INTERNAL AUDIT DIVISION

CLERK OF THE CIRCUIT COURT

&

GUARDIANSHIP DIVISION

SIXTH JUDICIAL CIRCUIT COURT

PINELLAS COUNTY

 

 

 

 

POLICIES

AND

PROCEDURES

FOR

GUARDIANSHIP AUDITS

 

 

 

 

 

 

 

 

 

 

 

 

 

______________________________________________________________________

 

POLICIES AND PROCEDURES

FOR GUARDIANSHIP AUDITS

 

TABLE OF CONTENTS

 

 

 

PAGE

I.

Policy Statement

3

II.

Purpose of Policy

3

III.

Ethics

3

IV.

Independence and Objectivity

5

V.

Types of Audits (Levels)

5

VI.

Audit Scope

8

VII.

Selection Procedures

8

VIII.

Notification

10

IX

Guardian Cooperation

10

X.

Audit Procedures

10

XI.

Planning

11

XII.

Documentation of Work Papers Level III Audits

12

XIII

Reporting Procedures

14

XIV.

Extensions of Statutory Time and Non-Compliance by Guardian

15

I.          POLICY STATEMENT

 

The Internal Audit Division (IAD) of the Clerk of the Circuit Court, Sixth Judicial Circuit, Pinellas County, Florida (Clerk) and the Guardianship Division of the Sixth Judicial Circuit, Pinellas County Florida (Court), in order to effectively fulfill their responsibilities for guardianships pursuant to Chapter 744, Florida Statutes have jointly developed and hereby implement the following policies and procedures.   Professional auditors of the IAD now augment the Clerk’s Probate Division staff in an attempt to buttress the Court’s oversight process applicable to the protection of wards’ assets.  In coordination and cooperation with the Guardianship Judges of the Circuit and with the General Magistrate of the Guardianship Division of the Court the IAD will conduct varying levels of audits/financial investigations related to Guardianship reports and activities.

 

II.         PURPOSE

           

            This policy will ensure a documented, consistent approach to audits conducted on guardianships by the IAD on behalf of the Court.

 

III.        ETHICS

 

The Code of Ethics guidelines adopted by The Institute of Internal Auditors (IIA) and The President’s Council on Integrity and Efficiency on Quality Standards for Investigations will apply in the performance of these audits by IAD staff.  The Standards of Conduct and statements about its interpretation are as follows:

 

                  Principles:

 

                  Integrity

                  The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.

 

                  Objectivity

                  Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.

 

                  Confidentiality

                  Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.

                 

                  Competency

                  Internal auditors apply the knowledge, skills, and experience needed in the performance of internal auditing services.

                  Rules of Conduct:

 

                  1. Integrity

Shall perform their work with honesty, diligence, and responsibility.

 

Shall observe the law and make disclosures expected by the law and the profession.

Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization.

Shall respect and contribute to the legitimate and ethical objectives of the organization.

 

2.      Objectivity

Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.  This participation includes those activities or relationships that may be in conflict with the interests of the organization.

Shall not accept anything that may impair or be presumed to impair their professional judgment.

Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review.

 

3. Confidentiality

Shall be prudent in the use and protection of information acquired in the course of their duties.

Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization.

Pursuant to Florida Statute 744.3701(1) and (2), all documents, work sheets and reports received and/or created by the clerk’s probate auditors and the internal audit division which contain information listed in the initial, annual and final guardianship reports are subject to inspection only by the court, the clerk or the clerk’s representative, the guardian and the guardian’s attorney, and the ward, unless he or she is a minor or has been determined to be totally incapacitated, and the ward’s attorney.  Such reports and work sheets containing material from any of the aforementioned accountings can be made public only by court order.

 

4. Competency

Shall engage only in those services for which they have the necessary knowledge, skills, and experience.

Shall perform auditing services in accordance with the International Standards for the Professional Practice of Internal Auditing.

Shall continually improve their proficiency and the effectiveness and quality of their services.

 

Interpretation of Principles

 

The provisions of this Code of Ethics cover basic principles in the various disciplines of internal auditing practice.  Members shall realize that individual judgment is required in the application of these principles.  They have a responsibility to conduct themselves so that their good faith and integrity should not be open to question.  While having due regard for the limit of their technical skills, they will promote the highest possible internal auditing standards to the end of advancing the interest of their organization.

 

IV.        INDEPENDENCE AND OBJECTIVITY

 

                  The audit activity should be independent, and auditors should be objective in performing their work.

 

Professional standards adopted by the American Institute of Certified Public Accountants, the Institute of Internal Auditors (IIA), The President’s Council on Integrity and Efficiency on Quality Standards for Investigations and the Comptroller General of the United States all emphasize the necessity for independence of auditors from those being audited, both organizationally and personally, and not only in fact but also in appearance, in order to assure objectivity by the auditor.

 

V.         TYPES OF AUDITS

The Clerk has established three levels of audit, pertinent to the examination and audit of guardianship reports (Initial Verified Inventory, Annual Accounting, Final Accounting, Trust and Interim Accounting), as follows:

 

Level I

 

A Level I audit consists of the desk review (worksheet) of the guardianship reports in conjunction with the supporting documentation filed therewith.  These audits are performed by the staff of the Clerk’s Probate Division.

 

1.      Once the reports are docketed, the docketing system automatically inserts a due date for review and auditing.

2.      The auditor runs a weekly report that lists all the files in which all the reports are due and are in need of review and audit.

3.      The court files are pulled and guardian’s reports filed are reviewed.

4.      If the guardian has not filed the required report, an order to file the report is prepared by the auditor and forwarded to the Judge. 

5.      The order to file the report when docketed will produce a follow up tick and when the guardian files the correct reports it will produce a follow up tick.  The auditor will then audit within three months from the date the report is filed.

6.      Depending on the type of report filed and reviewed, the auditors use and complete the corresponding worksheet:

·        Initial Plan

·        Initial Inventory

·        Annual Plan

·        Annual Accounting

·        Trust and Final Accounting

7.      If everything is filed correctly and the auditor recommends an Order Approving be entered, the worksheet is forwarded to the General Magistrate via e-mail for further review and proposed Orders Approving Annual or Initial reports are prepared by the General Magistrate’s office and forwarded to the Judge’s office for review and if appropriate, signature.

8.      If the auditor finds discrepancies with the report, a proposed Order Disapproving or Order Checklist listing the discrepancies will be prepared.

9.      The court file is given to the IAD and the worksheets are e-mailed to IAD to review the findings of the Probate Auditor.

10. When IAD has finished the review and agrees with the auditor, IAD will initial the report, e-mail the worksheet and return the file to the auditor.

11. The auditor will forward the worksheet and the proposed Order Disapproving to the General Magistrate for further review.

12. The General Magistrate reviews the report, worksheet and proposed Order Disapproving and if necessary, amends the Order Disapproving.  The GM either recommends approval or disapproval of the report or forwards the recommended order to the section judge by hard copy along with copies for the guardian, attorney and other interested parties.  The General Magistrate’s office prints the worksheet for forwarding to the audit section of the Clerk’s office.  Based on the action of the GM, the following is completed by the auditor.  If the report is approved, the auditor will initial and send it through the imaging process.  After the documents have been imaged, the report is given back to the auditor to be placed in the sealed envelope with the corresponding reports.  If the Court enters the Order Disapproving or to file, the worksheet is placed in the folder with the corresponding reports for future follow up (paperwork does not go through imaging until the Order Approving is entered).

13. If the IAD agrees with the finding on the proposed Order Disapproving but determines that a Level II audit by IAD may be needed, IAD forwards the court file and/or emails the worksheet to the General Magistrate and her assistant with a copy to the auditor (see Level II).

14. When it is time to do the follow up to the Order Disapproving, the probate auditor will pull the case file, worksheets and responses.

15. The probate auditor will review the response to the Order Disapproving and make any necessary changes to the worksheet, add comments as to the findings and send the court file and amended worksheet to the General Magistrate.

16. If all the requested information and documents have been filed and no other discrepancies exist, the probate auditor shall recommend entry of the Order Approving and forward the court file to the General Magistrate. GM reviews the response and the worksheet and if no other discrepancies exist, prepares a proposed Order Approving and forwards to the section judge for review and if appropriate, signature.

17. If the guardian fails to respond to the Order Disapproving, the Clerk’s office prepares a status check and forwards to the GM office to request further direction.  The GM will either contact the attorney to discuss the status of the response and may ask the Clerk to set a status check and to pull the court file for review of the response, or forward a proposed Order to Produce or Order to Show Cause with a hearing date and time to the section judge.  The type of action is based on the severity of the discrepancy. The follow up process for these Court Orders is the same as the response to the Disapproval Order.

Level II

 

A Level II audit consists of the examination of the guardianship report, and the attempted verification of selected questionable items.  Limited inquiries and/or requests for supporting documentation may be necessary to resolve issues. Level II audits are commenced and conducted pursuant to Administrative Order (insert new order #) and require an order to produce before commencement and are conducted by IAD staff with the approval and cooperation of the General Magistrate of the Guardianship Division of the Court.

1.      Probate Auditors will email IAD their audit worksheets and proposed Orders to Disapprove, and provide the case file to IAD.

2.      IAD reviews case file, worksheets and proposed Order to Disapprove.

3.      Should IAD require additional documentation, IAD will make the necessary amendments to the proposed Order to Disapprove.  IAD will email the audit worksheets and amended Order to Disapprove to the General Magistrate.

4.      IAD will notify the Probate auditor and supervisor by email that a Level II audit has been requested.

5.      The General Magistrate will review the audit worksheets and amended Order to Disapprove and contact IAD if there are any issues, concerns, additional changes or denies the request for a Level II audit.

6.      The General Magistrate forwards the case files, audit worksheets and final Orders to Disapprove to the appropriate Judge for signature.

7.      The Judge reviews and if the court order is signed the court order; the judicial assistant returns the court order to Probate for mailing with a copy to the General Magistrate’s office.

8.      The Guardians file their responses for the Orders to Disapprove with Probate, which are date file stamped, docketed, imaged and filed in the Court File.

9.      Probate (does not review the responses) forwards to IAD all guardian responses to Level II audits.

10.  After IAD reviews the responses, IAD will meet with the Probate supervisor and auditor to summarize and discuss IAD’s findings and concerns.

11. IAD forwards to General Magistrate the results of the guardian’s response and review (Addendum to the Clerk’s Audit of Annual Accounting, Subject: Level II Audit, Findings and Recommendations.

 

Level III

 

A Level III audit consists of a comprehensive examination and attempted verification of all significant items pertinent to the guardianship report.  Detailed review of accounts and attendant transactions is common, which may include third party confirmations as necessary.  Level III audits are commenced and conducted pursuant to Administrative Order and any subsequent administrative orders and require an order to produce before commencement and are conducted by IAD staff with the approval and cooperation of the General Magistrate of the Guardianship Division of the Court

 

1.      Probate Auditors will email IAD their audit worksheets and proposed Orders to Disapprove, and provide the case file to IAD.

2.      IAD reviews case file, worksheets and proposed Order to Disapprove.

3.      Should IAD require additional documentation, IAD will make the necessary amendments to the proposed Order to Disapprove or recommend a Level III audit and prepare a proposed order to produce.  IAD will email the audit worksheets and amended Order to Disapprove and order to produce to the General Magistrate.

4.      IAD will notify the Probate auditor and supervisor by email that a Level III audit has been requested.

5.      The General Magistrate will review the audit worksheets and amended Order to Disapprove and Order to Produce and contact IAD if there are any issues, concerns, additional changes or denies the request for a Level III audit.

6.      The General Magistrate forwards the case files, audit worksheets and final Order Disapproving or Order to Produce to the appropriate Judge for signature.

7.      The Judge reviews and if the court order is signed; the judicial assistant returns the court order to Probate for mailing with a copy to the General Magistrate’s office.

8.      The Guardians file their responses for the Orders to Disapprove/Produced with Probate, which are date file stamped, docketed, imaged and filed in the Court File.  Notification of the filing is sent to the office of the General Magistrate unless the Order to Produce requires the guardian to submit the documents to the general magistrate.

9.      Probate (does not review the responses) forwards to IAD all guardian responses to Level II audits.

10. After IAD reviews the responses, IAD will meet with the Probate supervisor and auditor to summarize and discuss IAD’s findings and concerns.

11. IAD forwards to General Magistrate the results of the guardian’s response and review (Addendum to the Clerk’s Audit of Annual Accounting, Subject: Level II Audit, Findings and Recommendations

 

VI.       AUDIT SCOPE

 

Audits will generally be limited in scope to the accounting period of the guardianship report subject to audit and as stated in the Order to Produce with notice to all parties. However, because entries or information contained in a given report may only be substantiated by documentation from prior years, such documents and records may also be subject to audit.  In addition to documentation maintained and testimony provided by the guardian and guardian’s attorney, documentation and testimony may also be requested of others providing goods and services related to the guardianship and/or ward. At the discretion of the auditor, an audit will normally include interview of the guardian and examination of receipts and disbursements, statements of account and other relevant documentation.

 

At times, IAD receives allegations of impropriety by guardians pertinent to activities that occur after the time period covered by the latest current guardianship report filed.  In order to protect the ward’s assets, a special audit/investigation by Order to Produce and notice to all parties may be initiated prior to the filing of the next guardianship report that would cover the time period of the alleged improper activities.

 

VII.      SELECTION PROCEDURES