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Home My WebLink About1-21-21 Audit Committee Minutes Final'I ES C-0& O< Minutes of the Meeting of the Deschutes County Audit Committee Thursday, January 21, 2021 Meeting via Zoom Conference Call Members consist of 6 Public (P), and 3 County Management (CM) Quorum = five Committee Members resent: x Facilitator: David Givans, County Internal Auditor x Daryl Parrish, Chair, (P) Retired - City Manager of Covina, CA x Tom Linhares, (P), Retired - Executive Director, Multnomah County Tax Supervising and Conservation Commission (Absent excused) x Scott Reich (P), Umpqua Bank - VP Fair Lending -VIA PHONE x Stan Turel (P), President, Columbia Pacific Tax Service LLC x Patti Adair, (CM) County Commissioner x Nancy Blankenship, (CM) County Clerk Nick Lelack (CM) County Community Development Director x Jodi Burch, CFO Redmond Fire and Rescue x Summer Sears, Summer Sears CPA, LLC Others Present: x Tom Anderson, County Administrator X Erik Kropp, Deputy County Administrator x Greg Munn, County Chief Financial Officer x Tony DeBone, County Commissioner x Phil Chan& County Commissioner x Lealan Miller, EideBailly LLP Partner x Richard Walker, EideBailly LLP Manager x James Wood, County Accounting Manager x Samantha Pepper, Administrative Assistant - BOCC CALL TO ORDER: Chair Parrish called the meeting to order at 12:00 pm. AGENDA: AUDIT COMMITTEE MEETING Thursday, January 21, 2021 Page 2 of 4 Introductions/Announcements. Introductions were made. Approval of Minutes: Motion made by Commissioner Adair and supported by Member Parrish to approve the minutes of the Audit Committee Meeting of September 17, 2020. Motion carried. Presentation of County's Comprehensive Annual Financial Report for Fiscal Year ended June 30, 2020- Eide Bailly LLP, Lealan Miller, Partner Lealan Miller introduces himself on behalf of EideBailly LLP. Happy to report that the management controls did not bring anything to their attention. There were no proposed journal entries and no management comments. He also introduced Richard Walker as manager of the Audit. He briefed the group on the audit and their findings. He mentions the agreed upon procedures letters for Solid Waste and STIF which there was no concerns. No new accounting standards were adopted in the current statements but there will be some for next year. Summer Sears asked if there were conversations about fraud. Mr. Parish indicated he had received a call. Mr. Turel asked if remote auditing was at all a concern. Ms. Sears asked if people would still go onsite. Mr. Miller thinks they will do a hybrid model. Commissioner DeBone thanks the EideBailly LLP for their work during the pandemic. Greg Munn thanks James Wood for his hard work at the county level for the Audit. Audit Committee 2019/20 annual accomplishments report Darryl Parrish reviews the committee's accomplishments from the past year. There were no questions from the group. Internal Audit Report: #19/20-9 County Accounting system (MUNIS) purchasing topics: Part I - Security and workflows David Givans explains the Internal Audit Report #19/20-9 regarding the County Accounting System- Munis. Summer Sears asked if the data mining is on a certain schedule. Mr. Givans explained that Finance has been developing more automated analyses with PowerBI and thinks they would likely use any good ideas that come up in audits. Greg Munn adds a system with internal controls can have functional barriers. James Wood explains the Account Payable approval process through Munis and the threshold for who can approve what. Tom Anderson adds that there are operational checks. Anything over or around $150k involves the Board. County AUDIT COMMITTEE MEETING Thursday, January 21, 2021 Page 3 of 4 Legal Counsel stamps and checks all contracts before they are signed. Scott Reich asked if there was enough controls in the process which he believes that there seems to be. Mr. Givans noted that the findings around controls did not rise to a level that would be of concern to the financial auditors. Follow-ups David Givans explains key points of the 2020 Global Follow- Up, Juvenile Cash Handling and the Cell Phone Audit reports. There were no comments or questions. Internal audit program - budget request David Givans explains the memo he provided for the Internal Audit Program Budget. He mentions that a second staff member in Internal Audit would be helpful and accomplish more. This position could also support succession planning and assure the program can continue as time goes on. He also mentions a fallback request for having an on- call position. Several committee members voice their support to an additional FIFE in the Internal Audit Program. Committee members voice their support individually for additional internal auditor help to be presented to the Budget Committee. After much discussion over supporting a .5 FrE or a 1 FTE addition to the Internal Auditor program, the committee decides: Tom Linhares moves for the audit committee to support the addition of 1 FTE for Internal Audit in the upcoming budget cycle. Stan Turel seconds. All in favor. Nancy Blankenship states that she is hopeful that there is succession planning before and after Mr. Givans decides to leave his role. Summer Sears suggests adding Succession Planning for a future agenda item. - External auditor RFP/contract extension update David Givans mentions that the EideBailly LLP RFP has been extended until next year at the suggestion of Summer Sears instead of going through the RFP process during the COVID pandemic. The cost for the FY 2021 County Audit is $105,000. County Internal Controls briefing David Givans updates the committee on Internal Controls regarding County Legal Counsel. Jodi Burch asked if Legal is working with departments to develop good procedures with contracts and documents. Mr. Givans indicated that, from what he AUDIT COMMITTEE MEETING Thursday, January 21, 2021 Page 4 of sees, County Counsel has been doing a great job of responding to the needs of departments. UPDATES/Other Items: (David): Mr. Givans provided updates and explanations regarding other items: • Mr. Givans is working on the next Munis audit on the vendor master. • Mr. Givans briefly shows the September 2020 through December 2020 Status Report. Much of the report was shown supporting audit work, with typical weightings to Administration and some non -audit COVID work. • Mr. Givans mentions that the work on the audit plan will start to commence in March to approve at theJune Audit Committee meeting. OTHER BUSINESS/CLOSING: • Greg Munn thanks David Givans and the committee for their involvement in the County's Audit processes. Next meeting is March 12, 2021. Adjournment: Being no further issues brought before the Committee the meeting was adjourned at 2:04 p.m. Respectfully submitted, Samantha Pepper Administrative Assistant - BOCC