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2014-457-Minutes for Meeting March 13,2014 Recorded 9/18/2014 DESCHUTES COUNTY CLERK VV �Q��'� r NANCY COMMISSIONERS' JOURNAL Q9118/2014 10;40;30 AM IIIIIIIIIIIIIII III Do not remove this page from original document. Deschutes Count y Clerk Certificate Page 0Es ,,1,, 1 44(11101kS �01ffs c, �� �z Deschutes County - De' ` Audit Committee MINUTES - 3/13/14 Re: Deschutes County Audit Committee Meeting Minutes—Thursday, March 13, 2014 Committee Members Present: Commissioner Tony DeBone; Dan Despotopulos, Fair& Expo Director; Nancy Blankenship, County Clerk; Chris Earnest, Gayle McConnell, Jean Pedelty, Michael Shadrach, and Jennifer Welander, Public Sector. (Quorum Met) Others present were: Tom Anderson, County Administrator; David Givans, County Internal Auditor, Wayne Lowry, Finance Director; and Connie Thomas, Administrative Assistant. Present for a portion of the meeting: Carolyn Eagan, City of Bend. Absent: Erik Kropp, Deputy County Administrator Chair Jennifer Welander called the meeting to order at 12:10 p.m. Introductions/Announcements— Introductions were made around the room. Guest Carolyn Eagan gave her background with the City of Bend. Her job is to identify problems and it looks like it will be also fixing the problems. Tom Anderson said it may be good for David to spend some time with Carolyn directly, specifically on how to approach things and how to get results. David Givans said he is more than happy to spend some time with her. Approval of Minutes from the Meeting on November 14, 2013 SHADRACH: Move approval of the November 14, 2013 minutes. PEDELTY: Second. VOTE: Unanimous Approval. Internal Audit Report: Sheriff's Office Evidence room (Conversion) - Mr. Givans said this was part of a prior project. This was a follow-up to make sure the conversion did occur(report attached). The big recommendation was more of an I.T./County approach on how to do software implementation. He said the next big software implementation is the finance accounting system. Behavioral Health is implementing software and he is looking at how to address items up front. He said he does put out surveys. Mike Shadrach said he likes the surveys and asked David to give an update on how many people come back with a response, possibly a six month update. Minutes of Audit Committee Meeting Thursday, March 13, 2014 Page 1 of 5 External Auditor RFP/Contract Work— • Contract Status—Mr. Givans said the sub-committee did propose that Eide Bailly out of Idaho become the new external auditor. The contract is signed and is a full contract for five years (with options). Wayne and Jeanine have already discussed some timing. Mr. Lowry said the concern they had was that they are out of Boise. It has already shown up slightly in trying to get them scheduled here. He thinks all that has been ironed out and they have a schedule in place. They will be here in June then again later in September. • 120 hours level of support from Internal Auditor—Ms. Welander asked if they have talked about the support from David and in what form. Mr. Givans said not yet. Mr. Shadrach said he thought the process was very good and they have a good choice. If you. compare the cost it is a savings of$20,000 per year. He encourages the County to leverage as much as possible in bidding on everything. He felt it could result in significant savings. Mr. Anderson said generally he agrees. The County does have purchasing policies and has done a reasonably good job. Additional Work Requests— • Estimated short-term work plan timeline— Mr. Givans said this plan indicates items for 2014. He foresees a public safety review in 2015. He is wrapping up Behavioral Health. Email vaulting is the next audit. • District Attorney—medical examiner costs—Mr. Givans said the DA has been talking with him for awhile on medical examiner concerns. The County is involved with the process. He is not sure of his ability to influence the medical examiner or the DA's office. He may have some recommendations. Ms. Welander asked what the nature of their concerns was. Mr. Givans said costs. By code, for the medical examiner, the County has to pay to get a body over to the west side and back. Funeral homes get different business over the course of the years. The scheduling process had gotten mixed up. There are questions on if the County is getting the best deal on costs. There are two funeral homes. There are different expenses for labor, materials and supplies, and transports that they can look at. The DA's office requested the audit so it comes out of their budget. They are looking for some support. State code indicates that some of the County's costs could be reimbursed. It has gone down so he is looking into the reason for that. He wrote up the draft of the objectives. (See attached memo.) • Finance—new software system —Mr. Givans said in talking with Wayne, Finance is looking for input for processes with their software implementation. He said it is so significant with County applications he did an outline from an audit standards view. (See attached memo.) He looked at management expectations. Mr. Lowry said they are very early in the vendor process. He said David has seen the procedures and processes so he wanted him to look at the system. Ms. Welander asked how old the system is. Mr. Lowry said it is HTE and it is almost 13 or 14 years old. They are looking for process improvements. Ms. Welander asked what the timing is. Mr. Lowry said it will probably be a two to a two and a half year project. Ms. Welander asked what the estimated costs will be. Mr. Lowry said they do not have that yet. They are looking for backbone in the finance system. They are not trying to do everything at once. They are really looking for payroll, accounts payable/receivable, and HR. Minutes of Audit Committee Meeting Thursday, March 13, 2014 Page 2 of 5 Mr. Shadrach said his concern is David's 140 hours of time for non audit work. He has a fairly limited amount of resources for audits and that time is being taken away. He is thinking it would be right if some external audit resources would be put into this. Maybe have Harrigan do it. Mr. Lowry said they will probably have one or two people in finance be totally dedicated to the project. They could get some temp help if needed. Finance will not really be able to backfill David as they will be spread pretty thin. He views David's involvement in an advisory capacity. Is the 140 hours over one year, over two years? Maybe David will have a much more limited role. Mr. Givans said he will probably do an audit on this piece. It is more efficient for him to get the input up front rather than later. He is using non audit term because he is not following a standard. He can still document and share his information. It is a good opportunity to give Wayne some information. He thinks as a county they will be farther ahead. Mr. Shadrach said David could provide great value he just does not want to see too much time taken from his audits. Ms. Welander said what would the audit be when the system is in place. If reviewing some of those items that would be in an audit anyway, then the two projects could be as one. Jean Pedelty said a new system is so critical. Additional non Audit Work/follow-up - • Follow-up of Veterans Services—Effectiveness#13/14-7---Mr. Givans said there was nothing unusual for them. They were able to bring a Veteran's Service Officer up to full time. (See attached report) • Follow-up of Additional Wage Payments—Mr. Givans said there is a lot of stuff still in process, same as veterans. Things are moving and he is not surprised by either of them. (See attached report.) Upcoming Committee Vacancies/Discuss Recommendation for Filing Vacant Public Member Audit committee Positions - • Chris (Yes), Jennifer(Yes), Jean (No), Greg (resigned previously—seat vacant) — Ms. Welander went over the schedule of Committee appointments. Ms. Pedelty indicated she will not renew her term which is up 6/30/14. Commissioner DeBone and Dan's terms end 2014. Mr. Givans suggested in keeping the directors on for awhile. Commissioner DeBone said it is up to the Board to decide for him. Ms. Welander said they now have two open public positions. Mr. Givans said the last few times they have done public advertisement and interviews and they had a lot of really good potential members. The public member count is flexible with four to six members. He said four is ok but if they would like six he can canvas for more. Ms. Welander asked if they wanted to stay at four of go out for more. Mr. Shadrach said it is his preference to go out for more. WELANDER: Move approval to fill up to six positions, with members on board by the September meeting. SHADRACH: Second. VOTE: Unanimous Approval. Minutes of Audit Committee Meeting Thursday, March 13, 2014 Page 3 of 5 Performance Measures/Activities • Audit Committee—2012 Performance Evaluation Survey(How often—three year cycle?) —Mr. Givans said they did a self assessment in 2012. They are not required to do that so there is no formal time occurrence to adhere to. Do they want to do one in 2014 or wait a year? He sent an electronic questionnaire. He identified some items that they are weaker in but most were pretty positive. Mr. Shadrach said one of the items was to get out to other departments. That is why they went out to the fairgrounds for a meeting. He said David sends out information to educate them. He said most items were scored close to five. Nancy Blankenship asked about County College. Mr. Shadrach said he did not go but he was advised of it. Commissioner DeBone said there is a presentation for each department, there are tours and the most valuable is the group of citizens asking questions. Mr. Givans said he will make sure everyone gets invited. Ms. Welander said St. Charles does a once a year audit assessment. Out of there comes changes and actions. She said for the Committee it is effective now that they are almost down to four members. She thought next summer of 2015 might be more effective for the evaluation to give the new public members time to get up to speed. The group decided on 2015. • Internal audit—Mr. Givans did a one page summary of services and measures for 2014. (See attached.) He said the Board assesses County goals and objectives. The County mission statement covers four large areas. His audits touch on those categories. The work plan dovetails around the mission statement. He thinks internal audits are addressing the County goals. Measurements would be his surveys. He is tracking his recommendations and most of them have been accepted. Recommendation implementation rates are harder to identify. Another one is what the savings to the County are. It is hard to sometimes put a financial measure on it. Peer Review—9/2014 (on three year cycle)— • Planning, Preparation, and Support - Mr. Givans said every three years a peer review is done. Other audit agencies come in and look at his work. They will be here for the September Audit Committee meeting. It is an effort that helps ensure that what he is doing is quality work. ALGA assigns the auditors. Mr. Shadrach asked if most have a three year cycle. Mr. Givans said is it by government audit standards. Ms. Blankenship asked if he performs peer reviews for others. Mr. Givans said he does. Leadership Recruitment Status-- • Health Services Director—Tom Anderson said hopefully they are close to making an offer. They recently completed recruitment and had first and second panel interviews. They are in the reference and background check stage. When completed they will make a job offer. • County Legal Counsel - Mr. Anderson said the new legal counsel begins April 14111. He is Dave Doyle and is from Polk County. He has done about everything a government attorney can do. He reports directly to the County Commissioners. • 911 Director—Mr. Anderson said they are just starting that recruitment. Hopefully by May they will have someone in place. Commissioner DeBone said 9-1-1 is aligned Minutes of Audit Committee Meeting Thursday, March 13, 2014 Page 4 of 5 under the County Administrator but it is its own district. They are putting more of the oversight on the County. The Chiefs have all bought into that. Updates/Other items— • Current audit work status: (See Attached workplan and summary of audits performed.) o BH software implementation—Mr. Givans said this is a work in progress. o Email Vaulting—Mr. Givans is working on it as time permits. o DA Medical Examiner—Mr. Givans will see what it entails. o Finance Software— Mr. Givans will work on this as needed. • Connie Thomas's last meeting— Everyone thanked Connie for her support to the Committee and wished her the best in her retirement. • Communications from State on 2013 single audit—came to the Board-all single audits ok. • See Internal Audit Status Report November 2013 through February 2014 (See attached.) • For September meeting location: Mr. Givans said BH is hard to get into as a lot of clients are coming and going. Ms. Wclander asked if they have been to Solid Waste. Mr. Givans said it has been awhile. Mr. Anderson said the annex remodel will be done or they could meet in the community room at the Mike Maier building. Other Business/Closing- Upcoming meetings: Meeting 6/12/14 Being no further issues brought before the Committee, Jennifer Welander adjourned the meeting at 2:40 p.m. Respectfully submitted,0 // )-, (mod b o -e a Connie Thomas 4 i I Administrative Assistant 6W-400L-d-- �� Minutes of Audit Committee Meeting Thursday, March 13, 2014 Page 5 of 5 v C] Q L ry LO O LC 'st W� Q� Q� W N L L W L) L N d cv 2 ._ OQNOCO L Y L CD -0 .0 _O 2] _0 C U a) .( O CO CO ' ui EEEEE .Qa) U i.. 2 U Q X .• op 4 E a) a) a) a) a) � •L A Q 4 7p (h 7 t rA Q (omcnr- cr, � o U U U U U E a = �, co N U LO rn � }. JD JD _a ID A O xU , Ca - CK (1] 0 :5 U = D 7 7Uw U D CL CL CL CL CL 2N. ■ . . . 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C c� O Q�j o •o s u, CD •O Q_ 4— C O O C •C cr +-• O O co O V rn � � � O O C � l) E (f U f r 43 a) 2 C W .0 O 'C ♦— M cv O a N C O C .0 o O — g E � 1 cn '2 n Ou o re m .c 070 O O � C o O Lrcn -a '� 0oo .yc O. o = O co C O C C r C) L1J '15 CC u C O U O 0 Ca c W — "' O CD O 1- 0 �� I �= O .q . i— C O W Co 0 Co O a) t w O a? a) Ec0) c � 0 o Oo H- c N a) cC .0 O E 0 '0 /W O E 0 0 0 0 .c W E V/ "" L U O fa `M.1 a1 d C O 0E4= O O o Co W O � >"° L � ' aE Ce a) 7 a, O Z C A V O — V t O g Lg0 � zvico C W L L CO U U - .. 0 O CO (1 - C co CO Qcc 0 co - mo � _cca to 0 -t Ecn o "� ° �- m cfl C O �- O N N O 4 2 2 C 0 u FP C co c W D Ott E 0 0 L 0 a' L 51- 1— � n co a a � E 0 2 a) 0 C '5 Z I w w Uj � W � b o 0 0 a, Z Q C CZ CC V Deschutes County Internal Audit Program Merry To: Patrick Flaherty, Mary Anderson, Deanna St. Germaine From: David Givans CC: File, Tom Anderson, Nichole Brown, Audit Committee, Date: March 3, 2014 Re: Proposed audit objectives—Medical Examiner costs Audit Objectives: {DRAFT) 1) Review expenses paid for Medical Examiner costs. (1) Review costs incurred for medical examiner program. (2) Review handling of vendor relationships(primarily funeral homes). (a) Who is responsible for establishing schedule for funeral homes. Current schedule expired 1/2014. (b) What is pricing utilized by funeral homes? Cost savings opportunity? (3) Consider review Medical Examiner and District Attorney's Office roles. Scope: As currently in place March 2013. Methodology: Audit procedures are expected to include staff interviews, observations and analysis of records and documents. Nature of the report: There will be a written report addressed to the District Attorney's Office, Medical Examiner, County Management and the County Audit Committee. Written responses will be requested and included with report. Timing and Delivery of report: Audit hours have been estimated at 100 hours. With work starting primarily in March 2014, the audit report is estimated to be completed by May 2014. Nature and condition of records: We assume reasonable access to personnel and documents pursuant to County ordinance. Prior audit recommendation follow-up None Page 1 of 1 H:\My Documents\AUDIT FOLDERS\District Attorney\Medical Examiner 1314- 9\AutoAudit\DA Medical Examiner costs Audit objectives memo 3-2014(1314-9).docx .4 Deschutes County Internal Audit Program Memo To: Wayne Lowry, Audit Committee,Tom Anderson From: David Givens CC: File Date: March 10, 2014 Re: Understanding of proposed nonaudit(consultation)objectives- Finance/Personnel software implementation The County is moving forward on a process to upgrade their accounting and human resource systems. These will likely have lasting impacts on departments, personnel and operations. Internal Audit has unique experience with departmental systems, personnel and operations and can provide meaningful input. In order for Internal Audit to be effective in providing input on the front-end of the implementation, a nonaudit service is being entertained for these objectives. See"Nonaudit considerations for peer review and independence". These services are not performed under governmental auditing standards. Nonaudit Objectives: !DRAFT} These may include(but this list may not be all inclusive): 1) providing input to management on a) risk and control environment, b) internal audit/audit perspectives, c) business and operational aspects, d) effectiveness and efficiency, e) design of systems, f) integration of system with departments, g) features, objectives and requirements of systems, h) identification of future needs and trends, i) strategies for implementation and operation of systems, 2) helping assure completeness and adequacy of data conversions 3) assisting with feedback on progress and meeting objectives of project 4) gathering information from other local governments 5) assessing best practices Scope: Through implementation period estimated to be over period ranging from 2014-2016. Methodoloav: Dependent on needs and objectives. Report: There are no formal report(s) anticipated due to the timeliness of the input required. There may be intermediate written communications made with information gathered, concerns or observations and recommendations, but these will lack the depth to be issued under Page 1 of 3 H:\My Documents\AUDIT FOLDERS\Finance\New Software 2014\Finance software non- audit objectives memo 3-10-2014.docx 4 GAGAS. If there are written communications, those will be directed to the project leaders as well as copied to the County Administrator and Audit Committee. Level of effort: Hours have not been estimated but should be limited to around 140 hours per year. Nonaudit considerations for peer review and independence It is anticipated that future internal audits may include aspects of reviewing the financial and human resource systems. Maintaining independence in fact and appearance is important to assuring future internal audit work can be performed. Potential threats to these nonaudit services include: • self-review threat • undue influence threat • bias threat • management participation threat • familiarity threat The self-review and management participation threats are probably the greatest in these circumstances. Governmental Auditing Standards Providing nonaudit services may create threats to an auditor's independence and jeopardize future work to be performed by the Internal Audit Program. Nonaudit services are those services that are not considered to be audit services. Many nonaudit services are duties that are management's responsibility. These particular nonaudit services do not appear to be ones identified as"prohibited service" by the standards. Question 1: Does the contemplated work create a threat to independence?(GAGAS 3.34) No-A critical component of this determination is consideration of management's ability to effectively oversee the nonaudit service to be performed. It is anticipated that a number of local government managers will participate and be the main decision makers during the implementation. A number of the staff have masters level and CPA credentials and experience within these fields which should allow them to independently weigh the advice provided. The work is considered to be advisory. It is not anticipated that the internal auditor will provide any services that would constitute as"management responsibilities". As such, management assumes all management responsibilities and believes it has sufficient knowledge and experience to oversee and evaluate any nonaudit services provided, and accepts responsibility for the nonaudit services. The Internal Audit Program will exercise standards of professional care to assure the information and services provided are appropriate. Question 2:Will this work jeopardize future work on these systems? (GAGAS 3.42) No—The work is not expressly prohibited and no threat has been identified. Question 3: Will the nonaudit services impact independence of mind and in appearance in periods subsequent to the period in which the nonaudit service was provided?(GAGAS 3.43) No—Since internal audit will not be performing or taking responsibility for the implementation, there should be no lack of independence. Internal auditor will •Page 2 continue to use professional judgment to determine whether additional safeguards might be needed. CONCLUSIONS/SAFEGUARDS: This represents documentation in consideration of the impact of these anticipated nonaudit services on independence and is based on the auditor's judgment. At this point of time, based on the anticipated scope of nonaudit services, it is not anticipated there will be significant threats to the independence of the internal auditor, Internal Audit Program or future audits performed under GAGAS. Safeguards, as part of practice, will be to document recommendations and that these communications will be in writing to management, County Administrator and Audit Committee. Management will take responsibility for all decisions. These limited safeguards should be all that is necessary to reduce any threats to acceptable levels. Additional safeguards may be reconsidered during the engagement if considered necessary. {Additional ALGA guidance on these matters appears to have been addressed. See email consultation with Amanda Noble who was involved in developing ALGA'S guidance on nonaudit services.} [SAGAS Conceptual Framework Assess condition oractrvlty for forindependence threatsta independenoe Threat identified? 4Yes Is the nonaudit se Moe Is threat related to nonaudit Yes specifically prohibited in Yes service? GALAS paragraphs 3.36 or i 3.49 thre g h 3.58? No Assess th raat fo r significance No Is threat significant? IYes Identify and apply safeguard(s) Assess feg ua rd(s) effectiveness Is threateliminated or seduoad No • to an aces ptable level? 11,Yes Occurrent nature of threat and any safeguards a p p wed famme:CYO. •Page 3 L M ¢ 10 Ln Q) 4) p C] s7 C 4) O O V1 E — 0ocp ° E E E E E .- 0 N cs, 0 j (6 co f9 i• y N N N N •` �! UQ Xaoo E E E E E E ❑ O 0 4 M _c O U (] U U U E 7 O vi E Q camc� v U .- . . . ._ E O a) O C Imo .-. cn +� .0 .0 .0 .0 .0 O U X v U - - O0) - O p O 7 O O O U W ❑ d4? 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Q a ._ a C C a o C Sao CO . Wi0:■a� m” , C ° • C -a te,. +� c C a •C a O 7 C i C Q cv - p 0. u \ � 1. Y a a - co rO C L m a a 4 c C ` g {y� ,r, E C z a r C N C C " - of o �'', o� c c aka to I c 'CU U p m D C y 'i — € v.. n °c° ° 7 n O '^ a a o .0 a ca v aa' to d +a+ CCU .1"...' 0 q- U U 0 a� 3 „! w� m o a 0 u. e \A p DESCHUTES COUNTY G s z{ INTERNAL AUDIT PROGRAM — David Givans 0 64 Alignment of services and measures 2014 1) County Mission and Services a) Internal Audit Program assists in all operations. i) 2014 County Goals and Objectives: (1) Safe communities - Recent audit: Sheriff's Office audit of evidence (2) Healthy people— Recent audit: MH Software implementation (3) Economic vitality— Recent audit: Grant deliverables (4) Effective Service delivery— Recent audit: Veterans'Services-Effectiveness b) Perform risk assessment and workplan development. Updated approach to highlight the most important programs. i) Updated workplan (See short term goals) 2) Intneral Audit Program Measurements. a) What is the overall report quality performed by Internal Audit? Measure: Reader survey on a five point scale. • Internal Audit Program: 4.84/5=97% • National Benchmark (ALGA survey): 88% (4.4/5) b) Are internal audit recommendations providing meaningful management with the means for change? Measure: %of recommendations accepted by management • Internal Audit Program: 100% • National Benchmark (ALGA survey): 79% c) Other tracked measures i) Recommendation implementation rate(3-5 yrs.) ii) Productivity rate--Direct time% 3) Internal Audit Program - Longer-term outlook/trends a) Training and development of skills—technology and fraud b) Move to a 5-year audit cycle to revisit cash handling/financial controls. c) Continuous auditing/monitoring i) Development of some computerized continuous auditing capabilities to improve ability to package and routinely run computerized audit procedures. Draft 3/3/14 (DG) Deschutes County—Internal Audit To: County Audit Committee, Tom Anderson From: David Givans-County Internal Auditor Draft Date: 3/4/2014 INTERNAL AUDIT WORKPLAN - 1 yr planning workplan Status Audit Description Completed 1. Health benefits trust-Clinic and Onsite Pharmacy#12/13-11 In comment 2. MH Software implementation (-240 hrs.) (Summer 2013)#12/13-3 2014 3. Email vaulting evaluation (-240 hrs.) 2015 4. County fleet management(-240 hrs.) 5. Sheriffs Office-to be identified (-240 hrs.) 2014 a. Pretrial offender population (AC supported) b. Jail, mental health/health costs, gender and special needs occupancy impacts, rental beds, transport, etc... c. Civil (offered) 6. Solid Waste-to be identified (-240 hrs.) a. Cost accounting software/ Fee rate needs 2015 b. New energy project evaluation 7. Adult Parole &Probation-to be identified (-240 hrs.) a. Electronic monitoring 2014 b. Caseload handling and activity 8. Juvenile Detention-Impacts and comparisons (-240 hrs.) 2014 a. Comparisons to handling in other communities. 9. Fair& Expo- Expo business operations (-240 hrs.) 2015 a. Utility review(outsourced/coordinated) 2014 10. DA- Medical Examiner costs (-120 hrs.) a. Performance measures and comparisons b. Specialty courts- impacts and cost/benefit 11. Behavioral Health-to be identified (-240 hrs.) a. CCO impacts and business model 2015 b. Outsourced contract audits c. Private/Public partnership impacts 12. ADDITIONAL PROJECT LIST ITEMS 2015 a. Selected computerized procedures (duplicates, vendors, ee's etc...) (-120 hrs)(perform once every 2 years) b. Follow-up on Security review of IT c. Follow-up on IT Disaster recovery plan As needed d. (ADD) FINANCE/PERSONNEL SOFTWARE Page I of I J-T ES co 0 if Aloft o. ►, DAF Summary of the nature and types of recent internal audits performed Behavioral Health software implementation (2014 pending) Behavioral Health has been implementing an electronic health record software for their operations. The internal audit was to assess the satisfaction with the new software and how well it has addressed prior internal audit recommendations as well as compliance requirements for their operations. Sheriff's Office— Evidence room software (2012-2014) The Sheriff's Office transitioned to new evidence room software in early 2012. Internal audit performed procedures including an evidence inventory observation, review of software general controls, and assessment of the completeness of the data conversion. County Onsite Clinic and Pharmacy performance (2013) The internal audit assessed the performance of the Deschutes Onsite Clinic and DOC Pharmacy since their creation. Performance is defined in the context of this internal audit as the value for services derived versus the costs. Follow-up reports (ongoing) The County Internal Auditor performs follow-ups on all recommendations made on a periodic basis - within one-year for new audits and annually for any outstanding recommendations. Additional wage payments (2013) Internal audit utilized computerized procedures to assess the nature and extent of additional wage payments. These payments come in a variety of categories to compensate employees for amounts not considered in their base pay. Additional wage payments in FY12 amounted to over $2 million. As a percentage of gross pay they amounted to 4% of gross wage payments. Justice court software implementation (20121 The Justice Court has been working to complete the conversion from their County developed system to a vendor developed system. The internal audit focused on selected controls and carryover of prior customer balances. Property & Facilities cash handling (2012) This internal audit was a fiscal review of the business practices and compliance with County policies for revenues handled by the department. Audit Committee —The Audit committee is appointed by the Board of County Commissioners and plays a role in overseeing and advising on audit activities (internal and external) performed for the County. The committee has more public citizen members than management. Internal audit topics and workplan are developed in consideration of business risks, relevance, and needs of management. �v rES e Internal Audit Program Q David Givans,CPA,CIA,CGMA a maimr, County Internal Auditor ❑' Deschutes Services Center 1300 NW Wall Street Bend,OR 97701 Phone:541-330-4674 David,Givans@Deschutes.org INTERNAL AUDIT PROGRAM STATUS REPORT November 2013 through February 2014 Highlights for the period include: • Mental Health software implementation—Audit work, data requests, interviews with staff, data analyses, and report development. • Sheriffs Office—Data file work on evidence conversion, report development and report issuance. • Health Benefits Clinic and Pharmacy report—completion of report and some follow-up discussions • District Attorney—consideration of audit project on medical examiner costs • Finance—Consideration of audit or consulting project on new finance/personnel software system. • Email vaulting—on hold • Follow-up work included: Humane Society of Redmond (agreed upon procedures information), Health Benefits Trust, Sheriffs Office, 911, IT, Indirects, Veterans' Services, Justice Court, Grants, District Attorney, and Additional wage payments. • Administrative- Training(excel and various), meetings and other • Audit committee- Meetings, preparation for meeting, CAFR distribution, status report work and other • External Auditor RFP - administrative support, RFP meetings, contract development and follow- up {Does not include some 82 hours of time management leave.} November 2013 through February 2014 DA-Medical Examiner FIN New Software HBT- 1% 1% ,-Email vaulting 13/14-4 Clinic/Prescription 0% 12/13-11 / 1% —Follow-up SO-Evidence Rm 11% Conversion 13/14-6 9% Administrative 18% MH-Software Budget Meetings and Implementation 12/13-3 follow-up 39% 1% udit committee 2% External Audit RFP and CONTRACT Hiring-Legal Counsel 15% 2% DISCUSSION DRAFT