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Home My WebLink About6-11-21 Audit Committee Minutes Finalv1 ES C-0 a0< Minutes of the Meeting of the Deschutes County Audit Committee Friday, June 11, 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 Scott Reich (P), Umpqua Bank - VP Fair Lending- Excused x Stan Turel (P), President, Columbia Pacific Tax Service LLC x Patti Adair, (CM) County Commissioner x Nancy Blankenship, (CM) County Clerk- Last Meeting x 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 Greg Munn, County Chief Financial Officer x Lealan Miler, Eide Bailly LLP Partner x Richard Walker, Eide Bailly LLP Manager x Jana Cain, County Accounting Manager F;_1 Samantha Pepper, Administrative Assistant - BOCC CALL TO ORDER: Chair Parrish called the meeting to order at 12:02 pm. AGENDA: • Introductions/Announcements. Introductions were made and Mr. Givans removes item on continued discussions of County policies from the agenda. AUDIT COMMITTEE MEETING Friday, June 11, 2021 Page 2 of 4 Approval of Minutes: Ms. Pepper comments that there was a small sentence edit requested by Mr. Turel. Mr. Parrish motions to approve the minutes of the March 12, 2021 Audit Committee minutes. Mr. Turel seconds. Motion Carried. External Audit Plan for FY 20/21- Eide Bailly LLP Eide Bailly LLP representatives Lealan Miller and Richard Walker state that they met with Jana and Greg from the county Finance department last week. They are going to start working together the week of June 14th -18th to plan and update documents used in the external audit. The external audit is scheduled to begin in September and the final report will be issued no later than December 151. They will present the report to the audit committee on December 9th. All leases will be considered capital assets. The biggest portion of time spent auditing will be all the federal assistance money that has come from the federal government to the county which is considered high risk. Mr. Miller notes that their firm is independent and will perform the audit this year. Mr. Turel asks if they will be auditing the county's uses of the stimulus money. It was not going to be a main focus but they will look at it. He would like to see attention toward 1099s between the county and contractors. INTERNAL AUDIT REPORT: #2021-8 County Accounting System (MUNIS) Purchasing Topics: Part III- Purchasing Cards Mr. Givans explains the Munis audit regarding county P-Cards. Commissioner Adair asked if 7% error was a good within the documentation. Mr. Givans expected two or less errors. Mr. Lelack mentions that he is very pleased by the report and would have been disappointed if there were no errors. Follow- Ups Reports: CDD Cash Handling#20/21-7 Mr. Givans states of the two recommendations, one was implemented and one is underway. He also notes that petty cash is mostly no,longer needed in the county due to electronic payments and procurement cards. The county is encouraging ACH transactions. AUDIT COMMITTEE MEETING Friday, June 11, 2021 Page 3 of 4 Fair and Expo- Trending #20/21-10 Mr. Givans states there were sixteen recommendations to which all have been addressed/ completed. Mr. Turel asked if there are any planned large capital improvements. Mr. Anderson explains current and upcoming projects. Commissioner Adair mentions that the county now has a Project Committee who looks at large projects and gives feedback. Internal Audit Biennial Workplan 2022- 2023 Mr. Givans explains the 2022-2023 Internal Audit Workplan. The additional internal auditor request was approved by the budget committee last week. The position will be limited duration for 1 year. Mr. Givans believes this person could add 2,500 hours of audit time. He explains his analysis of audit hours and different project ideas. He adds that cybersecurity for IT is a very high priority. There was some discussion on whether or not to audit the Assessor Office on selected areas of property deferrals. Mr. Linhares states it is very important but the state makes it hard to do so. Committee members are unsure if this is a priority or not. He also mentions doing follow-up to the PCE recommendations of the District Attorneys office. A possible audit would be on ARP funds. Ms. Sears agrees that would be a good audit. Mr. Lelack states that the HR recruiting and retention problems would be a great audit. MS. Burch mentions that privacy of county data and password for employees should be really important. Commissioner Adair would like to add in a contact tracing audit as well as an extension of the last car audit. Mr. Parrish motions to adopt the Internal Workplan for 2022-2023 with the suggested edits with consensus. Commissioner Adair seconds. Motion Carried. Internal Audit Program- Budget Request Update Mr. Givans adds that this is limited duration position but a great opportunity. He will start the recruitment soon. Update on County Administrator Recruitment Mr. Anderson comments on the selection of Community Development Director, Nick Lelack, as the county's next County Administrator pending contract AUDIT COMMITTEE MEETING Friday, June 11, 2021 Page 4 of 4 negotiations. Mr. Lelack mentions that he is honored to have the opportunity and cannot wait to continue on the audit committee in a different role. Internal Audit Succession Planning Mr. Givans states that this planning item has been included at the request of Ms. Sears. This will be partly addressed with the addition of the new FTE. UPDATES/Other Items: (David): Mr. Givans provided updates and explanations regarding other items: Member Renewals- All said yes. Replacements for Nick and Nancy will need to be identified. e The next Audit Committee meeting will be in person and on Zoom. e Munis Procurement- Work is being done on the analyses portion of the objectives. The Clerks Office transition audit has started. e Whistleblower Activity- Hotline is fairly inactive. The few complaints that have been received have been sent to HR. e The External Audit RFP will be out in January. OTHER BUSINESS/CLOSING: e None. Next meeting is September 16`h 2021. AAliournment: Being no further issues brought before the Committee the meeting was adjourned at 2.18 p.m. Respectfully submitted, ��ma �ilt�-?PPu Sa antha P@pper Administrative Assistant - BOCC