HomeMy WebLinkAbout1718-2 Follow-up CDD (FINAL 11-3-17)Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
FOLLOW-UP REPORT
Community Development Department
-Review of Selected Business Software Processes
(Internal audit report #15/16-1 issued January 2017)
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
Bend, OR 97708-6005
(541) 330-4674
David.Givans@Deschutes.org
Audit committee:
Lindsey Lombard, Chair - Public member
John Barnett - Public member
Tom Linhares - Public member
Daryl Parrish - Public member
Wayne Yeatman - Public member
Anthony DeBone, County Commissioner
Nancy Blankenship, County Clerk
Dan Despotopulos, Fair & Expo Director
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
TABLE OF
CONTENTS:
1. INTRODUCTION ................................................................................................... 1
1.1. Background ......................................................................................................... 1
1.2. Objectives & Scope ............................................................................................. 1
1.3. Methodology ....................................................................................................... 1
2. FOLLOW-UP RESULTS ....................................................................................... 2
3. APPENDIX
3.1. Appendix I – Updated Workplan for Report #15/16-1
(Status as of October 2017) ............................................................................ 3-7
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
Page 1
1. Introduction
1.1 BACKGROUND
Audit Authority:
The Deschutes County Audit Committee has suggested that follow-ups occur from nine months to one
year after the original report issuance. The Audit Committee’s would like to make sure departments
satisfactorily address recommendations.
1.2 OBJECTIVES and SCOPE
Objectives:
The objective was to follow-up on the outstanding audit recommendations.
Scope:
The follow-up included twenty (20) recommendations from the internal audit report on the Community
Development Department-Review of Selected Business Software Processes (#15/16-1 issued January
2017).
The follow-up reflects the status as of October 2017. The original internal audit report should be referenced
for the full text of recommendations and discussion.
1.3 METHODOLOGY
The follow-up report was developed from information provided by Sherri Pinner, Management Analyst-
Community Development Department. In cases where recommendations have not been implemented,
comments were sought for the reasons why and the timing for addressing these. The follow-up is, by
nature, subjective. In determining the status of recommendations that were followed up, we relied on
assertions provided by those involved and did not attempt to independently verify those assertions.
The updates received by County Administration are included in Appendix I.
Since no substantive audit work was performed, Government Auditing Standards issued by the Comptroller
General of the United States were not followed.
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
Page 2
2. Follow-up Results
Figure I -
How were
recommendations
implemented?
The follow-up included twenty (20) recommendations agreed to by management. Management in substance
agreed with all recommendations. Figure I provides an overview of the implementation status of the
recommendations. The details of the updated workplan are provided in Appendix I.
With this follow-up, seventy percent (70%) of the recommendations have been completed.
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
Page 3
3. Appendix Appendix I – Updated Workplan for Report #15/16-1 (Status as of October 2017)
Audit # 15/16-1 Workplan Agree Disagree Implementation Status
Comments # Recommendations Completed Underway Planned Estimated or
Actual Date
of
Completion
1 It is recommended that CDD develop an
accounting system and written procedures to
provide actual segment/division accounting
after application of indirects and overhead.
.
X X Mar-18 CDD presented a draft policy to BOCC in May 2017.
There was not strong support. CDD was asked to return.
CDD will schedule a work session and aim for approval
to inform the FY 18-19 budget.
2 It is further recommended for the Department
to consider within their upcoming reserve
policy (see prior recommendation section) a
process to identify the extent of carryover
funds from the building, electrical segments
that should be reserved or held in
contingency for the next year.
X X
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
Page 4
Audit # 15/16-5 Workplan Agree Disagree Implementation Status
Updated Comments # Recommendations Completed Underway Planned Estimated or
Actual Date
of
Completion
3 It is recommended the department develop
written accounting procedures to identify to
what extent there are reserve/contingency
funds for the building and electrical segments
as required by statute.
X X
Mar-18
CDD presented a draft policy to BOCC in May 2017. There
was not strong support. CDD was asked to return. CDD will
schedule a work session and aim for approval to inform the
FY 18-19 budget.
4 It is recommended the reserve/contingency
funds might be distinguished between
amounts needed to fulfill outstanding permits
and those amounts that might cushion
divisional operations in future economic
downturns.
X X
5 It is recommended the reserve policy include
language indicating the triggers for evaluating
how much reserves are needed, when to
access and coordination with fee setting.
X X
6 It is recommended CDD develop a written
cost allocation plan for their system for
allocating overhead costs. They should
consider having this allocation plan follow the
“super circular” guidance.
X
X
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
Page 5
Audit # 15/16-5 Workplan Agree Disagree Implementation Status
Updated Comments # Recommendations Completed Underway Planned Estimated or
Actual Date
of
Completion
7 It is recommended for the department to
establish written accounting policies and
procedures that include those specific to
operation of the permit software systems
(which would include application of the
permit fee schedule).
X X
8 It is recommended that CDD develop
procedures to monitor and reconcile activity
in their clearing accounts.
X X
9 It is recommended for the department to
develop come controls over permit dollars
moved from one permit to another.
X X
10 It is recommended the department establish
a secondary review for updating fees in the
Accela permit system.
X X
11 It is recommended for CDD and Road to
double check the SDC fee setup to the fee
schedule and SDC rate sheets.
X X Ongoing
Including in fee schedule
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
Page 6
Audit # 15/16-5 Workplan Agree Disagree Implementation Status
Updated Comments # Recommendations Completed Underway Planned Estimated or
Actual Date
of
Completion
12 It is recommended for the department to
keep sufficient documentation to allow a
supervisor or other knowledgeable person
to follow the calculation of permit fees.
X X
13 It is recommended the County work with the
permit software developer or State agent to
address issues brought about by entering
SDCs payable prior to issuance of certificate
of occupancy and bring changes needed to
manage these SDCs until collected.
X X Deeming
completed
There is no identifiable solution. The State of Oregon is
the developer of this system. To date, there is no interest
in redesigning the system for one out of 36 Counties.
14 It is recommended the County place in the
County fee schedule the current SDC’s
(County and non-County) being collected.
X X
15 It is recommended CDD consider passing
through the associated SDC credit card
costs through to the other organization.
X X
16 It is recommended CDD review the
accounting line items mapped to permits
and consider whether it should be
periodically reviewed by a separate person
once established.
X X
Follow-up report of Community Development Department –Review of Selected Business Software Processes #17/18-2 November 2017
Page 7
Audit # 15/16-5 Workplan Agree Disagree Implementation Status
Updated Comments # Recommendations Completed Underway Planned Estimated or
Actual Date
of
Completion
17 It is recommended for CDD to take a more
active role in defining the fee codes set in
the County fee schedule.
X X
18 It is recommended for CDD to consider
adding data for their performance measures
in the budget presentation to demonstrate
the quality, cost and effectiveness of the
services they provide to the public.
X X
19 It is recommended for the Department to
establish and maintain successful log
management activities including critical
areas to be logged, frequency of log review,
incident identification and resolution
procedures.
X X
20 It is recommended for the Department in
coordination with IT create and deploy a
password policy for use with Accela that is
more in alignment with County policy.
X X CDD follows County IT password policy.
{END OF REPORT}