HomeMy WebLinkAboutFollow-up Solid Waste report
Report# 04/05 - 2 (Dated August 9, 2004)
Follow-up Update on
Solid Waste Department -
Evaluation of Internal Controls over
Service Fees
Presented to the
Deschutes County Audit Committee
by the
Internal Audit Program
David Givans, CPA – County Internal Auditor
Report# 04/05 - 2 Dated August 9, 2004
Deschutes County,
Oregon
Report# 04/05 - 2 (Dated August 9, 2004)
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Report# 04/05 - 2 (Dated August 9, 2004)
To: Audit Co mmittee
CC: Mike Daly, Tom DeWolf, Timm Schimke
From: David Givans, Count y Internal Auditor
Subject: Update on Solid Waste Department recommendat ions (Reports #03/04-1)
Date: August 9, 2004
This update covers the Solid Waste report covering the “Evaluat ion of Internal Controls
Over Service Fees” as covered in Internal Audit Report #03/04-1.
As directed by the Audit Committee, a brief update was requested from the Solid Waste
Department on their implementation of recommendations to the audit report. Timm
Schimke, Director of the Solid Waste Department, prepared the attached update.
The audit report had eighteen findings and two items for additional study. Solid Waste has
indicated their intent was to implement many of the recommendat ions in coordinat ion with
the construction of new facilit ies. Delays in construction and staff turnover have led to only
minimal implementation. They also indicated some confusio n over the timeline for which
they are to respond to these recommendat ions.
Solid Waste management should implement as many o f the recommendat ions as possible in
the next twelve mo nths. They should develop a timeline for implementation in keeping wit h
the severit y o f the findings and the complexit y o f the reco mmendat ions. To the extent they
believe new facilit ies will alleviate the need for changes, they should put in place sufficient
temporary controls to reduce any risks. To the extent the department requires addit ional
resources, those needs should be discussed wit h the Board and considered during their
budget requests.
The findings related to accounts receivable are particularly important and should be
addressed as soon as possible. The issues raised are not likely to be cured by the
construction of new facilit ies. Resolut ion will take some so ftware improvements, new
procedures and additional segregation of dut ies. The department has implemented some
addit ional procedures in this area but addit ional work is st ill required.
Internal audit is available if So lid Waste needs assistance as they implement improvements
in their systems or as they develop new systems for new facilit ies. A fo llow-up should
occur in twelve mo nths or as directed by the Audit Committee.
Internal Audit Program
David Givans, CPA
County Internal Auditor
Deschutes Services Center
1300 NW Wall Street, Suite 200
Bend, OR 97701
Phone: 541-330-4674
Fax: 541-385-3202
davidg@co.deschutes.or.us
Report# 04/05 - 2 (Dated August 9, 2004)
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! "# "$% & ' ! "# "$% & ' ! "# "$% & ' ! "# "$% & '
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))))"*"*"*"* David Givans
"!* "!* "!* "!* Timm Schimke
* * * * 7/30/2004
* * * * Audit Report
This memo is in response to your request for an update on the department’s
implementation of the recommendat ions made in the document tit led SOLID WASTE
DEPARTMENT – Evaluat ion of Internal Controls Over Service Fees.
We are working to effect ively provide addit ional separation of the Accounting Tech's
duties. These dut ies are being documented as they are transferred to other personnel.
Improvements to data collect ion and related reporting issues have been referred to IT as a
low priority jo b. As indicated in the report, major changes are expected to take place
when our proposed expansion mo ves ahead.
Unnumbered, manual cash receipts have been destroyed.
As time permits, logs will be required and implemented for all cash, charge, and manual
tickets at each site.
We are now invo icing all Count y Departments for disposal fees that do not fall wit hin the
fee waiver policy.
Alt hough I am not aware of a specific t ime frame for implementation of the various
recommendat ions in the report, I will admit that we are not as far along as I would like to
be. As you know, many o f the recommendat ions were planned to be implemented with
the construction of new facilit ies at the landfill. That is st ill our intent; however, that
project has been delayed due to land-use issues. In addition, the department has
experienced a fairly significant turnover in emplo yees over the last year. The work load
associated with training new emplo yees has taken time away fro m office staff.
Much of the separation of account ing dut ies you wish to see implemented would invo lve
the customer service clerk posit ion in our office. This is a posit ion that has recent ly been
Report# 04/05 - 2 (Dated August 9, 2004)
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vacated. Our solicitat ion to fill this posit ion included descript ions of so me o f the
accounting assistance that would help fill our needs. We hope to reclassify the costumer
clerk posit ion and fill this position wit h an emplo yee that would help us to accomplish the
recommendat ion.
Finally, I would like to reiterate a comment that management made in response to the
report. This department processes a very large amount of data and transactions and we do
so with a minimal staff. If a more timely response to the recommendat ions is required, I
would be happy to discuss with the BOCC addit io nal help through temporary emplo yees,
or consultants in order to accomplish these tasks.