2007-24-Minutes for Meeting December 18,2006 Recorded 1/8/2007DESCHUTES COUNTY OFFICIAL RECORDS 100~~24
NANCY BLANKENSHIP, COUNTY CLERK 1iJ V
COMMISSIONERS' JOURNAL
1,.1,.,, 01/08/2007 03:40:21 PM
2007-2
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0 { Deschutes County Board of Commissioners
1300 NW Wall St., Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202 - www.deschutes.ora
MINUTES OF MEETING OF DEPARTMENT HEADS
DEPARTMENT HEADS & BOARD OF COMMISSIONERS
MONDAY, DECEMBER 18, 2006
Conference Room - Administration Building - 1300 NW Wall St., Bend
Present were Commissioners Dennis R. Luke, Michael M. Daly and Bev Clarno.
Also present were Dave Kanner, County Administrator; Scot Langton, Assessor;
Dave Peterson, Information Technology; Dan Despotopulos, Fair & Expo Center;
Susan Ross, David Givans and Anna Johnson, Commissioners' Office; Marty
Wynne, Finance Department; Debbie Legg, Personnel; Becky Wanless, Parole &
Probation; and Commissioner-elect Tammy Baney.
Others present were Tom Blust, Road Department; Nancy Blankenship, Clerk's
Office; Dan Peddycord, Health Department; Timm Schimke, Solid Waste
Department; Lane Roberts, 9-1-1; Sheriff Les Stiles; and Mark Pilliod, Legal
Counsel. Also in attendance were Mike Viegas, Risk Management; Mike Dugan,
District Attorney; Scott Johnson, Mental Health Department; Bob Lacombe,
Juvenile Community Justice; Tom Anderson, Community Development
Department; and Carol Garibay, Justice Court. No representatives of the media
or other citizens were present. The meeting began at 12:05 p. m.
1. Introductions.
The attendees introduced themselves at this time.
2. Update on Internal Audit Communications regarding Audit Reports; New
Intranet Site.
Dave Givens reviewed a handout regarding audit reports. He added that the
external auditors were pleased with their findings of Finance and the
departments that were audited - Parole & Probation, Solid Waste and Juvenile
Community Justice.
Minutes of BOCC/Department Heads Meeting Monday, December 16, 2006
Page 1 of 6 Pages
3. Discussion of Self-insurance Reserves.
Mike Viegas stated that an actuarial study of reserve funds needed for insurance
purposes should be completed by the first of the year. The County can probably
expect two claims per year at $1 million. Rates are good but are going up.
Departments will be examined to determine which have higher risk/loss ratios.
Dave Kanner added that the actuary firm will probably tell the County that
reserves are too low and that $2 million should be on hand. He and Finance are
trying to find a way to do a one-time funding of the reserves needed, and then
incremental contributions will be made by the Departments over time. It is
likely an excess liability fund will be added as well.
Marty Wynne gave an overview of the reserves. He will be discussing with the
Budget Committee and EBAC what to charge next year. There are very few
really big claims; most are covered by stop-loss insurance but t his causes the
insurance costs to go up the following year. He added that the budget should be
calculated at 120% of expected.
4. Update regarding Contracting Process.
Mark Pilliod stated that since there is no contract administrator, there is no easy
way to manage contracts. He is examining contracting rules; there may be less
competitive contracting done. Instructions are being drafted as to how to handle
contracts and other agreements. Greg Canfield and Mike Viegas will begin
providing instruction on the contracting process; and the State has training
available. He added that he doesn't want to create hurdles, but there needs to be
consistency, and at times State rules can be a burden in this regard.
The special procurement process is being examined, and the County
Administrator can make a judgment call if it appears there is no competition or it
doesn't make sense.
5. Department Updates
Sheriff Stiles indicated that now that the Sheriff districts have passed, changes
will be made. Goal setting and looking at a long-range plan will be a different
process than they have had to consider in the past.
Minutes of BOCC/Department Heads Meeting Monday, December 16, 2006
Page 2 of 6 Pages
Sheriff Stiles said that Search & Rescue received the volunteer of the year award
from the Oregon State Sheriff's Association. The award went to the unit, which
is the busiest one in the state. This group, which is 100% volunteer, responds to
an average of 120 missions a year, and there are 85 volunteers who have varying
kinds of expertise.
Lane Roberts stated that he is still learning his new job and working out issues
within 9-1-1. He is also working on the May levy.
Carol Garibay said that they have been using an outside collection agency for old
cases, and many of the people are paying to avoid a negative impact to their
credit reports. Letters were sent out in June and thus far approximately $400,000
has been received.
Bob LaCombe stated his crews are working on graffiti removal. There are three
job openings in his Department at this time.
Scott Johnson said that the Safe Schools Alliance is working on examining kids
who are at risk. Early planning and training are being done for crisis intervention
services. There is a mobile crisis team available 24/7.
Commissioner-elect Tammy Baney stated that she is attending lots of meetings to
learn about the workings of the County and Departments.
Susan Ross indicated that she is working on relocating the Bethlehem Inn and
transitional housing.
She said that seven employees in the downtown annex have received parking
citations. She stressed that Department Heads need to let their employees know
that if they are cited, they will have to appear before the Board with their
supervisor and Department Head to explain why they are parking in visitor
parking.
Ms. Ross stated that if a Department wishes to have a fire drill, Building
Maintenance needs to be advised in advance.
Minutes of BOCC/Department Heads Meeting Monday, December 16, 2006
Page 3 of 6 Pages
Dan Despotopulos said the RV park should be finished by the end of May 2007;
the covered arena by the beginning of February.
Bev Clarno thanked the group for the gift certificate given to her. She said this
has been the best job she's ever held, and she is very proud of the County's
employees.
Debbie Legg stated that the 9-1-1 Employees Association has signed the labor
agreement. The only agreement to be completed is the Parole & Probation one.
Retroactive checks will be issued to Sheriff's Office Employees Association
members and 9-1-1 Association members.
Anna Johnson indicated that the United Way fundraising shows good numbers
for the County.
She asked Department Heads to be sure to return the evaluation forms from the
recent retreat.
Tom Blust stressed that financing for his Department is not looking good since
the Forest Payments bill is in jeopardy. Income will be down by $3 million if it
is not reauthorized.
Timm Schimke said that cell 4 is progressing, as is the north landfill facility
proj ect.
Dave Peterson stated that security assessments are being done.
Scot Langton indicated that revenues look good; he hopes to have an accurate
estimate of the property tax revenues by January.
Becky Wanless said that her Department how has 17 parole officers who are all
very busy.
Minutes of BOCC/Department Heads Meeting Monday, December 16, 2006
Page 4 of 6 Pages
Nancy Blankenship stated that voter turnout in the last election was at 71
many of the ballots came in on the last day.
Oregon vote by mail is being examined by other states at this time.
David Givans said that the Fair & Expo Center and Assessment/Taxation will be
examined.
Scott Johnson gave an overview of expected changes in legislation.
Dan Peddycord explained the recent national e.coli outbreak; so far there have
been no confirmed cases in the area.
Marty Wynne said that this is the second year using the lockbox system, which
has worked very well. It is very accurate and saves money.
Mike Dugan stated that Deschutes County is now known as a party county, with
1,211 DUII's this year as of December 12. There is also some gang activity
taking place, and instances of random violence. Graffiti is becoming a problem;
this is typically race-related. Action needs to be taken now to keep this under
control.
A meeting regarding gaming issues will be held with the cities on January 5 to
make sure everyone is aware of compliance requirements.
Tom Anderson said that development trends are leveling; new housing starts in
Bend and Redmond are declining. The market appears to be saturated at this
point.
His Department is working with the City of Bend on its UGB expansion process.
His Department is also working with south County citizens regarding issues with
septic systems and wells, to get ahead of potential problems.
Measure 37 claims are still being addressed; 47 more have been received, most of
which are in the northern part of the County. Those that obtain waivers will
probably result in a flood of applications to build.
6. Other Items.
Minutes of BOCC/Department Heads Meeting Monday, December 16, 2006
Page 5 of 6 Pages
None were offered.
Being no further items discussed, the meeting adjourned at 1:10 p. m.
DATED this 18th Day of December 2006 for the Deschutes County
Board of Commissioners.
ATTEST:
qo-yl~ 4~UA-
Recording Secretary
n
D nnis R. Luke, C air
----U4WrJd'Jz
Clarno, Commissi ner
Mi ael M. Daly, Co missioner
Minutes of BOCC/Department Heads Meeting Monday, December 16, 2006
Page 6 of 6 Pages
Deschutes County Board of Commissioners
1130 NW Harriman St., Bend, OR 97701-1947
(541) 388-6570 - Fax (541) 388-4752 - www.deschutes.org
AGENDA
BOARD OF COMMISSIONERS & DEPARTMENT DIRECTORS
12 Noon, Monday, December 18, 2006
Deschutes Services Center -1St Floor, DeArmond Room -1300 NW Wall St., Bend
1. Introductions - Department Heads, Other Attendees
2. Update on Internal Audit Communications regarding Audit Reports; New
Intranet Site - David Givans
3. Discussion of Self-insurance Reserves - Mike Viegas
4. Update regarding Contracting Process - Mark Pilliod
5. Department Updates
6. Other Items
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Dept. Heads/BOCC Meeting
Monday, December 18, 2006
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Dept. Heads/BOCC Meeting Monday, December 18, 2006
(P/ease Print)
Name Department
Please return this sheet to Bonnie @ BOCC. Thanks!
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Welcome David Givans Monday, December 18, 2006
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Comity hiternal Auditor
David Givans, CPA, CIA
1300 NW Wail Street, Suite 200
Bend, Oregon 97701
Phone: 541-330-4674
Fax: 541-395-3202 Email
Internal Auditor
Management and employees in the public sector are responsible for taxpayer use of public resources and
should be held accountable for their use. It is vital that government exercise its power and perform its duties
in compliance with law, policy, and established procedures and apply good judgment and sound
management practices.
The Internal Audit program independently reviews, evaluates and reports on the financial condition, the
accuracy of financial record keeping, compliance with applicable laws, policies, guidelines and procedures,
and efficiency and effectiveness of operations. Internal audit reports are given to management and used to
provide a dialogue for constructive change.
FAQs (click on question for answer) i
Internal Auditor
0: Who is Deschutes County's Intemai Auditor?
Q: Why does Deschutes County need an internal auditor
Q: Why and how is the County's Internal Auditor independent?
Q: Where does the County':: Internal Auditor get the authority to audit?
Q: What does the County's Internal Auditor do?
Q: How is a County Department selected to receive an audit?
Q: What happens during a County Department internal audit?
Q: What happens after a County Department internal audit is complete?
v
Bonnie Baker
From: David Givans
Sent: Tuesday, December 12, 2006 1:43 PM
To: -Department Heads; _Administration
Subject: New internal audit communications and audit reports issued
I would like to bring to your attention a couple of things I will be doing to disseminate my audit findings in
reports. The audit committee and I think by providing this information to all department heads, departments
might be able to draw some comparisons within their departments and proactively address these issues within
their departments.
• I will be emailing the executive summary of internal audit reports (as they are issued like those below) to all
department heads. If something catches your attention then you can look at the full report for further details.
• Internal Audit has developed an intranet site - see http://express/index.cfm?obiectid=58EEEB41-1143-
C63B-2545C77D7C9AA689. You will find on there a section for all internal audit reports issued and can
look up those as needed. If someone outside of the organization requests one of these from you please refer
them to me. I would like to track those requests.
The following reports were issued in November: COVA - Review of spending and ABHA - Review of
spending. The following executive summaries and report references are for your information.
COVA - Review of spending - The County provides a significant amount of room tax monies to COVA each
year. The County wanted a better understanding of how these monies were being spent by the organization.
COVA financial controls
Some business records are not being retained for a sufficient length of time.
Segregation of duties could be improved.
There is no grant agreement between the County and COVA.
The organization does not have a travel and entertainment policy for staff.
Management's review of expenditures is not documented.
Invoice numbers are not always entered when bills are entered for payment.
Wage increases, for CEO, are insufficiently documented.
The organization's budget was not balanced in their accounting system.
Other findings to be addressed by County
Real growth in Deschutes County room tax has declined over the last five years.
County Fair and Expo receives funding partly through COVA.
Link to full report http://express/download.cfm?DownloadFile=F2782C22-1143-
D906-8AF016B9114AD264
ABHA - Review of spending - The audit objective was to review how the organization spends the monies it
receives from the state on behalf of Deschutes County and the other counties that are part of the Mental Health
Organization. .
ABHA financial controls
ABHA lacks control over claims bank account.
ABHA has not provided sufficient oversight over IT services.
ABHA could provide more oversight over medical claims processed.
Written accounting policies and procedures concerning duties of business office staff could be
improved.
There could be improved accounting and control over checking account.
Additional oversight needed for executive director reimbursements.
Current accounting for travel and meals makes it difficult to assess extent of costs.
Some expenditure support was missing or lacked sufficient detail.
Accounting records include monies held in trust for clients.
Some confusion exists over what fiscal period to record some expenditures.
Operational performance
Inefficient method utilized to organize expenditure support.
Link to full report http://express/download.cfm?DownloadFile=3A273160-1143-
D906-8A3F0CDF35207F37
If you have questions on controls or operational issues please let me know.
Thanks!
David Givans, CPA, CIA
County Internal Auditor
Deschutes Services Center building
1300 NW Wall Street, Suite 200
Bend, OR 97701
Phone: (541) 330-4674
Fax: (541) 385-3202
Email reply to: Davidg@co.Deschutes.or.us
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