Additionally, approximately $177,000 in contract payments...were made contrary to state contracting rules.
In the early 1990s, the ODOC purchased and implemented the Automated Financial Accounting Manufacturing Inventory System (AFAMIS), its main financial accounting system. The Audits Division of the Oregon Secretary of State Office conducted an audit to evaluate the effectiveness of computer controls governing AFAMIS, including system development, security, data integrity, and disaster recovery and contingency planning.
Auditors found that Department management did not use generally accepted controls for system development and maintenance...many critical system development phases and processes were not adequately performed during the departments project to upgrade...the system. Additionally, controls to secure AFAMIS programs, data and online functions were...insufficient and ineffective. Access to...data and programs was not properly restricted and the departments ability to provide reliable internal control was limited. As a result, the integrity and confidentiality of the system was at significant risk of compromise.
Key data files...were not always complete, accurate, or valid undermining the departments ability to safeguard or manage its financial assets and resources [so] the financial information it provides to outside entities may not accurately reflect the operations. For example, during a 2003 financial audit, various expenditure accounts were deemed unauditable because of posting errors and misclassifications. Accounts payable and receiving totals did not reconcile. In a sampling of 87 transactions, auditors found 50 that were signed by someone who had no authority.
Auditors reported that very few individuals understood that system sufficiently to answer even routine inquiries regarding AFAMIS data or data integrity issues.
The ODOC generally agreed with the numerous recommendations of auditors. We realize that the upgrades could have been managed more effectively, said ODOC spokeswomen Perrin Damon. See: OR Secretary of State Audit Report No 2005-5 (1/14/05). Copies of the report are available online at: www.sos.state.or.us/audits/audithp.htm, or by calling 503-986-2255.
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