A U D I T R E P O R T. Audit of Child Support Contract CD336

Transcription

1 A U D I T R E Audit of Child Support Contract CD336 P O R T Internal Audit Department Audit Number August 2013

2 September 4, 2013 The Honorable Linda Doggett Clerk, Lee County Re: Audit of Child Support Contract CD336 Dear Mrs. Linda Doggett: The Internal Audit Department has conducted an audit of Child Support Contract CD336, Dave Rollman, CIA, has completed this review. The response to the auditor s conclusions, issues and recommendations are attached to this report. The auditor wishes to thank the Clerk employees for their assistance and cooperation during the review. This Report has been posted to the Clerk of Courts website under Internal Audit, Audit Reports. The hyperlink to the report has been sent to the Lee County Board of County Commissioners and appropriate parties. Sincerely, Chuck Short, Chief Internal Audit Officer Internal Audit Department CTS/mf

3 Table of Contents Audit of Child Support Contract CD336 Page Introduction 1 Conclusions 1 Background 1-2 Issues 2-3 Response 4

4 Audit of Child Support Contract CD336 Introduction At the request of the Deputy Chief Civil Division, the Internal Audit Department has conducted an audit of child support contract CD336. The audit was performed in accordance with general auditing standards for the professional practice of Internal Auditing. Audit work paper files contain details supporting the findings, conclusions and recommendations in this report. Conclusion The Clerk s office is in compliance with the provisions of the contract. The monthly invoices have been completed correctly, and the funds collected have been utilized for court related purposes. New procedures were written during the audit to clarify the automated random moment sampling process. Background The Clerk s office manages the Child Support Depository for Lee County. Title IV-D cases are processed as part of the depository duties. Title IV-D child support cases are cases where the custodial parent is receiving some sort of assistance from the Florida Department of Revenue, Child Support Enforcement Office. There is a cooperative agreement between the Florida Department of Revenue Child Support Enforcement Program and the Clerk s office in their capacity as the local child support depository. The Clerk s office receives funds for federal cost reimbursement for allowable Title IV-D expenditures incurred. The agreement is effective from September 1, 2008 through August 31, 2013, with three 1-year renewal options. A blue sheet was approved in September 2009 establishing a special revenue funded by the child support cost reimbursements. Fund 128 is utilized for the Child Support Depository Funds. The Clerk is permitted to retain the monies across fiscal years and utilize the monies to fund court related program enhancements. The Clerk s office submits a monthly invoice for services rendered to the Florida Department of Revenue detailing the costs that are eligible for reimbursement. 1

5 Issues Automatic Random Moment Sampling is conducted on a continuous basis to determine the allocation of the child support costs subject to federal reimbursement. Receipts The funds received on this contract since the signing of the blue sheet in September 2009 are as follows: Use of the Funds Fiscal Year 2013 thru April $ 796, $1,050, $ 999, $ 899, Total $3,745, Monies reimbursed to the Depository are to be utilized for court related enhancements. The following is a breakdown of the activity in Fund 128 through the end of April Additions Monthly Receipts FY 2010 thru April 2013 $3,745, Monthly Receipt for Sept 2009 moved to fund 128 $57, Interest $5, Settlement with Department of Revenue for past costs $728, Total Additions $4,536, Deductions Expenditures (computers, software, etc.) $23, Court related expenses moved from Fund 001 $74, Court related expenses moved from Fund 120 $12, Court related expenses moved from Fund 122 $809, Total Deductions $920, Balance $3,616, This balance agrees with the general ledger accounts ( Equity in Pooled Cash $3,512, plus Due from State $104,158.92). Backup documentation for the activity in Fund 128 was reviewed. It appears that all of the monies deposited into Fund 128 are either retained or have been utilized for court related expenditures. 2

6 Invoices A sample of the monthly invoices submitted for reimbursement was reviewed to verify that they were completed according to the provisions of the contract. No exceptions were found in the completion of the invoices. The amounts due as reflected on the monthly invoices were traced to the general ledger. The amounts posted to the accounting system agreed with the amounts on the invoices for Fiscal Year 2010 through April Random Moment Sampling The procedures for handling the random moment sampling were reviewed. A sample of personnel involved in the process was interviewed. During the audit, in house procedures were written by Civil personnel to supplement and clarify the Florida Department of Revenue moment sampling procedures. They were submitted to the Florida Department of Revenue for review and approval. In house training is conducted periodically to clarify procedures and ensure that the sampling is handled in a uniform manner. The Clerk s office appears to be complying with the Florida Department of Revenue moment sampling procedures. 3

7 To: From: Chuck Short, Chief Internal Audit Officer Sandi Sauls, Deputy Chief Civil Division Date: September 4, 2013 Re: Response to Audit of Child Support Contract CD336 We appreciate the thoroughness in which Dave Rollman conducted this audit. His review of the RMS procedures; invoicing process; receipt of funds; and expenditure of funds indicated that we are in compliance with the dictates of this grant. His vigilance spurred the review and update of all documentation including getting the approval from DOR on these updated procedures that reflect changes resulting from our recent migration to a more electronic environment. Again, thank you for reviewing all aspects related to this contract. PO Box 310, Fort Myers, FL Phone: (239)