HomeMy WebLinkAboutAudit Committee Minutes 09-08-2016-t' Es co`2
0 {
y For Recording Stamp Only
Minutes of the Meeting of the
Deschutes County Audit Committee
Thursday, September 8, 2016
Members consist of S Public (P), and 3 County Management (CM)
Quorum =five
Committee Members resent:
x
Facilitator: David Givans, County Internal Auditor
exc
Shawn Armstrong, P) Quality/Regulatory Manager for Grace Bio -Labs CHAIR
x
Wayne Yeatman, (P) Professor, COCC
x
John Barnett,(P) CPA, Barnett & Company CPA
x
Michael Shadrach, (P) Retired corporate executive
x
Lindsey Lombard, (P) Finance Director, Bend Parks & Recreation District
x
AnthonyDeBone, (CM) County Commissioner
x
Nancy Blankenship, (CM) County Clerk
x
Dan Des oto ulos, (CM) Deschutes County Fair & Expo Center Director
Others Present:
x
Tom Anderson, County Administrator
x
Erik Kropp, Deputy County Administrator
x
Wayne Lowry, Finance Director
x
IT: Joe Sadon , Kevin Furlong
x
Sharon Ross, Administrative Assistant — BOCC
CALL TO ORDER: Acting Chair Lindsay Lombard called the meeting to order at 12:00 pm
AGENDA:
• Lunch/Introductions/Announcements: Introductions were made.
The Position of Committee Chair: Shawn Armstrong has resigned which opens the chair
position requiring an election. Suggestion was unanimous to appoint Lindsey Lombard as chair.
New Appointments: Interviews were held for the two vacant positions. The Board of
Commissioners has approved the recommended appointments of Tom Linhares and Daryl
Parrish.
Minutes: Commissioner DeBone, supported by Nancy Blankenship moved approval of the
Audit Committee minutes of June 9, 2016. Motion carried
AUDIT COMMITTEE MEETING Thursday, September 8, 2016 Page 2 of 3
IT Security Update: Joe Sadony, IT Director and Kevin Furlong, Technology Division Manager
reported on information technology security. Redhawk Security is the contracted consultant and
periodically tests servers. The testing is not conducted every year but is done for items that need
immediate attention and if anything presents patterns. Kevin Furlong has implemented the new
firewall and intrusion detection systems. The goal is to employ the best security practices to
recover without a lot of downtime. Discussion held on ransomware. The Audit Committee
suggests the security tests be completed every other year.
Internal Audit work plan: Mr. Givans reviewed his internal audit plan for fiscal year 2017. He
noted he has spent most of his time in meetings and worries there isn't enough time for audits.
Mr. Givans proposed audits on high risk cash handling and suggests outsourcing work. He
doesn't recommend hiring another staff person because he would have to spend so much time to
bring them up to speed. His time is being spent on monitoring the Tyler Technology software
implementation. Comment made that Mr. Givans attendance wouldn't be required during the
core user training thus being able to focus on cash handling. Discussion held on the possibility of
a second auditor in the future. Request made to pull together information for the November
meeting on how many additional hours and targeted level of experience would be needed.
Adding an additional internal auditor could benefit the County to remain consistent with the
required level of audits. Concern was voiced that the commitment to the audit program is
currently compromised and the worry of available hours for the upcoming project year. Motion
made and supported to accept the 2017 project plan as submitted.
• Follow-up Report: Sheriff's Office Transition (#15/16-12). Mr. Givans reviewed the Sheriff's
Office's new procedures and ensuring fraud wouldn't occur.
• County Fair Observations: Dan Despotopulos, Fair & Expo Director reported this year's
County fair was very successful. The attendance showed 268,000 people went through the fair
this year and $510,000 at the gates this year. He noted the change made with food booths
decreased the temporary labor and was a positive change. A new carnival vendor was contracted
this year.
• Upcoming Non -Audit Work and Follow-ups:
HR/Finance Software Implementation: Wayne Lowry noted the implementation project is broken
into two phases: financials and the human resource/payroll phase. The financials portion began
in May 2016 and is anticipated to go live July 2017. The Tyler Technologies consultants will be
on site for three additional weeks after go live. The HR payroll portion should start January 2017
through December 2017 with a go live January 2018. Paper files should be a thing of the past for
routine transactions. A vendor for time and attendance has not been selected. There were five
responses to the request for proposals and the selection should be made by mid October.
The County is in the midst of a class and compensation study being conducted by Segal Waters.
This is a six or seven month project that started with employees filling out job questionnaires.
Interviews will be held with employees. A market study will be done and results should be
available in December.
0 Upcoming Meeting: November 10, 2016
AUDIT COMMITTEE MEETING Thursday, September 8, 2016 Page 3 of 3
ADJOURNMENT: Being no further discussion, Chair Lombard adjourned the meeting at 2:01p.m.
Respectfully submitted,
-�-h�aron Ross
Administrative Assistant - BOCC