HomeMy WebLinkAboutFollow-up of Elected DA transition reportFollow-up report on Elected District Attorney Transition (December 31, 2010) #11/12-5 June 2012
FOLLOW-UP REPORT
Elected District Attorney Transition (December 31, 2010)
(Internal audit report #10/11-4 issued February 2011)
and
(Internal audit report #09/10-4 issued November 2009)
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
PO Box 6005
Bend, OR 97708-6005
(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 Elected District Attorney Transition (December 31, 2010) #11/12-5 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 #10/11-4 and 09/10-4 (Status updated as of June 2012) ….………................ 3-8
Follow-up report on Elected District Attorney Transition (December 31, 2010) #11/12-5 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 outstanding audit recommendations.
Scope:
The follow-up included eighteen (18) recommendations from the internal audit on Elected District Attorney
Transition (December 31, 2010) (#10/11-4) (issued February 2011). The follow-up also included three (3)
outstanding recommendations from report on District Attorney’s Office Cash Handling over Revenue
(#09/10-4) (issued November 2009).
The follow-up reflects the status as of June 2012. The original internal audit reports should be referenced
for the full text of recommendations and discussion.
1.3 METHODOLOGY
The follow-up report was developed from information provided by Patrick Flaherty, elected County District
Attorney, and Mary Anderson, Chief Deputy District Attorney. 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 verif y those assertions.
The District Attorney’s Office should be acknowledged for their work in addressing 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 Elected District Attorney Transition (December 31, 2010) #11/12-5 June 2012
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2.
Follow -up
Results
Figure I -
How were
recommenda-
tions
implemented?
The follow-up included twenty-one (21) outstanding recommendations over two reports. This is the first time for
follow-up of the eighteen (18) recommendations in report #10/11-4. Management agreed with all of the
recommendations.
Figure I provides an overview of the implementation status of the recommendations by report. The details of the
updated workplans are provided in Appendix I.
With this follow-up, six recommendations have been noted as completed over the two reports (29%). Two -thirds
(67%) of the accepted recommendations are in progress. This is a good effort considering the transition and the
new staff working on these items. It is anticipated that some of these recommendations will take awhile longer to
implement.
The one open recommendation relates to the check diversion program vendor. Activity with that program has
declined significantly lowering the exposure, but not the need for the recommendation. The DA’s Office has not
yet explored options to address this matter.
33% 28%
33%
67%
6%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
09/10-4 10/11-4
Completed Planned Underway Open
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3. Appendix Appendix I –Updated Workplan for Report #09/10-4 and #10/11-4 (Status as of June 2012)
Audit# Rec# Recommendation text Status Anticipated
Completion
Date
Department Comments
09/10-4 3.2 It is recommended the department develop a
process to supervise transactions in the various
collection systems and address the other
weaknesses noted above.
Completed
/
Ongoing
Meet monthly to review expenditures. Reports are
reviewed.
09/10-4 4 It is recommended for the District Attorney to
work with the contractor to present a check that is
the provider’s check and carries appropriate
information relevant to the involved District
Attorney program. All fees to be charged by the
provider on behalf of the District Attorney should
be included with the District Attorney’s fee
schedule.
Open
09/10-4 5.1 It is recommended the department’s financial
analyst perform a periodic reconciliation between
County receipts and monies deposited. This
should include reconciling accounting activity
being posted in QuickBooks.
Planned The department is developing a process for periodic
reconciliation of County receipts and deposits, taking in
to consideration the time constraints of the Financial
Analyst’s half-time position, and the relatively small
amount of revenue from this funding source,
approximately $20,000 annually. In addition, front desk
staff and the Financial Analyst would benefit from training
on the QuickBooks system, as County IT cannot offer
any support with this software.
10/11-4 1 Responsible staff should develop reconcile bank
and accounting to the approved balance on at
least a monthly basis. Any unreconciled
differences need to be researched and resolved.
Completed The DA's Office is currently performing these
reconciliations on a monthly basis.
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Audit# Rec# Recommendation text Status Anticipated
Completion
Date
Department Comments
10/11-4 1.1 In order to provide some form of effective
supervision over this imprest account, these
reconciliations to the approved balance should be
reviewed by Finance each month. Finance can
provide examples of how this is performed for
other departments. The monies in custody
should be trued up to the authorized level of
$5,000 and monitored.
Completed We are reviewing monthly budget reports and with
Finance.
-----
Finance indicates that they are receiving monthly
reconciliations to the authorized amount of $5,000.
10/11-4 1.2 Given the issues with the current accounting
system changing, It might be prudent to move the
accounting to a manual or QuickBooks
accounting register. With proper training, these
would provide a better record of accounting than
is currently being used.
Planned QuickBooks has been purchased but is not yet used for
witness fees.
10/11-4 2 It is recommended for those few times where
cash is needed for there to be a formal written
request from the Deputy District Attorney
involved. The check should be written to a
specific party (preferably the trial assistant who
will disburse the funds). The check should be
signed by two of the signers. The transfer of
those monies should be witnessed and/or a
receipt received from the witness. Receipts
should be kept with the custodian of the account.
Planned 9/15/2012 DA's Office is working on developing these procedures.
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Audit# Rec# Recommendation text Status Anticipated
Completion
Date
Department Comments
10/11-4 2.1 It is advisable for a supervising employee, who
does not handle the imprest checking activity or
have accounting duties, to receive the bank
statements and review for unusual activity. The
bank statement should be reviewed for unusual
items and handed over to the office assistant for
reconciliation. After the reconciliation is
completed, it should be returned to the supervisor
for review (initialed) and filed.
Planned 9/15/2012 DA's Office is working on developing these procedures.
10/11-4 2.2 Since check stock is shared, all check stock
should be accounted for in a log. The log should
indicate the check numbers for all stock on hand
and by location. The logs should further identify
check numbers that have been used or have
been voided. All voided checks should be
recorded in a separate log, defaced and kept in a
file.
Planned 9/15/2012 DA's Office is working on developing these procedures.
10/11-4 2.3 It is recommended for the DA’s Office to establish
additional practices to use the imprest checking
only if they cannot plan for disbursements to be
paid by Finance. They should also establish
some additional procedures for larger
disbursements, such as use of another signer. It
appears the activity over $1,000 should have
been handled by Finance.
Planned 9/15/2012 DA's Office is working on developing these procedures.
The intent will be for Finance to handle these
expenditures.
10/11-4 2.4 It is recommended victims sign-off on all
donations made to the Victims Assistance
Program.
Planned 9/15/2012 DA's Office is working on developing these procedures.
10/11-4 2.5 It is recommended that adequate support be
retained for all disbursements made.
Planned 9/15/2012 DA's Office is working on developing these procedures.
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Audit# Rec# Recommendation text Status Anticipated
Completion
Date
Department Comments
10/11-4 3 It is recommended the District Attorney’s Office
periodically review their policies for
reimbursement of witness costs.
Underway 9/15/2012 The DA's Office is drafting a witness reimbursement
protocol but it is not complete.
10/11-4 3.1 Since there is significant discretion in the nature
and amount of monies paid to the witness, it is
recommended for approved witness costs to be
documented (a form would be good practice) and
signed off by the attorney in charge in situations
where it exceeds the minimum statutory
requirement. If a form is used, it could provide a
space for documenting the taxpayer identification
number, if required for reporting.
Completed A communication was made to all staff indicating the
need to have the DA or the Chief Deputy DA review any
extraordinary witness expenses or expert witness fees
anticipated.
10/11-4 4 It is recommended for the District Attorney’s
Office to work out with Finance on how best to
fulfill these information reporting requirements.
Since expert witness testimony fees paid are
already handled by Finance, it seems reasonable
that any other payments for additional travel
costs should be handled through Finance as the
total disbursed is more likely to exceed $600.
For situations where there are amounts
anticipated to be over $600 to witnesses, the
District Attorney may want to pay those through
Finance or work out a method to collect the
information if tax reporting is required.
Planned 9/15/2012 DA's Office is working on developing these procedures.
The intent will be for Finance to handle these
expenditures and information reporting requirements.
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Audit# Rec# Recommendation text Status Anticipated
Completion
Date
Department Comments
10/11-4 4.1 If an exclusion is not available for witness
payments, It is recommended for the District
Attorney’s Office to collect the tax reporting
information (taxpayer identification number) as a
requirement for payments anticipated in excess
of $600 in any calendar period. In addition, the
District Attorney’s Office make need to make
efforts to collect the 2010 tax reporting
information for expenditures made which are not
excludable.
Planned 9/15/2012 DA's Office is working on developing these procedures.
The intent will be for Finance to handle these
expenditures and information reporting requirements.
10/11-4 5 It is recommended the District Attorney’s Office
routinely consult with County Legal Counsel on
significant purchases and associated contracts
for their requirements under public contracting
rules.
Completed Office staff have received training and are following the
rules.
10/11-4 5.1 It is recommended for the District Attorney’s staff
who handle larger purchases attend one of the
County’s public contract trainings (this class is
routinely provided to County employees) and be
mindful of the signature requirements for
significant expenditures.
Completed Office staff have received training and are following the
rules.
10/11-4 6 Staff should document in writing all accounting
policies and procedures. The procedures should
emphasize the areas of monitoring, supervision
and segregation of duties. These policies and
procedures should be available to all employees
and should detail the responsibilities of each
employee.
Planned 9/15/2012 DA's Office is working on developing these procedures.
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Audit# Rec# Recommendation text Status Anticipated
Completion
Date
Department Comments
10/11-4 7 It is recommended the District Attorney’s Office
establish specific custodial responsibility for
evidence and limit physical access to evidence
and periodically review access rights.
Planned 9/15/2012 DA's Office is identifying options and developing these
procedures.
10/11-4 7.1 It is recommended for the District Attorney’s
Office to develop written policies and procedures
for handling of evidence. This should include the
types of evidence that may be accepted, process
for documenting chain of custody, inventory
records for all evidence secured, and logs of
those who enter evidence room and activity for all
evidence.
Planned 9/15/2012 DA's Office is working on developing these procedures.
{END OF REPORT}