HomeMy WebLinkAboutFollow-up of Property and Facilities Cash HandlingFollow-up report on Property & Facilities Cash Handling #13/14-2 August 2013
FOLLOW-UP REPORT
Property & Facilities Cash Handling
(Internal audit report #11/12-12 issued September 2012)
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, CGMA
Deschutes County Internal Auditor
1300 NW Wall St
PO Box 6005
Bend, OR 97708-6005
(541) 330-4674
David.Givans@Deschutes.og
Audit committee:
Gayle McConnell, Chair - Public member
Chris Earnest - Public member
Jean Pedelty - Public member
Michael Shadrach - Public member
Jennifer Welander - Public member
Anthony DeBone, County Commissioner
Nancy Blankenship, County Clerk
Dan Despotopulos, Fair & Expo Director
Follow-up report on Property & Facilities Cash Handling #13/14-2 August 2013
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 #11/12-12 (Status updated as of August 2013) ……….……...….................... 3-5
Follow-up report on Property & Facilities Cash Handling #13/14-2 August 2013
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 five (5) recommendations from the internal audit report on Property & Facilities -
Cash Handling (#11/12-12) (issued September 2012).
The follow-up reflects the status as of August 2013. 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 Susan Ross, Property & Facilities
Director. 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.
Property & Facilities 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 Property & Facilities Cash Handling #13/14-2 August 2013
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2.
Follow-up
Results
Figure I -
How were
recommenda-
tions
implemented?
The follow-up included five (5) recommendations. Management agreed with all of the recommendations.
Figure I provides an overview of the implementation status of the recommendations. The details of the updated
workplan are provided in Appendix I.
With this follow-up, 2 of the recommendations (40%) have been sufficiently completed. Property & Facilities is
working on the other 3 recommendations.
Follow-up report on Property & Facilities Cash Handling #13/14-2 August 2013
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3. Appendix Appendix I –Updated Workplan for Report #11/12-12 (Status as of August 2013)
Rec#
Recommendation text
Agreement
Updated
Status
Estimated
Completion
Date
Updated Department Comments
1 It is recommended the department develop a
process to better oversee all of the types of
payments they may receive through to deposit
with Finance.
Implementation could be assisted by:
• establishing a log for mailed-in checks that is
prepared by a separate person from office staff;
• improving the log of monies received to
include the non-recurring transactions; and
• a person not responsible for deposits should
periodically reconcile Finance receipts to the
log prepared.
Agree Complete A procedure has been established to
separate duties and verify receipt of
monies: 1. All checks and cash received
in the department are given to the
property manager to log in (see attached
log-in form); 2. Property manager logs in
and returns monies to front office staff
person; 3. Front office staff processes
deposit to Finance; 4. Property manager
provides the log of receipts to department
director at the end of each week; 5.
Department director verifies through
financial program of deposits of all
receipts for that week.
2 It is recommended for Property & Facilities to
develop documentation of their accounting
policies and procedures over their rents and
other collections. The procedures should
emphasize the areas of revenue and deposit
handling, monitoring, supervision and
segregation of duties. These policies and
procedures should be available to all
employees and should detail the
responsibilities of each employee.
Agree Complete Policy has been developed that describes
the process in item #1 above.
Follow-up report on Property & Facilities Cash Handling #13/14-2 August 2013
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Rec#
Recommendation text
Agreement
Updated
Status
Estimated
Completion
Date
Updated Department Comments
3 It is recommended for the County to develop a
policy for use of County facilities and how rents
should be developed for internal and external
tenants.
• This policy may consider community
contributions, costs to the County and needs by
County departments when allowing for outside
use of County building space.
• A preference should be given for County
departments to use available space, especially
in County buildings when it can be contiguous
with their other operations.
• External market rates should be used when
considering rent levels, as well as costs for
depreciation, interest and other costs. Rents
should be adequate to provide for significant
repairs and improvements over the life of the
property.
• The County should seek (with non-County
tenants) a market rental agreement.
Maintenance, utilities and property taxes, if
applicable, should be recovered or reimbursed.
Agree Underway October
2013
Staff is working on developing a policy
that will be taken to the Board for
consideration. It is anticipated this
discussion with the board will occur by the
end of October 2013. In preliminary
discussions with county administrative
staff, the policy recommendation will be
that we will try to get market rate when
possible when leasing county space to
tenants but that at other times, County
may choose to subsidize the lease
amount and will consider doing so on a
case-by-case basis.
4 Based on the discussions from this year’s
budget committee, it is further recommended
for the County to consider an accounting and
budgeting process for building usage costs to
assure transparency, equity and fairness in
costs and sufficiency to meet debt and future
repairs. The County may also need to address
in the solution the rules under OMB A-87 for
cost allocations.
Agree Underway October
2013
P&F and administrative staff will discuss
with new finance director and pursue
options to consider and recommendations
for Board. Anticipated completion date is
end of October 2013.
Follow-up report on Property & Facilities Cash Handling #13/14-2 August 2013
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Rec#
Recommendation text
Agreement
Updated
Status
Estimated
Completion
Date
Updated Department Comments
5 The County should consider whether the
benefits derived from the daycare facility
balance with the associated costs of occupying
a core County facility. A modest paid incentive
to eligible staff desiring to use the daycare
services (which would be compensable) may
be more cost effective and provide greater
value to the affected employees.
Agree Underway March 2016 Administrative staff will recommend to the
Board of Commissioners that the County
weigh the benefits of the daycare facility
when the lease agreement with the
current provider expires March 2016.
{END OF REPORT}