HomeMy WebLinkAbout2223-4 DA Transition report (Final 1-24-23)Elected District Attorney Transition report #2223-4 January 2023 Elected District Attorney Transition To request this information in an alternate format, please call (541) 330-4674 or send email to internal.audit@deschutes.org Deschutes County, Oregon Audit committee: Daryl Parrish, Chair - Public member Jodi Burch - Public member Joe Healy - 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 Take survey by clicking HERE Recommendations 5 The Office of County Internal Audit David Givans, CPA, CIA – County Internal Auditor Aaron Kay – Performance Auditor internal.audit@deschutes.org
Elected District Attorney Transition report #2223-4 January 2023 TABLE OF CONTENTS: HIGHLIGHTS 1. INTRODUCTION 1.1. Background on Audit …………..………………………………………………..…..…….. 1 1.2. Background on Deschutes County Office of the District Attorney …. 1-2 2. FINDINGS and OBSERVATIONS 2.1. Transition of Elected District Attorney Position ….............................… 3-5 2.2. Fiscal Observations …………………………………………………………………………... 6 2.3. State Statute ………………………………………………………………………………….. 7-8 2.4. Other Transition Inquiries ……………………………………………………….…..… 8-9 3. MANAGEMENT RESPONSES 3.1. Deschutes County Office of the District Attorney ………………………….. 10 3.2. Prior Deschutes County Elected District Attorney ……………..…………… 10 A. APPENDIX A: OBJECTIVES, SCOPE, AND METHODOLOGY i. Objectives and Scope ……………………………………………………………….. 11-12 ii. Methodology ………………………………………………………………………..…… 12-13
Elected District Attorney Transition report #2223-4 January 2023 HIGHLIGHTS Why this audit was performed: To review the transition of office for the Elected District Attorney. What was recommended: Recommendations include: documenting transitional information; utilizing County purchasing agreements for technology related purchases; utilizing the Munis system for collected monies; depositing collected monies daily; and completing written policies to be in conformance with State law. Elected District Attorney Transition The Office of the District Attorney has been under the direction of the Elected District Attorney, John Hummel, since 2014. John Hummel announced his decision to not seek re-election in August 2021after the end of his term on January 2, 2023. Subsequently, Steve Gunnels was elected in the May 17, 2022, primary election to become the next Elected District Attorney and was sworn into office on January 3, 2023. The audit confirmed that Steve Gunnels was issued by the State of Oregon the certificate of election for the May 2022 election and that he is an active member of the Oregon State Bar. John Hummel and Steve Gunnels made the transition process cordial and collaborative. What was found While the transition process was as seamless as possible, establishing a written transition plan could be useful to transitioning the Elected District Attorney position in the future. A transition plan can be an important resource for identifying necessary tasks and responsibilities specific to the position. The Office information technology purchasing could be improved through the use of County Information Technology resources and purchasing agreements. Overall, the Office performed well in providing fiscal controls. Additional areas noted for improvement, include: using Munis to enter and provide receipts for collected monies, balance daily revenues, and prepare deposits; and performing daily deposit of collected monies. The Office has implemented comprehensive written procedures in compliance with Oregon law. However, certain subject areas require further development to fully conform to these regulations. Deschutes County Internal Audit
Elected District Attorney Transition report #2223-4 January 2023 Page 1 1. Introduction 1.1 BACKGROUND ON AUDIT Audit Authority: The Deschutes County Audit Committee authorized the review of the Elected District Attorney Transition in the Internal Audit Program Work Plan for FY 2022-2023. Deschutes County has been in the practice of performing a basic fiscal level internal audit whenever an elected official leaves office. The Elected District Attorney John Hummel announced his decision to not seek re-election on August 23rd, 2021, and his term ended on January 2nd, 2023. 1.2 BACKGROUND ON DESCHUTES COUNTY OFFICE OF THE DISTRICT ATTORNEY “I've felt the goals that I set for this office have been met.”- John Hummel “I’ve dedicated my career to justice and public safety, and believe the criminal justice system must protect the rights of every person in our community. It would be an honor to serve as your district attorney.” - Steve Gunnels The Deschutes County Office of the District Attorney’s (DA) primary goal is ensuring Deschutes County is a safe place to live, work and raise a family. This goal is achieved through working with the community to prevent crime, and by holding offenders accountable when crimes occur.2 Deschutes County Elected District Attorney (outgoing) – John Hummel The Office of the District Attorney has been under the direction of the Elected District Attorney John Hummel since January 2014. As Elected DA, John Hummel has developed several innovative programs that prevent crimes and incarceration such as the Emerging Adult Program, Clean Slate Program and Veterans’ Intervention Strategy. The Office handled approximately 50,000 cases during his tenure3. Deschutes County Elected District Attorney (incoming) – Steve Gunnels Following the notice by Elected DA John Hummel, Steve Gunnels was elected in the May 17, 2022, primary election to become the next Elected District Attorney. He was sworn into office on January 3rd, 2023. 2 Deschutes County Office of the District Attorney FY23 Adopted Budget 3 Deschutes County Office of the District Attorney Media Release, August 13, 2021.
Elected District Attorney Transition report #2223-4 January 2023 Page 2 Chart I Trend of budget to actual expenditures and budgeted FTE positions for the Office of the District Attorney.1 The Elected DA Steve Gunnels has been a prosecutor in the Office of the District Attorney since 1994, serving as Chief Deputy District Attorney for the last twenty years. The United States Forest Service recognized Steve for his contributions in protecting both natural resources and the public on National Forest lands in Deschutes County because of his prosecutorial work on the vandalism of Hidden Forest Cave.4 Deschutes County Office of the District Attorney - Financials The Office of the District Attorney, including Victim’s Assistance and Medical Examiner, has a budget of $11.4 million for FY 2023 and 60 budgeted full-time equivalent staff. Personnel services represents 85% of the Office of the District Attorney’s budget. A majority of the funding comes from the County’s general fund. The Office’s budget has been growing steadily over the last five years. 1 Includes Victim’s Assistance and Medical Examiner expenditures and positions 4 Deschutes County Office of the District Attorney Media Release, 2013
Elected District Attorney Transition report #2223-4 January 2023 Page 3 2. Findings and Observations The audit included limited procedures to understand the systems of internal control employed. No significant deficiencies were found in this audit. A significant deficiency is defined as an internal control deficiency that could adversely affect the entity’s ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. The findings noted were primarily compliance and efficiency matters. Audit findings result from incidents of non-compliance with stated procedures and/or departures from prudent operation. The findings are, by nature, subjective. The audit disclosed certain policies, procedures and practices that could be improved. The audit was neither designed nor intended to be a detailed study of every relevant system, procedure, or transaction. Accordingly, the opportunities for improvement presented in the report may not be all-inclusive of areas where improvement may be needed and does not replace efforts needed to design an effective system of internal control. Management has responsibility for the system of internal controls, including monitoring internal controls on an ongoing basis to ensure that any weaknesses or non-compliance are promptly identified and corrected. Internal controls provide reasonable but not absolute assurance that an organization’s goals and objectives will be achieved. 2.1 TRANSITION OF ELECTED DISTRICT ATTORNEY POSITION Overall, the transition between Elected District Attorneys has been amiable. The Office of the District Attorney staff indicated no concern with the transition of leadership between John Hummel and Steve Gunnels. The following recommendations are tailored to the Office of the District Attorney with consideration to the unique work environment and intended to further improve the existing policies and procedures within the Office. In November 2020, a consultant, Prosecutors’ Center for Excellence (PCE), was contracted to conduct a holistic assessment of the Office of the District Attorney. The consultants’ report, issued in May 2021, contained eighty-six agreed-upon recommendations. The Deschutes County Budget
Elected District Attorney Transition report #2223-4 January 2023 Page 4 committee desired follow-up work to gauge the progress towards addressing the recommendations in the PCE report. Two follow-ups have been performed to date on the original consultants’ report showing 75% of the recommendations either underway or completed. Steve Gunnels stated continued efforts towards full completion would continue under his leadership. Establishing a transition plan could be useful to transitioning the Elected District Attorney. The County does not require transition plans for department heads or elected officials. However, a transition plan can provide an important path to picking up where one person leaves off and another starts. The Elected District Attorney position, as an elected official, does not have a customary job description and is an employee of the State of Oregon. This position is unlike any other within the County, so Elected District Attorney duties and responsibilities are exclusive to that role. Transition plans are a bit of an art form, but a common theme in preparing them includes identifying: responsibilities by occurrence (daily, weekly, annual, etc…); close-to-completion projects; in-progress projects; process lists for things done routinely; critical contacts; and important resources, tools, and accounts/passwords. It is likely any transition plan will reinforce all the work involved and help make sure the work continues seamlessly. It also will be a critical resource for those who follow. In its absence, some things may be missed. It is recommended the Elected District Attorney document this transitional information noted above for their successor.
Elected District Attorney Transition report #2223-4 January 2023 Page 5 County IT prefers to learn the weaknesses of a single brand and then develop contingencies to mitigate. The Office of the District Attorney information technology purchasing could be improved. The Office of the District Attorney information technology (Office IT) approach towards purchasing of computer equipment has not taken advantage of the County Information Technology department’s (County IT) purchasing agreement which leverages volume discount pricing. Deschutes County relies on County IT for assuring that the County pays the lowest price possible for technology related equipment and for confirming that the equipment purchased is compatible with our computing environment.5 Standardization offers several benefits such as reduced resource waste, faster delivery of products, and increased knowledge retention. Without a strategic approach, the Office IT must apply resources and knowledge across multiple manufacturers which is inherently inefficient. Prior Elected District Attorney Patrick Flaherty had moved much of the Office IT services away from the County. This approach created duplicated efforts and inefficiencies noted in the prior Elected District Attorney transition audit report. Over the last few years, the Office IT has made considerable efforts to become more collaborative with County IT through both software and hardware integration projects. It is recommended the Office of the District Attorney utilize County purchasing agreements for technology related purchases. 5 Deschutes County IT Services – “Technology Purchasing Process“
Elected District Attorney Transition report #2223-4 January 2023 Page 6 2.2 FISCAL OBSERVATIONS Funds carried over daily increases the potential for errors or irregularities to occur. The Office of the District Attorney performed well in providing fiscal controls over collected monies. The following recommendations are intended to improve existing procedures and controls already in place. Opportunity exists to strengthen internal controls over collected monies. The Office of the District Attorney utilizes a legal case management software, Karpel, for discovery billings. The Office receives monies related to discovery fees either in the mail or over the counter. All received monies are manually receipted. Monies are accumulated and physically turned over to Finance for deposit weekly. The County’s cash handling policy (F-11) requires collected monies be turned over to Finance within 24 hours of receipt. Additionally, the policy emphasizes an effective internal control environment. The County’s Munis accounting system provides effective controls within its design and configuration. Held funds increase the potential for errors/irregularities to occur. Hand-written receipts are not ideal due to the potential for error; inefficient preparation requirements; and lack of effective reconciliation and control. Revenues from discovery fees have averaged $1,750 per month over the last three fiscal years. Because of the low volume of fee collection, Munis was overlooked as a system for receipting, balancing, and preparing deposits of collected monies. Munis improves accountability and controls for receipted funds. It is recommended the Office of the District Attorney utilize Munis to enter and provide receipts for collected monies; balance daily revenues; and prepare deposits. It is recommended the Office of the District Attorney deposit collected monies daily.
Elected District Attorney Transition report #2223-4 January 2023 Page 7 2.3 STATE STATUTE The Oath of Office to Steve Gunnels was performed on January 3rd, 2023, by Judge Wells Ashby. Oregon Revised Statutes (ORS) Section 8 governs the requirements for the Office of District Attorney. A review of this statute for the transition indicated several requirements, including: Filing a certificate of election (ORS 8.620); Steve Gunnels was issued, by the State of Oregon, a certificate of election for the May 17th, 2022, election. Qualifications (ORS 8.630); At the time of the election, the person elected District Attorney must have been admitted to practice in the Supreme Court of Oregon. Steve Gunnels is an active member of the Oregon State Bar. Register to be kept (ORS 8.700); and As noted under the audit scope, it is beyond the scope of this audit to ascertain the completeness of the Office of the District Attorney’s case management system. However, on inquiry, neither the outgoing nor incoming Elected District Attorney indicated any concerns with the transition of the case register. Written office policies (ORS 8.705). See discussion and finding below. Written policies are not in full conformance with Oregon law. In January 2022, an expansion of ORS 8.705 became effective, requiring District Attorney Offices across the State to develop and make available to the public their policies in eighteen different subject areas. A review of the Deschutes County Office of the District Attorney Policy Manual identified some subject areas lacking sufficient content: pretrial discovery agreements with law enforcement agencies on data retention and data sharing.
Elected District Attorney Transition report #2223-4 January 2023 Page 8 pretrial costs charged for discovery materials. charging decisions on crimes constituting domestic violence. requests for imposition of fines and fees, including attorney fees for appointed counsel. pretrial release, including the amount of security release requested for charged offenses and objections to release. The Office of the District Attorney has established significant written procedures over office standards, charging decisions, and specialty programs. The Office should be applauded for the quality and extent of these written procedures, as they are a significant resource for all staff to continue the work of the Office. The Deschutes County Office was one of the first District Attorney’s Offices to release their written policies and may not have captured all the areas included in the final enacted ORS. It is recommended the Office of the District Attorney complete written policies to be in conformance with State law. 2.4 OTHER TRANSITION INQUIRIES In meetings with the both the incoming and outgoing Elected District Attorneys, several identified areas were discussed for transition. These areas and topics included: prior consultants’ work from the Prosecutors’ Center for Excellence issued in May 2021; As noted above, Steve Gunnels intends to continue working towards completion of the recommendations within the consultants’ report. procurement cards; A new procurement card for the Office was ordered to replace the card issued in John Hummel’s name. Elected District Attorney’s current task list; As noted above, documentation of tasks, duties, and projects can assist with future position transitions.
Elected District Attorney Transition report #2223-4 January 2023 Page 9 contacts for associations, groups, and partner agencies; Many of the contacts were made aware of the transition prior to the transition meeting. Both parties agreed to begin forwarding email sent to John Hummel’s address on to Steve Gunnels upon taking office. This extra step will capture any contacts that may have been overlooked. electronic software and application access; The Elected District Attorneys planned out the transitioning of passwords on various platforms and software. System access rights transferred to Steve Gunnels after taking office. John Hummel’s access was removed per County separated employee procedures. physical facility access; Facility card reader access was terminated for John Hummel on January 2nd. Physical door keys were transferred between Elected DA’s. County assets in the possession of the outgoing Elected District Attorney; One County owned laptop was turned over to Office of the District Attorney’s information technology staff. contracts and significant vendors; and Upcoming contracts and grant renewals were discussed, as well as significant vendors. case evidence. Case evidence is secure and recorded. No significant transfers/disposals of case evidence were made during the transition. As previously stated, both John Hummel and Steve Gunnels have made the transition process cordial and collaborative. They should be commended for providing the best possible situation for a change in leadership.
Elected District Attorney Transition report #2223-4 January 2023 Page 10 3. Management responses Deschutes County Elected District Attorney, Steve Gunnels Prior Deschutes County Elected District Attorney, John Hummel Steve Gunnels District Attorney 1164 NW Bond Street Bend, Oregon 97703 (541) 388-6520 Fax: (541) 330-4691 www.dcda.us We agree with the below and will implement these changes with the below timeframe. What was recommended: Recommendations include: • Documenting transitional information; • Utilizing County purchasing agreements for technology related purchases; (Our IT Department will be notified immediately to implement this, if applicable.) • Utilizing the Munis system for collected monies; (We will implement this within the next 3 months) • Depositing collected monies daily; and (We will implement this in the next 3 months) • Completing written policies to be in conformance with State law. (We will complete this in the next 90 days) The prior Elected District Attorney, John Hummel, was provided a copy of the report and had no written comments to include with the final report.
Elected District Attorney Transition report #2223-4 January 2023 Page 11 i. OBJECTIVES and SCOPE Appendix A: Objective, Scope, and Methodology “Audit objectives” define the goals of the audit. Objectives: The objectives were: 1) Review activity and use of the checking account used by the Office of the District Attorney. Review any purchasing card, gift card, change monies, or petty cash held in the Office. 2) Review transition plans to see if there are areas which could be improved. 3) Review access privileges for critical law enforcement, case management, and County systems. 4) Review physical security and access. 5) Inquire as to any assets assigned directly to the Elected District Attorney that should be returned to the Office. 6) Review recent activity by the Elected District Attorney for reasonableness. These might include time sheets, expense reimbursements, contracts, or other transactions. 7) As of or close to the transition date, inquire as to the nature and type of case evidence which might be in custody from law enforcement. Historically, there have been no specific concerns. 8) Follow-up on any outstanding recommendations from prior internal audits. 9) Inquire as to register maintained of official business that shall be delivered to the successor. 10) Be aware of any issues with compliance with County policy, federal and state regulations and requirements, as may be applicable for these objectives. Scope and timing: The scope includes observations and interviews with Office of District Attorney’s staff up thorough the transition on January 3rd, 2023. Transactions for the last six months of service were reviewed. The prior Elected District Attorney’s last day was January 2nd, 2023 (Monday). The audit did not include verification of records representing the history of activity as may be required under ORS 8.700. ORS Section 8.700- The district attorney must keep a register of official business, in which the district attorney shall make a note of every action, suit or proceeding commenced or defended by
Elected District Attorney Transition report #2223-4 January 2023 Page 12 the district attorney in official capacity, and the proceedings therein. The register shall, at the expiration of the term of office of the district attorney, be delivered by the district attorney to the successor in office. The prior Elected District Attorney indicated such a register of information is kept through their computer systems. Internal Audit has no way to judge the adequacy or completeness of these records. 1.3 METHODOLOGY “Audit procedures are created to address the audit objectives” Audit procedures included: Interviews and observation of employees, assistance from the District Attorney, and other procedures as deemed necessary. Review transition plans for the Elected District Attorney’s position. Review fiscal information for the Office of the District Attorney. Review physical and electronic permissions for the Elected District Attorney. Interviews of selected departmental management and staff, including topics of o observance of internal controls; o security; and o segregation of duties. Review statute for any other areas to be addressed. We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. (2018 Revision of Government Auditing Standards, issued by the Comptroller General of the United States.)
Elected District Attorney Transition report #2223-4 January 2023 Page 13 The County Internal Auditor was created by the Deschutes County Code as an independent office conducting performance audits to provide information and recommendations for improvement. {End of Report} Please take a survey on this report by clicking on the attached link: https://www.surveymonkey.com/r/2223-4 If you would like to receive future reports and information from Internal Audit or know someone else who might like to receive our updates, sign up at http://bit.ly/DCInternalAudit.