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Home My WebLink About3-12-21 Audit Committee Minutes FinalMinutes of the Meeting of the Deschutes County Audit Committee Friday, March 12, 2021 Meeting via Zoom Conference Call Members consist of 6 Public (P), and 3 County Management (CM) Quorum = five Committee Members present: 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 x Scott Reich (P), Umpqua Bank – VP Fair Lending x Stan Turel (P), President, Columbia Pacific Tax Service LLC x Patti Adair, (CM) County Commissioner x Nancy Blankenship, (CM) County Clerk 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 x Greg Munn, County Chief Financial Officer x Camilla Sparks, County Accountant x Ashley Williams, County Senior Accounting Technician x Samantha Pepper, Administrative Assistant – BOCC CALL TO ORDER: Chair Parrish called the meeting to order at 12:03 pm. AGENDA: Introductions/Announcements. Introductions were made. For Recording Stamp Only AUDIT COMMITTEE MEETING Friday, March 12, 2021 Page 2 of 5 Approval of Minutes: Motion made by Stan Turel and supported by Commissioner Adair to approve the minutes of the Audit Committee Meeting of January 21, 2021. Nick Lelack abstained. Motion carried. Popular Annual Financial Report (PAFR) FY 2020 and Update of use of term “CAFR” Greg Munn explains the PAFR. He notes that for every dollar that the county receives from taxes, only 17 cents stays with the county for operations. Erik Kropp was curious whether the District Attorney should possibly fall under the public safety portion on page 2. Mr. Munn thanks Accountant Cam Sparks for submitting the PAFR on time. Tom Linhares indicated that the F in GFOA stands for finance not financial. Nick Lelack is interested to know how Deschutes County’s Population per FTE compares to other similar size counties. A couple of members asked for a paper copy of this report. Jodi Burch suggests comparing county and state population per FTE. She also suggests placing this report at places like the library so the general population can see. Nancy Blankenship suggests a financial newsletter from the finance department. Summer Sears indicated the County should consider issuing a media release. Mr. Munn states that the term “CAFR” will not be used anymore, based on guidance from GFOA. It is suspected that the term “Annual Financial Report” will be the replacement. INTERNAL AUDIT REPORT: #2021-6 County Accounting System (MUNIS) Purchasing Topics: Part II- Vendor Master David Givans explains the County Accounting System (Munis) Purchasing Part II- Vendor Master report. Stan Turel asked if the department is sending LLC’s and other businesses a 1099 form if needed. Mr. Givans indicated the County is collecting W-9’s to determine reporting. Scott Reich asked if there was any indication of losses. Mr. Givans did not see any. Mr. Munn thanks Mr. Givans for his outside approach to looking at the day to day operations of county finances. Mr. Givans notes that with COVID that more vendors were looking to go with electronic payments. Mr. Turel mentions the importance of increased security around electronic payments. AUDIT COMMITTEE MEETING Friday, March 12, 2021 Page 3 of 5 Follow- Ups CDD Cash Handling was delayed to the next meeting. Risk Assessment Process- Overview Mr. Givans explains the FY 2021 Goals and Objectives of the BOCC and then explains Internal Audit Work plan for FY 22-23. Commissioner Adair thanks Mr. Givans for his work with the countywide COVID grant funding. Mr. Givans talks about the brainstorming goals or topics of interests from the committee. Mr. Turel states his interest in 911 being responsive to needs and the District Attorney’s office lack of action to backup charges that local law enforcement made with protestors in October 2020. The office disputed the fact that Bend Police had documented detailed video and evidence or criminal acts. Mr. Anderson mentions that there were previous issues that have since been taken care of but coverage could always be better. Mr. Turel notes that City of Bend has a child service division and asks if the county works with the city. Commissioner Adair voices her thoughts on needs for our children throughout the community. Summer Sears asked about procedures for mental health and homelessness issues and asked if internal audit can support committees like these in a nonpolitical way. Mr. Anderson adds that the BOCC is in charge of the County’s priorities and how resources are deployed. Mr. Reich asked for a reminder on what the scope of the next Behavioral Health audit is. Mr. Givans replies that it focuses on the behavioral health workload and productivity. Ms. Blankenship states that using up to date technology help with growing needs of the Clerk’s office. Recording volume has really increased. Mr. Turel thanks Ms. Blankenship and her team for getting through the election and asked how many votes missed the deadline. Ms. Blankenship notes only a couple hundred. Chair Parrish asked what the percentage of voter turnout was. About 85%. Mr. Lelack mentions that his department has seen 18-22 planning applications per week. Looking forward there are plans for 350 new homes in sisters. The Deschutes County area is seeing very large demands. He adds that several CDD employees are working over 40 hours per week. Mr. Anderson describes the Goldilocks program at the DA’s office. If you can be clean of drug under the program, a person can avoid being prosecuted. Commissioner Adair mentions that STD’s are going really high in our community and that public health is aware. AUDIT COMMITTEE MEETING Friday, March 12, 2021 Page 4 of 5 Internal Audit Program- Budget Request Update/ IA Succession Planning Mr. Givans explains the budget preparation memo to consider additional FTE for an auditor. The position would have a salary in line with a Management Analyst. Other jurisdictions are around the same pay range. Ms. Sears asked if it would be helpful to make a case for the FTE on the work plan and cost savings. Mr. Linhares mentions that Mr. Givans takes time away from general audit work to do other county work and that that is a good point to needing additional FTE. Mr. Lelack asked what the benefits of another person are. There could be a current county employees that could come do the job with some training. Mr. Givans wants internal audit to continue on in Deschutes County once he retires. Mr. Lelack mentions that the whole memo is a great argument and the organization will appreciate that come budget time. External Auditor- Hours Mr. Givans briefly explains Eide Bailly Audit Hours. Mr. Munn mentions that he also wants an external auditor firm to keep everything in check compared to just looking at financials. Accounting Manager Recruitment Mr. Munn reports that they have extended the recruitment. He also sought out people who might be interested. Hopefully there is more interest soon. County Internal Controls Mr. Givans and Mr. Munn explains the county internal controls presentation. Mr. Munn states that no payments from the county should go directly to employees except mileage reimbursements. Mr. Lelack mentions that a lot of this presentation is helpful to share with all department heads and management. UPDATES/Other Items: (David): Mr. Givans provided updates and explanations regarding other items:  Updates the group on Internal Auditor current projects.  The Hotline is open. There have been 3 reports between Jan and Feb 2021. AUDIT COMMITTEE MEETING Friday, March 12, 2021 Page 5 of 5 OTHER BUSINESS/CLOSING: Annual audit report was given to the BOCC in January. Mr. Givans adds that there have been a number of retirements announced at the county. There will be continued discussion on additional audit help. Mr. Givans reminds the group to take the surveys that are attached to newly released audit reports. Next meeting is June 11th 2021. Adjournment: Being no further issues brought before the Committee the meeting was adjourned at 2:32 p.m. Respectfully submitted, ______________________________ Samantha Pepper Administrative Assistant - BOCC