HomeMy WebLinkAboutAudit Committee Minutes 03-10-2016c,
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.ETES ,�
For Recording Stamp Only
Minutes of the Meeting of the
Deschutes County Audit Committee
Thursday, March 10, 2016
Members consist of 5 Public (P), and 3 County Management (CM)
Quorum =five
Committee Members present,
� Facilitator. David Givans, County Internal Auditor
�
Shawn.A-rmstrong, (P) Quality/Regulatory Manager for Grace Bio -Labs (CHAIR)
� Jennifer Welander, (P) Director of Finance — St Charles Health System
Prior commitment — attended meeting at 1: 48 pm
Chris Earnest, (P) Director of Finance, NV'HG — Oregon resorts
�
M ichael Shadrach, (P) Retired corporate executive
� Lindsey Lombard, (P) Finance Director, Bend Parks & Recreation District
Anthony DeBone, (CM) County Commissioner
v/ Nancy Blankenship, (CM) County Clerk
V/ Dan Despotopulos, (CM) Deschutes County Fair & Expo Center Director
Wayne Yeatman, (P) Assistant Professor COCC
John Barrett, (P) CPA, Barnett CPA
Others Present,
v/ Tom Anderson, County Administrator
Prior commitment — attended meeting at 1.45 pm
� Erik Kropp, Deputy County Administrator
Alan Unger, County Commissioner
Tammy Baney, County Commissioner
� Wayne Lowry, Finance Director
� Jeanine Farial, Accounting Manager
v/ Sharon Ross, Administrative Assistant — BOCC
v/ Ei*de Bailly - Lealan Miller, Partner and Kristin Diggs, Senior Manager
v/ WEBCO -Chad Chadwick, Executive Director and Collette Smith, Administrative assistant
CALL TO ORDER.* Chair Armstrong called the meeting to order at 12:09 p.m.
AGENDA:
•LUNCH/INTRODUCTIONS/ANNOUNCEMENTS:
Introductions were made. There were no additions made to the agenda.
AUDIT COMMITTEE MEETING Thursday, March 10, 2016 Page 2 of 3
• APPROVAL OF MINUTES
The minutes from the meeting on November 12, 2015 were unanimously approved.
•EXTERNAL AUDIT PLAN FOR FY 15/169
Lealan Miller, Partner, gave an update announcing that two people have left the audit team.
Kristen Diggs is the new manager for the engagement. The audit work is scheduled for May and
September with the report to be issued at the end of October. New standards to be concerned
with for this year are GASB 68 addressing Oregon PERS and GASB 72 addressing investments,,
A webcast i's scheduled for the 25`x' of March on GASB 72 implications. Discussion held on
retiree insurance with new obligations,,
Mr. Lowry's concern is where will this OPEB data come from and how will we meet all of the
requirements. Discussion held on PERS. Mr. Lowry also expressed concern with recent PERS
data and balancing the numbers required for determining liability. The firm will be starting to
keep a watch on cyber security issues. Mr. Kropp noted the Deschutes County IT department
consults with a company to watch firewalls and asked them to review the contract. The firm has
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been working with Ms. Faria on the reporting process and ensuring the right team i's in place. The
major changes made to make a smoother report include discussions to begin sooner and ensurnig
two seniors are on the project. This year the scope of work should be close to 850 - 950 hours.
There was some discussion regarding whether Sunriver and Black Butte Ranch service districts
would continue under this audit services contract. Eide Bailly indicated they were okay if they
wanted to seek their services elsewhere, since they are no longer in the County's CAFR. We are
waiting to see if they want to. The audit services contract will need to be amended if they do
choose other external auditors'.
•INTERNAL AUDIT REPORT,
WEBCO: Chad Chadwick and Colette Smith were representatives from WEBCO. This was a
project that came from an offering from Deschutes County to WEBCO. WEBCO is comprised of
members of Crook, Jefferson, and Deschutes County.. WEBCO is an inter -governmental agency
and serves as the vehicle for regional funding. WEBCO receives approximately a million dollars
of federal funding over an 18 month period and additionally $500,000 of grant dollars. Currently
they have six employees and are hosted by Crook County. They have begun the process of
making recommended changes. An earlier external audit done by Harrigan Price Fronk had noted
material weaknesses. Items identified by Mr. Givans were on reconciliation, resources and fees,
policies and procedures, and stabilizing the organization. Ms. Smith found the audit extremely
helpful and these recommendations have been presented to the WEBCO Board. WEBCO started
in 2011 in Central Oregon Health Board. Reviewed the process of claims and how the funding is
distributed. There was discussion of the potential of this new funding to be included in next
year's audit work plan or external audit inclusion.
A five minute recess was taken at this time of 1:30 p.m,,
Notary Fees: Mr. Givans. completed an additional internal audit at the request of Administration.
Beginning July 1, 2015 a service fee was implemented for notary services. A couple of
recommendations were made and management concurred with those recommendations.
• FOLLOW-UPS
o DistrictAttomey's Office: Addressed all of the recommendations
AUDIT COMMITTEE MEETING Thursday, March 10, 2016 Page 3 of 3
o County Fair Concessions: All recommendation addressed. This year's fair is scheduled
for August 3'd _ 7",. The entertainment begins Wednesday with Tracy Lawrence,
Thursday with Queensryche, Friday with Trace Adkins, and Saturday with Wallflowers
o Juvenile Community Justice: All items were addressed
• FINANCE UMAN RESOURCES SOFTWARE UPDATE:
Mr. Lowry reported the Request For Proposal was issued in Ap.ri*1 2015 and six proposals were
received. Over 50 employees participated in three sets of the vendor demonstrations. The
selection committee made conference calls for references and Tyler Technologies was the finalist.
Tyler Technology focuses on local government packages. The summary of purchase plan was
presented to the Board of County Commissioners. The intent to award was approved. The next
step is a meeting with the Tyler group. A project team will be assembled. The timeline is a two
year endeavor and will start with the Finance department and hope to begin in April. The
Payroll/HR portion will be staggered and should begin in the Fall of 2017. The project is $1.4
million and does not include a time and attendance portion. A request for proposal has gone out
for the time and attendance piece. This additional piece may cost approximately $100,000.
• AUDIT COMMITTEE HOMEWORK: This item was moved to the next meeting.
•UPDATES/OTHER ITEMSS
o Two new members have been appointed: John Barnett and Wayne Yeatman
o Unclaimed Property in California: The item being followed up on was a cashier's check
for Deschutes County from an account in California. It is thought that this was possibly
for the purchase of property at auction but was never used. Monies do not appear to be
Deschutes County's and no further follow-up expected.
•OTHER BUSINESS/CLOSINGS
Today serves as Jennifer Welander's last day as a member of the Audit Committee having served
for 6 years. Chair Armstrong presented her with a letter of thanks and a plaque. Jennifer thanked
all committee members for their service to the committee.
Adjournment: Being nofurther issues brought before the Committee, Chair Armstrong adjourned the
meeting at 2.-28 p.m.
Respectfi4ly submitted,
aron Ro..QQ
Administrative Assistant - BOCC