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HomeMy WebLinkAboutFollow-up of Assessor's Office - Property Tax RollFollow-up report on Assessor’s Office - Property tax roll #11/12-9 June 2012 FOLLOW-UP REPORT Assessor’s Office - Property tax roll (Internal audit report #10/11-5 issued July 2011) To request this information in an alternate format, please call (541) 330-4674 or send email to David.Givans@Deschutes.org . Deschutes County, Oregon David Givans, CPA, CIA Deschutes County Internal Auditor 1300 NW Wall St Bend, OR 97701 (541) 330-4674 David.Givans@Deschutes.og Audit committee: Michael Shadrach, Chair - Public member Chris Earnest - Public member Gayle McConnell - Public member Jean Pedelty - Public member Greg Quesnel - Public member Jennifer Welander - Public member Anthony DeBone, County Commissioner Tom Anderson, Community Development Director Scot Langton, County Assessor Follow-up report on Assessor’s Office - Property tax roll #11/12-9 June 2012 TABLE OF CONTENTS: 1. INTRODUCTION 1.1. Background ………………………………………...………………......................... .......... 1 1.2. Objectives & Scope ……………………………………..…………………………. …….… 1 1.3. Methodology ……………………………………………………..…………………… .……. 1 2. FOLLOW-UP RESULTS ……………….…...………………………….............................. 2 3. APPENDIX I – Internal Audit Recommendations - Updated Workplan for Report #10/11-5 (Status updated as of June 2012) ........…….…...……….......... ...... 3-5 Follow-up report on Assessor’s Office - Property tax roll #11/12-9 June 2012 Page 1 1. Introduction 1.1 BACKGROUND Audit Authority: The Deschutes County Audit Committee has suggested that follow-ups occur from nine months to one year after the original report issuance. The Audit Committee’s would like to make sure departments satisfactorily address recommendations. 1.2 OBJECTIVES and SCOPE Objectives: The objective was to follow-up on the audit recommendations in the report. Scope: The follow-up included eight (8) recommendations from the internal audit on Assessor’s Office - Property tax roll (#10/11-5) (issued July 2011). The follow-up reflects the status as of June 2012. The original internal audit report should be referenced for the full text of recommendations and discussion. 1.3 METHODOLOGY The follow-up report was developed from information provided by the Assessor’s Office. In cases where recommendations have not been implemented, comments were sought for the reasons why and the timing for addressing these. The follow-up is, by nature, subjective. In determining the status of recommendations that were followed up, we relied on assertions provided by those involved and did not attempt to independently verify those assertions. The Assessor’s Office has been responsive and should be acknowledged for the movement on these recommendations. Since no substantive audit work was performed, Government Auditing Standards issued by the Comptroller General of the United States were not followed. DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT Follow-up report on Assessor’s Office - Property tax roll #11/12-9 June 2012 Page 2 2. Follow -up Results Figure I - How were recommenda- tions implemented? The follow-up included eight (8) recommendations in the report. There were no disagreements with management on the recommendations. Figure I provides an overview of the implementation status of the eight (8) recommendations that were accepted by management. The detail of the updated workplan is provided in Appendix I. With this follow-up, 75% of the accepted recommendations are complete or addressed. The distinction with “addressed” as the status is that the department has made a good faith effort to complete these and has determined that no additional work can be performed or that it will be re-assessed in the future. The nature of the recommendations makes this status acceptable. The overall effort is good considering the nature of these recommendations. Follow-up report on Assessor’s Office - Property tax roll #11/12-9 June 2012 Page 3 3. Appendix Appendix I –Updated Workplan for Report #10/11-5 (Status as of June 2012) Rec# Recommendation Agreement Status Due Date Department Updated Comments 1 It is recommended, if cost permits, for the Assessor’s Office to explore whether the system data could be made accessible to reconcile in total the changes occurring. The access to the change data would also provide an opportunity to identify controls over different types of changes. Agree Addressed This concept was discussed with Helion Software and discussed at the ORCATS user meeting. Though seen as beneficial this item was seen as less important in programming needs then other outstanding items. Additionally ORCATS/Helion is looking at changing the organizational structure so a complete rewrite of the software can occur. At some future yet to be defined point in time when the specifications for the rewrite is complied it is our hope that this item be addressed. 2 It is recommended for the Assessor’s Office in collaboration with the State of Oregon determine if additional procedures could improve coordination of these centrally assessed accounts. It is recommended that locally assessed properties for each centrally assessed corporation be reviewed to see if they are appropriate. Agree Addressed The specific account identified in this audit was used for discussion with the Oregon Department of Revenue. The DOR is aware of the issues and will continue to monitor; they've also indicated that they are looking at ways internally within the DOR to better communicate and work with the counties 3 It is recommended for the Assessor’s Office to document its operating policies and procedures. The procedures should emphasize the areas of operation, and supervision. These policies and procedures should be available to all employees and should include, in detail, the responsibilities of each employee. Agree Underway 7/1/2013 4 It is recommended for the Assessor’s Office to validate their detail reports to the frozen tax roll. Agree Completed Follow-up report on Assessor’s Office - Property tax roll #11/12-9 June 2012 Page 4 Rec# Recommendation Agreement Status Due Date Department Updated Comments 5 It is recommended for the Assessor’s Office and Tax Department to periodically review the level and extent of access rights provided. Agree Completed The policy has been added to also notify Helion to remove access to programs when personnel no longer work for the county. 5.1 It is also suggested for users with significant rights that there be some method to reviewing the nature and type of changes made. Agree Completed We will continue the practice of our annual audits by user and voucher type. In addition prior year roll changes are made by a data entry staff, reviewed by the Assessment Manger and then reviewed again and the notice signed by the Assessor. This same logic is done at the end of each year. The initial annual audits are made by the Assessment Manger and then the final audit is made by the Assessor. 6 It is recommended for the Assessor’s Office to analyze and utilize performance measures using the actual results of operations. Agree in part Addressed We explored looking at actuals vs. budgeted numbers from the comparison counties. We have the following concerns over – The timeliness of that data for use in our budgeting cycle. Audited numbers would not contain current year information. Secondly the consistency and availability of other counties information. Currently these figures and measures are from the Oregon Department of Revenue from the annual CAFFA grant that each county submits to the State. Unfortunately the Dept of Revenue does not look back to audited amounts and instead only use budgeted figures for these grants. We will continue to monitor and if at what point we can get consistent and readily available audited figures we will look at incorporating into our budget process Follow-up report on Assessor’s Office - Property tax roll #11/12-9 June 2012 Page 5 Rec# Recommendation Agreement Status Due Date Department Updated Comments 7 It is recommended the Assessor’s Office develop a plan to complete their conversion/upgrade from the property jacket system to an electronic based system in a timely manner. Agree Underway Part 1 - 10/15/2012 Part 2 - 9/1/15 98% of the diagram cards and photos have been scanned. We have 8 drawers left and it takes an average of 2 days per drawer working full time for 1 person. This was our initial project of moving away from using the jackets. At that time we thought we could use laptop computers and would no longer need the appraisal cards. When that option did not work out we decided to scan in the old appraisal cards and have the appraisers make changes and scan the finished cards in for history. The pilot project with the City of Redmond took 2 staff five months in addition to there normal duties. We will now need to go back and scan all of the appraisal cards. We have approximately 76,560 improved accounts, with the City of Redmond scanned we are estimated to be 2 percent complete. Our final step will be to review the accounts the outside vendor scanned as we have found some accounts that did not get the all of the photo scanned in. There are 78 of these drawers but will go fast since they are just being reviewed and should have minimal scanning. We will complete our first part of this project, images and diagrams before fall. Staff says if they are just scanning images they can scan 400 images a day, which would take 1 staff person 9-10 months to complete if the scanned full time. We currently have 3 staff, scanning during slow times and project completion in 2-3 years. {END OF REPORT}