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Audit Report 2014-6 Fire Fee System Conversion and Processing
InternalAuditDepartment AuditReport2014-6 FireCodeOffice GrowthManagementDepartment FireFeeSystemConversionand Processing DwightE.Brock ClerkoftheCircuitCourt 3299TamiamiTrailEast Suite#402 Naples,FL34112-5746 www.collierclerk.com Issued:May28,2014 1 Preparedby:PaulCohen,InternalAuditor ReportDistribution:BoardofCountyCommissioners(BCC) LeoOchsJr.,CountyManager JeffKlatzkow,CountyAttorney NickCasalanguida,Administrator,GrowthManagementDivision JamesFrench,DirectorofOperationsSupport KingmanSchuldt,FireChiefEastNaplesFireControlandRescue District Cc:DwightE.Brock,ClerkoftheCircuitCourt CrystalK.Kinzel,DirectorofFinance&Accounting TABLEOFCONTENTS SUMMARY..................................................................................................................................2 OBJECTIVES...............................................................................................................................3 SCOPE..........................................................................................................................................3 BACKGROUND..........................................................................................................................4 OBSERVATIONS,RECOMMENDATIONS,&MANAGEMENTRESPONSES...................6 CONCLUSION...........................................................................................................................18 Thefilesanddraftversionsofauditreportsremainconfidentialandprotectedfrompublicrecordsrequests duringanactiveauditunder Nicolaiv.Baldwin(Aug.28,1998DCAofFL,5 th District)andFlorida Statute119.0713.Work-paperssupportingtheobservationsnotedwithinthisreportwillbecomepublic recordandcanbemadeavailableuponrequestoncethefinalauditreporthasbeenissued. 2 ThedraftauditreportwasinitiallyreviewedwiththeGrowthManagementDivision(GMD)andFireCodeOffice onJanuary17,2014andJanuary27,2014,respectively.Thedraftauditreportwasreleasedtotherespective agenciesforManagementResponseonJanuary28,2014.TheDirectorofOperationsSupportforGrowth ManagementDivisionprovidedtheCountyManagementResponsesonFebruary12,2014.TheFireCodeOfficer providedFireCodeOfficeManagementResponsesonFebruary13,2014.Revisedmanagementresponseswere receivedfromtheGrowthManagementDivisiononFebruary25,2014. Summary Thefollowingobservationsweregeneratedduringthisreview: TheInterlocalAgreementbetweentheIndependentFireDistrictandGrowthManagementDivisionhasnot beenrevisedtoreflectBoardapprovedchangestothepermittingprocess.(GrowthManagementandFireCode Office) Ajoint,formal,mutuallyagreedtransitionplanbetweentheFireCodeOfficeandtheGrowthManagement Divisionwasnotestablished.(GrowthManagementandFireCodeOffice) TheaudittrailfeatureinbothMobileEyesandCityViewshouldbemorerobust.(GrowthManagementandFire CodeOffice) AformalanddetailedchangecontrolprocesshasnotbeenestablishedforMobileEyes.(FireCodeOffice) TheSystemAdministratorhastoomuchunsupervisedandunmonitoredaccesstotheMobileEyessystemand performanceofpositionduties.(FireCodeOffice) TheFireCodeOfficeismanuallyinputtingfeecalculationsinCityView,despitethesystemalreadybeingable toautomaticallyperformthesecalculations.(FireCodeOffice) Thenewpermittingprocesscouldresultinundetectedchangestobuilder’splans.(GrowthManagementand FireCodeOffice) Customersmaybeinconveniencedduetothenewpermittingprocess.(GrowthManagementandFireCode Office) Firefeereconciliationshavenotbeenperformed.(FireCodeOffice) Duetotheneedtoinputdatatotwosystems,theFireCodeOfficehasduplicatedtheireffortsandman-hours. (FireCodeOffice) QuestionableFees:Feesareassessedwithoutevidenceofworkorwithoutapprovedconstructs.(Growth ManagementandFireCodeOffice) Thepermitreviewprocessdoesnottimelydetectinputerrorsresultinginpotentialreimbursementorgeneral ledgerreclassifications.(GrowthManagementandFireCodeOffice) Firecodefeecalculationscouldpotentiallyresultinoverorunderstatedrevenue.(GrowthManagementand FireCodeOffice) Departmental/Agencyproceduresneedfurtherclarificationandcoordination.(GrowthManagementandFire CodeOffice) Theneedforaself-reviewprocesswasidentifiedbytheGrowthManagementDivision.(GrowthManagement) 3 Objectives Theobjectivesoftheauditweretodeterminewhether: 1.Calculation,assessment,andcollectionofthefireservicefeeswerecompliantwithCountyandFireCode OfficeProcedures. 2.ThesystemintegrationplanfortheFireCodeOffice’sconversionfromtheCounty’ssystem(CityView)toan independentsystemwithMobileEyesisproperlydocumentedandanypotentialrisksassociatedwiththe conversionhavebeenidentifiedandmitigated. 3.Apostconversiontestingplanhasbeenestablished. Scope Theauditconsistedof,butwasnotlimitedtothefollowingtasks: Reviewthecurrentprocessflowforfireservicefeescollection. DocumenttheGrowthManagementDivision’splanfortransferringthecollectionprocesstoFireCodeOffice includingtheapproximately4,000openpermitsatthetransitiondate. ReviewtheFireCodeOffice’snewsystem(MobileEyes)andcontrolsforfeecollection. Sample54permitsissuedinAugustandSeptember2013andtestforaccuracyincalculatingbuildingandfire servicefees. Determinethestatusof22errorsidentified.ThesewereinanotebookbinderprovidedtotheClerk’sofficeat theSeptember9,2013meetingandprovidedtotheGrowthManagementDivisionattheSeptember17,2013 meeting.ReviewtheresponsesprovidedbytheGrowthManagementDivisionandsampletheitemstoensure theywereadequatelyaddressedasreported. ReviewadditionalissuesraisedbytheGrowthManagementDivisionortheFireCodeOfficeduringthe completionoftheaudit. Areviewofall22permitfeerelatedissuesinitiallyidentifiedbytheFireCodeOfficeandaddressedbytheGrowth ManagementDivisionwasperformed.Inaddition,ajudgmentalsampleof54additionalpermitfilesfortheperiod ofAugustandSeptember2013representing1.4percentwaschosen.ThepermitsquestionedbytheFireCode OfficerepresenttheperiodfromJanuary1,2011toSeptember30,2013.Approximately2,000permitspermonth areprocessed.Theauditperiodchosenforthejudgmentalsamplerepresentsnewerpermitsasthepermitprocess hadnotchanged.Duringtheaudit,anadditional11permitfileswerequestionedbytheFireCodeOfficeresulting inareviewofthosefilesaswell. 4 Background OnSeptember9and17,2013InternalAuditconductedengagementmeetingstoestablishtheauditscope. CurrentProcessDescription A.Application,Revision,CorrectionandIssuanceofPermits Thecustomersubmitsabuildingpermitapplication/revisiontotheGrowthManagementBusinessCenter.The GrowthManagementPlanningTechnicianverifiestheapplicationcontents,joblocation,contractor'slicense, qualifier'ssignatureorauthorizationform,duplicatepermits,alerts,codecases,andcorrectnumberofplans includingthecorrectattachmentsperthechecklistandBuildingBlockA.126(GrowthManagement’spublished guidelinestotheconstructionindustry).Informationrequiredwillvarydependingonthetypeofimprovementbeing sought.Iftheapplicationisincomplete,thePlanningTechniciancommunicatestothecustomertheinformation neededtocompletetheapplication.Oncetheapplicationiscomplete,thePlanningTechnicianentersthepermit informationintoCityView(Permittingsoftware). For5,10,or15dayreviewsthePlanningTechnicianverifiesfeestoensurethatCityViewwasloadedcorrectly accordingtothefeescheduleforBuildingandFire.Ifcorrect,thePlanningTechnicianprintsapaymentslipforthe customerandinformsthecustomerthatallfeesmustbepaidbeforeplansareroutedtothereviewers.ThePlanning Technicianscanstheapplicationandcreatesajobfolder.Ifthecustomerhasmadeapayment,thePlanning TechnicianmanuallyverifiesthepaymentwasmadeandroutesplanstotheGrowthManagementBuildingReview RoutingCenter.Ifnotcorrect,loadingassistanceisrequestedfromasupervisorand/orCityViewSupport.Ifthe customerdidnotmakeapayment,thePlanningTechnicianlogscompanynameandpermitnumberinDrop-Off Log;e-mailscustomerapaymentslipwithareminderthatroutingwillnotoccuruntilallapplicationfeesarepaid; and,after30daysofnoactivity,thesystemputstheapplicationinacanceledstatus. Ifitisasamedayprocessoraftertheaboveprocessisperformed,theGrowthManagementBuildingReview RoutingCenterstaffdistributestheplansandcollectsadditionalfees,ifrequired. ForbuildingplanreviewstheGrowthManagementPlanningTechnician: 1)checksCityViewscopeofwork; 2)verifiestheoccupancytype(dictatescostpersquarefoottobeapplied); 3)verifiestheconstructiontype(dictatescostpersquarefootinconjunctionwithoccupancytype); 4)verifiesthenumberofstories,squarefeet,andnumberofunits; 5)assignsinspectionsrequiredbasedonscopeofwork; 6)checksCodeconformance;and 7)correctsoraddsworkitemsbasedonthescopeofworkprovidedontheplans. ForfireplanreviewstheFirePlanningTechnician: 1)checksforcompliancewithstatelaws; 2)verifiesthatapplicationfeeswerecorrectlycollected; 3)assignsrequiredinspections; 4)confirmstheGISFiredistrictfieldinCityView;and 5)calculatesandmanuallyaddstheFirereview,inspection,andimpactand/orcorrectionfeesasapplicable. ForimpactfeereviewtheGrowthManagementPlanningTechnicianreviewsforimpactfeeassessmentin accordancewithChapter74ofCodeofLawsandOrdinancesandmanuallyentersappropriatefeesasapplicable. Ifthereviewisrejected,thecustomerisnotifiedandmustsubmitcorrectionstoBuildingPlansReview.The BuildingReviewRoutingCenterstaffthendistributestheplansandcollectscorrectedfees,ifapplicable.Theplans arethenprocessed.Staff,usingCityView,checksifanyoftheattributesassociatedwithfeeshasbeenmodified.If modified,staffrecalculatestheautomatedfeesbasedonthechangeddata,whichcouldresultinacredit/refund; addsreviewfeesbasedonworkitems;and/oradditionalbuildinginspectionfees. 5 Staffverifies: 1)theaddress,contractor,scopeofworkandsquarefootage; 2)feeswiththenumberofinspections; 3)reviewfeescollectedatsubmittaltime; 4)firefeesmanuallyagainstroutesheetprovidedbyFire; 5)existingbuildingreviewandinspectionfeestoensurethatthecorrectfeeshavebeenassessed;and 6)anyoverpaymentactivity(alertsthesupervisor,ifapplicable). IftheCityViewsystemidentifiescreditsorrefunds,thesupervisordeterminesifthereisabuildingfee,firefeeora refund(arequestisprepared,approved,androutedtofinance).Forbuildingfees,therefundcouldbenettedagainst theoutstandingbalancedueforotherfees,otherwisearefundcheckwouldneedtobeprocessed.Forfirefees,the refundrequestisprocessedandforwardedtoFireforsignaturetobenettedagainstotherfeesandinternally reallocatedorrefundedbycheck.Ifnocreditorrefundisdue,thecustomerisnotifiedandpaystheoutstanding balanceforbuildingplansreviewandinspections;andfireplansreviewandinspections.Thefeeissubmittedto GrowthManagementCashieringandthecustomerreceivesthepermitandinspectionjobcard. B.PlanningApplicationandInspectionProcess ThecustomersubmitstheapplicationtotheBusinessCenter(GrowthManagement).Staffcheckstherequirements foreachtypeofapplication.Iftheapplicationisnotcomplete,GrowthManagementstaffcommunicateswiththe customertheinformationneededtocompletetheapplication.Iftheapplicationiscompleteoroncecomplete,staff enterstheapplicationintoCityView.Informationwillvarydependingonthetypeofapplication.TheGrowth ManagementBusinessCenterstaffverifiesfeestoensureCityViewloadedcorrectlyaccordingtothefeeschedule forBuildingandFire.Ifthefeesarenotcorrect,arequestforassistancefromaSupervisorand/orCityView Supportissought.Onceaddressedorifthefeesarecorrect,thepaymentissubmittedtoGrowthManagement Cashiering.Ifnopaymentisreceived,theGrowthManagementBusinessCentergivestheapplicant24hoursto makethepaymentandthencalltheapplicantagain.Oncethepaymentismade,theBusinessCenterroutestheplans tothePlanningRoutingCenter.PlanningRoutingCenterstaffroutestheplanstothereviewers.Assuranceissought thatthecorrectfeesarepaidbeforetheplansarerouted. GrowthManagementStaffverifiestheCityViewscopeofwork;compliancewiththeLandDevelopmentCodeand CountyOrdinances;thereviewandinspectionfeescollectedperfeeresolution;andcollectsbondsifapplicable. FirePlansReviewverifiescompliancewithstatelawsandverifiestheapplicationfeeswerecorrectlycollected.If anyreviewsarerejected,thecustomerisnotifiedandsubmitscorrectionstotheGrowthManagementPlanning RoutingCenterwhichbeginsthereviewprocessagain.Ifthereviewisnotrejected,theGrowthManagement PlanningCenterstaffensuresallreviewshaveresultedinapprovalandchecksiftheapplicationrequiresCertificate ofAppropriateness(COA)review(normallyforhistoricalhomestomaintaintheoriginalintegrityofthehome).Ifa COAreviewisrequired,impactfeesaremanuallyenteredbyImpactFeeReviewandtheGrowthManagement PlanningRoutingCenterpreparesapre-approvalletterexplainingCOAfeesdue.Thecustomeristhennotifiedand paymentissubmittedtoCashiering.Ifnopaymentismadeafteracertainnumberofmonthsbasedonthe applicationtype,theapplicationiscancelledduetoinactivity.Ifpaymentismade,PlanningRoutingCenter processestheapprovalletter/permit.Ifaninspectionisnotrequired,theprocessiscompleted.Ifaninspectionis required,theapplicantrequestspre-constructionmeetingbyphoneoron-line.TheGrowthManagementInspector Supervisornotifiestheapplicantofoutstandinginspectionfeeswhichmustbepaidbeforethemeetingisheld.If feesarenotpaid,theapplicantgoesintoacancelledstatusafteracertainnumberofmonths.Onceallfeesarepaid, theInspectorSupervisorschedulesameetingwiththeapplicant.ThesiteistheninspectedbybothFireandGrowth Managementtoensurethatallinspectionsarecomplete.Oncetheinspectionsarecompleted,adeterminationonthe outstandingbondismade.Ifthereisnobond,thecustomerisnotifiedandtheprocessiscompleted.Iftherewasa bond,itisreturnedtothecustomerendingtheprocess. C.Cashiering Theapplicantpaysfeeseitherinpersonwithcashorcheckoronlinewithcheck,debitorcreditcard.Growth ManagementCashieringfollowsproceduresidentifiedintheCityViewJobAid.Ifthepaymentisnotcomplete,the CashiernotifiesCityViewSupportandtheFinalTypeSupervisorwhothenresolvestheissue.Ifitispaid,the applicantisprovidedwithacopyofthereceipt.AnightlybatchwithSAP(financialsystem)interfaceisprepared andtheprocessisdeemedcompleted. 6 Observations 1)TheInterlocalAgreementbetweentheIndependentFireDistrictsandGrowth ManagementDivisionhasnotbeenrevisedtoreflectBoardapprovedchangestothe permittingprocess. AnInterlocalAgreementwasexecutedonJanuary28,2003betweentheIndependentFireDistrictsandtheCounty. Thisagreementcreatesacontractassigningresponsibilitiesofthedifferentagencies. OnJanuary9,2013,theBCCapprovedamotiontoamendtheInterlocalAgreementsothattheFireCodeOffice andGrowthManagementDivisionwouldberesponsiblefortheirownfeesandquarterlyreports.TheCounty ManagerwastoprepareandnegotiateanamendmenttotheagreementwiththeIndependentFireDistricts.Thishas notoccurred. ManagementfromboththeFireCodeOfficeandGrowthManagementDepartmenthasrecognizedthatthe agreementwasnotrevisedandtheyarenotcurrentlyoperatinginconformancewiththeInterlocalAgreement. However,theyseeminconformancewiththeBCC’sintent. Recommendations: ManagementfromboththeFireCodeOfficeandtheCountyshouldjointlyamendtheagreementandensure conformancewiththeirstatutoryduties. FireCodeOfficeManagementResponse : “Staffagreeswiththisassessment.” CountyManagementResponse : “GMDagreestheInterlocalAgreementwillberevised.” InternalAuditResponsetoCountyManagementResponse: AsofMay23,2014,theGrowthManagementDivisionhasnotrevisedtheInterlocalAgreement. 2)Ajoint,formal,mutuallyagreedupontransitionplanbetweentheFireCodeOfficeand theGrowthManagementDivisionwasnotestablished. Aformaltransitionplanisdesignedtoidentifykeyrequiredprocesses,processowners,andactiondatesneededfor asuccessfulsystemconversion. SeveralmeetingsbetweenFireCodeOfficeandGrowthManagementDivisionpersonneltodiscussthetransferof responsibilityforassessingandcollectingfeeswereheld;however,aformaltransitionplanwasnotdevelopedat theinceptionoftheproject.GrowthManagement’sCityViewSystemsAnalystprovidedInternalAuditwiththeir transitionplanonDecember9,2013.TheSystemsAnalystfurtherprovideddocumentationofallactivityand communicationrelatedtotheconversion.Todate,theFireCodeOfficehasnotcreatedorprovidedatransitionplan toInternalAudit. Further,pertheOperationManageratMobileEyes,thescopeofworkforthetransitionprojecthaschanged significantlyfromtheoriginalconceptofrealtimedatafeedstomanualfeeds.ThecurrentMobileEyesworkorder tomodifythesoftwarewasnotfinalizeduntilDecember10,2013.Inaddition,MobileEyesOperationsManager indicatedthatshouldanyadditionalscopechangesoccur,histimelinefortheimplementationwillbefurther delayed. OnDecember20,2013itwasdeterminedthatadditionalchangestothenewpermittingprocesshadbeenverbally providedtotheFireCodeOffice.NoevidencewasfoundthatthenewpermittingprocesswasagreedtobytheFire CodeOfficeorcapturedinthetransitionplanmaintainedbytheGrowthManagementDivision. 7 DespitethesystemconversionoccurringonJanuary2,2014,thelackofadetailedformaltransitionplanmayhave beenacontributingfactorinthedelayinthesystemconversion. Recommendations: WhilethetransitionoccurredonJanuary2,2014asagreed,theconversiondidnotoccurassmoothlyasitcould have.Forfuturesystemorprocessconversions,department/agencymanagementshouldreconciletheir transitionplanstoensurethattimelinesdonotconflictandallactionitemsareaddressedinatimelymannerto achieveasuccessfulsystemconversion. BoththeFireCodeOfficeandGrowthManagementDivisionshouldperformapostconversionreviewto determinewhethertheconversionwassuccessfulandtodetermineifoutstandingitemsarelefttoresolve. FireCodeOfficeManagementResponse : “Thisiscorrect.TheFireCodeOfficeworkedwithCountystaffforseveralmonthstodevelopasoftwareinterface solutionwhichwouldhavecreatedaseamlesstransition.Thereseemedtobemutualagreementthatarealtime connectionbetweenthesoftwarepackageswasaviablesolutionandthatworkwasapproximately70%complete whentheFireCodeOfficewasinformedbytheCountythatthiswouldnotoccur.Datatransferoptionsdeteriorated overtimefromevery15minutestoonceeachnight.Thisproposalfromthecountywouldhaverequiredthe customertowaituntilthenextdaytosubmittotheFireCodeOffice.ThiswasnotaviableoptionfortheFireCode Office.Thisiswheretheprocesstimelineadvancedmorequickly.Aunilateraldecisionwasissuedbythecounty establishingaturnoverdatewithoutanagreedupontransitionplan.TheFireCodeOfficeworkedveryhardto deviseprocessesthatensuredcompliancewithFloridaStatutes,FloridaFireandBuildingCodesandthatprocess coordinationoccurredaswellasensuringthatallfeesarepaidpriortoissuanceofpermits.” CountyManagementResponse : “InordertodeterminethescopeandapproachfortheprojectanddevelopaseparationtransitionplanforGMD, theCityViewsystemsanalystfacilitatedseveralmeetingsbetweenGMDandtheFCO.WhiletheCityViewsystems analystactedasaprojectcoordinatorfortheGMDsystem,theFCOdidnotdesignateaprojectmanagerto representtheFCO’sexpectationsandcoordinatecriticaltransitionmilestones.TheCityViewsystemsanalystacted asfacilitatorbetweenthetwopartiesduringtheMarch13,March26,April16,andApril23meetingsin2013.The CityViewsystemsanalystdocumentedthemeetingminutes,capturedactionitems,andcreatedaGMDtransition plan.DuetothefactthattheMobileEyesvendorwasengagedinotherprojectcommitmentsandhadnoavailable resources,nomeetingswereheldfromMayuntilJuly2013tocoordinateasystemseparationscopebetweenGMD andtheFCO.OnJuly9,2013,theCityViewsystemsanalystfacilitatedanothermeetingtodiscusspotentialscope andapproachtoareal-timedatatransferbetweenthetwosystems.BothCityViewandMobileEyesvendor resourcesparticipatedinthemeetingandthediscussion.BasedondiscussionwiththeCityViewvendorregarding thecomplexity,cost,andpotentialinterruptiontotheperformanceoftheexistingCityViewsystem,theideaofreal- timedatatransferbetweenthetwosystemswasabandonedasanapproach.Instead,anend-of-dayfileexport solutionwasselectedasanoptionandcommunicatedtotheMobileEyesvendorviaane-mailonJuly30,2013and totheFCOviae-mailonJuly31,2013. OnSeptember4,2013,theCityViewsystemsanalystfollowedupwiththeFCOviae-mailtoaddressoutstanding actionitemsandscopequestionswhichtheFCOpostedviaaface-to-facemeetingwiththeCityViewsystems analystadayearlier.TheCityViewsystemsanalysthostedanadditionalmeetingwiththeFCOonOctober31, 2013todiscussaproposedseparationdate,documentedthemeetingminutesandactionitemsinane-mailtothe FCOonOctober31,2013.TheFCOrespondedtothise-mailthattheFCOwouldnotbereadytohandlethe separationbytheproposeddeadlineofNovember27,2013.Accordingly,GMDextendedtheseparationdateto January2,2014allowingagraceperiodofoneyearforanyexistingpermitstoremainintheCityViewsystem.The audit report’s statementthattherewasa“delayinthesystemconversion”and“theconversiondidnotoccuras smoothlyasitcouldhave,”isdisputablebecausetheseparationdateofJanuary2,2014wasmetandthesystem separationdidnotexperienceanytechnicalissues. ThecoordinationhadbeenfurtherhinderedbytheFCOandtheMobileEyesvendor,whowasnotyetunder contractwiththeFCOtoperformthesystemseparationfunctionintheMobileEyesapplication.PertheMobileEyes 8 vendorinane-maildatedNovember12,2013,“Wehavenotgottenapprovaltoproceedwiththisyet.Ourtimeline toimplementationis15businessdaysfromreceiptofaPO.Wewillnotbedoinganymoreworkonthisuntilwe receiveapprovalfromEdintheformofaPO.”Afternumerousattemptstocollectinformation,GMDstaffwas informedbytheFCOonDecember2,2013thattheFCOwasexpectingaPOforMobileEyestobeissuedshortly. OnDecember20,2013,awrittencommunicationbetweentheCityViewsystemsanalystandtheFCOoccurredin whichthreeoptionswereofferedtotheFCOregardingthecollectionofFireFeesforexistingCityViewPermits andPlanningProjectspriortotheseparationdate.Theoptionsincluded:1)Maintaintheexistingprocesstocollect allpendingCityViewFireFeesattheGMDlocation(nochangestocurrentprocess);2)TheFCOofficewould collectallpendingCityViewFireFeesindependentfromtheCityViewprogram.However,asaconditionofthis change,theFCOwouldacknowledgetheFCOstaffwouldthenberesponsibletozerooutanypendingFireFees viathe“AdjustFee”featureinCityViewandtheFCOstaffwouldnotethattheyhadcollectedthesefeesinthe “adjustmentdescription”inorderforGMDtoissuepermits;3)TheFCOofficewouldcollectallpendingCityView FireFeesindependentfromtheCityViewprogram.However,asaconditionofthischange,theFCOwould acknowledgethattheFCOshouldgrantGMDstaffpermission,inwritingfromtheFCO,tozerooutanypending FireFeesvia“AdjustFee”featureinCityViewandtheFCOstaffshouldnotethattheFCOwasresponsibleto collectthesefeesinthe“adjustmentdescription”inorderforGMDtoissuepermits.TheFCOselectedoption#2in ane-mailonDecember20,2013. Thecostofthefinalsolution,whichincludedanend-of-daydataexportandaconfigurationofthefunctionalityto grandfathertheloadingoffirefeesandinspectionsofnearly3,000existingpermits,was$9,950andwasfully coveredbytheGMDFund113. Backupdocumentationisavailableuponrequest.” 3)TheaudittrailfeatureinbothMobileEyesandCityViewshouldbemorerobust. Asystembasedaudittrailwillidentifyuserswhoperformedcertainfunctionsinthesystemsothatatafuturepoint itcouldbedeterminedwhethertheuseractedappropriatelybasedontheiraccesspermissionsorwhethertheuser mayhavebeenresponsibleforsysteminputerrors. WhilecertainfeaturesoftheCityViewaudittrailwereactivatedmuchearlier,audittrailfeaturesdesignedto capturekeydatasuchassquarefootageandprojectvaluewereactivatedonSeptember19,2013basedonanaudit commentduringtheauditengagementmeetings.Usersinvolvedwithcertainsystemrelatedactivity,occurringprior tothisdate,couldnotbeidentified.Whilethefeaturehassincebeenactivated,itmaystillnotbecapturingall transactionalandoperationalactivity.GrowthManagementindicatedthatitiscumbersomeandrequiresa significantamountofserverspaceand/orbandwidthandslowsdownthesystem.Theexposurecausedbythelack ofacomprehensiveaudittrailisexacerbatedascellchangecontrolsarenotinplaceinCityView.Celldatacanbe manuallychangedand,priortoSeptember13,2013,whentheaudittrailfeaturewasturnedon,thepartywhomade changescouldnotbeidentified. TheaudittrailfeatureinMobileEyescouldnotinitiallybeevidenced.TheFireCodeOfficialindicatedthatthelack ofanaudittrailwasduetofirefeesnotbeingcollectedthroughthissystem.Subsequenttoanauditreview,theaudit trailforMobileEyeswasactivatedfortrackingfinancialrecordsbutisnotcapturingallrecords,includingkeydata suchassquarefootageandvalue.MobileEyeshascommittedtoincludinganaudittrailforsquarefootageina futurereleaseduringthenextsixmonths.Theexposurecausedbythelackofacomprehensiveaudittrailis exacerbatedastheagencyhassegregationconstraints(SeeObservation#4aboveforfurtherdetails). Thelackofanappropriatesystembasedaudittraildoesnotallowmanagementtoidentifypartieswhomade changesinthesystemorwhatchangesweremade. Recommendation: ManagementfromboththeFireCodeOfficeandtheCountyshouldbeusingallappropriateaudittrailfeatures andestablishareviewoftheresultsoftheaudittrailtodetectunusualactivityorerrors. 9 FireCodeOfficeManagementResponse : “TheauditorsviewedMobileEyesandmaderecommendations.TheFireCodeOfficeimplementedall recommendationspossiblepriortoFireCodeOfficefeecollectionresponsibilityandMobileEyeshasagreedto maketherecommendedsoftwarechangeintheirnextupdate.” CountyManagementResponse : “GMDbelievestheauditfunctionalityprovidedintheCityViewapplicationiscapableoftrackingallfinancial relateddata.ThesquarefootageandprojectvalueauditfeaturethatwasenabledonSeptember19,2013only mattertoGMDwhenanewbuildingis>5000squarefeet,whichoccursinfrequently.PlanReviewstaffprocedures areinplacetoensurethatallpertinentdataenteredisaccurate.Thefigurespresentedattimeofapplication representanestimategivenbytheapplicantonly.Firefeeshavebeenhistoricallycalculatedandmanuallyentered bytheFCOstaff.Auditfeaturesthathavebeenenabled(countystaffmetwithInternalAuditstafftoshowdata capture)areworkingproperly.Staffhasreviewedthosefieldsthatarecurrentlynotauditedandhascommittedto revisitingthefeatureswhichcouldbereviewedusingtheaudittrailandidentifytherationaleforanyexclusions. Staffhasalsoidentifiedseveraladditionalfeatureswhichshouldbeenabledintheaudittrail.” 4)AformalanddetailedchangecontrolprocesshasnotbeenestablishedforMobileEyes. Theestablishmentofachangecontrolprocessidentifieschangeswhichweremadetothesystemandcreatesa historyofthosechanges.Thelogshouldcontainadescriptionofthechange,thedateofthechange,the person/partywhomadethechange,therequestor,theapprover,andtherationaleforthechange.Testingprotocols shouldbedocumented. WhiledocumentationoftheMobileEyessystemchangesismaintained,thereisnocentralizedlogofthechanges. TheFireCodeOfficialindicatedthattheloghadbeenimplementedtheweekofDecember9,2013basedon InternalAudit’srecommendation. Thelackofalogcouldresultinundetectedorunauthorizedsystemchanges.Testingprotocolsarecriticalfor systemsimplementationandchangemanagement. Recommendation: FireCodeManagementshouldestablishachangecontrollogwhichshouldbemaintainedbytheFireControl OfficialastheSystemAdministratorhasasegregationofdutiesissue. FireCodeOfficeManagementResponse : “AformalanddetailedchangecontrolprocesswasinitiatedpriortoFireCodeOfficefeecollection responsibility.” 5)TheSystemAdministratorhastoomuchunsupervisedandunmonitoredaccesstothe MobileEyessystemandperformanceofpositionduties. Segregationorseparationofdutiesistheconceptofhavingmorethanonepersonrequiredtocompleteatask.In businesstheseparationbysharingofmorethanoneindividualinonesingletaskisaninternalcontrolintendedto preventfraudanderror. ThesystemadministratorforMobileEyeshasthesoleabilitytomakesystemchanges,inputpermits,andperform editsandoverridesandreconciliationswhichviolatessegregationsofauthorityanddiminishesaproperoversight process. Further,basedontheInternalAuditor’sreviewofusersystemaccesstoMobileEyes,itwasfoundthatanemployee hadbeeninadvertentlygrantedsystemadministratorrightsduetoapreviouslyundetectedinputerror. 10 Thelackofadequatesegregationsofdutiescouldresultinundetectederrorsandmayincreaseexposureto fraudulentactivity. Recommendation: FireCodeManagementshouldreassessthedutiesandresponsibilitiesofAgencypersonnelandidentify potentialsegregationofdutiesissues.Onceidentified,managementshouldestablishmitigatingcontrols includingadditionaloversightandreviewofthosepersonshavingsegregationofdutiesissues. FireCodeOfficeManagementResponse : “ThesegregationofdutieswasenhancedpriortotheFireCodefeecollectionresponsibilities.Thiswas accomplishedwithanadditionalstaffsupportperson.” 6)TheFireCodeOfficeismanuallyinputtingfeecalculationsinCityViewdespitethe systemalreadybeingabletoautomaticallyperformcalculations. Theestablishmentofautomatedcontrolsisdesignedtoreducemanualinputerrors. TheFireCodeOfficehasoptedtobypassautomatedfeecalculationsandperformmanualcalculationsandinput withrespecttopermitrejections.Thishasresultedinpotentialdoublebillingforsecondfirereviewswherea rejectionoftheapplicationbyFireCodeOfficeoccurred.TheFireCodeOfficialmanuallyinputsthe$75feethus creatingadoublechargeforthesameservicewhichthenmustbemanuallyadjustedsothatthecustomerisnot doublebilled.However,thisprocesshasoccasionallynotworkedandabillhasbeensentandthenacreditmustbe providedtothecustomer. AsthesystemconversionoccurredonJanuary2,2014,onlythosepermits(approximately1,000permits)which existedpriortotheconversiondatewouldbeimpactedbythiscontrolweakness.Thesepermitsshouldberesolved during2014.Subsequenttothatdate,onlyGrowthManagementwillhaveaccesstoCityView.Growth Managementhasconsistentlyusedtheautomatedcontrolswithinthesystem. DuetomanualoverridecapabilitiesinCityView,thepotentialexistsforduplicationoffeesormissedinputerrors eventhoughthereisareviewprocessinplace. Recommendations: FireCodeManagementshouldallowtheautomatedcontrolsandsettingwithinCityViewtooperateasintended buttostillreviewthedatatoconfirmthatthedatawasproperlycalculated. Ifthereisarequiredchangetoacellneeded,anadjustmentfieldshouldbeutilizedwithdetailsofthe adjustmentprovidedintheNotessection. FireCodeOfficeManagementResponse: “TheautomatedcontrolsandsettingsofCityViewallowedforuntraceablealterationstokeyinformationfieldsthat affectedthefeecalculations.ThiswasnotedinthetestingphaseandtheFireCodeOfficerequestedthistobe correctedbytheCounty.TheGrowthManagementDivisionadvisedthattheonlywaytoaddresstheissuewasto shuttheautocalculatefeatureoffforfirefeecalculationandthatmanualinputoffeeswouldberequired.The automatedcontrolshavebasicdesignflawsthatmakeitdifficulttocalculateboththebuildingandfirefeesusing commoninputfields.Forexample:the"OccupancyType"fieldisusedasacomponentofthecalculatedvaluation intheBuildingCode"ConstructionValuationTable."TheBuildingCodecouldclassifyanoccupancyasa "Business"wheretheFireCodecouldclassifyitasa"Mercantile."Theselectionoftheoccupancytypechangesthe "BuildingValuation"andthereforethefirefeestobecharged. Therecommendationtoreviewthedatatoconfirmthatiswasproperlycalculated,wouldneedtooccurafter"final typing"hasfinishedtheirprocessandthepermitisissued.Theprocessmaybelaboriousandanycorrectionscould alsobeverytimeconsumingtorectify.Thisissueshouldresolveitselfassoonasallthelegacypermitsare exhaustedfromthesystem.” 11 7)Thenewpermittingprocesscouldresultinundetectedchangestobuilder’splans. TheGrowthManagementDivisionandFireCodeOfficewillberelyingontheintegrityofbuildersinthedelivery ofsubmittedplansfromtheGrowthManagementDivisiontotheFireCodeOffice. StartingwiththeJanuary2,2014conversiondate,contractorscanmanuallydelivertoGrowthManagementsix copiesofproposedplans,fourofwhicharestampedandretainedbyGrowthManagement.Thecontractorcan manuallycarrytheremainingtwocopiestotheFireCodeOfficewithaletterofattestationthatthecopiesaretrue. TheattestationletterwasapprovedbytheCountyAttorney’sOffice.Thecustomercanalternativelymailor electronicallydelivertheplanstoGrowthManagement.Mailedore-mailedplansalleviatetheneedtomanually delivertheplanstotheFireCodeOfficeastheFireCodeOfficephysicallypicksuptheseplansfromtheGrowth Management. Asaresultoftheprocesschangeregardingdeliverymethod,GrowthManagementassertedthatasignificant increaseine-mailedplanshasoccurredsincetheJanuary2,2014conversiondate.GrowthManagementbelievesit isduetothereducedtimeneededtophysicallydeliverdocuments.Thisisanticipatedtoresultinashiftingofstaff toaddresstheincreaseine-mailedapplications. Thenewprocesschangecouldresultinundetectedchangestotheplans. Recommendation: ManagementfromboththeFireCodeOfficeandtheCountyshouldidentifyaprocesstoensurethattheplans reviewedbyeachagencyarethesametonotresultinimproperoruninformedapprovals. FireCodeOfficeManagementResponse : “TheFireCodeOfficenotedthispossibilityandrecommendedanalternateapproachthatwasrejectedbythe County.Asaresult,anextra"firejobsite"setofplansisnowrequiredtobesubmitted.Thisensuresthatthefire inspectorinspectstothesameplanstheFireCodeOfficereviewedandapproved.” CountyManagementResponse : “TheGMDhadrecommendedthatplanscontinuetobepickedupbytheFCOatGMD,ashadbeenthestandard practice,onlyseparatingpaymentasdirectedbytheBoardofCountyCommissioners,buttheFCOrefusedand insistedthatthecustomerdelivertheplans.Inordertomitigatethepossibilityoffraud,theGMDdevelopedthe requirementthatthecustomersignaletterofattestationthatthecopiesaretrue.Thisletterwascreatedbythe CountyBuildingOfficialandapprovedbytheCountyAttorney’sOffice. Backupdocumentationisavailableuponrequest.” 8)Customersmaybeinconveniencedduetothenewpermittingprocess. SubsequenttotheJanuary2,2014conversiondate,contractorswillneedtomanuallydelivertheGrowth ManagementDivisionapprovedplanstoFireCodeOfficeandpreparetwoseparatepermitapplications(onefor eachagency). Theincreasedinconvenienceisevidencedbyasignificantincreaseine-mailedpermitapplicationspurportedtobea resultofthecustomer’sdesiretospendlesstimeinthenewpermitsubmissionprocess. ThedecisiontohavetheFireCodeOfficedeleteallfeesfromCityViewmayslowdowntheprocessastheGrowth ManagementDivisioncannotissuepermitsuntilallfeesareaccountedforordeleted. Asaresultofthechange,thebuilderswillberequiredtoprovidedocumentstoagencyintwoseparatebuildings. 12 Recommendation: ManagementfromboththeFireCodeOfficeandtheCountyshouldreassessthepermittingprocesstobetter addresscustomerinconvenienceandcomplaintswhilestillmaintainingapropercontrolenvironment. FireCodeOfficeManagementResponse: “TheoriginalconceptoflinkingthesystemsasproposedbytheFireCodeOfficewouldhavemadethetransition relativelyseamless.However,thelackofcomputerconnectivityhasresultedintherequiredprocesschanges. TherequirementoftheapplicanttodropoffplansattheFireCodeOfficewhenfeesarepaidcouldsavefrom3-5 daysinthefirereviewprocess.These3-5daysare thenormalprocessingtimetogetfromCountydrop-offtothe FireCodeOffice.” CountyManagementResponse : “GMD’sprocesshasnotchanged.ThenewFirePlanReviewroutingprocesswaschangedatthedirectionofthe FCO.Thisnewprocesshascausedagreatdealofinconveniencetothecustomer.” InternalAuditResponsetoCountyandFireCodeOfficeManagementResponses: Thisisanexampleofhowtheprocesssurroundingtheplanningfortheconversioncouldhavebeenbetterthought outandreducedthenegativeimpactonthecustomer. 9)Firefeereconciliationshavenotbeenperformed. Inaccounting,reconciliationreferstotheprocessofensuringthattwosetsofrecords(usuallythebalancesoftwo accounts)areinagreement.Reconciliationisusedtoensurethatthemoneyleavinganaccountmatchestheactual moneyspent.Thisisdonebymakingsurethebalancesmatchattheendofaparticularaccountingperiod.To ensurethereliabilityofthefinancialrecords,reconciliationsmust,therefore,beperformedforallBalanceSheet accountsonaregularandongoingbasis.Arobustreconciliationprocessimprovestheaccuracyofthefinancial reportingfunctionandallowstheFinanceDepartmenttopublishfinancialreportswithconfidence. TheFireCodeOfficehasnotperformedareconciliationoffirefeeswhichhasresultedindelayedidentificationof feemiscalculationsandgeneralledgermis-postings. Severalyearsago,FireCodeOfficemanagementrequestedeitherreconciliationorareportoffirerelatedfeesfrom GrowthManagementDivision.GrowthManagementprovidedaccesstodatadownloadsfromCityViewtotheFire CodeOffice.However,thesedatadownloadsdonotprovidespecificpermitandfeedetailsincludingthe breakdownoffeesandthecalculationused.TheFireCodeOfficehastheabilitytoperformqueriestoobtain desiredinformationfromCityViewandthedatadownload.TheFireCodeOfficehasperformedtheirownlimited permitbypermitreview. InternalAuditperformeditsownreconciliationofthedownloadeddataforthemonthofNovember2013.This resultedinthedetectionoftwofeemis-postingstothewrongfiredistrictfor$1,383.76and$1,137.62. Asaresultoftheaudit,theFireCodeOfficehasbegunaninformalreconciliationprocess. ThelackofareconciliationprocesscouldresultinmisapplicationoffeeincomebetweentheGrowthManagement DivisionandtheFireCodeOffice. Recommendation: FireCodeManagementshouldreconciletheirfeestosupportdocumentationonaperiodicbasisandmonitor correctiveactionofunreconcileddifferences. 13 FireCodeOfficeManagementResponse : “Staffhasnotreconciledeverytransaction.Alimitedrandompermitreviewhasbeenperformedwhichidentified issueswhichwererectifiedbytheCounty.Howevertherootproblemswerenotaddressedandthesame"issues" continuedtooccur.TheFireCodeOfficehasimplementedmonthlyreconciliationofalldataprovidedbythe County.” 10)Duetotheneedtoinputdatatotwosystems,theFireCodeOfficehasduplicatedtheir effortsandman-hours. TheFireCodeOfficehasbeeninputtinginexcessof1,000planreviewspermonthintoMobileEyesandCityView resultinginaduplicationofeffortandincreasedman-hours. ThisprocessceasedwiththesystemconversionscheduledforJanuary2,2014astheFireCodeOfficewilljusthave toinputdataintoMobileEyesfornewpermits.Legacypermitinformationwillstillbeinputintobothsystemsby theFireCodeOffice. Recommendation: FireCodeManagementshouldrevisittheirman-powerneedssubsequenttothesystemconversion. FireCodeOfficeManagementResponse : “Thisisatemporaryissuethatwillresolvewiththeexhaustionofthelegacypermits.” 11)QuestionableFees:Feesareassessedwithoutevidenceofworkorwithoutapproved constructs. Thefollowingfeesarecurrentlybeingassessedwithnoevidenceoftheworkbeingperformedorofapprovalto chargeforsuchwork: a.Thirty-two(32)pre-applicationmeetingswereheldduringthemonthsofAugusttoOctober2013wherea representativeoftheFireCodeOfficewasnotinattendance,yeta$75feewascharged.Thefeewasassessedat theGrowthManagementintakedeskwhentheapplicantrequestedapre-applicationmeeting.Whenthemeeting occurredandascheduledFireCodeOfficerepresentativedidnotattend,bothGrowthManagementandtheFire CodeOfficehadtheopportunitytoamendthesefeesduringthereviewprocess.Feereductionsfor nonparticipationshouldhavebeenmadepriortooratfinalreview.TheFireCodeOfficeconcurredwiththis findingandwillreimbursecustomersupontheirrequest. b.TheFireCodeOfficeischargingcustomersforovertimereviewfees(workperformedbyagencypersonnel outsideofnormalbusinesshourstoassistinexpeditingapermitrequest)despitethisfeenotbeingidentifiedin theapprovedandpostedfeeschedule.TheFireCodeOfficialindicatedthecustomerisprovidedwitha preliminaryfeeestimateforthisservicethenitisthecustomer’schoicewhetherornottousetheservice. c.TheGrowthManagementDivisionpresentlyreceivesaBoardofCountyCommissionersapprovedfeeof$500 forearlyworkauthorizationwhichallowsthecustomertoperformcertainworkpriortoreceiptofapermit approvalinconformancewithFloridaBuildingCode105.12.ThefeeisthensplitevenlywiththeFireCode OfficebasedonaninformalagreementbetweenthepriorBuildingCodeOfficialandtheFireOfficialbecause bothagenciesservicetheearlyworkauthorized.Neitheragencycouldreadilyobtainsupportdocumentation allowingforthedistributionofthatfee.AsofJanuary2,2014,thesystemconversiondate,perGrowth Management,thefeewillnolongerbesplitwiththeFireCodeOffice. 14 Recommendations: ManagementfromboththeFireCodeOfficeandtheCountyshouldrevisittheirfeeschedulesandensurethat allfeesareformallyapprovedbyanauthorizingbodyandidentifiedonthescheduleforpropercustomer disclosure. FireCodeOfficeManagementResponse : “a.PreviouslytheFireCodeOfficedidnotschedulethepre-applicationmeetingsnordidtheOfficeinputthefees intoCityVieworcollectthosefees.Additionally,theCountywasnotifiedinadvanceofourinabilitytoattendmost ofthemeetingsnoted.However,theFireCodeOfficeaskedthatahandoutbeprovidedtotheapplicantandto notifythemthattheFireCodeOfficewouldbehappytomeetwiththemindividuallyifnecessary,apracticethe Countyalsoutilizes.Someofthoseapplicantsdidso. Whenthisissuewasbroughtforward,theFireCodeOfficeofferedtorefundthepre-applicationmeetingfeestoany applicantuponrequest.SincetheCountyschedulesthesemeetingsitisnecessaryforapplicantstoprovide documentationtotheFireCodeOfficetodetermineiftherefundiswarranted(feesreceivedbyFireCodeOffice) ortheapplicantdidnotmeetindividuallywithFireCodeOfficeStaffregardingtheproject. b.Thepracticeofrequestingoptionalovertimeforplansreviewhasbeeninplacesinceapproximately2000under theadministrativeoversightofNorthNaplesFireDistrict.UpontransferofadministrativeoversighttoEastNaples FireDistrictin2003,thatadministrationapprovedthecontinuationofsaidpractice.Currentadministrationhas discontinuedthispractice. c.EarlyWorkAuthorizations—ThisfeeisgeneratedbytheCountyinaccordancewithBuildingBlocksA-120. DisbursementofanyorallofthatfeetotheFireCodeOfficeisattheirdiscretion.TheFireCodeOfficehas requestedtheCountynolongerdisburseanyportionofthesefeestotheFireCodeOffice. TheFireCodeOfficehasbeengivendirectionbytheEastNaplesBoardofFireCommissionerstopursuefee changestoaddresstheseandsimilarissuesaswellasseekathirdpartyagencytoprovideafeestudyanalysisto determineanupdatedfeestructure.” CountyManagementResponse : “EffectiveJanuary2,2014,thefeesplitwasremovedfromCityViewandrecordedintheconfigurationnotes.” 12)Thepermitreviewprocessdoesnottimelydetectinputerrorsresultinginpotential reimbursementorgeneralledgerreclassifications. AtthePermitIntakedesk,staffreceivesthepermitapplicationandinputsdatafromtheapplicationintoCityView. ThereisareviewprocessinvolvingboththeGrowthManagementDivisionandFireCodeOfficewhichisdesigned tocaptureinputerrors. DespiteanestablishedreviewprocessinvolvingbothFireandGrowthManagementDivisionpersonnel,issues notedbytheFireCodeOfficewhichwereidentifiedsubsequenttotheirreviewprocess,arenotalwaysproperly addressedincludingincorrectfeesbeingcollected,thewronggeneralledgeraccountbeingcreditedforfees,fee miscalculationsandthewrongpermitcodebeinginputorchangedafterinitialreview. Priortothecommencementoftheaudit,theFireCodeOfficialhadidentified22suchissues.Thesewerethen researchedanddocumentedbytheGrowthManagementDivision.Asoftheauditdate,allissueswerenot addressed.Openitemsareasfollows: Twoissuesrepresenting9.1%willrequireongoingcorrectiveaction. Fourissuesrepresenting18.2%willrequirethesystemconversiontoadequatelyaddresstheissue.Basedon discussionwithGrowthManagementpersonnel,thesefourissueshavebeenresolvedastheFireCodeOffice hasassumedfullresponsibilityforidentifyingandcollectingfirefees. 15 Threeissuesrepresenting13.6%relatedtopostingoffeestothewronggeneralledgeraccountremain unaddressed.OneoftheseissueshasbeenresolvedasofMay2013andtheGrowthManagementDivisionis workinginconjunctionwiththeFireCodeOfficetoaddresstheothertwoissues. Theoutstandingerrorsinvolvethewrongpermittypebeinginputoranincorrectamountoffeesbeing collected. Duringtheperformanceoftheaudit,elevenadditionalpermitfileswithissueswereidentified.Ofthosefiles,four permitsrepresenting36.4%hadthewrongpermittypeinput.Thefinancialimpactisapproximately$225. Thefeeschedulesforthetwoagenciesdifferregardingthetimingoffeepayments.GrowthManagement,in accordancewithFloridaStatute,willnotissueapermituntilallfeeshavebeencollectedandFirehasmore flexibilityinobtainingtheirfees.Duetothisdifference,thetimingofreviewsbyeachagencydiffersresultingin changesmadebyGrowthManagementoccurringoutsideoftheFireCodeOffice’sreviewperiodwhichare detectedsubsequentlybyFireduringotherreviews. Asaresultoftheaudit,theFireCodeOfficeismorefrequentlyreviewingfeeschargedandcollectedbyGrowth Management;therefore,discrepanciesarebeingaddressedinatimelymanner.Further,asaresultofthesystem conversion,onlyfeesonlegacypermitsarebeingprocessedinCityViewandthosepermitsareanticipatedtobe resolvedbyDecember31,2014.TheotherpermitfeesarenowsolelycalculatedandcollectedbytheFireCode Office. Untimelydetectionoferrorsmayresultinpotentialreimbursementoffeestothecustomeroragency,uncollected fees,orgeneralledgerreclassifications. Recommendation: FireCodeManagementshouldrevisittheirfeescheduleandensurethatallfeesareidentifiedontheschedule forpropercustomerdisclosureandcollection. FireCodeOfficeManagementResponse : “Theprocessinplacedoesnotworkasintended.CityViewcontainsdesignflaws,asidentifiedbytheaudit,that makeitdifficulttoaccuratelycalculateboththeBuildingandFirefees,andtomaintainthecorrectfeesthroughout theprocesswhilecompleteautomationisactivated(see#6). Aspreviouslydiscussedin#11,anewfeestudyisbeingpursued.” CountyManagementResponse : “TheGMDreviewprocesshasqualitycontrolmeasuresthatidentifyapplicationandentrydiscrepancies. Correctionsandallrequiredfeecollectionoccurpriortotheissuanceofbuildingpermits,inaccordancewiththe FloridaBuildingCodeandtheBoardofCountyCommissionersapprovedGMD/P&RFeeSchedule.BoththeGMD andtheFCOPlanReviewstaffsreviewedthesamepermitsandsharedresponsibilitytoensurethatproper informationwascollectedattimeofapplication. SincetheimplementationoftheBuildingPermitmoduleintheCityViewapplication,nearly60,000permitshave beenissued.The33potentialissuesthatwereidentifiedbytheFCOoccurredbetween2011through2013,and wereaddressedthroughsystemupdatesandcontrolmodifications,e.g.,since2012GMDstaffceasedenteringor adjustinganyFCOfeesunlessprovidedwrittendirectionandauthorizationbytheFCO.Ofthe54permitsselected randomlybytheInternalAuditor,allfeeswerecollectedpriortoissuance.Theauditofthose54permitsrevealed therewerethreepermitsthatrequiredrefundsbytheFCOduetooverchargesenteredduringtheFCOreview. AsofJanuary2,2014,GMDisnotcollectinganyFCOfees,includinglegacypermits.GMDiscurrentlyrevising thepermitapplication.” 16 InternalAuditResponsetoCountyandFireCodeOfficeManagementResponses: Managementresponsesdidnotaddresshowtheerrorswillbemoretimelydetectedandaddressed. 13)Firecodefeecalculationscouldpotentiallyresultinoverorunderstatedrevenue. TheFireCodeOffice'sfeestructurehasafeeescalationscaleuntilthejobcostreaches$120,000.Oncethejobcost exceedsthisamount,thefeereducesbacktoa$1pluscalculation,withaminimumfeeof$100. Thejobcostonapermitwasmanuallychanged,bytheGrowthManagementDivision,from$120,000to$121,000 butthereisnorecordofwhoauthorizedthechangeorthereasonforthechange.Thisresultedinreducedfirefees of$584.Thefeeof$684wascollectedbeforetheissuanceofthepermitbut$584waslaterrefundedtothe customerandreversedfromFire’sfeeincomebasedontheincreasedjobcost. Thisanomalycouldresultinlostrevenueintheeventacustomeroremployeechangethejobcostfrom$120,000to anamountgreaterthan$120,000. Recommendation: TheFireCodeOfficeshouldreviewtheirfeestoensurethatfeecalculationanomaliesdonotexistwhichcould resultinlostrevenue. FireCodeOfficeManagementResponse : “TheFireCodeOfficehasbeengivendirectionbytheEastNaplesBoardofFireCommissionerstoseekathird partyagencytoprovideafeestudyanalysistodetermineanupdatedfeestructure.Basedonournewprocess,we wouldcatchmostoftheseanomalies.” CountyManagementResponse : “InthisexampletheGMDpermittingtechchangedthevalueinthesystemtoreflectchangesmadebythe applicant,whoauthorizedthechange.ThischangewascaughtduringPlanReviewandallfeeswerecollectedprior totheissuanceofthebuildingpermit,inaccordancewiththeFloridaBuildingCodeandtheBoardofCounty CommissionersapprovedGMD/P&RFeeSchedule. Backupdocumentationisavailableuponrequest.” InternalAuditResponsetoCountyManagementResponse: Thebackupdocumentwasnotsignedbytheapplicantorthetechnician. 14)Departmental/Agencyproceduresneedfurtherclarificationandcoordination. Writtenproceduresprovideagencystaffwithaconsistentapproachtoperformingcertainoperationalprocesses whichareinaccordancewithapplicableregulationsandSeniorManagementdictate. BoththeFireCodeOfficeandGrowthManagementDivisionhavecreatedformalwrittenproceduresforthedaily operationsoftheirrespectiveagencies.However,theprocedureslacktheimplementationdate(thisiscapturedin SharePoint),identificationofresponsibleparties,orevidenceofdualcontroloroversight.Further,itdoesnotdefine theauthorofthedocumentsothatclarificationcanbeobtainedintheeventofquestions.Therearenowrittenor approvedagencypolicieswhichwouldserveasBoardauthorizationofkeyprocesses.Asaresultoftheauditand processreview,theGrowthManagementDivisiondeterminedthataprocedurerelatedtotheverificationoftheneed forseparatepermitswasneeded. Thelackofdetailedprocedurescancreateinconsistentpracticeswhichcouldresultinincreasedundetectederrors. 17 Recommendations: Proceduresshouldberevisedtoreflecttheimplementationdate,identificationofresponsibleparties,or evidenceofdualcontroland/oroversight. Proceduresshoulddefinetheauthorofthedocumentsothatclarificationcanbeobtainedintheeventof questions. Writtenandapprovedagencypoliciesshouldbecreated. Agencystaffshouldacknowledgereceiptoftheproceduresanddocumentationoftrainingstaffregardingthe proceduresshouldbemaintained. FireCodeOfficeManagementResponse : “Inaccordancewithrecommendationsprovidedthroughtheaudit,theFireCodeOfficehasdevelopedand implementedadditionalprocedures.” CountyManagementResponse : “GMDpolicieshavebeenwrittenandapprovedandarelocatedinthedepartment’s“BuildingBlocks”.GMD procedureshavebeenwrittenandapprovedandtrackedinaMicrosoftSharePointapplication,whichdocuments wholastupdatedthedocumentandthedate/timethedocumentwaslastupdated;however,basedonthe recommendationsoftheInternalAuditor,GMDwilladdtheauthorandtheversionontheactualdocument. GMDmanagementstaffwillreviewtheaboverecommendationsandwillmakeappropriatechangesasnecessary. WewillalsohaveemployeesacknowledgehowtofindBuildingBlocksandprocedurespublishedontheSharePoint site.” 15)Theneedforaself-reviewprocesswasidentifiedbytheGrowthManagementDivision. Aself-reviewisdesignedtoidentifypotentialissuesandrisksandassistinthedevelopmentofmitigatingcontrols. InternalAuditwillnormallyperformauditsonacyclicalbasis;therefore,aself-reviewforadepartmentwithhigh transactionvolumeisdeemedtobeanappropriateprocesstoidentifyandmitigaterisksintheinterim. TheGrowthManagementDivisionhasacknowledgedthatbasedonthehighvolumepermittingprocessandsystem conversion,theyplantocreateaself-reviewprocessandprovidebetterstafftraining. Managementhasrecognizedtheneedforaself-reviewprocessandhasmitigatedpotentialrisksorerrors. Recommendations: Managementshouldcontinuetoestablishaself-reviewprogramandensurethatstaffassignedthereviewrole havetherequisiteskillsandknowledgetoperformtherole. Managementshouldidentifyareportingandissueresolutionprocessforthisrole. CountyManagementResponse : “Asdevelopmentandpermitactivitycontinuetoincreaseandadditionalstaffishired,e.g.,FTE,jobbank,or contractlabor,GMDacknowledgestheneedfortrainingcoordination,monitoring,andtakingappropriateaction withstaffdevelopmentandcontrolprocedures.” 18 Conclusion ThisauditwasaspecialrequestfromtheEastNaplesFireDistrict,relatedtothepropercalculationandcollection offirefeesandmanagementpreparednessfortheimpendingsystemconversion. Theconversionprocesshasidentifiedaneedforbettertransitionplanningparticularlywhenmultipledepartments and/oragenciesareaffected.Duetoamisalignmentinobjectivesandapproachtotheconversion,ithasbeen delayedseveraltimes.Thishasresultedinpotentialadditionalexpensesanddespiteapromiseddeadlineof January2,2014,amoreautomatedprocesswillactuallynotbecompletedonscheduleduetoFiresoftware enhancementsoccurringintwophases. BasedondiscussionswithFireCodeOfficeandCountyManagementandtheirresponsestotheaudit,the anticipatedsystemconversion,whichoccurredonJanuary2,2014,shouldaddresssomeoftheissuesidentifiedby theFireCodeOffice.Itistooearlyinthepostconversionprocesstodeterminewhetherpreviouslyidentifiedissues havebeenaddressed.However,forthenextyearitislikelymorethan1,000permitsbeadministeredbyboththe GrowthManagementDivisionandFireCodeOfficeandtherewillcontinuetobedisparityinapproachestakenby theseagenciesinprocessingthepermitrequests.TheFireCodeOfficeisseekingapprovaltosimplifythefirecode feeswiththeindependentfiredistricts.Thismayalleviatethedifferentapproachestakenbythetwoagencies. Therefore,themanualentriesmadebytheFireCodeOfficewillrequireadditionalreviewfrombothFireandthe GrowthManagementDivision.Further,thecustomerwillbeinconveniencedastheywillneedtotravelwiththeir plansbetweentwolocationsdespitetheircloseproximity,whichcouldresultinreputationalrisk. Auditsdonotrelievemanagementoftheirresponsibilities.ItistheresponsibilityofCountymanagementto understandandimplementtheproperproceduralcontrolsinordertoreduceandlimittheriskoffraud,error,and misappropriationofCountyassets.InternalAuditmayrecommendimprovementsinauditreports,butultimatelyit isthedutyanddecisionofCountymanagementtoformulateprocessesandcontrolsthatensurecompliancewith Federalregulation,Statestatute,Countyordinance,andCountypolicies. TheInternalAuditDepartmentgratefullyacknowledgesthecooperationandassistanceprovidedbytheGrowth ManagementDivisionandFireCodeOffice.Thedivision/agencywillingnessanddiligenceinproviding informationandresponsestotherecommendationshasgreatlyassistedtheInternalAuditDepartmentwiththis audit.