HomeMy WebLinkAbout2122-18 Follow-up County Fair Ticketing (Final 6-28-22)Follow-up County Fair Ticketing report #2122-18 June 2022
FOLLOW-UP REPORT
County Fair – Ticketing and selected areas
(Internal audit report #21/22-1 issued September 2021)
To request this information in an alternate format, please call (541) 330-4674 or send email to internal.audit@deschutescounty.gov
Deschutes County,
Oregon
Internal Audit
David Givans, CPA, CIA – County Internal Auditor
Aaron Kay – Performance Auditor
internal.audit@deschutescounty.gov
Audit committee members:
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
Charles Fadeley, Justice of the Peace
Lee Randall, Facilities Director
Follow-up County Fair Ticketing report #2122-18 June 2022
TABLE OF
CONTENTS:
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 June 2022) ……..…................ 3-7
Follow-up County Fair Ticketing report #2122-18 June 2022
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 seventeen (17) recommendations from the internal audit report for County
Fair Ticketing (#2122-1), issued in September 2021. 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 June 2022.
1.3 METHODOLOGY
The follow-up report was developed from information provided by Geoff Hinds, Director of Fair and
Expo Center. 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 County Fair Ticketing report #2122-18 June 2022
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2. Follow-up Results
Figure I -
How were
recommendations
implemented?
The follow-up included seventeen (17) outstanding recommendations agreed to by the Fair and Expo
Center and the Finance Department. Figure I provides an overview of the implementation status of
the recommendations.
With this follow-up, seventy-six percent (76%) of the outstanding recommendations have been
addressed. As indicated in the provided responses, a few of the recommendations have not been
fully addressed as the Fair and Expo Center management is working with their business partners to
implement recommendations prior to the 2022 Deschutes County Fair.
The details of the follow-up is included at the end of the report in Appendix I. In interpreting the
status, Internal Audit may sometimes raise or lower the status provided by the department based on
the communication(s) received from the department.
Follow-up County Fair Ticketing report #2122-18 June 2022
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APPENDIX Appendix I – Updated workplan for recommendations for #21/22-1
(status as of June 2022)
Items that are not completed are greyed out.
Rec # Recommendations Status
Estimated or
Actual Date of
Completion Updated Follow-up comments
1 It is recommended for fair management to
analyze and model whether a change
needs to occur in the convenience fee
charged in future fairs. {As indicated the
goal should be to balance the revenues with
the cost of the system.}
Completed 6/2022
Fair management will continue to adjust the
convenience fee vs cost of tickets in order to work
towards covering the cost of a ticketing system through
fees. Fair management also recognizes that in the near
term this will continue to be supplemented.
2 It is recommended for fair management to
split out convenience fee revenue and
associated ticketing costs to improve
transparency of the ticketing technology
net cost.
Underway Fair management will work to create a new revenue
class for convenience/ ticketing fees so they can be
better tracked; and assure associated fees are placed in
the correct category. The existing ticketing system
tracks sales vs fees so this is already included as part of
the reporting from the ticketing system, but will be
applied as it is input into County financial systems.
3 It is recommended for Fair & Expo to work
on a more consistent approach to
overseeing the fair money handling
operation.
Completed 6/2022
Fair & Expo is proactively planning for the handling of
cash as part of the 2022 and beyond fairs. Meetings
have already occurred between fair management,
contractor, and bank regarding processes and needs,
and initial cash requirements documented. Fair
management will continue to recruit County staff
members to assist in the cash room, to reduce expense
and to provide an additional safeguard for proper cash
handling procedures.
Follow-up County Fair Ticketing report #2122-18 June 2022
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Rec # Recommendations Status
Estimated or
Actual Date of
Completion Updated Follow-up comments
4 It is recommended for Fair & Expo
management to formalize written
procedures over financial areas of the
County Fair (including change, gate
receipts, and concessions).
{The County Internal Auditor created a listing
of observed procedures that should help in
the creation of procedures.}
Underway Fair management in combination with contractor is
finalizing written cash handling procedures for all areas
of ticketing operations. This includes ticketing, gate
receipts, concession and other areas of Fair where
large amounts of cash are present.
5 It is recommended for the Fair & Expo
management and the contractor consider
reviewing some aspects of money handling
with volunteers on how their presence is
an important control over the cash being
safeguarded.
Completed 6/2022
Fair management and contractor agree that having
dual custody of all funds at all times is a best practice.
Utilizing County staff or volunteers as a part of the dual
verification process also provides an additional level of
transparency over the process, and a comfort level for
both County and the contractor. Fair management
plans to continue this process.
6 It is recommended we reinforce with the
gate supervisors and sellers the
importance of proper transitioning as
sellers are relieved by any other seller.
Completed 6/2022 Fair management has proactively met with Rotary Club
of Redmond regarding the planning of the 2022 Fair &
Rodeo. Training dates for all ticket sellers and takers
are planned for July 21st and 27th, where Fair
management will meet any/all Rotary members, and
train them on proper procedures of sales, cash
handling, and close out.
7 It is recommended for all sellers to stay in
control of their own bank and not allow
other sellers to use it.
Completed 6/2022 During Fair 2022; sellers will be trained on the proper
way to handle cash at all times. This will include not
allowing another person or persons to sell from their
Follow-up County Fair Ticketing report #2122-18 June 2022
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Rec # Recommendations Status
Estimated or
Actual Date of
Completion Updated Follow-up comments
terminal or cash drawer, to close out cash drawers at
the end of every shift; and other best practice cash
handling procedures.
8 It is recommended for future scheduling of
the gate sellers and ticket takers to be
based on historical customer loading at the
gates over date and time.
Completed 6/2022 Fair management has met with Rotary to adjust the
staffing schedule to correspond with anticipated
periods of peak volume. Adjustments to gate opening
times, and staggered shifts have been made; with
additional adjustments based on sales leading up to,
and during Fair.
9 It is recommended for Fair management
and Rotary to address proactive customer
flow management for selling and ticket
redemption to better accommodate the
anticipated rushes that occur by gate and
by hour.
Completed 6/2022 Fair management has met with Rotary to adjust the
staffing schedule to correspond with anticipated
periods of peak volume. Adjustments to gate opening
times, and staggered shifts have been made; with
additional adjustments based on sales leading up to,
and during Fair.
10 It is recommended for Finance to develop a
change policy (possibly through an
amendment to the petty cash policy F-8) to
address the requirements for change cash
issuance and its accountability.
Planned
The Finance Department provided no updates for this
recommendation.
Initial Finance comment - Agree that the current
policies should be reviewed for possible modification.
11 It is recommended for Fair & Expo
management consider how much it can
further reduce their change fund for the
next fair and whether it could consolidate
Completed 6/2022 Fair management has met with contractor to discuss
the reduction of change fund requests for the 2022
Fair. Both parties agree change funds can be reduced
significantly from the 2021 Fair. Additional adjustments
Follow-up County Fair Ticketing report #2122-18 June 2022
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Rec # Recommendations Status
Estimated or
Actual Date of
Completion Updated Follow-up comments
some of the oversight and needs of the
food and beverage operation.
will be made to allow for the further reduction of cash
on site.
12 It is recommended for Fair and Expo
management to consider re-classing sales
(between carnival and gate admissions) to
more accurately reflect the accounting.
Completed 10/2021 This change was made immediately following the 2021
Fair. Moving forward sales will be appropriately classed
as received.
13 It is recommended for Fair & Expo to plan
and provide a receipt book and a means to
process credit cards if they are allowed.
Completed 6/2022 Fair & Expo has ordered receipt books for use during
the annual Fair & Rodeo; these receipt books will be
part of the written established procedure. Additionally,
a credit card processing terminal will be utilized for
future “Check-Out” of vendors during Fair close-out.
14 It is recommended for the concession
balancing spreadsheet be edited to include
potential Tuesday sales.
Completed 6/2022
For Fair 2022, Fair & Expo management and/or
Contractor will amend the balancing spreadsheet to
ensure that it includes a separate column for any/all
days of sales including but not limited to Tuesday.
15 It is recommended for the contractors to
adhere to the register rules without
exception.
Completed 6/2022
For Fair 2022 and beyond Fair & Expo will require all
vendors to adhere to register rules without exception.
Fair & Expo may acquire additional registers or sales
terminals that may be utilized by vendors who lack the
appropriate equipment, there may be a charge for this
service.
Follow-up County Fair Ticketing report #2122-18 June 2022
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Rec # Recommendations Status
Estimated or
Actual Date of
Completion Updated Follow-up comments
16 It is recommended for the Fair & Expo
management to consider whether
implementing a control over all food and
beverage sales (and the associated control
benefit) outweighs the costs for setting up
the system and whether this brings other
potential benefits.
Completed Fair Management looked into multiple single provider
sales terminal options in preparation for the 2022 Fair
& Rodeo. Fair management ultimately decided against
this investment for 2022, but will continue to research
this, and ultimately believes this will be the correct path
to follow.
{The County Internal Auditor raised the status of this
recommendation from planned to completed due to Fair
Management’s consideration of multiple point of sale
terminals for the 2022 County Fair.}
17 It is recommended for the County to use an
expanded contract form for a contractor
used for handling monies and include a
background check, Legal Counsel review,
Risk Management review, and appropriate
bonding.
Underway Fair & Expo will reengage Legal on the development of
an agreement/expanded contract form to be utilized
for any/all contractors who will be handling cash. This
will include but not be limited to background checks
and bonding, at levels determined by Legal or Risk
Management.
{End of Report}