Compliance Review
Review of Invoice Processing Controls -
Wackenhut’s Security Services Contract
September 22, 2008
Report No. 08-10
Office of the County Auditor
Evan A. Lukic, CPA
County
Auditor
Compliance Review
Table of Contents
Topic
Page
Executive Summary ................................................................................ 3
Purpose and Scope................................................................................. 4
Methodology ............................................................................................ 5
Background ............................................................................................. 6
Findings and Recommendations ........................................................... 8
Office of the County Auditor
2
Compliance Review
Executive Summary
In this report we assessed the controls over the review and processing of invoices for
security services provided by Wackenhut Corporation (Wackenhut). Our primary
objectives were to evaluate the effectiveness of invoice processing controls in
ensuring:
• Payments are only made for services actually provided in accordance with the
contract terms, and
• Errors and irregularities are detected and prevented.
In addition, we evaluated the contract administrator’s monitoring efforts regarding
compliance with the Broward County Living Wage Ordinance.
Our review encompassed nine county agencies using the services of Wackenhut
during the fiscal year ended September 30, 2007. These nine agencies paid $5.8
million to Wackenhut during fiscal year 2007.
We noted deficiencies in the invoice review processes which diminish the County’s
ability to determine the validity of amounts billed and detect or prevent errors and
irregularities, including:
• County personnel at the majority of sites served by Wackenhut:
o did not review and validate daily entries on the security logs which
document hours worked by guards.
o did not provide evidence that h