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HomeMy WebLinkAbout2021-7 Follow-up CDD Cash Handling (FINAL 6-11-21)Follow-up Community Development Department – Cash Handling #20/21-7 June 2021 2020 FOLLOW-UP REPORT Community Development Department – Cash Handling (Internal audit report #19/20-10 issued June 2020) 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 Community Development Department – Cash Handling #20/21-7 June 2021 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 APPENDICES Appendix I – Updated workplan (status as of May 2021) …….…................. 3 Follow-up Community Development Department – Cash Handling #20/21-7 June 2021 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 two (2) recommendations from the internal audit report for Community Development Department – Cash handling (#1920-10), issued in June 2020. 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 May 2021. 1.3 METHODOLOGY The follow-up report was developed from information provided by Sherri Pinner, Community Development Senior Management Analyst and Greg Munn, Treasurer and CFO. Comments were sought for the status of the outstanding recommendations. 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 Community Development Department – Cash Handling #20/21-7 June 2021 2020 Page 2 2. Follow-up Results Figure I - How were recommendations implemented? The follow-up included two (2) outstanding recommendation agreed to by County departments. Figure I provides an overview of the implementation status of the recommendations. With this follow-up, fifty percent (50%) of the outstanding recommendations have been addressed. The details of the follow-up is 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. Follow-up Community Development Department – Cash Handling #20/21-7 June 2021 2020 Page 3 APPENDIX Appendix I – Updated workplan for recommendations for #19/20-10 (status as of May 2021) Rec # Recommendations Status Estimated or Actual Date of Completion Updated Follow-up comments 1 It is recommended for fiscal staff to consider process improvements that will address tasks that may be unnecessary. Completed 7/1/2020 Department eliminated duplicated efforts and unnecessary processes regarding daily deposit(s) processes. 2 It is recommended the County consider updating fiscal policy to allow Finance the authority to manage increases and decreases in petty cash. Underway 9/30/2021 Finance is currently reviewing Petty Cash Policy #F-8. Part of that review will be to consider updating to allow Finance the authority to manage changes in petty cash limits. We expect to have the policy revised and presented to the Board for approval by September 2021. CDD - Department continues to support the recommendation for an update to Finance fiscal policy regarding petty cash. {End of Report}