educational Dollars for Duty Program did not ensure that participants were only enrolled in authorized courses and that such courses were completed and satisfactory progress was maintained.  Additionally, procedures were not adequate to prevent the duplicate payment of some tuition and fees.  Legislative clarification is also needed to determine whether the Department’s practice of reducing reimbursements by prorated length of service is consistent with the intent of the language set forth in Section 250.10(9)(d), Florida Statutes.

Construction Administration

Finding No. 5:      Contrary to the requirements of Section 287.055, Florida Statutes, the Department acquired professional services of architectural firms for nine projects without a public announcement and a formal competitive selection and negotiation process.

Finding No. 6:      The Department’s oversight of a construction contract did not ensure that criminal history background reports, proper insurance coverage, and certification of payment requests were obtained.

Other Administrative Functions

Finding No. 7:      The Department could enhance its internal controls with the development and maintenance of comprehensive procedures manuals for Department business operations.

Finding No. 8:      The Department did not identify all specified State employees required to file statements of financial interests in connection with their employment.

Finding No. 9:      Department records did not demonstrate that buildings and contents were correctly valued for insurance purposes.

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