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Home My WebLink About1718-4 Follow-up DCFE-Food and Beverage (Final 1-23-18)Follow-up report of Deschutes County Fair & Expo-Food and Beverage #17/18-4 January 2018 FOLLOW-UP REPORT Deschutes County Fair & Expo – Food and Beverage (Internal audit report #16/17-3 issued March 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 Deschutes County Fair & Expo-Food and Beverage #17/18-4 January 2018 TABLE OF CONTENTS: 1. INTRODUCTION ..................................................................................................... 1 1.1. Background ........................................................................................................... 1 1.2. Objectives & Scope ............................................................................................... 1 1.3. Methodology ...................................................................................................... 1-2 2. FOLLOW-UP RESULTS ............................................................................................ 2 3. APPENDIX 3.1. Appendix I – Updated Workplan for Report #16/17-3 (Status as of December 2017) ......................................................................... 3-5 Follow-up report of Deschutes County Fair & Expo-Food and Beverage #17/18-4 January 2018 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 eleven (11) recommendations from the internal audit report on the Deschutes County Fair & Expo-Food and Beverage (#16/17-3 issued March 2017). The follow-up reflects the status as of December 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 Dan Despotopulos, Director- Fair & Expo Center. 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 are included in Appendix I. Follow-up report of Deschutes County Fair & Expo-Food and Beverage #17/18-4 January 2018 Page 2 Since no substantive audit work was performed, Government Auditing Standards issued by the Comptroller General of the United States were not followed. 2. Follow-up Results Figure I - How were recommendations implemented? The follow-up included eleven (11) 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, one hundred (100%) of the recommendations have been completed. The Fair and Expo department should be commended for addressing all of these recommendations by the first follow-up. Completed 100% Follow-up report of Deschutes County Fair & Expo-Food and Beverage #17/18-4 January 2018 Page 3 3. Appendix Appendix I – Updated Workplan for Report #16/17-3 (Status as of December 2017) Audit # 16/17-3 Workplan Rec # Recommendations Original Management Comments Current Status Updated Comments 1 It is recommended Fair & Expo make use of the County’s enrollment in ORCCP to leverage existing state procurement contracts for services and goods. We agree and have already enrolled in the program and will be able to report the amount of savings by the end of March. Complete We are also looking into biodegradable cups, which will save us $28/case. 2 It is recommended DCFE establish sufficient segregation of food and beverage duties related to purchasing, receiving, and inventory. Complete We receive the order when it is placed and compare it to the invoice when it is received; there is always two that check it into inventory. 3 It is recommended for someone separate from food and beverage perform an analyses comparing food and beverage menu costing of food costs with actual accounting for food costs. The actual food cost percentages for all food and beverage are calculated on the monthly statement. This can be compared to the actual to the actual food costs sheets prepared by the F/B manager. The F/B manager will forward these forms to management to compare it to current pricing from our broad line supplier. Complete This is completed once a year in December, we will be working on this and have it complete by year-end. 4 It is recommended that someone separate from food and beverage receives purchases and compares it to the order log to be developed. The F/B manager will develop an order log, which will be provided to management. Management will check in all food products and compare the invoice with the order log. Complete Similar to #2 above after order is received and checked in by two, Tracy will compare it to invoices. Follow-up report of Deschutes County Fair & Expo-Food and Beverage #17/18-4 January 2018 Page 4 Audit # 16/17-3 Workplan Rec # Recommendations Original Management Comments Current Status Updated Comments 5 It is recommended DCFE determine whether some of the identified controls could improve operations in a cost effective manner. Purchasing/ receiving: • We have a 25 lb. scale, which will be sufficient for this process. • The F/B manager will create a credit log to post anticipated credits that will be compared to invoices to show credits were received. Any credits will be identified on the invoice by the F/B manager and reviewed by management. • The F/B department will keep a copy of all invoices related to compliance with OLCC regulations. Warehouse/stores: • In place of alarms, the F/B manager will notify the operations department when the kitchen will be un-manned. Operations will log the temperatures on the temperature log outside each walk-in refrigerator or freezer. The logs are in place. • All locks and keys were replaced to the limited access areas. • Management along with the F/B manager will assist in taking inventory on a monthly basis. The count sheets will be signed by both parties involved in the counting. In place already. • All items deemed spoiled, out of date or leftover at the end of an event will be tracked by the F/B manager. Alcohol: • Tips for bartenders are part of the process for alcohol service. We have ordered Tablecraft 2246 – 1oz. plastic pour spouts to limit each drink to a 1oz. pour. This will eliminate an overpour. $24.63 per doz. • A periodic check of liquor usage to sales will be calculated on a monthly basis and checked periodically at separate events. This process will include the F/B manager and management. The results will be kept on file for review. Complete All have been completed and continue on an ongoing basis. Follow-up report of Deschutes County Fair & Expo-Food and Beverage #17/18-4 January 2018 Page 5 Audit # 16/17-3 Workplan Rec # Recommendations Original Management Comments Current Status Updated Comments 6 It is recommended management consider whether they would like to further breakout accounting for expenditures for their main revenue activities (alcohol, catering, and concessions). DCFE would like improved accounting information in the following areas: • Revenue for concessions alcohol and catering alcohol • Direct cost of alcohol sales • Cost of sales as a percentage as it relates to alcohol Complete With the Munis system in place we are able to breakdown our revenues/costs for all areas, which will show us our percentage breakdown. We are still working in this area to improve. 7 It is recommended for management to establish a secondary review of revenue postings and that the accounting matches between their event software (EventPro) and the County's financial software (currently HTE). This process is already being done. Complete 8 It is recommended for DCFE to develop written accounting policies and procedures for their food and beverage operations. We agree and are working on updating our policies/procedures. Complete Part of our Policies & Procedures manual 9 It is recommended for food and beverage to complete the deposit preparation by further completing the deposit slip, account coding and endorsing any checks. They should also periodically compare their deposits to the accounting entries (as well as the tamperproof bag numbering). We agree and have already started this process. Complete Ongoing 10 It is recommended for food and beverage to design and implement a survey that will better address service levels across those utilizing their services. We agree and are looking into the survey system and will have our IT dept. work on having this done by mid – April Complete Designed a special survey for Fair and continue with surveys year round, still working on a more specific survey to get more information. 11 It is recommended for DCFE management to review and comply with OLCC requirements for postings in accordance with their license. All postings are completed and up to date. Complete {END OF REPORT}