HomeMy WebLinkAbout2324-15 Follow-up FinanceTax Controls over receipts (Final 2-29-24)Finance/Tax – Controls over receipts follow-up #23/24-15 February 2024
Follow-up Report
Finance/Tax – Controls over
receipts
(Internal audit report #22/23-8 issued April 2023)
The Office of County Internal Audit:
Elizabeth Pape, CIA, CFE – County Internal Auditor
Aaron Kay – Performance Auditor
Audit committee:
Daryl Parrish, Chair - Public member
Jodi Burch – Public member
Joe Healy - Public member
Kristin Toney - Public member
Summer Sears – Public member
Stan Turel - Public member
Patti Adair, County Commissioner
Charles Fadeley, Justice of the Peace
Lee Randall, Facilities Director
To request this information in an alternate format, please call (541) 330-4674
or send email to internal.audit@Deschutes.org
Recommendations
4
Finance/Tax – Controls over receipts follow-up #23/24-15 February 2024
Table of Contents:
1. Introduction ....................................................................................... 1
Background on Department and Original Audit ......................................................... 1
2. Follow-up Results .............................................................................. 2
3. Appendix A: Updated workplan (status as of February 2024) ..... 3
4. Appendix B: Objective, Scope, and Methodology .......................... 4
Objective and Scope ....................................................................................................... 4
Methodology ................................................................................................................... 4
Finance/Tax – Controls over receipts follow-up #23/24-15 February 2024
Deschutes County Office of the Internal Auditor Page 1 of 4
1. Introduction
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.
Background on Department and Original Audit
This was a periodic review of fiscal controls for the Finance/Tax
Department in place during February 2023. The Finance/Tax
Department manages all financial activities of the County
including annual budget coordination, financial planning, internal
and external financial reporting, general accounting, payroll,
capital asset records, distribution of property taxes to all taxing
districts, cash management and investments, dog licensing and
administration, collection and administration of the transient
room tax, and administration of the County’s long-term debt.
Overall, the Finance/Tax department performed well in providing
fiscal control over receipts. Recommendations were developed to
assist the Finance/Tax department comply with County policy or
prudent business practices for receipts.
The areas identified in the original audit for further improvement
included:
• accountability for the movement of funds between
people;
• efficiency for daily bank reconciliations;
• audits of transient room taxpayers; and
• management review of adjustments to the property tax
system.
Finance/Tax – Controls over receipts follow-up #23/24-15 February 2024
Deschutes County Office of the Internal Auditor Page 2 of 4
2. Follow-up Results
The follow-up included four outstanding recommendations
agreed to by the department. Figure I provides an overview of
the resolution status of the recommendations.
The details of the follow-up are included at
the end of the report in Appendix A. In
interpreting the status, Internal Audit may
sometimes raise or lower the status
provided by the department based on
communication received from the
department.
With this follow-up, seventy-five percent
(75%) of the outstanding recommendations
have been fully addressed, as confirmed in
the provided responses. The remaining
recommendation, concerning the
resumption of audits for transient room
taxpayers, is actively being addressed. The
department has completed a request for
proposals, and the contract is currently
under review.
Figure I –
How were
recommendations
implemented?
Finance/Tax – Controls over receipts follow-up #23/24-15 February 2024
Deschutes County Office of the Internal Auditor Page 3 of 4
3. Appendix A: Updated workplan (status as of February 2024)
Recommendation Status Date
Resolved
Updated Comment
It is recommended
the Finance/Tax
department
develop and
document controls
over cash
handoffs.
Completed Apr 2023 The Cash Receipting Process & Procedure
documentation has been updated to
include witness verification of cash
counts compared to each technician’s
report.
It is recommended
the Finance/Tax
department
explore elimination
of the bank
account providing
duplicate services.
Completed Oct 2023 The Tax Refund account has been closed
with the County’s bank.
It is recommended
the Finance/Tax
department
resume audits of
transient room
taxpayers.
Underway Feb 2024 We have completed the request for
proposals for audit services for the
Transient Room Tax. We have just chosen
the top firm and are in the process of
getting the Personal Services Contract
completed to route to Legal before
sending on to the firm. Audits will begin
in April 2024.
It is recommended
the Finance/Tax
department
implement and
document periodic
management
review of property
tax adjustment
reports.
Completed Aug 2023 Monthly report reviews have been added
to the tax adjustment procedures. The
Chief Financial Officer is reviewing
property tax adjustment reports
monthly.
Finance/Tax – Controls over receipts follow-up #23/24-15 February 2024
Deschutes County Office of the Internal Auditor Page 4 of 4
4. Appendix B: Objective, Scope, and Methodology
Objective and Scope
Objective:
The objective was to follow up on recommendations from the
original audit.
Scope and timing:
The follow-up included four recommendations from the internal
audit report for Finance/Tax – Controls over receipts issued in
April 2023. The original internal audit report should be referenced
for the full text of the recommendations and associated
discussion. The follow-up reflects the status as of February 2024.
Methodology
The follow-up report was developed from information provided
by Judi Hasse, Deputy Tax Collector. 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 were included in Appendix A.
Since no substantive audit work was performed, Government
Auditing Standards issued by the Comptroller General of the
United States were not followed.
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.
“Audit objectives”
define the goals of
the audit.