Summary

Our operational audit of the Department of State (Department) for the period July 2006 through February 2008, and selected Department actions through July 2008, focused on the Department’s administration of State grants and selected information technology (IT) functions within the Divisions of Historical Resources, Cultural Affairs, and Library and Information Services.  As summarized below, we found that some processes and controls established by Department management for these activities were in need of improvement.

Financial Reporting Packages

Finding No. 1:       The Department did not have uniform procedures for tracking and reviewing financial reporting packages required by the Florida Single Audit Act.

Grant Monitoring

Finding No. 2:       Department procedures for monitoring grantee compliance and enforcing grant requirements were ineffective.   In addition, the Department did not always timely apply contractual remedies, such as withholding grant payments or denying subsequent grant awards, when grantees did not comply with reporting requirements.

Panelist Files

Finding No. 3:       The Department did not always retain records supporting the qualifications and selection of grant application review panelists.

Change Management Controls

Finding No. 4:       Change management controls for systems used by the Department to administer grant applications needed improvement. 

Other Security Controls

Finding No. 5:       Application and network security controls needed improvement. 

The Secretary’s response is included as Exhibit A.