Loading...
HomeMy WebLinkAboutAudit Committee Minutes 07-13-2004 Deschutes County - Audit Committee MINUTES - 7/13/2004 Re: Deschutes County Audit Committee Meeting Minutes – Tuesday, July 13, 2004 Committee Members Present: Commissioner Dennis Luke; David Givans, County Auditor; Les Stiles, Sheriff's Office; Barry Jordan, Jade Mayer, Jim Keller, and James Kerfoot, Public Sector. Others present were Marty Wynne, Finance; and Mike Maier, County Administrator. Guests present for a portion of the meeting from Harrigan Price Fronk & Co. were Candace Fronk, Wes Price, Jennifer Welander, and Richard Bailey. Barry Jordan called the meeting to order at 12:15 p.m. External Auditor Planning Candace Fronk, with Harrigan Price Fronk & Co. (County’s external auditors), gave a brief overview of their audit approach, timeline, what County is looking for, etc. Audit Approach 1. Reliance on beginning balances of prior auditor - They have gone to Eugene and reviewed Moss Adams work papers to see that the beginning balances were tested. Most of what was available to them for review was the paperwork that was provided to Moss Adams by the County Finance Department. 2. Audit Procedures - Some of the Departments have already been visited by them to get an understanding of how things are handled and how that interacts with what Finance does. The Audit Committee will help identify which Departments need to be done and help determine the items that need to be looked at. Some of the items they will be concentrating on will be: Departments that are taking in large amounts of cash, source documents, fixed assets, revenue and expenditures. They will have a balance sheet approach to make sure funds are accounted for and that money is going into the correct fund. They will look at Grant Contracts and miscellaneous revenues to see if money came in and was distributed properly. 3. Controls over accounts payable & payroll - They will be relying on County Internal Controls for accounts payable and payroll. In June they went through invoices and payroll records to make sure that everything was supported. The expenditure side is running as should be. The revenue side is a little more complicated because of so many diverse sources. They will confirm a lot of grants and State money directly with the State. The Federal grants will be based on the grant contract. Minutes of Audit Committee Meeting Tuesday, July 13, 2004 Page 1 of 4 4. Compliance testing and Single Audit - The Single Audit is in reference to Federal money. Anyone who spends more than $500,000.00 in Federal money has a Single Audit. They will be testing all the programs that are over $300,000.00. Last year that was primarily WIC, Community Development Block Grant, and Federal funds; school and roads. They test the Road Department in quite a bit of depth anyway to make sure their expenditures are really for roads. This is partially because they have to send comment to the Secretary of State that County has used gas tax money appropriately. The other Road Department area will be their cost accounting system. Technically, one of the comments that is made to the Secretary of State is that they have a cost accounting system. If the County Road Department is going to do work themselves, as opposed to contracting it out, they need to show that they have captured those costs and are doing it at the least cost. They will check on the bids and quotes and make sure funds are being used where they are supposed to. Identify areas the Audit Committee or management feel have audit risk or need further review - 1. Land Inventory – Marty Wynne asked that they take a look at inventory of land and value of land. 2. Controls over technology, potential use of previous County Consultant reports- Mr. Wynne asked about controls over technology. Ms. Fronk said that they don’t go too deep into the technology side but they can watch for potential problems. Ms. Fronk felt that the Departments that they should make an extra effort to review this year are: Solid Waste, CDD, Health Department, and Mental Health Department (mainly because of the cash/revenue issues.) She asked the Committee if they had any input on Departments that they would be looking at. Commissioner Luke said that if there are other ones to do, Solid Waste may not be the one to do at this time due to Land Use Hearings they will be busy with this year. Solid Waste has had an Internal Audit done this year. Sheriff Stiles asked that the Sheriff’s Office get another review this year. Per Sheriff Stiles, David’s audits have been very helpful in terms of fixes. Accounting for additional PERS payment from pension obligation bonds - One thing they found that Moss Adams did not appear to go into depth on was PERS. They will look at full accrual balance sheet and might need to adjust the beginning numbers. External Audit Timeline for completion – Thru Sept 17th – Service/Library Districts audit fieldwork Sept 20th - County provides adjusted trial balance, supporting work papers, preliminary draft financial schedules Sept 20th – Oct 8th HPF audit fieldwork at County Oct 11th – Oct 29th HPF wrap-up & review at our office Oct 29th County provides draft CAFR Excel & Word files to HPF Oct 29th – Nov 24th HPF reviews CAFR and HPF admin staff completes formatting, headings, pagination, table of contents, etc. Nov 24th HPF provides final draft of CAFR to County for review (and drafts of service/library district reports, if not provided earlier) Minutes of Audit Committee Meeting Tuesday, July 13, 2004 Page 2 of 4 Dec 1st County provides corrections/changes of final draft to HPF Dec 3rd HPF provides 15 bound completed copies of the CAFR to the County Dec 14th HPF meets with Commissioners and Audit Committee HPF provides remaining 35 bound copies of CAFR, 10 copies each of final bound service/library district reports, Data Collection form, DEQ agreed-upon procedures report and Secretary of State forms Dec 17th Reports mailed to GFOA, Secretary of State, etc. Audit Committee Meeting Dates - David Givans will send out an email with some meeting dates for next year. The days will change from Tuesdays to Thursdays. Request to Distribute Minutes Mr. Givans was asked by Departments if the Minutes could be posted. It was decided to go ahead and post the Minutes as well as other Audit Committee information to the County Intranet for Departments review. Work Plan Mr. Givans passed out a draft of the Audit Work Plan. (See attached as Exhibit A.) Risk Assessment (spread sheet) Mr. Givans explained the Risk Assessment worksheet. Finance would like to see review of cash controls on receipts. Prioritization of items was discussed and recommended changes made. JADE MAYER: Moved approval of the Audit Work Plan, subject to revisions. JIM KELLER: Second VOTE: Unanimous approval. Internal Audit Program Charter - Mr. Givans would like a Charter/Ordinance provide authority for the internal audit program. (See attached as Exhibit B.) Status of Audit Projects and Internal Audit Program Mr. Givans gave the Committee brief status update of the following projects: Health Benefits Trust – (See attached as Exhibit C.) Sheriff Office Report Solid Waste Report Minutes of Audit Committee Meeting Tuesday, July 13, 2004 Page 3 of 4 Being no further issues brought before the committee, Barry Jordan adjourned the meeting at 2:30 p.m. Respectfully submitted, _________________ Connie Thomas Senior Secretary Minutes of Audit Committee Meeting Tuesday, July 13, 2004 Page 4 of 4