HomeMy WebLinkAboutAudit Committee Minutes 06-10-2003 Deschutes County – Audit Committee
MINUTES – 6/10/2003
Re: Deschutes County Audit Committee Meeting Minutes – June 10, 2003 (Noon to 2:30 PM)
Committee Members Present: Dennis Luke, Laurie Miller, Mike Maier, Marty Wynne, George Read, and Les
Stiles. Others present were: Jeanine Faria and David Givans. Representatives present from Moss Adams
were: Mary Case, Partner and Chris Garner, Senior Manager. Not present was Barry Jordan.
Lauri Miller – (chair during Barry Jordan’s absence) called the meeting to order at 12:03 p.m.
Open Discussion and Questions
It was asked when the financial audit would start. Per Mary Case, the initial part of the audit will start
next Monday and should take about a week. They will then be back in October to do the year end
work.
Moss Adams Presentation
Mary Case brought an agenda which outlined the Moss Adams audit process. Handouts were given to
the committee. Mary went over the scope of the audit. If anyone has questions or needs changes let
her know.
1. Marty had some concerns regarding: electronic funds, transfers, movement between checking
accounts, internet transfers in regard to checking accounts and movement of money. Can we
do more to screen and filter out unauthorized transfers? Mary has met with their bank group to
address their approach to transaction filters. Her team will get back to Marty on this.
2. Mike said I.T. is doing a security review. David said I.T. has hired a consultant who will be
looking for weaknesses in the County’s systems. They recently started work. Les has some
security issues. He had a detective who was able to hack into a business with a lap top. It
was advised that any security issues he might have should be brought to the attention of Dave
Peterson with I.T. Mary advised that the County Auditor should be made aware of any such
acts. Mary said Moss Adams does address technology in a very focused way. Per Mary,
Moss Adams would like to be informed of the outcome of the security review.
3. Mary said that Moss Adams focuses heavily on budgetary information in their work.
4. Mike discussed the goal: find any weak spots and get them fixed. Mary stated that Deschutes
County does not have many adjustments. The auditor conducts the audit; company
management puts controls in place and checks how they are working.
5. Mike discussed the issue of Sunriver needing an audit. The daily operations of the group do
not go through County channels.
6. Lauri asked if Moss Adams had selected an audit team and Chris Garner said they had. It is
the same team as last year with the exception of one person. She asked if the internal auditor
will be used for the audit this year. The internal auditor can help go over the risk issues.
Minutes of Audit Committee Meeting Thursday, June 10, 2003
Page 1 of 3
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Audit Work Plan Discussion
Internal Service Funds:
1. Les asked where I.T. stands with the respect to cost, benefits, alternatives, and customer
satisfaction. He felt his problem is with I.T. and not with the other internal services. He did not
feel the service he was getting from I.T. was meeting his needs, no matter how much he is
paying. He would like some answers.
2. Dennis discussed the possibility of an outside firm doing a review of internal service funds.
3. Marty said perhaps Les’s expectations are different than what is planned. Les wanted to
know if the internal auditor looks at cost and benefit. Marty said what David is looking at is the
methodology of cost allocation, not the departments’ performance. Les said it was his
understanding that the internal auditor can also do performance evaluations. Per Marty the
internal auditor role could be expanded. Lauri said the performance part has not been in the
plan in the past but it could be put into the plan. No changes were made to the current scope.
I.T. Study:
1. George stated that two years ago an I.T. study was done. His primary concern with I.T. is that
there are items in the study that were not implemented as it was stated they were going to be
implemented. Dave Peterson with I.T. needs to talk to departments before making decisions.
He felt internal costs to his department were reasonable.
2. Committee voted and approved to have David do a follow-up on the I.T. study.
3. Mike said that the last customer survey came back with basically excellent reviews. If there
are problems with I.T. then the Sheriff needs to sit down with them. The problem is not an
internal auditor problem.
4. Dennis will sit down with Les, Dave Peterson with I.T., and any other department head that
wants to meet to discuss what the problems are.
5. David is looking at self insurance issues next.
6. Mike motioned that we continue to work on the previous audit work plan. The internal service
fund needs to be done 1st. George recommended that David prepare a timeline indicating
when the audits would be completed. Mike said a couple of weeks would be a good timeline
for getting back to the committee. The committee voted and approved that work continue on
the previous audit work plan with a timeline. Marty said the committee needs to look at a list
of performance audits done in other counties, especially ones they feel valuable. These
performance type audits should be considered in the work plan. David will bring back a list to
the committee on performance audits from other counties.
Consulting Work Requested:
1. George asked if we could contract out services for less. Mike said David is providing some
assistance in looking at outsourcing night time janitors. The Union has been given notice that
we are looking at outside contracting.
Status of Audit Projects
David gave an overview of internal audit projects and current status.
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Sheriff – Audit Reports. David handed out Sheriff’s report.
1. Les stated that David asked good questions. David found things that he thought were
already done. David did an excellent report. Les’s staff felt the information is useful. Les
said Jim Ross will make a huge difference in his department. David can come back anytime
and work with Jim.
2. Lauri asked if David was planning to do a follow-up on items recommended. Discussion
followed and Marty said David needs to implement a follow-up on recommendations within 6
to 9 months. The committee voted and approved for follow-up to occur after 9 months.
Solid Waste - revenues
1. David said the audit is going well.
Fraud Policy – work continues.
1. David recently met with the Sheriff to work on his concerns. The policy is still in draft form and
they are working through it.
2. Les said his only concern was inconsistencies on contamination of investigation.
Other Business
David asked the group if he should do a press release with the results of the Sheriff’s Office audit
reports. The group concurred that it would not be necessary to do a press release but the information
should be made available to the press if they requested it.
David will be attending a conference in Toronto next week and should get some good suggestions.
Last meetings minutes were approved as presented.
Being no further issues brought before the committee, Lauri Miller adjourned the meeting at 2:48 p.m.
Respectfully submitted,
__________________
Connie Thomas
Senior Secretary