HomeMy WebLinkAboutHumane Society - Dog boarding costs
Deschutes Count y,
HUMANE SOCIETY –
DOG BOARDING COSTS
Presented to the
Deschutes County Audit Committee
and Board of County Commissioners
by the
Internal Audit Program
David Givans, CPA – County Internal Auditor
Report# 2003-1 Dated March 11, 2003
Deschutes Count y,
Oregon
HUMANE SOCIETY – DOG BOARDING COSTS
Report #2003-1 (Dated March 11, 2003)
TABLE OF CONTENTS:
EXECUTIVE SUMMARY……………………………………………………………………….....1-2
INTRODUCTION & BACKGROUND……………………………………………………………..2-3
OBJECTIVES, SCOPE, AND METHODOLOGY …………………………………………………3-4
ANALYSES of DOG BOARDING COSTS ………………………………………………………..4-5
SURVEY RESULTS ………………………………………………………………………………..5-6
AUDIT FINDINGS ………………………………………………………………………………..6-10
RESPONSES TO REPORT
Humane Societ y of Central Oregon ….…………….……………………………………..10-13
Humane Societ y of Redmo nd …….….…………….……………………………………..13-14
Deschutes County …………………….…………….…………………………………….14-15
Page 1
Report# 2003-1 (Dated March 11, 2003)
EXECUTIVE SUMMARY
Purpose
As requested by the Board of County Co mmissioners (and as approved by Deschutes County’s Audit
Committee), an evaluat ion was conducted of the cost to board a dog at the Humane Societ y of
Central Oregon (HSCO) and the Humane Societ y of Redmo nd (HSR). The County received a
proposal fro m the Humane Societ y of Central Oregon requesting addit ional boarding fee monies.
The Board desired to have informat ion on the Humane Societ ies’ actual cost to board dogs. A survey
to gather similar boarding cost information fro m other counties was also done.
Results in Brief
Analysis of Dog Boarding Costs
· The County dog boarding fee rate paid to the Humane Societ y of Central Oregon adequately
covers the shelter for their costs. In addit ion, the shelter retains fees paid by owners o f County
stray dogs of about $6 per dog per day.
· The County dog boarding fees paid to the Humane Society o f Redmond are not direct ly sufficient
to compensate for their costs. This is partly due to the fewer number of dogs handled by the
shelter. This shortfall has been made up by the monies, the shelter retains fro m County stray dog
owners, for boarding and impound fees of about $6 per dog per day. The contract calls for these
mo nies to be paid to the County.
· The flat fee paid to the Humane Societ y of Redmo nd is nearly equivalent to the rate paid to the
Humane Societ y of Central Oregon when considering all Count y strays brought in to the shelter.
· In addit ion to the boarding fees, the shelters receive significant support from dog licensing fees.
The Bend and Redmo nd shelters received $30,584 and $12,802, respectively. This is almo st as
much as the boarding fees received from the County. These funds are to be used for educational
programs.
Survey
· The County has seen a decline in it s dog license rate (no. of licenses/population) of so me 21% in
the last five years. It is curious that the County licensing rate is 25% higher than other Oregon
counties that responded to the survey.
Audit Findings
· The contract with the Bend shelter is unclear on the handling of certain fees and duties which
results in impound and boarding fees taken from County stray dog owners being kept by the
shelter.
Page 2
Report# 2003-1 (Dated March 11, 2003)
· The Redmo nd shelter retains impound and boarding fees received from Count y stray dog owners
when the contract indicates those monies should be paid to the County.
· The County dog licensing fee for unaltered dogs needs to be raised by $1.
· Oregon has a statutory requirement to license stray dogs prior to release. The contracts with the
shelters are silent on the matter.
· The number of Count y dog licenses has remained virtually unchanged after significant growth in
County populat ion of 22%.
Responses to report
Humane Societ y of Central Oregon
They have indicated the presentation is a fair and accurate assessment of their costs. Responses to
the specific findings are as fo llows:
o They support rewrit ing and clarificat ion of the contract with regards to impounds and
boarding costs.
o They have also provided clarificat ion of how they came up with their original request for a
rate increase and have made a new request.
Humane Societ y of Redmo nd
They have indicated the presentation is a fair and accurate assessment of their costs. Responses to
the specific findings are as fo llows:
o They support a unified contract.
o They are willing to work on license program compliance.
Deschutes County Finance
The County’s finance office handles dog licensing and provided a written response. Responses to the
specific findings are as fo llows:
o The unaltered dog licensing fee will be increased to comply wit h Oregon statute.
o They highlighted the County’s recent efforts to improve dog licensing.
Introduction & Background
Audit Authorit y:
The audit was conducted pursuant to the direct ion of County management. The audit was approved
by the Deschutes County Audit Committee in its approval of the County’s internal audit workplan for
the fiscal year 2002/2003.
Introduction:
The County received a proposal from the Humane Societ y of Central Oregon (HSCO) requesting
addit ional boarding fee monies. The County desired to have independent informat ion on the actual
cost to board dogs for HSCO and Humane Societ y of Redmo nd (HSR), hereinafter referred to as the
Bend shelter and Redmo nd shelter, respectively. This was especially important since contracts are
routinely negotiated with the Humane Societies over fees for services and both are doing capital
Page 3
Report# 2003-1 (Dated March 11, 2003)
campaigns for building construction. A survey to gather similar boarding cost informat ion fro m other
counties was also done.
Deschutes County has contracted with the two local Humane Societ ies to provide boarding services
for stray dogs. County law enforcement officers and authorized representatives are able to utilize the
Humane Societ ies to take care of stray dogs. Owners may pick up stray dogs at the shelters. Under
separate contracts, the Humane Societ ies receive ownership of the dogs after the contracted five days
of boarding (unless the dog is held for special purposes).
During the FYE June 30, 2002, the County paid the Bend shelter (HSCO) $14.50 per dog per day.
During the year ending June 30, 2002, the County paid the Redmo nd shelter (HSR) $1,360 per
mo nth. In addit ion, the County pays for crematory costs for un-adopted County dogs.
In addit ion to the fees paid by the County, the Humane Societ ies request fro m stray dog owners’
payment of boarding costs and impound fees. Licensing of strays picked up by owners rarely occurs
unless an officer cites the dogs. Owners unable to pay often sign a promissory note with the shelter.
The Humane Societ ies provide numerous addit ional services to the public. These include
Shelter and adoption services for cats and other animals
Elect ive shelter and adoption services on owner released animals
Adoptive services for strays that have not been picked up
Spay and neutering programs
Vaccinat ion and medical treatment for sheltered animals
Euthanasia and crematory services for un-adopted animals
Communit y service opportunit ies for court mandated offenders
The societ ies have separate contracts with cit ies for the strays picked up by cit y residents and cit y law
enforcement officers. The Humane Societies fundraise through solicitat ion and operation of thrift
stores.
OBJECTIVES, SCOPE AND METHODOLOGY
Audit objectives:
The object ives of the audit were:
1. Determine the Humane Societ ies’ cost to board a dog.
2. Review account ing informat ion by the organization to assess any issues related to the costs to
board and compliance wit h the contracts.
3. Obtain co mparative informat ion on boarding costs. The opportunit y to survey for license fee
informat ion was also taken.
Scope:
Informat ion included the most recently co mpleted fiscal year ending June 30, 2002, unless otherwise
stated. Crematory costs were not reviewed, which are paid for separately, nor were the costs to
shelter cats addressed.
Page 4
Report# 2003-1 (Dated March 11, 2003)
Methodology:
The audit included:
· Interviews with the execut ive directors and staff
· Meet ings with HSCO Board members
· Discussions with Deschutes County emplo yees on Humane Societ y issues
· Walkthroughs of the facilit ies
· Analysis of financial and statist ical informat ion provided by the shelters
· Meet ings with bookkeeping and professio nal staff, as applicable
· Surveyed other counties and cit ies that share informat ion in the National Associat ion of Local
Government Auditors (NALGA) as well as counties around the state of Oregon.
· Discussions with Count y legal counsel on interpretation of contracts and County and Oregon
statutes
The audit was conducted in accordance with Government Auditing Standards issued by the
Comptroller General of the United States as considered necessary in the circumstances.
ANALYSES of DOG BOARDING COSTS
The Humane Societ y of Central Oregon (HSCO) submitted informat ion to the Board of
Commissio ners that indicated the County had underpaid the cost of handling Count y stray dogs. The
informat ion provided indicated the cost to board dogs was around $24 per day per dog. The analysis
however, did not properly limit costs only to those related to dog boarding and their associated
administration.
The Board desired the dog boarding cost informat ion for both shelters (Bend and Redmo nd).
The analysis started with the shelters’ financial information for administration and shelter act ivit y.
Management’s est imates were utilized to develop the costs for only dog boarding. Costs that did not
relate to dog boarding were removed. Shelter management provided us with statist ics that included
the number of total dog boarding days provided at the shelter. With this informat ion the shelters’
cost to board a dog per day (average) was calculated.
The fo llowing numbers present an opinio n of the cost to each Humane Societ y to board a dog per
day. The analysis o f dog boarding costs resulted from a significant number of estimates. Therefore,
the results of analyses are shown with an est imated level o f precisio n.
Average cost to the Humane Societ y to board a dog per day (for the fiscal year ending June 30, 2002)
HSCO
(Bend Shelter)
HSR
(Redmond Shelter)
Average boarding
cost - per dog per day
$13±1
$ 25±2
The Bend shelter’s (HSCO) cost to board a dog per day came significant ly under the amount
provided init ially by HSCO management (~$24). The $14.50 paid per dog per day by the Count y is
in excess of the Bend shelter’s estimated costs.
Page 5
Report# 2003-1 (Dated March 11, 2003)
The Redmo nd shelter’s (HSR) cost to board a dog per day is nearly twice that of Bend’s due
primarily to the fewer number of dogs boarded at the facilit y. The Redmond shelter provides
services to nearly a third o f the dogs. As one might expect, many o f the costs of maintaining a shelter
are fixed and, therefore, the number of dogs handled through the shelter drives the cost per dog.
Average amount paid by the Count y to the Humane Societ y to board a dog per day (for the fiscal year
ending June 30, 2002)
HSCO
(Bend Shelter)
HSR
(Redmond Shelter)
County Rate $14.50 per dog per day $1,360 per month
Total boarding fees-
per County records
$33,597
$16,320
Equivalent rate paid - per dog per day:
Officer strays $14.50 per dog per day $22 per dog per day
All Count y strays $14.50 per dog per day $14 per dog per day
Since the County pays the Redmo nd shelter a monthly fixed amount, the number of dogs boarded
was utilized to calculate an approximate daily rate for County stray dogs. The County is effect ively
paying $22 a day per dog for those brought in only by o fficers. Using all Count y stray dogs, the
County is effect ively paying $14 a day per dog. This would include strays brought in by the public
as is done under the Bend shelter contract. Current fees paid to Redmond appear to be below actual
shelter cost levels. This might change as the Redmo nd shelter moves to a new facilit y where more
dogs can be boarded.
The fo llowing is other County support to the Humane Societ ies (FYE June 30, 2002):
HSCO
(Bend Shelter)
HSR
(Redmond Shelter)
Share of license fees -
for education
$ 30,584
$ 12,802
Cremat ion costs $ 4,169 $ 3,721
Fair value of land lease
(estimated) *
$ 21,000
$ 16,000
Fair value of land
contributed (estimated)
$ 348,000
$ 272,000
* Estimated annual value. Land has been contributed to shelter and est imated lease
reflects an est imated 6% return on the value (provided by Count y Property Management).
SURVEY RESULTS
The survey developed went to most Oregon counties and the listserve membership in the National
Associat ion of Local Government Auditors (NALGA). The survey’s focus was to determine other
counties’ cost to obtain dog boarding and informatio n on their dog-licensing program. The returned
surveys o ften did not include all information desired. Attempts were made to fo llow up on
inco mplete responses. Only those responses with sufficient informat ion were utilized in the averages.
Page 6
Report# 2003-1 (Dated March 11, 2003)
Response to the survey was light. The fo llowing are the results of the survey with the number of
responses in parenthesis:
Deschutes County
(internal info)
Oregon responses (#) All responses (#)
Average boarding cost per
day per dog
$14.50 (Bend)
~$14 (Redmond)
$11 (8) $11.60 (11)
Licensing fees-
altered/unaltered
$10/$24 $11/$24 (15) $10/$25 (19)
Dogs licensed as % of
populat ion
9.5% 7.6% (8) 7.8% (10)
% with so me type of
enforcement
Yes 70% (10) 77% (13)
The survey averages are used as an indicat ion of expected norms. Efforts were made to obtain as
much informat ion from Oregon counties as possible.
AUDIT FINDINGS
Humane Societ y staff, management and supporting service providers are to be complimented for their
efforts to provide qualit y services to the cit izens of Central Oregon. Humane Societ ies’ management
were very professio nal and supported efforts to collect and analyze their data.
These findings are provided so that County management can better evaluate issues related to dog
boarding costs, licensing fees and contract language. The findings are by their nature subjective.
The fo llowing findings are presented for management’s considerat ion.
Contract with Bend shelter is unclear on handling of certain fees and duties
The Bend shelter (HSCO) for the fiscal year ending June 30, 2002 was paid for strays brought in
fro m the public. The County’s contract for the fiscal year ending June 30, 2002 did not explicit ly
indicate any considerat ion for strays brought in by the public. In addit io n, the Bend shelter collects an
impound fee (usually $20) and a boarding fee ($12.50 per day). The shelter collects many o f these
fees under the init ial five days for which the County is also being billed for services. The shelter has
not remitted to the County any of these fees collected fro m stray dog owners. The contract does not
specify the handling o f this issue. More than half of stray dogs are picked up by their owner and this
usually occurs within the first five days.
The Oregon State Statute (ORS 609.090) indicates that owners of stray dogs should be responsible
for reimbursing the costs of keeping their dog, impound fees, and in licensing their dog. The contract
with the shelter gives ownership of the dog to the Humane Societ y after five days. Unt il that time,
any fees assessed to the owners should be remitted to the County as a partial reimbursement of the
costs incurred by the Count y.
Page 7
Report# 2003-1 (Dated March 11, 2003)
Under Count y ordinance (DCC 6.16.030), all impound fees are due to the County as determined by
the County Board of Commissio ners. The contract with the Bend shelter indicates the collect ion of
impound monies under “related responsibilit ies” separate and distinct from the considerat ion for its
services.
The fo llowing informat ion relates to the estimated financial impact for the fiscal year ending June 30,
2002:
HSCO
(Bend Shelter)
Estimated impound fees paid by cit izens for dogs held
five days or less ($15 x no. of dogs)
$ 4,600
Estimated boarding fees paid by cit izens for dogs held
five days or less ($12.5 x no. of days)
$ 9,200
TOTAL - Addit ional considerat ion received by
Humane Societ y
$13,800
Addit io nal considerat ion per day per dog $ 6 per dog per day
Additional information:
County payments for strays brought in by the public
$ 10,643
Per discussions with Count y legal counsel, the contract is not sufficient ly clear on these issues to
allow for any co llect ion of these amounts.
It is reco mmended the County clarify the language in the current contracts to make sure it is clear on
the handling of impounds and boarding fees co llected from stray dog owners and what amounts are to
be remitted to the County. It should also be clear how these should be handled if the shelter co llects
less than expected or if stray dogs are held more than five days. Modificat ions to the 2003 contract
have clarified to allow payment for strays brought in by the public.
Redmond shelter is not in compliance with terms of contract
The Redmo nd shelter (HSR) collects from owners of County stray dogs an impound fee (usually $20)
and a boarding fee ($12.50 per day). The County’s contract with the shelter requires the billings to
the County for boarding strays to be reduced by any payments by owners. The contract further
explicit ly states that the impound fees collected should be remitted monthly to the County. The
shelter has not been adjusting or remitting mo nies to the County in accordance with these terms.
The Oregon State Statute (ORS 609.090) indicates that owners of stray dogs should be responsible
for reimbursing the costs of keeping their dog, impound fees, and in licensing their dog. The contract
with the shelter gives ownership of the dog to the Humane Societ y after five days. Unt il that time,
any fees assessed to the owners should be remitted to the County as a reimbursement of the costs
incurred by the County.
Page 8
Report# 2003-1 (Dated March 11, 2003)
The fo llowing informat ion relates to the estimated financial impact for failure to remit fees as
indicated in the contract for the fiscal year ending June 30, 2002.
HSR
(Redmond Shelter)
Estimated impound fees paid by cit izens for dogs held five
days or less ($15 x no. of dogs)(officer strays only)
$ 1,000
Estimated boarding fees paid by cit izens for dogs held five
days or less ($12.5 x no. of days)(officer strays only)
$ 2,400
TOTAL - Addit ional considerat ion received by
Humane Societ y
$ 3,400
Addit io nal considerat ion per day per dog
(officer strays only)
$ 6 per dog per day
This would bring the est imated fee paid per dog per day to $28 per day, which is
reasonably clo se to the shelter’s cost per day (officer strays only).
Per discussions with Count y legal counsel, the contract is sufficient ly clear on these issues to allow
for collect ion of these amounts for the above t ime period.
It is reco mmended the County consider enforcing the 2002 agreement as stated and collect the
boarding and impounds fees paid by stray dog owners. The County may want to consider the higher
internal costs for boarding dogs at the Redmond shelter and credit these payments towards the higher
costs incurred by the shelter.
The County should clarify the language in the current contracts to ensure clarit y on the handling of
impounds and boarding fees co llected fro m stray dog owners and what amounts are to be remitted to
the County. It should also be clear how these should be handled if the shelter collects less than
expected or if stray dogs are held more than five days.
It would be advisable for the shelters to fo llow the contract and the County improve its monitoring o f
their compliance with the terms of the contract.
It is reco mmended the County consider utilizing the same contract language and terms for each
Humane Societ y. Currently, the contracts differ in a number of areas. Most notably they differ in
payment terms (fixed monthly amount versus per day per dog), inclusio n of public strays not brought
in by o fficers, remittance o f stray dog owner boarding and impounds fees, and cremat ion costs per
pound.
The County licensing fee for unaltered dogs is out of compliance with Oregon Statute
Deschutes County current ly charges license fees of $10 and $24, for altered and unaltered dogs,
respectively.
By Oregon statute (ORS 609.100), the minimum required fee for unaltered dogs is $25. The state
changed its minimum fee in 1999.
The impact of the lower fee is minor since less than 10% of dog licenses are for unaltered dogs in the
County.
Page 9
Report# 2003-1 (Dated March 11, 2003)
Per discussions with Count y legal counsel, the Count y’s ordinance should be adjusted to reflect the
change in Oregon statute.
It is reco mmended the County revise its fee for unaltered dogs to $25. The County should monitor
state legislat ion that changes this rate to make sure they stay in co mpliance with Oregon law.
The contracts with the two Humane Societies do not include Oregon’s statutory requirement to
license dogs prior to release
The current contracts with the Humane Societ ies do not require the shelters to assist in compliance
with licensing requirements for any dogs. The Bend and Redmo nd shelters cannot currently
vaccinate for rabies, so they are unable to sell licenses for dogs that do not have proof of the
vaccination. The shelters do collect fees and issue licenses for dogs that have proof of rabies
vaccination or are renewing their licenses. The fees collected are then remitted (in full) to the County
each month.
The Oregon State Statute (ORS 609.090) indicates that prior to release, owners of stray dogs without
licenses shall license their dogs and pay any applicable penalt ies.
Wit hout the contract language for licensing in the contracts with the shelter, the County cannot meet
Oregon statutory requirements. Having unlicensed strays licensed on pickup would help improve
compliance wit h the County licensing ordinance.
Per discussions with Count y legal counsel, the contract does not sufficiently address Oregon’s
statutory requirements on this matter.
The County should consider adding language to the shelter contracts to comply wit h Oregon statute.
The County should work with the shelters to comply wit h the law.
It is advisable that the County consider adding to the shelters contract a notificat ion requirement (for
licensing purposes) of the names and addresses of owners who adopt dogs. This information could
be used to ensure better licensing co mpliance.
Number of County dog licenses virtually unchanged after significant growth in County
population
Based on County informat ion on dog licensing, the numbers of dog licenses over the last five years
has remained virtually flat. County populat ion during the same time period has grown by nearly
22%. The County’s licensing rate (dog licenses/populat ion) has decreased fro m 12% in 1997 to 9.5%
in 2002. This is a 21% decline in the dog license rate.
As the population rose in the last five years it would be expected that dog licensing would fo llow suit.
The reduction in the licensing rate might suggest that new residents are not aware of the dog licensing
requirement or are choosing not to get their dogs licensed.
Page 10
Report# 2003-1 (Dated March 11, 2003)
It is curious that the County licensing rate is st ill 25% higher than other Oregon counties that
responded to the survey.
It might be advisable for the County to consider some options to improve dog licensing participat ion.
In addit ion to the previous recommendat ions, the County might consider:
· Routine discussio ns with Humane Societ ies on processes to improve participat ion
· Senior discounts
· Mult i-year discounts
· Mult iple animal discounts
· Other forms of enforcement
RESPONSES TO REPORT
FROM HUMANE SOCIETY OF CENTRAL OREGON
To: Deschutes Count y Board of County Co mmissioners 3-05-03
From: Jim Schell, President, Humane Societ y of Central Oregon
Gent lemen:
We believe that Mr. Givans has presented a fair and accurate assessment of HSCO’s costs.
We should also ment ion that the audit was conducted professio nally and in a spirit of
cooperation by Mr. Givans. Our organizat ion benefited from the process.
We would point out however that:
A. Mr. Givans’ figures were taken fro m our June 30, 2002 financials. Our 2003 costs
have increased.
B. We are, in essence, providing cat and other small animals services at no charge.
C. There is no profit in Mr. Givan’s figures. (If the count y were contracting with a
private firm, a profit add-on would be routinely expected.)
The Commissio ners will recall that this audit was occasioned by our asking for the County’s
assistance in financing a new shelter. We st ill are asking for that assistance, the cho ices, as we
currently view them, are:
Option #1: A $300 K capital contribut ion – lump sum. We would not require the cash unt il
the
summer of 2004.
Option #2: A $300 K capital contribut ion – spread out over 4, 5 or 6 years.
Option #3: A “surcharge” to our present daily boarding rate, in effect amortizing the $300 K
capital contribut ion over a number of years. In order to cover the construction
costs
in the interim, we would assume a $600 K mortgage. ($300 K = City, $300 K =
County)
Page 11
Report# 2003-1 (Dated March 11, 2003)
I have attached an addendum to this letter. This addendum 1) responds to several key
questions raised by Mr. Givans, 2) presents addit ional informat ion in support of the services
we provide to the county and of the prices we charge and 3) suggests a revised figure for the
surcharge should the county select Option #3.
Finally, we wish to thank the Commissio ners for their considerat ion of our funding request.
We also would like to thank Mr. Givans for providing a professio nal assessment of our
organizat ion. We look forward to continuing our mutually beneficial partnership with
Deschutes County.
On behalf o f the Board of Directors:
President
Addendum to Letter to the Board of Commissioners
dated March 5, 2003.
I: Response to several key questions raised by Mr. Givans.
A. Unclear on handling of certain fees and duties: (the Double Dipping issue).
This is the scenario where dogs are picked up by the count y, delivered to the
shelter, the HSCO bills the count y, and then the dog owner picks up his animal and
supposedly pays the shelter. Hence the shelter, in effect, is paid twice for the same
dog.
However, many dog owners cannot or will not pay the impound and boarding fees
when recovering their pets. In such cases our staff exercises its judgement in
having the owner sign a Promissory Note for the unpaid amount of the impound
fee. In actualit y only a small portion of those notes are ever paid, the unpaid
amounts are then written off at the end of the year, as a result of HSCO’s belief
that the cost of recovering the notes would far exceed the value of the notes
themselves. It should be noted that in addit ion to the costs written off, there is a
significant amount of administration invo lved in the ent ire process. HSCO’s stance
is thus that while there is an element of “double dipping” inherent in this process,
the dollars are not as large as the Count y suspects and they are offset by the write-
offs and by the administration invo lved.
The alternat ive to the Promissory Note process incidentally, i.e. to refuse to return
the dog to the owner, is unacceptable to the HSCO and hopefully would be to the
county as well. The result of such refusal would be either continuing to board the
animal at HSCO’s expense or to perform an unwarranted euthanasia on an
otherwise healt hy animal.
HSCO supports the rewrit ing and clarificat ion of the contract.
B. Licensing.
Page 12
Report# 2003-1 (Dated March 11, 2003)
HSCO agrees that the current dog licensing rate appears to be low, however it is
comparable to national averages. HSCO and the County have discussed this issue
on several occasions, the upshot of those discussio ns usually turns out that the
problem is a law enforcement issue related to the cost of enforcing the exist ing
licensing statutes. To date those discussio ns have not resulted in any definable
actions.
C. Unified Contract.
HSCO fully supports working wit h the Redmond Humane Societ y with the goal of
present ing a unified contract to the county. Once the issues outlined in Mr. Givan’s
letter, the attached letter and this addendum are agreed to in principle, the two
Humane Societ ies will meet, discuss and present one unified contract to the
County.
II. Additional information in support of the services HSCO provides and
of the prices charged.
Recognizing that it was outside of Mr. Givans’ assignment to determine what the
costs to the County would be if they were to provide animal control services
themselves, HSCO wants the record to show that should the County elect to operate
its own facilit y the cost to taxpayers would be significant ly larger than what it is
now. The HSCO conducted a telephone survey o f several Count ies who manage
their own animal control facilit y. Included in HSCO’s findings were:
Washington County: Handled 5317 animals (2751 dogs and 2566 cats).
Budget = $1.3 millio n. $245 per animal.
Linn Count y: Handled 1381 animals (1245 dogs and 136 cats). Budget =
$450,000.
$325 per animal.
Jackson County: Handled 6500 animals (3200 dogs and 3300 cats). Budget =
$800,000. $123 per animal.
Humane Societ y of Central Oregon. Handled 4500 animals (3100 dogs and 1400
cats). Budget - $702,000. $156 per animal
Note: These figures are presented only to suggest that 1) the services that the
HSCO provides represent a significant savings over what the county might expect
if they were to provide animal control services themselves and 2) the HSCO
operates efficiently co mpared to other shelters.
III. 3. Revised figure for the surcharge should the county select Option #3.
It should be noted that on page 5 of Mr. Givan’s report the statement was made that
“The Bend shelter’s costs to board a dog per day came significant ly under the
amount provided init ially by HSCO management ($24).” HSCO management
would like the Co mmissio ners to understand that this $24 figure was never
presented as the cost, but rather as a figure which would include both the cost and
Page 13
Report# 2003-1 (Dated March 11, 2003)
the “surcharge”, i.e. an add-on intended to amortize the County’s capital
contribution. HSCO management regrets this misunderstanding.
Since the time this $24 figure was suggested, the HSCO has made a number of
discoveries and/or changes that have impacted our original cost estimates. Those
discoveries and or changes include:
1. More closely ident ifying building size and costs.
2. Lowering of architectural and engineering fees.
3. Lowering of SDC est imates
4. Ident ification of in-kind contribut ion opportunit ies.
5. Lower “mortgage costs”. (We believe we can qualify for Industrial
Development Bond financing.)
6. Continued cash flow improvement from Thrift Store operations.
HSCO thus believes that the original $24 per dog day figure could be revised to
$20 per day. The $20 per day figure would thus include:
Cost per Mr. Givans $13.50
Reasonable Mark-Up 3.00
Surcharge to cover Capital contribution 3.50
Total $20.00
HUMANE SOCIETY OF REDMOND
To: David Givans, Deschutes County Auditor and Deschutes County Board of
Commissio ners
From: Jamie Scanlo n-Kanski, Execut ive Director, Humane Societ y of Redmo nd
(March 10, 2003)
I have had the opportunit y to review the final draft of the audit report as submitted by Mr.
Givans. The Humane Societ y of Redmo nd and I appreciate the time and effort that went into
this report and for the valuable information that was presented to us as a result of this report. I
will be forwarding copies of the report to our board of directors.
The report was fair and co mplete. I would just like to submit the fo llowing co mments for your
consideration and informat ion:
1) the daily expense amount for the Redmond Humane Societ y was high in co mparison to
those of Bend. This was not due to high overhead on our part, but rather a matter of coverage
by Deschutes Count y Sheriff's Depart ment Field Technicians and the low numbers o f County
animals brought to our facilit y. I spoke recently with their co mmanding officer, Mike
Johnston, who verified that we had been left with litt le animal control coverage for the North
Deschutes County for months due to several factors including; vacancies in those positions,
re-hiring time and process, and finally the horse abuse case which left no field techs on in this
area. He stated that we could expect business as usual when the horses had all been placed.
2) The Humane Societ y of Redmo nd is in support of a unified contract with the Humane
Societ y of Central Oregon and will be meeting wit h them to develop that proposal.
Page 14
Report# 2003-1 (Dated March 11, 2003)
3) The Humane Societ y of Redmo nd is co mpleting the final phase of their campaign to
complete the new shelter construction. We are in need of addit ional co mmit ments and support
to complete this final phase and to make the move into the new building. There are several
components to this final phase which include fundraising events, grants, sale of our old thrift
store building, and some large pending donat ions. I have reviewed the proposals as submitted
by the Bend Shelter in regards to grant proposal options to the County. The Redmo nd
Humane Societ y would also like to request your support in the amount of $180,000 over
several years to assist in the complet ion of our project. This co mmit ment would complete our
business plan to obtain a low interest mortgage and finish the shelter now.
4) Redmond Humane Societ y agrees that the licensing program compliance needs to be
improved and is willing to assist in any way to increase that compliance.
5) The situation at Redmond Humane Societ y is similar to that in Bend with impound fees.
Alt hough so me are collected for County animals, many are allowed to be returned to owners
with a promissory note which are seldo m collected and are listed as a bad debt not collected.
We look forward to our continued work with Deschutes County, Humane Societ y of Central
Oregon and our other partnering agencies. Our sincere thanks for your considerat ion of our
requests and for assist ing us in carrying out our shelter programs and goals.
DESCHUTES COUNTY FINANCE
Responses to Humane Society Dog Boarding Cost report
(March 7, 2003)
Audit Findings
#3 The licensing fee for unaltered dogs has been addressed with Legal Counsel and with their
recommendat ion this will be incorporated effect ive July 2003. This will allo w time for the
update of the ordinance, print ing of new application forms, and the disbursement of the forms
to all the veterinaries and Humane Societies in the County.
#4 Per state statute, dog licenses cannot be issued without a current rabies vaccinat ion
certificate. A licensed Veterinarian or a Certified Veterinary Technician under the
supervisio n of a licensed Veterinarian can only administer the rabies vaccinat ion.
Consequent ly on dogs released to owners, who do not have proof of the rabies vaccinat ion,
the Humane Societ ies are unable to sell a dog license.
#5 During 2002 the County and the Humane Society of Central Oregon held discussio ns for
increasing licensing co mpliance. As a result the following actions were taken:
1. A segment of Inside Deschutes Count y was produced highlight ing the Humane
Societ y and the benefits of licensing your dog.
2. A Count y emplo yee appeared on a segment of “Good Neighbor” discussing the
benefits of licensing your pet. How licensing is a great ident ificat ion for your
Page 15
Report# 2003-1 (Dated March 11, 2003)
pet and helps reunite lost pets with their owners. Discussed the monetary benefit
to your local Humane Societ y and where and how to procure a license.
3. County coordinated distribut ion to all Veterinarian Offices and Pet Supply
stores dog licensing display boards and applicat ions. Asking them to distribute
the informat ion to their customers.
AUDIT BRIEFING
HUMANE SOCIETY- DOG BOARDING COSTS
(Report#2003-1)
EXECUTIVE SUMMARY
Purpose
As requested by the Board of County Co mmissioners (and as approved by Deschutes County’s Audit
Committee), an evaluat ion was conducted of the cost to board a dog at the Humane Societ y of Central
Oregon (HSCO) and the Humane Societ y of Redmond (HSR). The County received a proposal fro m
the Humane Societ y o f Central Oregon requesting addit ional boarding fee monies. The Board desired
to have information on the Humane Societ ies’ actual cost to board dogs. A survey to gather similar
boarding cost informat ion fro m other counties was also done.
Results in brief
Analysis of Dog Boarding Costs
Average cost to the Humane Societ y to board a dog per day (for the fiscal year ending June 30, 2002)
HSCO
(Bend Shelter)
HSR
(Redmond Shelter)
Average cost per dog
per day
$13±1
$ 25±2
The fo llowing dog boarding fees were paid to the Humane Societ ies (for the fiscal year ending June 30,
2002)
HSCO
(Bend Shelter)
HSR
(Redmond Shelter)
County Rate $14.50 per dog per day $1,360 per month
Total boarding fees paid
- per County records
$33,597
$16,320
Equivalent rate paid - per dog per day:
County officer strays $14.50 per dog per day $22 per dog per day
All Count y strays $14.50 per dog per day $14 per dog per day
The fo llowing is other County support to the Humane Societ ies:
HSCO
(Bend Shelter)
HSR
(Redmond Shelter)
Share of license fees -
for education
$ 30,584
$ 12,802
Cremat ion costs $ 4,169 $ 3,721
Fair value of land lease
(estimated)*
$ 21,000
$ 16,000
Deschutes Count y,
Oregon
Internal Audit Program
David Givans
County Internal Auditor
Deschutes County-Administration building
1130 NW Harriman
Bend, OR 97701
Phone: 541-330-4674
Fax: 541-388-4752
davidg@co.deschutes.or.us
Fair value of land
contributed (estimated)
$ 348,000
$ 272,000
* Estimated annual value. Land has been contributed to shelter and est imated lease
reflects an est imated 6% return on the value (provided by County Property Management).
Audit Findings
The fo llowing are the findings provided to management:
· The contract with the Bend shelter is unclear on the handling of certain fees and duties
· The Redmo nd shelter is not in co mpliance with terms of contract
· The County licensing fee for unaltered dogs is out of compliance with Oregon Statute
· The contracts with the two Humane Societies do not include the Oregon’s statutory requirement to
license dogs prior to release
· Number of Count y dog licenses virtually unchanged after significant growth in Count y populat ion
Responses
Humane Societ y of Central Oregon
They have indicated the presentation is a fair and accurate assessment of their costs. Responses to the
specific findings are as fo llows:
o They support rewrit ing and clarificat ion of the contract with regards to impounds and boarding
costs.
o They indicate that licensing issue is primarily one of law enforcement.
o They have also provided clarificat ion of how they came up with their original request for a rate
increase and have made a new request.
Humane Societ y of Redmo nd
They have indicated the presentation is a fair and accurate assessment of their costs. Responses to the
specific findings are as fo llows:
o They support a unified contract.
o Willing to work on license program co mpliance.
o Ident ified co llect ion issues on impounds and boarding fees for strays.
Deschutes County Finance
The County’s finance office handles dog licensing and provided a written response. Responses to the
specific findings are as fo llows:
o The unaltered dog licensing fee will be increased to comply wit h Oregon statute.
o Dog licensing requires rabies vaccination cert ificates which the Humane Societ ies are not able to
do at the current time.
o The County’s recent efforts to improve dog licensing were highlighted.
To: Audit Co mmittee and Board of Count y Commissio ners
From: David Givans, Count y Internal Auditor
Subject: Overview of dog boarding costs at the Humane Societ ies
Date: March 11, 2003
The attached audit report provides informat ion concerning the Dog boarding costs at the Bend and
Redmond shelters. This report was requested by the Board of Count y Commissio ners in light of
requests of money fro m the Bend shelter as well as renewing contracts. Informat ion contained in this
report is fro m interviews, observat ions and analysis.
Audit results have been discussed with both of the Humane Societ ies, Count y legal counsel and County
finance. They are in general agreement with the findings and their responses are included at the end of
this report. The findings that were focused specifically on applicable law and contractual terms have
been addressed by Count y legal (Mark Amberg). Our findings were also discussed with Count y finance
office (Cheryl Circle and Mart y Wynne) since they administrate much of this act ivit y.
I did not specifically co mment on responses to the findings. The Humane Societies offered addit ional
informat ion that has not been reviewed for accuracy.
I appreciate the cooperation and assistance I received fro m the Humane Societ ies in conducting and
preparing this report as well as input fro m Count y personnel including - Mike Maier, Marty Wynne,
Cheryl Circle and Mark Amberg.
Internal Audit Program
David Givans, CPA
County Internal Auditor
Deschutes County-Administration building
1130 NW Harriman
Bend, OR 97701
Phone: 541-330-4674
Fax: 541-388-4752
davidg@co.deschutes.or.us
Deschutes Count y,
Oregon