Loading...
HomeMy WebLinkAbout1516-5 Law Library Transition report (Final 5-9-2016)Law Library Transition report #15/16-5 May 2016 Law Library Transition 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 PO Box 6005 1300 NW Wall St, Suite 200 Bend, OR 97708-6005 (541) 330-4674 David.Givans@Deschutes.org Audit committee: Shawn Armstrong (Chair) - Public member John Barnett - Public member Chris Earnest - Public member Lindsey Lombard - Public member Michael Shadrach - Public member Wayne Yeatman - Public member Anthony DeBone, County Commissioner Nancy Blankenship, County Clerk Dan Despotopulos, Fair & Expo Director Law Library Transition report #15/16-5 May 2016 {This page left blank} Law Library Transition report #15/16-5 May 2016 TABLE OF CONTENTS: HIGHLIGHTS 1. INTRODUCTION 1.1. Background on Audit …………..………………………………………...…… 1 1.2. Objectives and Scope ………………….……………………………...…...… 1 1.3. Methodology ………………………………….…………………...……...… 1-2 2. BACKGROUND ………………………………………………………………… 2-6 3. FINDINGS 3.1. Transition observations …………………………..………………….…… 6-11 3.2. Fiscal observations …………………………………………...………… 11-15 4. MANAGEMENT RESPONSES 4.1. County Administration .…………………………………………..…... 16-17 4.2. Property & Facilities ……………………………………………..…... 17-18 5. OTHER RESPONSES TO TRANSITION ……………………………..….. 18-19 Law Library Transition report #15/16-5 May 2016 HIGHLIGHTS Why this audit was performed: To review the transition of the law library What is recommended Recommendations included:  Updating the MOU to address the expectations of law library services provided in legal collections;  Familiarizing staff with provisions of the code dealing with surplus item sales greater than $500 and maintaining the documentation required;  Accounting for significant sales of surplus property to the fund originating the purchase unless additional procedures are developed by the County;  Using a cash receipt book (in triplicate) to account for Property & Facilities cash receipts and to maintain a master copy that monies can be reconciled to;  Adjusting modified expenditures used for indirect charges for the lack of activity now occurring in Fund 215-Law Library; and  Repaying the general fund for the monies transferred in FY 2002. Law Library Transition After considerable study, the County decided to contract out the law library services with the Deschutes Public Library (DPL). The new law library services at DPL will rely more on online legal subscription (and will include some print resources) and expand on access to services. What was found In transition of the law library:  Law library collection has been moved, dispersed and disposed;  Staffing has been discontinued on transition of law library; and  Current and past measures of activity for the law library services have been insufficient to track activity levels. The memorandum of understanding (MOU) for the transition lacks specificity to cover extent of law library resources (online and physical) being provided. The disposal of some surplus property did not follow County Code. County Code provides some specific requirements when the property’s value exceeds $500. In additional, lesser value surplus item sales were not sufficiently inventoried and tracked. The sales of surplus handled by Property & Facilities were deposited into the Property & Facilities fund as opposed to the law library fund. Efforts were made to post asset and collection disposal costs to the law library but not any of the income. The cash control procedures of Property & Facilities could be improved thorough use of a manual receipt book (in triplicate). Internal services fund charges to the law library are down dramatically but could still be high. Internal service fund charges are still reflecting activity through use of an allocation base of modified expenditures that does not reflect the level of service provided. The County General Fund transferred $28 thousand to support the law library in FY 2002. Since current working capital levels are more than adequate, the law library fund is currently in a position to repay these funds. Deschutes County Internal Audit Law Library Transition report #15/16-5 May 2016 Page 1 of 19 1. Introduction 1.1 BACKGROUND ON AUDIT Audit Authority: The Deschutes County Audit Committee authorized the review of the transition of the law library in the Internal Audit Program Work Plan for FY 2016. The audit was to review elements of transitioning Deschutes County law library services to the Deschutes Public Library (DPL). 1.2 OBJECTIVES and SCOPE Objectives: The audit objectives include: 1) Review transition of law library services to the Deschutes Public library. This would include (to the extent that sufficient data exists) reviewing: a) service activity levels pre and post; b) funding and support; c) handling of fixed assets and library collection; and d) staffing. 2) Be aware of any issues with compliance with federal and state regulations and requi rements, as may be applicable. Scope: This audit work is took place after the transition in November/December 2015. Audit work occurred in February and March 2016. Limited data was available on the extent of services provided. The significant laws, regulations and guidance identified for these audit objectives included ORS 9.815 and County Code 2.37 (as it relates to surplus handling). The scope did not include the extent to which law library services are performed or to the extent the collection meets the needs of the users. 1.3 METHODOLOGY Audit procedures included:  interviewing of selected departmental management and staff;  analyzing fiscal history of law library fund (Fund 215);  identifying and analyzing information on activity levels pre and post transition;  analyzing law library survey data available;  developing an understanding of historical funding and expenditures for law library;  inquiring of handling of assets in transition; DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT Law Library Transition report #15/16-5 May 2016 Page 2 of 19  analyzing staffing hours for law library; and  reviewing statutory guidance on law libraries as well as surplus handling under County Code. We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. (2011 Revision of Government Auditing Standards, issued by the Comptroller General of the United States.) 2. Background County Law Library Mission ------------------------ is to provide access and use of legal reference materials and reference services o members of the legal community and the general public. The County has a responsibility to provide a law library under statute (ORS 9.815). The statute specifically requires the County:  operate a free law library at a location that is convenient and available at reasonable hours; or provide free law library services at one or more locations that are convenient and available at reasonable hours.  A county governing body may enter into a contract with a law library association or other organization for the operation of the law library, or the provision of law library services, required by this section. The County law library has provided traditional printed resources as well as online resources. Historically, the County has maintained a law library near the Circuit Court in one of the County owned buildings. The County law library collection was comprised of print and online legal resources utilizing 3600 square feet of space and was staffed on a half time basis. Some attorneys were provided building cards to access the County law library at any time (though this occurred infrequently on non-business hours and weekends). At the prompting of the County Budget Committee in FY 2015, County Administration explored contracting out the law library services with the Deschutes Public Library (DPL). The new law library services at DPL will rely more on online legal subscription (and will include some print resources) and expand access to services. County law library fiscal history (Fund 215) Law library funding has fluctuated over the years (See Graph 1). The Oregon Judicial Department primarily funds the law library over two-year terms. Funding in the 2015-17 biennium is based on the 2013-15 biennium filing fees collected from circuit court civil actions. Funding has been decreasing over recent years. State revenues received for FY 2016 were $153 thousand. Law Library Transition report #15/16-5 May 2016 Page 3 of 19 GRAPH 1 Law library per capita revenues (CPI adjusted) GRAPH 2 Law library per capita expenditures (CPI adjusted) Law library expenditures have been consistent with most of the variation occurring with library material purchases (See Graph 2). Staffing during this period has mostly been comprised of a halftime (.5 FTE) law librarian that retired at the end of FY 15. There was transitional staffing in place for April 2015 through December 2015. 2015 County law library Survey results Under statute (ORS 9.825), every other year the Oregon Judicial Department (OJD) performs a survey to identify how the law libraries around the state are performing on selected topics (operating hours, staffing, etc…). The survey intends to answer some questions regarding the extent of access to research materials (print or electronic); staffing; utilization; operating hours/availability; staffing assistance; and access to free or low-cost on- site access to computers, printers, copiers, and other electronic devices . https://www.oregonlegislature.gov/citizen_engagement/Reports/2015CountyLawLibrarySurveyReport.pdf Law Library Transition report #15/16-5 May 2016 Page 4 of 19 GRAPH 3 OJD 2015 County Law library survey information GRAPH 4 OJD 2015 County Law library survey information Some of the high level observations from the 22 county responses (61% participation) include: In general, there is a lack of measures performed by law libraries with only 54% counting patrons. Considering the increase in services provided electronically, there has been no specific surveying of that activity. Only half (48%) of the counties operate during a full workweek. Only a couple of libraries offered any service on the weekends. Most operate through some level of paid staffing. The survey did not ask if counties contracted out their law library services. General law library collection information by print and electronic varies with many having all of the materials available electronically. 2015 Bar Association Survey on Deschutes County law library The County carried out a survey in collaboration with the local Bar association to see how attorneys were using the law library. There were 27 respondents to the survey carried out in October/November 2015. Law Library Transition report #15/16-5 May 2016 Page 5 of 19 GRAPH 5 When last visited Deschutes County law library GRAPH 6 Materials consulted at the Deschutes County law library Of those responding to the survey, only 22% had visited the law library in the last 3 months and for 40% it has been over a year. Those that visited only consulted with the librarian 15% of the time and that was generally for help in finding materials. Graph 6 indicates most of the materials consulted primarily included general treatises, restatements of the law, and Oregon treatises and legislative history. Within treatises there seemed to be more interest in real property, contracts and corporate matters. Law Library Transition report #15/16-5 May 2016 Page 6 of 19 Members were asked about the law library transition. Only a limited number of members expressed any concerns. Most members were positive about the transition as long as they could continue access to electronic legal research materials. 3. Findings Audit findings result from incidents of non-compliance with stated procedures and/or departures from prudent operation. The findings are, by nature, subjective. The audit disclosed certain policies, procedures and practices that could be improved. The audit was neither designed nor intended to be a detailed study of every relevant system, procedure or transaction. Accordingly, the opportunities for improvement presented in the report may not be all-inclusive of areas where improvement may be needed and does not replace efforts needed to design an effective system of internal control. No significant deficiencies were found in this audit. A significant deficiency is defined as an internal control deficiency that could adversely affect the entity’s ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. The findings noted were primarily compliance and efficiency matters. 3.1 Transition observations Memorandum of understanding Memorandum of understanding (MOU) lacks specificity to cover extent of law library resources (online and physical) being provided. The MOU agreement between Deschutes County (DC) and Deschutes Public Library (DPL) does not specify the extent of the legal resources (either physically or digitally) to be provided. During the transition of the law library, a significant amount of the physical law library collection was moved, dispersed and disposed. It appears the online services previously provided have been continued. The intent was that the overall level of service would be continued. The County in partnership with DPL developed a mutually beneficial arrangement to provide the law library services to the public. In the MOU between the two local governments, the responsibilities of both parties were defined. The memorandum covered the County’s responsibilities for continuing to comply with their statutory obligations in an approach that should benefit the library system and the public. Law Library Transition report #15/16-5 May 2016 Page 7 of 19 Key aspects of the agreement include:  DPL will house the law library collection (limited to available physical space);  DPL will catalog the collection;  DPL will assign a lead librarian (with an MS in Library Science) to serve as the law library lead;  DPL will respond to the State Court Administrator’s survey of law libraries (occurs every two years);  DPL will provide assistance to individuals wishing to use legal materials and services;  DPL will annually provide a report indicating performance, accomplishments, and goals for the coming year;  DPL will provide access to copiers for same cost and in the sam e manner as for other patrons;  DC will pay $12,500 per month through FY 2017 (mutually agree on amounts going forward); The intent is to use monies from the state to fund the law library.  DC will pay for relocation of the law library collection identified for DPL. The balance of the collection will be shared/disposed as is most cost efficient; and  Mutually agreed to meet and discuss any concerns or issues in the operation of the law library. The anticipated benefits identified for users of the law library at DPL include:  Additional opportunities for access by o physical locations and times (main branch open 56 hours per week), o additional branches (East Bend, Sisters, Redmond, LaPine, and Sunriver), o website content (some online legal resources can be accessed by those with a library card), and o expanded online research services (access to advanced research tools from a laptop that can be checked out at the Main branch).  Additional staffing resources available. DPL has developed a “Legal Services Team” of four staff (one a lead) who will receive more in-depth legal services training. All other DPL staff have received an introduction to the services now available. In the absence of language in the MOU on the extent of law library services to be provided, there might be some future disagreement or mismatch in services provided. It is not clear that county law libraries are intended to provide comprehensive services. Law research resources are also available at the State of Oregon Law Library as well as numerous websites. The legal online resources appear to provide the basis for most legal research. Online services vary and allow for customization. Currently, the DPL provides Lexis Advance®, which provides Federal and state materials. The custom subscription includes an Oregon practice library. This service is available from laptops at the Main branch. DPL has also secured online services that are available to all library patrons called LexisNexis® Library Law Library Transition report #15/16-5 May 2016 Page 8 of 19 Transitioning of law library collection Transitioning of staffing Express. This online service provides access to credible business, legal and news information as well as legal research resources. County staff indicates the general public will greatly benefit from the increased access to these legal materials. DPL has a history of providing excellent service to its users. There is no indication there is a problem with the current level or extent of law library resources being provided by DPL. It is recommended the MOU be updated to address the extent and expectations of law library services provided in print collections and through online legal subscriptions. These expectations should be determined with the assistance of the Deschutes Public Library. Law library collection has been moved, dispersed and disposed. Aside from some pictures and some anecdotal evidence of size, Deschutes County had amassed a significant collection of print materials as part of its law library collection. The collection does not appear to have been catalogued and records provided indicate only the boxes of information moved or dispersed. There was a substantial amount of the collection disposed. County staff indicates there was little else they could do with these books since they were expensive to store and their information is now readily available and searchable in the legal online resources being provided. Many of these resources were out of date. Their current value was minimal. Every attempt was made to locate a home for items of historical value. DPL secured what they needed from the collection that was current and could supplement the collection they already had. Other parts of the collection were dispersed as follows:  State Circuit Court (~20 boxes);  Deschutes County Legal Counsel (~20 boxes); and  Columbia County (~20 boxes) to rebuild their collection lost to flooding. Other requests for books were taken from individuals and patrons of the law li brary. Staffing discontinued on transition of law library. The Deschutes County law library has had a part time (.5 FTE) law librarian until their retirement in June 2015. Law Library Transition report #15/16-5 May 2016 Page 9 of 19 GRAPH 7 County law library staffing through closure Transition of activity measures The County arranged for some interim staffing through closure in December 20 15. Part of this staffing was through an independent contractor arrangement. Staffing at the Deschutes Public Library is mostly through existing personnel with some additional resources being developed on a “Legal Services Team” of four staff (one a lead) who will receive more in-depth legal services training. All other DPL staff have received an introduction to the services now available. The activity for law library services is difficult to measure in transition. How many patrons and how much did they use the Deschutes County law library? The Deschutes County law library did not appear to be measuring activity. Anecdotal support is that there were about twelve lawyers a month and an equal amount of public citizens. There was some data on patron law library access through door access cards issued. These were used primarily during work hours, but could be used at any time. Law Library Transition report #15/16-5 May 2016 Page 10 of 19 GRAPH 8 County law library patron counts (by month) GRAPH 9 DPL law library research counts (by month) Only limited information could be obtained on the nature and extent of usage of the law library with the county. The new MOU with the Deschutes Public Library indicates there will be some performance measures to assess how well they are performing. Deschutes Public Library is starting to collect information and develop metrics to indicate how their resources are being utilized. The laptop allowing Lexis Advance® access has been checked out 12 times so far. DPL indicates more than seventeen hundred hours of internal training has occurred in relation to starting up the law library services. By every August 1st under the MOU, DPL will submit a report to the County outlining performance measures/ indicators, accomplishments, and goals for the law library. Law Library Transition report #15/16-5 May 2016 Page 11 of 19 In review of performance measures for law library programs, the following measures were iden tified:  transaction and search counts for electronic legal resources (classified by type of resource);  law library assistance requests by # of supported individuals (might want to classify by public, attorney, judge);  number of law library website hits;  law library patron satisfaction;  percentage of materials maintained in print collection meeting American Association of Law Librarian Standards; and  percentage of materials maintained in electronic collection meeting American Association of Law Librarian Standards. It appears law library performance measures are relatively new territory as is the movement of collections to online legal subscriptions. In the absence of proper measures, it will be difficult to assess how well these services are being utilized. 3.2 Fiscal observations Surplus disposal process did not follow County Code. Disposal of most of the law library assets was handled by Property & Facilities. During the course of disposing of the law library assets, a significant amount of shelving was sold to a private party for a negotiated amount greater than $500. It was the only item sold for more than $500. According to County Code, this should have followed one of the methods outlined by code. In addition, there was no inventory and tracking of other minimal value law library assets sold/disposed as required by County Code. The disposal of surplus property is governed by Deschutes County Code 2.37, which provides a number of methods to maximize the value on disposal of surplus property. Relevant sections within that code indicate:  For items of value ( > $500): o The Solicitation Agent shall maintain a record of the reason for the disposal method selected, and the manner of disposal, including the name of the person to whom the surplus property was transferred. Surplus property > $500 may be disposed by one of the following methods: o To Governments without price competition; o By publicly advertised auction to the highest bidder; Law Library Transition report #15/16-5 May 2016 Page 12 of 19 o By bids from publicly advertised invitation; o By liquidation sale using a third party liquidator; o By fixed price sale based upon appraised value, through a scheduled and advertised sale to the first buyer meeting the sales terms. o By trade-in in conjunction with an acquisition solicited competitively; o By Donation to a 501(c)(3) serving the county  For items of minimal value ( < $500): o Sale by cost effective means. Record of the value of the item and the manner disposed. The Property & Facilities Director indicates for the item greater than $500 that they thought they were originally dealing with a non-profit entity but that it turned out that the entity was a for profit entity. When they determined the buyer was not a non-profit, they did not stop the sale and follow the allowable disposal procedures. Property & Facilities sold many of the other minimal value items through a Countywide surplus property sale. They were not aware of a requirement to keep records of the items sold. Their receipt book was primary support but lacked any meaningful description of what was sold. Property & Facilities indicates that sales of unneeded surplus property minimize the potential costs for storage and disposal. There was also surplus property stored for reuse through Property & Facilities. In the absence of property inventory controls, assets may be disposed of without tracking the proceeds. It is unclear what value could have been obtained if the code requirements had been followed. It does appear the Director made efforts to find the best deal for the County. Most County departments obtain Board of County Commissioner approval for sales greater than $500 and in cases of donation. It is not clear there is a requirement for this, but it might have triggered a review with the situation of a sale to a private busi ness. It is recommended for staff utilizing the surplus property provisions of the code familiarize themselves with how to deal with items greater than $500 and maintain the documentation required. Property & Facilities deposited proceeds from law library surplus property sales into the Property & Facilities fund. Property & Facilities handled the disposal of surplus property for the law library and sales made were posted to the Property & Facilities fund (Fund 620). There was $3,780 received for law library shelving originally purchased in 2006 through a projects fund (Fund 142). In addition, the law library surplus sales of items less than $500 were commingled with other sales of surplus property and deposited to Fund 620. In general, identifiable income and expenses of departments should be accounted for directly in those Law Library Transition report #15/16-5 May 2016 Page 13 of 19 departments and not be run through the internal service funds. It is a general expectation for the value of department assets to be returned to the department. There was no consideration for where they were paid. Evaluating this would have helped assure asset sales monies were returned to the appropriate fund. In the case of the shelving, the Property & Facilities department outsourced the labor for the shelves and book disposal to an outside contractor. As would be expected, those costs arranged by Property & Facilities were charged directly to the law library fund. However, the revenue from their sales was not. It is recommended for significant sales of surplus property go back to the fund originating the purchase unless additional procedures are developed by the County to use such proceeds to cover specific costs. {In the case of the shelving monies, these should be accounted for in the law library fund that incurred the costs}. Property & Facilities cash control procedures over surplus sales could be improved. The receipt book used by Property & Facilities is in duplicate and does not include a master receipt copy of sales that occur. This trusts that receipts have ended up in the right place. Typically (as called out in County Policy F-11) there is a receipt copy provided to the customer, a receipt copy to finance with the monies and a receipt copy retained for reference (master receipt) and follow-up. In the absence of a master receipt, it is difficult to assure that all receipts have been deposited. The department has recently been having the surplus sale events and has not updated their policies and procedures to reflect the new activity and use of the cash receipts book. In the absence of sufficient controls, monies may not all be accounted for. It is recommended for Property and Facilities to use a cash receipt book (in triplicate) to account for their cash receipts and to maintain a master copy that monies can be reconciled to. The department’s cash handling procedures should be updated to reflect the cash sales of surplus property that is now occurring. Law Library Transition report #15/16-5 May 2016 Page 14 of 19 TABLE 1 Trend in internal service fund charges to the County law library (Fund 215) Internal services fund charges to the law library are down dramatically but could still be high. Internal service fund charges to the law library (Fund 215) have declined greatly for FY 2017 to reflect the change in space. However, there are still a similar level of charges from Finance, Administration and BOCC amounting to $8,844. Actual Budgeted Budgeted Fiscal Year: 2015 2016 2017 Property & Facilities $ 19,787 $ 18,832 Finance 3,514 4,192 $ 4,382 Administration 3,046 3,507 3,340 Information Technology 2,569 3,044 BOCC 1,111 1,213 1,122 Legal 19 632 Personnel 492 545 IT Reserve 420 288 $ 31,458 $ 32,253 $ 8,844 The only anticipated cost for Fund 215 is sending a check for $150,000 to the DPL. This is called a pass-through activity. The internal service funds for Finance, Administration and BOCC develop charges based upon modified budget expenditures. It could be argued the modified expenditures do not appropriately translate to the services now required for this activity. In prior work on internal service funds (audit report #03/04-3 dated 2/17/2004), it was identified that modified expenditures are sometimes adjusted to compensate for pass-through expenditures. In this case, no modification has been made. For budgetary purposes in Fund 215, there is $588,891 in expenditures showing which overstates the anticipated services from these internal service funds. Finance does not always create modifications to expenditures used for the indirect charge methodology unless they are brought up in the budget process. In the prior audit mentioned, it was suggested they identify and use a transactional allocation base to confirm or create their ISF allocations. At the time, the decision was made to not adjust the methodology. The library fund is currently being assessed more internal service funds than the services anticipated under the new arrangement. The County has eliminated charges to the Economic Development fund (Fund 105) which makes economic development loans. In addition, the County reduces charges at Health Services for certain pass-through monies. The impact to Fund 215 for the internal service fund charges is $8,844 in the proposed FY Law Library Transition report #15/16-5 May 2016 Page 15 of 19 2017 budget. It is recommended the County consider adjusting the internal service fund modified expenditures (used for calculating Finance, Administration and BOCC internal service fund charges) for the lack of activity now occurring in Fund 215- Law Library. General fund supported law library in FY 2002. After significant purchases of library materials in FY 2001 and 2002, the law library fund would have had insufficient resources. The County General Fund transferred to the law library fund $28 thousand to keep the fund positive. Subsequently, the law library fund has added to its fund balance in all of the subsequent years (except for FY 2016). With a beginning working capital in FY 2016 of over $463 thousand, the fund is in a position to repay the general fund. It is not clear from the record whether County Management anticipated the General Fund being repaid for thi s transfer. It is recommended for management to consider repaying the general fund for the monies transferred in FY 2002. Law Library Transition report #15/16-5 May 2016 Page 16 of 19 4. Management Responses – County Administration, Erik Kropp, Deputy County Administrator Recommendation: It is recommended the MOU be updated to address the extent and expectations of law library services provided in print collections and through online legal subscriptions. These expectations should be determined with the assistance of the Deschutes Public Library. Management comment: We agree with the auditor’s recommendation to update the MOU to provide more details about the expectations of law library services provided by Deschutes Public Library. * * * Recommendation: It is recommended for significant sales of surplus property go back to the fund originating the purchase unless additional procedures are developed by the County to use proceeds to cover specific costs. Management comment: We agree with the recommendation, although we believe each situation should be reviewed and discussed up front with the department asking for the sale of surplus property and the Property and Facilities Department. * * * Recommendation: It is recommended the County consider adjusting the internal service fund modified expenditures f or the lack of activity now occurring in Fund 215-Law Library. Management comment: The allocation of internal charges for the FY 2017 proposed budget is consistently applied to the law library fund along with a number of other smaller funds that have no s taff and have very few transactions. No changes to the allocation methods are expected for the FY 2017 proposed budget. We will review internal charges allocation methods as part of the FY 2018 budget process and as part of that review, determine if fund s like the Law Library fund warrant special allocation methods. * * * Recommendation: It is recommended for management to consider repaying the general fund for the monies transferred in FY 2002. Management comment: We agree with the recommendation to transfer $28,000 from the Law Library fund to the General Fund to pay back Law Library Transition report #15/16-5 May 2016 Page 17 of 19 Susan Ross, Property & Facilities Director the General Fund for monies transferred in FY 2002. Recommendation: Surplus disposal process did not follow County Code. It is recommended for staff utilizing the surplus property provisions of the code familiarize themselves with how to deal with items greater than $500 and maintain the documentation required. Response: Agreed. Property & Facilities staff who handle surplus property will be given a copy of the policy and it will be included in internal staff discussions. Recommendation: Property & Facilities deposited proceeds from law library surplus property sales into their own fund. It is recommended for significant sales of surplus property go back to the fund originating the purchase unless additional procedures are developed by the County to use such proceeds to cover specific costs. {In the case of the shelving monies, these should be accounted for in the l aw library fund that incurred the costs}. Response: We do not keep track nor try to trace back the origins of surplus property. For example, a desk or file cabinet purchased by one department or fund may become surplus and it then becomes the property of Property & Facilities to reallocate as needed. That same desk or cabinet may pass through numerous offices in its lifespan. If it gets to the point that it has served its useful life and we either throw it away or sell it, we have no idea what the ori ginal purchaser is, and we consider it our department’s property. We keep the proceeds of any sale because we are the ones handling all aspects of the sale, both physical and administrative. We consider the shelving the same as any other types of surplus property. Once it is no longer needed by a department, it becomes our (P&F) property. It just so happens we know the origins of the shelving purchase, but it is treated just as any other surplus property. If it had instead been broken down and distribu ted to various offices, and then in several years those offices requested us to remove them because they were no longer needed, we most likely would not have known the origin. The only reason we knew in this instance is because I am still here and knew the history. Recommendation: Property & Facilities cash control procedures over surplus sales could be improved. Law Library Transition report #15/16-5 May 2016 Page 18 of 19 It is recommended for Property and Facilities to use a cash receipt book (in triplicate) to account for their cash receipts and to maintain a master copy that monies can be reconciled to. The department’s cash handling procedures should be updated to reflect the cash sales of surplus property that is now occurring. Response: In the past, nearly all of our cash handling dealt with lease payments. We have had two surplus property sales in the past year. Our goal is to try to recycle these items even if we are getting just a couple dollars. We would rather sell it or even give it away than to throw it in the landfill. We currently keep cash receipts in duplicate, but will develop a triplicate system. No written comments were provided for inclusion with the report. Deschutes Public Library 5. Other responses to transition COLUMBIA COUNTY LAW LIBRARY 270 S. First St. St. Helens, Oregon 97051 March 24, 2016 Erik Kropp Deputy County Administrator Deschutes County 1300 NW Wall St. Bend, Oregon 97703 Dear Mr. Kropp, This is a very tardy but also very sincere expression of thanks for the extremely generous donation of law books from the Deschutes County Law Library to the Columbia County Law Library. We are thrilled to add many volumes of the Pacific Reporter 3d Series, West's Pacific Digest, West's ULA series and numerous NOLO Guides to our collection. I believe that there are some volumes of the Pacific Digest and some LUBA volumes that we will arrange to pick up in the near future. I'd very much like to commend and thank DCLL Librarian Doug Macbeth for his superb effort in making all of the Law Library Transition report #15/16-5 May 2016 Page 19 of 19 necessary arrangements to accomplish this transfer. His generosity of time and effort, as well as his flexibility, made the DCLL donation to our collection possible. We are in the final stages of renovating the CCLL facility and making it into a true community resource. If you are ever in the neighborhood, please feel free to stop by and pay us a visit. Very Truly Yours, Pamela Schultz Davis Columbia County Law Librarian {End of Report} Please take this quick survey on this report by clicking on the attached link: https://www.surveymonkey.com/r/Law_library_transition