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HomeMy WebLinkAbout2012-10-22 Work Session Minutes Minutes of Board of Commissioners’ Work Session Monday, October 22, 2012 Page 1 of 8 Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, OCTOBER 22, 2012 ___________________________ Present were Commissioners Anthony DeBone, Alan Unger and Tammy Baney. Also present was Erik Kropp, Interim County Administrator; and, for a portion of the meeting, David Givans, Internal Auditor; Susan Ross, Property & Facilities; Shelly Smith, KIDS Center; and two members of the Audit Committee, Gayle McConnell and Mike Shadrack. No representatives of the media were in attendance. Chair DeBone opened the meeting at 1:30 p.m. 1. KIDS Center Update. Shelly Smith informed the Board about a few current issues relating to child abuse. The KIDS Center is the only entity that does evaluations in this region. Warm Springs is opening its own child advocacy center and the KIDS Center is supportive. Much of the training and resources were provided by the KIDS Center. They are the second tribal group to have this kind of service. They continue to see some of the same numbers locally, around 30 to 40 kids a month. They are picking up more families that need a reduced level of service. Most funding for services is from insurance companies and private sources, not from the State or County. This is the only Center that provides a medical model, family support and therapy resources. They also provide training to counties outside of this region. They are seeing some alarming trends in the County, relating to young children coming into the emergency room with injuries. The common theme is that mothers are going back to work and leaving children with spouses or significant others who are not prepared to take care of a child. Also, substance abuse is up, which leads to a higher correlation of problems with children. Minutes of Board of Commissioners’ Work Session Monday, October 22, 2012 Page 2 of 8 They have teams coming to the Center to address claims of children who are acting out sexually. There is no professional there who is able to do the proper assessments for these young people. OHP no longer provides funding for this, and the mental health providers here are not equipped to handle these cases. It is a significant problem. This results in children that are five or six years old that have been aggressively abused perhaps by an older child. There are two employees at Juvenile who work with teenagers who are sexually abusive, but they do not see the ones that are younger but already going down that path. These youth under twelve years old are not getting treatment even though they are already predators. Regarding the new license plate funding, those dollars will be limited, and the KIDS Center has not been deemed a child abuse prevention organization so are not eligible to participate. However, they do have prevention training and work with the schools on this kind of problem. She asked if there is a way for them to obtain some of this funding. Commissioner Baney will look into this. They are trying to address the lack of funding with the State and others, but need whatever support they can get. Commissioner Unger said that it is a challenge to get funding. Ms. Smith stated that insurance reimbursement has gone down while some personal donations have increased. OHP provides the least and the Center cannot bill private insurance for the difference. There has been a significant reduction in funding from private foundations as well as from government entities like the County. The KIDS Center is launching a high-end wine event as a new fundraiser to try to fill these gaps. They have had to draw from cash reserves for two years and can’t continue this. Commissioner Unger feels this is a necessary service, and it shoul d better supported by the government. It is going the wrong direction. They are not paid for forensic interviews, which is important to law enforcement and the courts. They have seen a growing number of kids going to urgent care, and those records are not shared. They are developing an outreach program to gather this information. This helps providers figure out if something is suspicious enough to report. They are trying to get to the kids who are migrating from one place to another. Minutes of Board of Commissioners’ Work Session Monday, October 22, 2012 Page 3 of 8 Commissioner Baney said they have an opportunity each year to change the amount going to the KIDS Center. Commissioner Unger stated that there are a lot of worthy groups. Commissioner Baney would like them to be able to get to kids early, to save future problems and costs. Ms. Smith said they have a strong relationship with law enforcement and St. Charles Medical Center. They rely on strong forensic interviews, which help to speed cases through the judicial system. The KIDS Center is working for more of a presence in Jefferson County as well. 2. Audit Committee Recommendations. Gayle McConnell, Chair; and Mike Shadrack, public member of the Audit Committee, joined the meeting. David Givans explained his function as Internal Auditor, as established in 2002. The Audit Committee did a peer review in 2012, and one recommendation was regarding the independence of the Internal Auditor. The Audit Committee checked with the Institute of Internal Auditors, other auditors and jurisdictions; and the Committee members also have a wealth of experience. He distributed a memo from the Association of Local Government Auditors (attached for reference), highlighting how they prefer these questions be addressed in an independent fashion. Mr. Shadrack said that it is important to remain independent, so the Auditor’s recommendations can be balanced and unbiased. It is common to see this recommendation, with hiring or dismissal of the Internal Auditor coming directly from the Board. When they researched what other public entities do, the question they often see is why the Auditor did not know something he should. Often it is because they were influenced by administration. They looked at different alternatives, and recommend this at a lower level. Other organizations have this separation in place. Peer review shows that Mr. Givans does great work. There is no evidence of any issues regarding independence, but this would highlight the importance of this aspect. Therefore, they recommend the Board of Commissioners approve changes to Code in this regard. Minutes of Board of Commissioners’ Work Session Monday, October 22, 2012 Page 4 of 8 Ms. McConnell added that she feels things are streamlined and simple now, and agrees with this recommendation. Mr. Shadrack said they review the ordinance every couple of years, and this is the most important recommendation. Chair DeBone said they did discuss this previously and were waiting to be sure they were clear on the topic. Commissioner Unger stated that he was encouraged to talk with individual Audit Committee members. The proposed changes are mainly this one, regarding appointment or dismissal. When looking at the Auditor and independence, he feels this should be done. It reinforces the value of the Committee who feel this is an exceptional position. Commissioner Baney asked for further details. Mr. Shadrack stated that a quorum of the public makes sense. They went with this idea because they thought the Board wanted their input. Ms. McConnell said that this separates the independence of the Audit Committee, and they can advise the Board without being considered part of the County. Mr. Givans stated there are two different sections of Code that would have to change, if the Board approves this. Mr. Kropp stated that it talks about decisions being made in consultation with the members. Mr. Kropp does not support these changes. Mr. Shadrack said Mr. Kropp has been cooperative, but a Code change takes away some ability from the County Administrator; and it makes it difficult to manage a high-profile situation. Commissioner Baney said that some things are tough to air in the public arena, and the legalities of disclosure can be difficult. Ms. McConnell feels that the Internal Auditor position is unique and not a department head per se. Commissioner Unger said this could involve personalities, or might involve a difference of opinion. They need to think of future Boards and Administrators. Commissioner Baney said this might not remove perceptions. Chair DeBone stated that at the last meeting, one member noted that this is a good change for the size of this organization. All the duties are relatively clear. Chair DeBone does not feel there is a disconnect. If something goes sideways and the Auditor is not comfortable including some language in an audit, it seems that it would be obvious fairly quickly. Minutes of Board of Commissioners’ Work Session Monday, October 22, 2012 Page 5 of 8 Mr. Shadrack said that this sets the right tone, showing all that it is important to encourage the Auditor to be independent without having to consider any potential negative ramifications for his actions and recommendations. The Board needs an unbiased opinion. Chair DeBone stated that he feels the right tone is there. Obviously, Auditors are looking for fraud, but also ways to do work in a cost-effective manner. He feels this change is not needed. Mr. Kropp said staff needs direction from the Board as to whether the changes should be made. It requires Board action with a hearing. Commissioner Baney would like to move this forward. Commissioner Unger feels that maybe the Auditor should serve at the pleasure of the Board. Nothing is broken, but this helps create a little more independence. This is important for an Auditor, and public perception is equally important. Any actions would still be in consultation with the Audit Committee. They would not have to have cause to dismiss the Auditor except what is under p ersonnel rules. Mr. Givans said that the Board would be the one to hire and dismiss; but he would also work for the Administrator. There would be a second set of eyes in the case of dismissal. Mr. Kropp said the Administrator hires or fires department heads in consultation with the Board. This would be similar. Commissioner Baney supports the Administrator and Auditor working together. Mr. Givans said that if he has to be reflective of something the Administrator is doing or not doing, there could be a rub. Commissioner Baney does not support an emergency clause since there is none. “Serve at the pleasure of” could be left out unless Legal Counsel says it should remain. She would like to add language regarding a sensitive policy; the Committee may not be the best ones with which to discuss this. Mr. Kropp said that he might say something to the Committee, to keep them informed. However, the difficulty is that the Auditor might say something is being fabricated. They would also have a closer relationship with the Auditor. Minutes of Board of Commissioners’ Work Session Monday, October 22, 2012 Page 6 of 8 Commissioner Baney stated that there could be policies of which the Committee members are not aware, or they are not educated on the level required by government. Taking private information to the Committee is a concern. Chair DeBone does not like involving a Committee in this kind of thing. “In consultation with” is a concern. Mr. Shadrack said that the Committee can go into executive session as well to protect privacy. Mr. Kropp stated that Counsel said this is factual. Mr. Shadrack added that the Board could call each member individually also. Commissioner Unger asked if this should be in consultation with all members rather than a quorum. Or, they could discuss this with members individually. Commissioner Baney questioned the quorum idea and would like Counsel to review this. Ms. McConnell said that the Board has the final say even if the Committee’s recommendation is different. It is best practices for the industry as well. Mr. Shadrack stated there are a few other changes not related to the independence part, which were reviewed by Counsel and found appropriate. The Board will discuss this in a future work session after Counsel has had a chance to review and present a revised draft Ordinance. 3. Other Items. Executive Session, under ORS 192.660(2)(e), Real Property Negotiations. ___________________________ After executive session, Ms. Ross said that concerning the Juvenile/Jail issue, she has been asked to put together a staff report for the next work session, outlining the project. They will try to address this issue in the next couple of weeks. Chair DeBone stated that regarding the La Pine Industrial Group, they are meeting next week. They want some of the funds being held. Ms. Ross stated that there are some big concerns, including the idea of funneling the money through other projects. They spent money on a study for a traffic light because it had a direct bearing on development of the industrial area. It would have to be done in that area. To spend it on the installation may be similar to an SDC, but this is a question for Legal Counsel. Minutes of Board of Commissioners’ Work Session Monday, October 22, 2012 Page 7 of 8 Commissioner Baney said that LIGI seems to be considering this their money and not County dollars. Chair DeBone said these funds couldn’t be used to pay for a La Pine economic development person. However, they want a three-year process that would be financially supported by the County. He offered them $10,000 a few months ago and they were offended because they think that the other funds being held are theirs. It is a difficult situation for him since he lives there. He wants to keep this process simple. Mr. Kropp stated that they would have to use County general funds and not this money for such a program. This is not his recommendation because there are other cities that want and need money as well, for a variety of programs including economic development.. Ms. Ross stated a concept presented to her was writing a check to the County for the $250,000, and issuing them funds back as a loan fund. However, there is no way for them to repay this. Chair DeBone said that Rick Allen is going to help the City with economic development, which is a personality and political issue. They think it is the ir land and not the County’s. However, they can’t go backwards. Commissioner Unger said they need to recognize the value of what the County has done with this land and other things that have been done for La Pine. Ms. Ross said originally there was demand for the small lots, but the market died with the economy. It is now in the MLS and information is readily available on this property. Ms. Ross will prepare a letter terminating the LIGI agreement with the date left out, for when the Board is ready. This would require any proceeds be returned to the County. They want the County to have the land appraised as well. Being no further discussion, the meeting adjourned at 4:00 p.m. /1.J C;( DATED this ~,/ 2012 for the Day of VcJ:o-ff-uv Deschutes County Board of Commissioners. Anthony DeBone, Chair Alan Unger, Vice Chair ATTEST: lOner ~~ Recording Secretary Minutes of Board of Commissioners' Work Session Monday, October 22,2012 Page 8 of8 Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:30 P.M., MONDAY, OCTOBER 22, 2012 1. KIDS Center Update -Shelly Smith 2. Audit Committee Recommendations -David Givans 3. Other Items Executive Session, under ORS 192.660(2)(e), Real Property Negotiations PLEASE NOTE: At any time during this meeting, an executive session could be called to address issues relating to ORS 192.660(2) (e). real property negotiations; ORS 192.660(2) (h), litigation; ORS 192.66O(2)(d), labor negotiations; or ORS 192.660(2) (b). personnel issues. Meeting dates, times and discussion items are subject to change. All meetings are conducted in the Board ofCommissioners' meeting rooms at 1300 NW Wall St., Bend, unless othefWise indicated. lfyou have questions regarding a meeting, please call 388-6571. Deschutes Connty meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7-1-1 to access the state transfer relay service for TrY. Please call (541) 388-6571 regarding alternative formats or for further intormation. N· N r­ aJ ..0 o V~00.N >­10 -0 I: o ~ -'iii E I CU =-=.CU! Ci ~ic..i ..... CU ('0 Q.. ...... o Q KIDS Center a child abuse l:'It(!r....omtion center Facts Child abuse is a societal and public health problem that ravages both rural and urban areas in Oregon, devastating families and affecting every level of our communities. KI DS Center is a regional child abuse intervention center committed to working to prevent abuse before it happens and to starting the healing process for Central Oregon children who have suffered from abuse. In 2011 alone, KIDS Center served 650 children with medical evaluations, forensic interviews and healing therapy. These are children who live primarily in Deschutes, Jefferson and Crook Counties. Interesting Facts • KIDS Center provides the only program for direct service to child victims of sexual abuse, physical abuse, and neglect in Deschutes, Crook, and Jefferson counties. • KIDS Center performs nearly 400 child abuse evaluations each year at an average cost of approximately $2,200 per exam. An additional 250 families are served through Family Support Services. Nearly 200 children receive therapy to help begin the healing process. KIDS Center charges nothing to child or family for any services. • KI DS Center sees children from age 0 -18 for a comprehensive medical evaluation which includes a forensic interview. Therapy is provided for all children including those who have no private insurance. A region-wide prevention program aimed at preventing child sexual abuse has trained over 6000 Central Oregon residents. • KI DS Center is proud that our most recent audit shows that $.88 of every dollar goes to child related services, with the remaining $.12 spent on the operations and fund development that supports the direct service. • KIDS Center has no debt of any kind, and is continually striving toward increased efficiencies in its operations. Our projections for donations from individuals are lower due to the current economic conditions, and we have managed our 2012 budget to reflect this commitment to operating in as lean a manner as possible: • We are focused on developing partnerships with private foundations in the hopes that they will support the increasing needs of social services during this recession. • KIDS Center is the Designated Medical Provider in Deschutes and Crook counties for HKarly's Law" -House Bill 3328, passed by the Oregon State Legislature in 2007. This mandates that any child suspected of having been physically abused must be medically examined by KIDS Center within 48 hours of reporting. This legislation was passed without funding. • KIDS Center provided medical evaluations to 53% more children in 2011 than 2007. • KIDS Center raises over 50% of its $1.5 million dollar budget from individuals and private foundations. Less than 30% of our revenues come from state or federal funds. • KIDS Center is known throughout Central and Eastern Oregon as experts in child abuse evaluation and treatment and has been providing this service for 18 years. June 2012 r 'Core services The children are seen at KI DS Center for concerns of child sexual abuse, physical assault, and neglect. Serving as the lead agency in a tri-county (Jefferson, Crook and Deschutes) coalition, KIDS Center employs a full-circle approach to the problem of child abuse: medical evaluations, therapeutic intervention to break the cycle of abuse and start on the road to healing, family support services, and a prevention program to build awareness and take the actions necessary to prevent abuse from occurring in the first place. Providing a unique, unduplicated set of services, children age 0 -18 are served in a child-friendly location and treated by highly skilled and trained professionals in one place. KIDS Center incorporates a multi-dimensional approach to child abuse that is completely focused on what is best for the child. Recognized as the regional experts, KIDS Center receives referrals from law enforcement, child protective services, licensed therapists or counselors and the medical community. This coordinated approach minimizes trauma to the child, as they are interviewed and examined in a safe environment designed just for children and unnecessary re-interviewing is kept to a minimum, allowing for healing to begin immediately. Medical The medical component consists of a forensic interview with social workers and a medical exam performed by physicians or nurse practitioners, all experts in the assessment of child abuse. Medical exams are head-to-toe and non-invasive, with the child empowered to give or withhold permission at every step. If a child is old enough, the child is interviewed by a licensed clinical social worker. This interview is videotaped in order to limit the number of interviews of the child as much as possible. Subsequent follow up includes referrals for medical treatment and other therapeutic services, as well as family education. Children are often spared from the ordeal of having to testify in court as a result of our work, because the physician or interviewer can relate to the grand jury what was told and/or observed during the evaluations. In other instances, when the comprehensive report and videotaped interview are shown to the alleged offender, it can result in a guilty plea. June 2012 Therapy, Therapy is provided at KI DS Center for any child or family who is not served in the community through private insurance. No child is turned away, and therapy may last for over a year. If the family is part of the Oregon Health Plan (OHP), therapy is provided at KIDS Center through collaboration with Deschutes County Health Services. If the family has no private insurance and is not covered by OH P (the "working poor"), the child can receive necessary services at no charge through a part-time therapist, recently hired by KIDS Center to meet this particular gap. Therapy may include individual, group and/or family counseling to help begin the healing process, as they explore their trauma and learn coping skills. Family Support As a family begins to navigate the foreign land of abuse and trauma, understanding the system can be overwhelming. KIDS Center assigns a family support advocate to every family. This advocate not only assists in initial intake, but assesses what other resources might be needed and refers the family to the appropriate agencies. The family support advocate then maintains contact with the family for a full thirteen months following the abuse investigation to ensure long term follow-up. This crucial service truly helps children and families bridge the gap between hurt and healing. Prevention and Education KIDS Center is committed to community change in order to prevent child abuse, which includes both preventing it from ever happening and stopping it when it is occurring or at risk of occurring. Our community prevention efforts include awareness building, outreach education (focused on behavior change), community collaboration and community mobilization. KIDS Center has implemented the nationally recognized child sexual abuse prevention program, "Darkness to Light, Stewards of Children". This research-based program empowers adults to protect children, and has resulted in the training of over 4,300 adults since we began in 2005. Participants have included entire Central Oregon school faculties, Bend Parks and Recreation, many businesses (including trainings hosted by the Bend Chamber), churches, and individual community members. In addition, KIDS Center leads the annual Blue Ribbon Campaign every April, to raise community awareness about child abuse and educate the public about where to find additional information. KIDS Center serves as co-facilitator of the Deschutes County Child Abuse System Task Force, made up of social service agencies that focus on child abuse prevention, intervention and/or treatment. In 2011, KIDS Center launched a new Internet Safety Training that provides parents with the knowledge and tools they need to help keep their kids safe from potential predators and unwanted exposure to sexually explicit content while on the internet. As part of our professional education component, KIDS Center serves as the regional training center for seven Central and Eastern Oregon counties, including the Warm Springs Reservation. Training and consultation is provided by KIDS Center staff in the areas of medical evaluation and interviewing of children to medical personnel in these outlying areas. Finally, the Executive Director of KIDS Center chairs and coordinates the Deschutes County Multi­ Disciplinary Team and Child Fatality Review Team. This team ensures that no child is left under-served and allows for a collaborative approach by all agencies involved. June 2012 OKIDS Center a child abuse Intervention center Medical Evaluations 646 referrals came from community partners 380 Medical and Forensic Interviews were conducted For each evaluation the team spent: • 3.5hrs on average with families • 6.5hrs on average preparing and writing reports Mission Statement Dedicated to the prevention evaluation and treatment of child abuse Medical Evaluations Evaluations by County _zou :'". .. " , .. I ..­-. 1 t , Medical Evaluations: Types of Abuse Reason for Referral to klOS Center Medical Evaluations: Types of Abuse Medical Evaluations 5-7 days is the average wait time for medical evaluations (excludes Karly's law cases) Alleged Offender statistics: l Family Support Family Support Services begin at the time of a child abuse evaluation offering crisis counseling for the parent/caregiver of children seen at KIDS Center. Empirical evidence shows that abused children who have a supportive parent and receive timely services are more likely to heal, address the abuse issues, and grow up to become healthy adults. Family Support Specialists follow-up with each family to assure that needed services are accessed for a healthy and safe family environment. 2 I j 1 Family Support )i> 478 families served )i> 233 families served without an evaluation )i> 45 minutes on average was spent with a Family Support Specialist during an evaluation )i> 2-3 months on average was spent with a Family Support Specialist for ongoing assistance Family Support An unexpected outcome of KIDS Center's Family Support Services is: 176 families assisted with questions and/or concerns were non-clients Family Support Top 6 services families are connected with: • Therapy for child victim and often parent/family counseling Assistance with personal care (clothes, food, glasses, school supplies, etc.) AsSistance with utilities • Housing/Shelter • Financial Assistance • Domestic Violence Services Therapy KIDS Center works In collaboration with Deschutes COunty Behavioral Health to provide therapy for children who are enrolled In the Orellon Health Plan, In 2011, 380 chIldren and adolescents received specialized therapeutic services by their dedicated and carlng providers, To assist children and fam1lies in procesSing their abuse and/or neglect these Innovated servrces lnc:tude: • Trauma focused Cognitive Behavioral Therapy • EMDR (Eye Movement Desensltitation and Reprocessing) Play therapy (including sand tray, art and Imaginative play) • PCIT (Parent Child Interactive Therapy) 3 r I 4 Therapy 380 child and youth served No child is ever turned away No payment is required Prevention Mission Work to prevent child abuse from happening in our community through education, training, media campaigns and events. All outreach events are designed to empower individuals to create a community where no child is abused. PreventionPrevention KIDS Center offers a number of education and training 537 adults trained in Darkness to Light:sessions: Stewards of Children 59 trainings held • 1(10$ CenterTours • Darkness to Light: Stewards of Children • Internet and Technology Safety Training SafeTOUCH 96 adults attended Internet Safety training • Blue Ribbon Campaign 8 sessions held 4 Prevention Preventfon and FS Impact on Evaluations 199),,2011 Financials: 2011 Actual Revenue· $1,478,960 Financials: 2011 Expenditures .­ .&tMitlott ''''''''' .~tIItMt -fvrdtallllnf. .£Venb Deschutes County . Multidisciplinary Team (MDT) Mission To bring together ogencles to work colloboratfvely on the Issue ofchild abuse In an effort to protect: and best seflle the needs of child victims and their families . The purpose of ORS 418.747 to 418.796 Is to establish and maintain a county multidisciplinary team and protocols for timely Investigations of allegations of child abuse and provide comprehensive services to victims of child abuse through collaboration and a coordinated ....sponse. I n Deschutes County, the District Attorney has designated KIDS Center as the Chair and Coordinator of the MOT. 5 f MDT OBJECTIVES 1. Protection of the child 2. Comprehensive fact-gathering 3. Consistent interventions utilizing this protocol 4. Coordination between agencies 5. Effective legal intervention to protect the child and community 6. Comprehensive services to children MDT COMPONENTS CHILD FATAUlY REVIEW TEAM: • Team members review all Deschutes County child (birth· 18) death reports twice a year. POLICY AND PROTOCOL MEETINGS: )-Review MDT protocol and review current issues, » 2011 Issues: SANE Coverage at St, Charles, Critical Incident Response Protocol~ Sensitive case Review Protocol. MDT COMPONENTS CASE REVIEW T£AM: Purpose: Team members review a designated list of cases to ensure protocols are followed. to track cases and to share Information. Partldpants: law Enforcement Agencies, DIstrict Attorney's Office, Department of Human Services, Deschutes County Behavioral and Public Health, KIDS Center Medical Director 8. Executive Director (also MDT Chair), Juvenile Department, Parole and Probation, SavIng Grace, schooTs, and any other Individuals deemed necessary. Meetings: In 2011, this team met 24 Urnes and reviewed 241 children. CommunicatIon: Secure Internet based portal created to house data shared at the MDT CR meetings. MDT COMPONENTS TRAININGS: Provide training opportunities lor MDT members regarding child abuse Issues; allow time for networking; provide potiey and legal updates lrom the various agencies and to address any global Issues regarding child abuse that are Identified In the Case Review Team meetings. 2011 training, Included: Internet/EiectronJc Crimes Are;ainst ChlJdrenl presented bV DetectIve lach Neeman, Deschutes SherfffsOfflce Regional MDT Conference held In June covering a variety of topics related to child abuse Abushle Head Trauma (Dr. 51. GermaIn) 6 KIDS Center 2011 ACTUAL REVENUE $1,478,960 2011 ACTUAL EXPENDITURES $1,478,960 Personn el- Personnel-Fa mily Support 2% Tra nsfe r bel'.Yeen funds 6% Pe rsonne l­ Intervi ewers 10% Examners 2 4% 2012 BUDGETED REVENUE $1,434,478 2012 BUDGETED EXPENDITURES $1,434,478 Tran sfer betwee n Pe rsonnel­ funds Therapy Earned Reven ue 11 % Personne l-Fa mi ly Support 4% Perso nne l­ Inlervi8\Wr5 8% Personnel­ Medical Ex amine rs 23% Deschutes County January through December, 2011 Revenues received for Evaluations REVENUE EXPENDITURES CAMI grant (75% of total grant) $ 127,632 Medical Evaluations Insurance Reimbursements $ 98,355 239 kids $ 501,900 Deschutes County United Way $ 45,500 Bend Police Department $ 35 ,000 Private Foundation Grants $ 30,500 Deschutes County Sheriffs Office $ 30,000 Redmond Police Department $ 12,000 Community Grant $ 10,000 Witness and Records Fees $ 2,283 Donations $ 500 TOTAL $ 391,770 $ 501 ,900 Deschutes County Internal Audit Program MelD) To: Board of County Commissioners (Work session item) From: David Givans, County Internal Auditor Date: September 14, 2012 Re: Audit committee recommendation item -Code changes to Code Sections 2.14 and 2.15 The agenda item is to discuss with the Board and provide direction to staff on whether they want this brought up for further discussion at a worksession or a business meeting. Your Audit Committee met 9/13/12 and discussed and approved a recommendation to the Board for changes to Code chapters 2.14 (County Intemal Auditor) and 2.15 (Audit Committee). These changes were developed in response to recommendations from the last peer review of the Internal Audit Program. The ~0 II oWIng was th e vo e on eac h recommen d at"Ion Audit Committee Member (PM=Public Member) Code 2.14 County Internal Auditor Code 2.15 Audit Committee I Gayle McConnell, Chair (PM) Michael Shadrach, Prior Chair (PM) Chris Earnest (PM) Jean Pedelty (PM) Jennifer Welander (PM) Dan Despotopulos Anthony DeBone Yes Yes Yes Yes Yes Yes Abstain Yes Yes Yes Yes Yes Yes Abstain I have attached • Deschutes County Code sections 2 .14 and 2.15 with the suggested changes highlighted . • Michael Shadrach's request for moving this item forward • An audit committee handout outlining the reasons for the change. The intent of the overall changes is to assure independence of the County Internal Auditor position. Some additional administrative changes were incorporated for errors, legal concems, and improvements. Page 1 of 1 H:\My Documents\lntemal Audit Function\Audit committee\Audit Committee Ordinance Work\2012 amendments\Topic Memo for 9-24-12 worksession.docx County Internal Auditor Independence Issue Current Ordinance: 2.14.010 Appointment of County Internal Auditor. The County Internal Auditor shall be appointed by and serve at the pleasure of the County Administrator in consultation with the Audit Committee and the BOCC. Recommendation by the Peer Review: We recommend the Audit Committee and BOCC consider modifying the language in the County Code to specify that the Audit Committee and the BOCC must both approve the removal of the Internal Auditor to reduce the risk of impairments that may restrict or interfere with the Internal Auditors work. Revised Proposal to change 2.14.010 Chapter: 2.14.010 Appointment or Dismissal of the County Internal Auditor The County Internal Auditor shall be appOinted or dismissed by the County Administrator in consultation with a quorum of the public members of the Audit Committee and a majority vote of the BOCC. Reasoning for new language: 1. Greatly strengthens the independence ofthe Internal Auditor when appointment and dismissal requires a vote of the majority of the BOCC. 2. The consultation provision required with a quorum ofthe public members ofthe Audit Committee provides additional independent input for the BOCC (expected before the BOCC vote on the Internal Auditor appointment/dismissal). 3. Vote ofthe Audit Committee not required because the Committee role is advisory. Requiring approval of the Audit Committee for Internal Auditor appointment/dismissal expands the Committee's role beyond an advisory role to the BOCC. 4. Internal Auditor role is unique and requires as much independence as possible. Best practices call for the independent auditor to report directly to an Audit Committee or other Governing Board. From: M Shadrach Sent: Thursday, September 13, 2012 7:53 PM To: Tammy Baney; Alan Unger Cc: Erik KroPPi Tony DeBonei Gayle McConnelli David Givans Subject: Audit Committee Recommendation Tammy and Alan, The Deschutes County Audit Committee met today and voted to recommended changes to the Internal Audit and Audit Committee Ordinances. I discussed these proposed changes individually with you on June 26. Erik Kropp is expecting to discuss the proposed ordinance changes with you at the next working session of the Commissioners scheduled for September 24. At our Audit Committee today, there was some discussion about waiting to take action on the recommendation until a new County Administrator is hired. The proposed Ordinance changes are largely to help assure the independence of the work of the County Internal Auditor (in fact and in appearance to help assure unbiased internal audit recommendations to enhance County operations). Therefore, linking a Commissioner policy decision to the hiring of a new County Administrator does not seem logical to me. The proposed ordinance changes have been well researched and discussed. I suggest that the Commissioners act on the Audit Committee proposed Ordinance recommendations within the next 30 days, if possible. I would be glad to address any questions or suggestions from the Commissioners. Best Regards, Mike Shadrach Deschutes County Audit Committee Member Chapter 2.14. COUNTY INTERNAL AUDITOR 2.14.010. Appointment of County Internal Auditor. 2.14.020. Qualifications of County Internal Auditor. 2.14.030 Scope of Audits. 2.14.040. Internal Audit Schedule. 2.14.050. Funding. 2.14.060. Access to Employees, Records and Property. 2.14.070. Audit Reporting and Records. 2.14.080. Contract Auditors, Consultants and Experts. 2.14.090. Quality Assurance Review. 2,14.100. .'\odit CelRoHttee. 2.14.010. Appointment or dismissal of County Internal Auditor. The County Internal Auditor shall be appointed by or dismissed bv ass serve at !:he IJie85l::1fe of the County Administrator in consultation with a quorum of the public members of the Audit Committee and a majority vole of the BOCC. 2.14.020. Qualifications of County Internal Auditor. The County Internal Auditor shall possess adequate professional proficiency, demonstrated by relevant certification, such as CPA (Certified Public Accountant), CIA (Certified Internal Auditor), CGAP (Certified Government Auditing Professional) or a combination of education and experience as would be desired by the County. 2.14.030 Scope of Audits. 1. The County Internal Auditor shall conduct work in accordance with government auditing standards and county policies. The County Internal Auditor shall establish internal auditing policies and procedures to assure that audit work is completed in accordance with those standards. Any audit work that is undertaken not in compliance with standards shall be disclosed in the County Internal Auditor's report. 2. The County Internal Auditor shall have authority to conduct financial, attestation, and performance audits of all departments, offices, boards, activities and agencies of the County in order to independently and objectively determine whether: a. activities and programs being implemented have been authorized by County Code or adopted policy, state law or applicable federal law or regulations; b. activities and programs are being conducted as prescribed by management/governing body to accomplish the objectives intended by County Code, state law or applicable federal law or regulations; c. activities or programs efficiently and effectively serve the purpose intended by County Code, state law or applicable federal law or regulations; d. activities and programs are being conducted and funds expended in compliance with applicable laws; I Chapter 2 .14 ( 41 12+) e. revenues are being properly collected, deposited and accounted for; f. resources, including funds, property and personnel, are adequately safeguarded, controlled and used in an effective and efficient manner; g. financial and other reports are being provided that disclose fairly and fully all information that is required by law, that is necessary to ascertain the nature and scope of programs and activities and that is necessary to establish a proper basis for evaluating the programs and activities; h. there are adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls which have been established by management; and I. there are indications of fraud, abuse or illegal acts, which need further investigation. 3. The County Internal Auditor may also provide non-audit services (consulting) that are not covered by governmental auditing standards . Non-audit services differ from audits in that the County Internal Auditors may a. Perform tasks requested by management that directly support the entity's operations; b. Provide information or data to a requesting party without providing verification, analysis or evaluation. These non-audit services should be approved by the County Administrator. The County Internal Auditor should continue to work independently (in fact and appearance) when performing non-audit services. The County Internal Auditor will decide and advise the County Administrator if the non-audit work may jeopardize independence and whether the work should be performed. 4. The County Internal Auditor needs to consider three general classes of impairments to independence-­ personal, external, and organizational . If one or more of these impairments affects the County Internal Auditor's capability to perform the work and report results impartially, that County Internal Auditor should either decline to perform the work, or in those situations because of a legislative requirement or for other reasons, cannot decline to perform the work, should disclose the impairment in their report. The County Internal Auditor should not perform management functions or make management decisions. Performing management functions or making management decisions might impair the County Internal Auditor's ability to perform audits of that or a related subject matter. 2.14.040. Internal Audit Schedule. At the beginning of each calendar (or fiscal) year, the County Internal Auditor shall submit a one to five­ year audit work schedule to the Audit Committee for approval. This audit work schedule should incorporate information from multiple sources including the County Internal Auditor's assessment of significant risks to the organization and input from Management, Audit Committee, and the Board of County Commissioners. The schedule shall include the proposed plan for auditing departments, offices, boards, activities, subcontractors and agencies for the period. The schedule may be amended . Additionally, the County Internal Auditor (for cause) may spontaneously initiate and conduct any other audit deemed necessary. Any significant changes (an expectation of scope of work changing by more or less than 150 hours) to the workplan for audit or non-audit projects should be approved in advance by the County Administrator and, except in cases of emergency, the Audit Committee. In the selection of audit areas and audit objectives, the determination of audit scope and the timing of audit work, the County Internal Auditor should consult with external auditors so that the desirable audit coverage is provided and audit effort is properly coordinated. I Chapter 2.14 2 ( 4 /12-1 ) 2.14.050. Funding. The County shall provide sufficient funds to enable the County Internal Auditor to carry out the responsibilities specified herein subject to annual appropriation by the BOCCCeoot)' B~8get Cefft:lHiaee . 2.14.060. Access to Employees, Records and Property. 1. All officers and employees of Deschutes County shall furnish the County Internal Auditor with unrestricted access to employees, information and records (including electronic/computerized data) within their custody regarding powers, duties, activities, organization, property, financial transactions, contracts and methods of business required to conduct an audit or otherwise perform audit duties. In addition, they shall provide access for the County Internal Auditor to inspect all property, equipment and facilities within their custody. A discussion of appropriate access should occur with County Counsel if access to documents is restricted by applicable law. 2. Further, all contracts with outside contractors and subcontractors shall provide the County Internal Auditor access to the contractually related financial and performance-related records; property, equipment and services purchased in whole, or in part, with governmental funds 3. If such officers, employees or contractors fail to produce the aforementioned access and/or information, the County Internal Auditor with the aide of County Legal Counsel may initiate a search (or obtain a subpoena) to obtain exhibit copies (physical or electronic) from computerized systems, book, paper or record of any such official or employee, or outside contractor or subcontractor, in accordance with state law or the applicable contract. 4. Subject to public records laws, the County Internal Auditor shall not publicly disclose any information received during an audit that is considered confidential by any local, state or federal law or regulation. The County Internal Auditor shall maintain the confidential status of infonnation and records furnished by County officers and employees. 2.14.070. Audit Reporting and Records. 1. Each audit will result in a report containing relevant background information and findings and recommendations, and shall communicate results to the Board of County Commissioners, Audit Committee, and appropriate management. Subject to applicable public records laws, the report shall also be available for public examination. If certain pertinent information is prohibited from general disclosure, the audit report should state the nature of the information omitted and the requirement that makes the omission necessary. 2. The County Internal Auditor should follow state archive guidelines as appropriate and as identified under OAR 166-150-0005(4) (currently - a retention schedule of 10 years). 3. The County Internal Auditor should periodically report to the Audit Committee (and Board of County Commissioners) on the work performed and any significant findings, which have not been fully addressed by management. 4. The County Internal Auditor shall follow-up on audit recommendations, as practical, to determine if management is implementing corrective action as identified in their response to the audit report findings and recommendations. The County Internal Auditor may request periodic status reports from auditees regarding actions taken to address reported deficiencies and audit recommendations. I Chapter 2.14 3 ( 41 1£+) 2.14.S0.Contract auditors, consultants and Experts. 1. Within budget limitations and approval by the County Administrator, the County Internal Auditor may obtain the services of Certified Public Accountants, qualified management consultants, or other professional experts necessary to perform auditor duties. An audit that is performed by contract must be conducted by persons who are independent of the governmental unit and its officers. The County Internal Auditor will coordinate and monitor auditing performed by public accounting, professional experts, or other organizations employed under contract by Deschutes County. 2. The County Internal Auditor may participate with the Audit Committee in the selection of qualified finalists for the provider of Deschutes County's annual financial audit. The Audit Committee shall select a provider from the finalists. This selection shall be presented to the Board of County Commissioners for review and approval. The process will follow Deschutes County's contracting processes. 2.14.090. Quality Assurance Reviews. \. The audit activities of the County Internal Auditor's office shall be subject to quality review in accordance with applicable government auditing standards by a professional, non-partisan objective group (such as the Association of Local Government Auditors (ALGA)). A copy of the written report of this independent review shall be furnished to the Audit Committee and the Board of County Commissioners. This report shall be available to the public . 2. The quality control review shall determine compliance with government auditing standards and the quality of the audit effort and reporting, including: a . general standards such as competence, professional judgment, and quality assurance; b. fieldwork standards such as planning, supervision, and evidence; and c. reporting standards such as report content, timeliness and distribution ; 3. The County shall reimburse the costs of the quality control review team from funds budgeted in the County Internal Auditor's budget. Within available time constraints, the County Internal Auditor may reciprocate with other organizations by participation in quality control teams. (Ord. 2005-014 §l, 2005) I Chapter 2 .14 . 4 ( 4/1 }1-) Chapter 2.15. COUNTY AUDIT COMMITTEE 2.15.010 Authority. 2.15.020. Composition. 2.15.030 Meetings. 2.15.040. Responsibilities. 2.15.010. Authority. A. The Board of County Commissioners ("Board") hereby establishes the Audit Committee as an advisory committee. The committee shall advise the Board and County Administrator on significant audit matters including, but not limited to: I. The selection, compensation, and removal of external auditors hired to audit the fmancial statements for the County and its related entities; 2. Consultation with the County Administrator or Board regarding the appointment or dismissal of the County Internal Auditor should include a quorum of the public members of the audit commillee; 3. Increases and decreases to the requested budget for the internal audit program; and 4. The work plan for internal audits perfonned under DCC 2 .14.040. 2.15.020. Composition. A. The audit committee shall be comprised of not less than seven or more than nine members appointed by the Board. B. Each member shall be appointed to serve a tenn of two years. Upon initial fonnation of the committee, the Board may appoint any member to a shorter tenn. A member may be appointed to more than one tenn. The Board may remove a member of the committee at any time. In the event of a vacancy on the committee the Board shall, as soon as practicable, appoint a person to serve the unexpired portion of the fonner member's tenn. C. The committee shall consist of one (I) member county commissioner, two (2) county department head members, and four (4) to six (6) public members. The County Administrator shall be an ex-officio nonvoting member. D. A public member shall be a registered voter within Deschutes County. The chair of the committee shall be a public member and shall be selected by a majority of the public members. The chair shall serve a one-year term and may be selected for additional terms. If the public members cannot decide upon a chair, the larger committee shall decide. The chair shall preside over meetings, as well as provide input on topics for the agenda. 2.15.030 Meetings A. The audit committee shall meet as the committee deems necessary. A quorum shall constitute a majority of the members appointed. Vacant positions shall not be considered in determining whether a quorum exists. Minutes shall be prepared in accordance with the Oregon Public Meeting Law. The committee may require certain County management attend meetings to address reports being discussed. Auditee departments will be invited to meetings where their internal audit report is discussed. B. A department head audit committee member shall not vote on an issue relating to an audit directly pertaining to his or her department. If there is any question as to whether audit committee members should recuse themselves from a vote, the committee should vote to detennine whether the member should recuse himself or herself. I Chapter 2.15 L 4I ll+) C. The County Internal Auditor shall facilitate and coordinate such meetings, as well as provide ancillary support to the committee, as time permits. 2.15.040. Responsibilities. Responsibilities of the Audit Committee include: A. Overseeing the independent audit of the County's financial statements, including: I. Overseeing the selection, renewal or removal of the independent external auditor by making a recommendation to the Board for final approval; 2. Meeting with the external auditors during planning of the audit, presentation of the audited financial statements, and discussion of the letter to management on recommendations; and 3. Overseeing the resolution of audit findings in, areas such as internal control, legal and regulatory compliance, and ethics. B. The committee shall work to assure coordination between the internal and external auditors, management, the County Administrator and Board. C. The audit committee shall ensure the internal audit program performs its function . The committee shall: I. Review the internal audit ordinance (DCC 2.14) at least every other year; 2. Review proposed internal audit work plans and make recommendations concerning internal audit projects; 3. Review the budget and staffmg levels of the internal audit program (DCC 2.14.050); 4. Review internal audit reports and other communications developed for the County; 5. Review and provide input on internal audit program goals; and 6. Review any quality assurance reviews created pursuant to DCC 2.14.090. 7. Discuss and provide input on the County Internal Auditor's perfonnance review each year. D. The committee shall make appropriate recommendations concerning the internal audit program based upon the reviews that it conducts pursuant to subsection C of this section. E. The committee shall make an annual report to the Board summarizing the committee's activities and recommendations. The report may be delivered at an audit committee meeting attended by the Board or may be scheduled for a regularly scheduled meeting of the Board. F. The committee shall perform other activities related to this chapter as requested by the Board. (Ord. 2009-0 II §1,2009) (Ord. 2008-002 §I, 2008) I Chapter 2.15 2 OfACERS President Ross Tate Maricopa County Auditor Phoenix, AZ President Elect Drummond Kahn Audit Services Director Portland, OR Secretary Jay Poole City Auditor Chesapeake, V A Treasllrer Corrie Stokes Deputy City Auditor Austin, TX Past Presidelll Beth Breier Audit Manager Tallahassee, FL BOARD MEMBERS AT LARGE Kymbef Waltmunson Principal Mgmt Auditor King County, WA Theresa Weatherman Audit Director Fairfax County Public Schools, VA Ruthe Holden Chief Auditor Los Angeles Metro Transportation Authority, CA Denny Nester Interim City Auditor Colorado Springs, CO MEMBER SERVICES 449 Lewis Hargett Circle Suite 290 Lexington, KY 40503 Phone: (859) 276-0686 Fax: (859) 278-0507 www.govemmentauditors.org memberservices@ govemmentauditors.org Association of Local Government Auditors December 7, 2011 David Givans, County Internal Auditor Deschutes County Deschutes Services Building 1300 NW Wall Street. Suite 206 Bend, Oregon 97701 Dear Mr. Givans: As a member of the Association of Local Government Auditors (ALGA), you know that our professional organization is committed to supporting independent performance auditing in local governments. Since Deschutes County is currently reviewing its code relevant to internal audit, we urge you to implement ALGA's recent Peer Review recommendation to reduce the risk of impairment to the independence of the County Internal Auditor by strengthening that independence in County Code. The independence of the County Internal Auditor would be better protected in fact as well as appearance if your code specified that agreement by, or approval of. the Audit Committee and the Board of County Commissioners was also required for appointment and dismissal of the office holder, rather than the County Administrator acting alone, with their "consultation." The auditor must be able to evaluate operations independently for which the County Administrator is responsible. ALGA believes that an independent performance audit function, operating under applicable professional auditing standards, plays a key role in effective governance and public accountability. Taxpayers and elected representatives want assurance that scarce tax dollars are protected by strong management controls and practices. The Role of Auditing in the Public Sector provides a concise discussion of the need for independence that may be useful to your Audit Committee as they consider revising code ­ (http://www.governmentauditors.org/images/stories/reports/Auditing in Public Sec tor. pdf). Please contact me at 214-670-3222 or craig.kinton@dallascitvhall,com if you would like additional information. Sincerely, Craig Kinton, Chair. Advocacy Committee C: Ross Tate, President