Okaloosa County BOCC — August 18, 2015 — Okaloosa Follow-Up Letter and P&T

AUDITOR GENERAL S TATE OF F LORIDA Claude Denson Pepper Building, Suite G74 Sherrill F. Norman, CPA 111 West Madison Street Phone: (850) 412-2722 Auditor General Tallahassee, Florida 32399-1450 Fax: (850) 488-6975 July 31, 2015 Honorable Nathan Boyles, Chair Okaloosa County Board of County Commissioners 302 North Wilson Street, Suite 302 Crestview, Florida 32536 Honorable J. D. Peacock, II, Clerk Clerk of the Circuit Court Okaloosa County 101 East James Lee Boulevard Crestview, Florida 32536 Dear Commissioner Boyles and Clerk Peacock: Enclosed is a list of preliminary and tentative audit findings and recommendations that may be included in a report to be prepared on our operational audit of the Okaloosa County Board of County Commissioners and Okaloosa County Clerk of the Circuit Court, Follow-Up on Report No. 2014-068. Pursuant to Section 11.45(4)(d), Florida Statutes, you are required to submit within thirty (30) days after receipt of this list a written statement of explanation concerning all of the findings, including therein your actual or proposed corrective actions. If within the 30-day period you have questions or desire further discussion on any of the preliminary and tentative audit findings and recommendations, please contact this Office. Your written explanation should be submitted electronically in source format (e.g., Word or WordPerfect) and include your signature. For quality reproduction purposes, if you are not submitting your response in source format, please convert your response to PDF and not scan to PDF. If technical issues make an electronic response not possible, a hard copy (paper) response will be acceptable. Please e-mail this Office at flaudgen_audrpt_lg@aud.state.fl.us to indicate receipt of the list of preliminary and tentative audit findings and recommendations. Absent such receipt, delivery of the enclosed list is presumed, by law, to be made when it is delivered to your office. Sincerely, Sherrill F. Norman SFN/ Enclosure c: Okaloosa Board of County Commissioners County Administrator Inspector General www.myflorida.com/audgen  OKALOOSA COUNTY BOARD OF COUNTY COMMISSIONERS AND OKALOOSA COUNTY CLERK OF THE CIRCUIT COURT Follow-Up on Report No. 2014-068 PRELIMINARY AND TENTATIVE AUDIT FINDINGS NOT AN AUDIT REPORT SUMMARY This report provides the results of our audit to determine the extent to which the Okaloosa County Board of County Commissioners (BCC) and Okaloosa County Clerk of the Circuit Court (CCC) had taken, or were in the process of taking, corrective actions to address the findings included in our report No. 2014-068. Our follow-up procedures to determine the BCC’s and CCC’s progress in addressing the 21 findings and recommendations contained in our report No. 2014-068 disclosed that, as of the completion of our follow-up procedures in June 2015, the BCC’s and CCC’s actions corrected 13 findings (i.e., Nos. 1, 2, 3, 4, 8, 10, 11, 12, 13, 17, 19, 20, and 21), partially corrected 5 findings (i.e., Nos. 7, 9, 14, 16, and 18), and did not correct 2 findings (i.e., Nos. 6 and 15). The BCC took no corrective action regarding finding No. 5. FINDINGS AND RECOMMENDATIONS OKALOOSA COUNTY BOARD OF COUNTY COMMISSIONERS FRAUD AND ETHICS CONTROLS/RISK ASSESSMENTS Finding 1: Fraud Controls and Risk Assessments Previously Reported The BCC had not performed and documented periodic fraud or control risk assessment