Summary
Summary
| Report Number: | 2009-024 |
| Report Title: | Department of Revenue - Taxpayer Refunds and Prior Audit Follow-Up - Operational Audit |
| Report Period: | 03/2006 - 02/2008 |
| Release Date: | 10/22/2008 |
This operational audit, for the period March 2006 through February 2008, focused on the Department of Revenue (Department) policies and procedures for taxpayer refunds. Our audit also included a follow-up on prior audit findings related to taxpayer audits, dispute resolution, contracts, and Department utilization of the MyFloridaMarketPlace and People First systems. Our audit disclosed:
Taxpayer Refunds
Finding No. 1: The Department did not always maintain adequate documentation related to refunds as follows:
The Department did not always maintain case activity reports to document the activity and decisions made during the tax refund claim process.
The Department did not always have a required Power of Attorney on file when refunding taxes claimed by taxpayer representatives.
The Department could not always provide an explanation of record for the difference when tax refunds were paid in amounts less than amounts appearing on original documentation.
Finding No. 2: The Department did not always timely remove terminated employees’ access privileges for the Refund Management System (RMS), and the Department did not periodically review the appropriateness of employee access privileges in RMS.
Taxpayer Audits
Finding No. 3: Department tax audit files did not always contain required Sampling Agreements and Sampling Plans.
Dispute Resolutions
Finding No. 4: The Department did not always maintain on file written closing agreements evidencing the understanding between the Department and the taxpayers regarding settlements and compromises greater than $30,000.
Contract Procurement
Finding No. 5: The Department had not adopted policies and procedures for ensuring that, for contracts greater than $25,000, all staff involved in the selection of contractors and the negotiation of contracts attest to their independence and impartiality. Our audit tests disclosed that attestations were not always completed for contracts greater than $25,000 and one attestation lacked the signatures of the staff involved in the selection process.
The Executive Director's response is included at the end of this report as Appendix A.