HomeMy WebLinkAbout2021-2 Follow-up Human Resources - Cash Handling (Final 9-14-20)Follow-up Human Resources – Cash Handling #20/21-2 September 2020
FOLLOW-UP REPORT
Human Resources –
Cash Handling
(Internal audit report #19/20-4 issued December 2019)
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
County Internal Auditor
1300 NW Wall St
Bend, OR 97703
David.Givans@deschutes.org
Audit committee:
Daryl Parrish, Chair - Public member
Jodi Burch - Public member
Tom Linhares - Public member
Scott Reich - Public member
Summer Sears - Public member
Stan Turel - Public member
Patti Adair, County Commissioner
Nancy Blankenship, County Clerk
Nick Lelack, Community Development Director
Follow-up Human Resources – Cash Handling #20/21-2 September 2020
TABLE OF
CONTENTS:
HIGHLIGHTS
1. INTRODUCTION
1.1. Background on Audit …………..………………………………………….……….……..…. 1
1.2. Objectives and Scope …………….………………………………….…………….………… 1
1.3. Methodology …………………………………….…..………………………….……….……… 1
2. FOLLOW-UP RESULTS …………………….………..……………………………...………… 2-3
APPENDIX I – Updated workplan (status as of June 2020) ………...................... 3-4
Follow-up Human Resources – Cash Handling #20/21-2 September 2020
Page 1
1.
Introduction
1.1 BACKGROUND ON AUDIT
Audit Authority:
The Deschutes County Audit Committee has suggested that follow-ups occur within nine months of
the report. The Audit Committee would like to make sure departments satisfactorily address
recommendations.
1.2 OBJECTIVES and SCOPE
“Audit
objectives” define
the goals of the
audit.
Objectives:
The objective was to follow-up on recommendations from the original audit.
Scope:
The follow-up included the five (5) remaining recommendations from the internal audit report for
the Human Resources – Cash Handling (#19/20-4), issued in December 2019. Nine (9)
recommendations were considered completed at issuance of the report. The original internal audit
report should be referenced for the full text of recommendations and associated discussion.
The follow-up reflects the status as of September 2020.
1.3 METHODOLOGY
The follow-up report was developed from information provided by Human Resources. Comments
were sought for the status of these recommendations. The follow-ups are, 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.
Since no substantive audit work was performed, Government Auditing Standards issued by the
Comptroller General of the United States were not followed.
Follow-up Human Resources – Cash Handling #20/21-2 September 2020
Page 2
2. Follow-up Results
Figure I -
How were
recommendations
implemented?
The follow-up included five (5) recommendations agreed to by County management. The original
report included fourteen (14) recommendations. Figure I provides an overview of the
implementation status of the recommendations in this follow-up.
With this follow-up, twelve (12) of the original fourteen (14) recommendations (86%) have been
completed.
Follow-up Human Resources – Cash Handling #20/21-2 September 2020
Page 3
The details of the five recommendations followed up on and their status are included at the end of
the report in Appendix I. In interpreting the status, the County Internal Auditor may sometimes raise
or lower the status provided by the department based on the communication(s) received from the
department.
APPENDIX Appendix I – Updated workplan for identifed outstanding recommendations for #1920-4
(status as of September 2020)
Items that are not completed are greyed out.
Rec # Recommendations Status
Estimated
or Actual
Date of
Completion Updated Follow-up comments
8 It is recommended the department work on
developing expectations for receivables (in
particular from the TPA) and these receivables
should be entered into an accounting system
(preferably Munis).
Completed All benefits vendors notify us when large receivables are
to be sent. All receivables related to benefits are reviewed
and taken to finance immediately or by end of day at the
latest. Finance enters the receivables into Munis and
produce a receipt for Human Resources records. HR has
not implemented our own receipting in Munis yet.
9 It is recommended the Human Resources
Department’s written procedures be updated to
reflect the anticipated supervision and
necessary controls. In addition, these
procedures should include necessary
safeguards over billed customers.
Completed Cash and Check Handling procedures have been updated
by the Human Resources department. The procedures
include the HR Director and Benefits Analyst complete
periodic review of receipts from Finance, checks received
log, and manual receipt book. The procedures also state
the HR Director oversees Benefits Analyst's billing of
retiree health insurance premium payments to ensure
accurate charges and enrollments. Periodic reviews of
retiree billing by HR Director to ensure oversight.
Follow-up Human Resources – Cash Handling #20/21-2 September 2020
Page 4
Rec # Recommendations Status
Estimated
or Actual
Date of
Completion Updated Follow-up comments
10 It is recommended for Human Resources to
consider using Munis to enter and provide
receipts and bill and manage receivables.
Underway Feb-21 HR is working with IT and Finance to create a process
within the Munis system to process retiree health
insurance premiums. HR discussed entering for receipts
and receivables with Finance prior to COVID-19. HR will
reengage on the topic post COVID for best practices.
11 It is recommended a supervisor periodically
review the accounting and receivable systems.
Underway Nov-20 HR supervisor has reviewed the accounting and receivable
systems ad-hoc and is working on a regular/periodic
review process.
14 It is recommended for Human Resources
Department consider adding data (trend and
possibly benchmarks) for their performance
measures in the budget presentation to
demonstrate the quality, cost and effectiveness
of the services they provide to the public.
Completed HR expanded our performance measures to address
areas of high volume and high impact to the County. HR
performance measures for FY21 include measures to
increase exit interviews returned, timely completion of
classification reviews and employee actions, tracking
healthcare cost inflation compared to the national
average, and tracking the County’s workforce in
relationship to the community population for women and
for minorities.
{End of Report}