Loading...
HomeMy WebLinkAbout2324-20 Fair and Expo Center RV Park Integrated Audit (Final 8-12-24)Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug2024 Recreational Vehicle Park Integrated Audit The Office of County Internal Audit: Elizabeth Pape, CIA, CFE – County Internal Auditor Aaron Kay – Performance Auditor Audit committee: Daryl Parrish, Chair - Public member Phil Anderson – Public member Jodi Burch – Public member Joe Healy - Public member Summer Sears – Public member Kristin Toney - 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 Take survey by clicking here Recommendations 5 Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Table of Contents: 1.Introduction ....................................................................................... 1 Background on the Recreational Vehicle Park ............................................................ 1 2.Findings and Observations .............................................................. 5 Findings ........................................................................................................................... 5 Park staff should update financial procedures. ...................................................... 5 Updated procedures and segregation of duties for the online reservation system could reduce risk. .......................................................................................... 7 The Park’s performance reporting was restricted to finances. .............................. 8 The Park website may not meet Americans with Disabilities Act’s compliance requirements. ............................................................................................................. 9 Observations ................................................................................................................. 10 The Recreational Vehicle Park complied with procurement policies. ................. 10 The purchasing card was used appropriately. ....................................................... 11 3.Management Response .................................................................. 12 4.Auditor Comments .......................................................................... 14 5.Appendix A: Objective, Scope, and Methodology ........................ 16 Objectives and Scope ................................................................................................... 16 Methodology ................................................................................................................. 18 Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Highlights: Why this audit was performed: A periodic review of administrative practices. What was recommended: We recommended that the Fair and Expo Center Recreational Vehicle Park: •Conduct a fraud risk assessment and implement procedures to address financial and information security risks. •Improve performance reporting. •Continue plans to rebuild the website and establish a regular review procedure. Recreational Vehicle Park Integrated Audit Our overall objective was to conduct a survey-level assessment of administrative practices at the Fair and Expo Center Recreational Vehicle Park. The audit objectives were to identify and evaluate key areas of administrative risk. The Park is located in Redmond, Oregon, offering sites with full hookups, modern amenities, and easy access to the area's recreational and event venues. What was found: We found areas for improvement related to cash handling, information security, performance reporting, and website accessibility. •No fraud was uncovered but cash collection procedures were incomplete and did not address some risky practices. •There were information system role conflicts in the reservation system. •The Fair and Expo Center has performance measures, but they didn’t provide information about how well the Recreational Vehicle Park functioned. •The Recreational Vehicle Park’s website scored low on an accessibility checking tool. The Fair and Expo Center Recreational Vehicle Park complied with purchasing card and procurement policies and did not receive any grants. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 1 of 18 1. Introduction The Deschutes County Audit Committee authorized the review of the Fair and Expo Center Recreational Vehicle Park in the Internal Audit Program Work Plan for 2024-2025. Internal audits of administrative controls are routinely performed for identified County departments, elected offices, and functions. The last cash handling audit at the Department was performed in 2008. This is part of an effort to have regular audits done on a recurring cycle. Audit objectives, scope, and methodology can be found in Appendix A. The Office of Internal Audit is expanding the scope of its traditional cash handling audits to include a high-level risk survey of administrative functions in each department or office. We are making this transition because the move towards electronic transactions has shifted risk away from cash handling to information security. We are also including other administrative risks such as performance reporting, procurement, and health and safety. The United States Government Accountability Office’s Standards for Internal Control outlines management's responsibilities for risk management. According to the Standards, management is responsible for designing, implementing, and operating an effective internal control system. This includes establishing control activities to mitigate risks, ensuring compliance with relevant laws and regulations, and achieving the organization's objectives efficiently and effectively. Background on the Recreational Vehicle Park Overall The Fair and Expo Center’s Recreational Vehicle Park (Park) began operations in 2007 as a revenue-generating facility under the County’s Fair and Expo enterprise. The Park is managed by the Fair and Expo Center Department and offers 105 full-service sites with 30- or 50-amp electric service, fresh water, and sewer Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 2 of 18 connections. The Park is equipped with restrooms, showers, laundry facilities, picnic tables, and barbeque stands. Campers have access to the 340-acre fairgrounds, which host over 400 events annually. Seasonality Camping visits are highly seasonal, peaking during the Deschutes County Fair. Staffing The Park is operated by a mix of part-time, on-call, and temporary workers, with additional support from Fair and Expo Center staff when needed. During the busy summer months, office hours are extended to twelve hours per day. Figure 1 Average monthly camping revenues FY17-FY24 actual Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 3 of 18 Revenues As an enterprise operation, the Park operates profitably, generating more revenue than its operational costs. Revenue primarily comes from short-term campers, but there has been a recent increase in longer-term stays. Management is considering an extension to long term stay durations, from 45 to 90 days, Figure 2 Revenues and Expenses for the RV Park (FY20- FY24 actual) Figure 3 Short- term vs. Long- term revenues (FY20- FY24 actual) Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 4 of 18 after a 2024 change in Oregon law. Extending the duration could boost stays during the slower winter months. Other Financial Information Additional revenue is generated from a self-serve laundry facility and sales of related items like laundry soap and dryer sheets. Ice is available for purchase during the summer months. These convenience items account for about 1% of total revenue, or $7,000 annually. The City of Redmond collects a 9% transient lodging tax on gross monthly short-term rentals, while the State of Oregon collects a 1.5% transient lodging tax on gross quarterly short-term rentals. Long-term stays are exempt from these taxes. Operating expenses are mainly utility costs and staffing but also include payments on credit obligations taken on by the County to fund the Park’s development. These will mature in June 2027. Systems Management has implemented changes that reduce the Park’s financial risk profile. In September 2023, the Park transitioned to a new online reservation system, resulting in over 98% of reservations being made using credit or debit cards. The system is similar to a hotel booking site, allowing campers to view availability and rates based on their recreational vehicle’s length. In March 2024, the Park also transitioned its laundry operations from coin-operated machines to credit/debit card payments. This upgrade, using a vendor already in use for other Fairgrounds vending machines, has enhanced control and improved customer satisfaction, while also reducing risk. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 5 of 18 2. Findings and Observations Our overall objective was to conduct a survey-level assessment of administrative practices at the Fair and Expo Center Recreational Vehicle Park. The audit objectives were to identify and evaluate key areas of administrative risk. For a detailed list of audit objectives, see Appendix A. We found that the Fair and Expo Center’s Recreational Vehicle Park could improve its financial security. After implementing the new systems last fiscal year, staff had partial procedures in place and did not segregate duties within the reservation system. Additionally, there were areas for improvement in performance reporting and website accessibility. However, the Park performed well in procurement compliance and purchasing card usage. We did not assess grant management because the Park did not have any grants. Findings Park staff should update financial procedures. As discussed above, the Park transitioned to a new reservation system and new laundry payment system in fiscal year 2024. Departmental cash handling procedures were incomplete and did not address some risky fiscal practices including: • Staff accounted for the change fund using a count-in and count-out process, but all collected revenues remained at hand until deposited. Collected revenues were held longer than one business day. There was no written Chief Financial Officer approval for deviation from the 24-hour deposit policy. • The combination of the safe protecting currency was not changed regularly. • Staff had the ability to void transactions without supervisor’s approval. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 6 of 18 • Collected revenues were not balanced daily against a system report or grand total. Instead, handwritten tallies on sticky notes were used as evidence of convenience item sales, and reservations paid in cash were maintained individually by transaction. • The combined collected revenues were transferred to the supervisor without an agreement on totals between staff. • Convenience item sales could not be traced to inventories due to the absence of an inventory system. • Manual backup processes for electronic disruptions were not established. Communication is an essential component of internal controls. Written policies and procedures are particularly effective for controls over accounting and financial matters. A well-designed and maintained set of policies and procedures enhances accountability and consistency. The resulting documentation is also useful for training and cross-training personnel. Cash controls are in place to keep people from stealing money due to the County. Incomplete or inaccurate procedures weaken cash controls as there are fewer checks and balances to detect and prevent fraud or misappropriation. While no fraud was found, management did not complete comprehensive accounting procedures to adequately provide effective control, supervision, and adherence during the implementation of new systems at the Park. Importantly, the Park did not conduct or document a fraud risk assessment. Such assessments provide a vital opportunity for managers and staff to collaboratively identify potential fraud scenarios and devise preventive measures. Active staff involvement in these assessments enhances their understanding of the rationale behind procedures, even when they may appear redundant or inefficient. Additionally, through a structured assessment, management can evaluate whether to accept certain fraud risks, based on their probability and resource implications. It is crucial Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 7 of 18 that any decisions to accept risk are thoroughly documented. Recommendations: 1) Fair and Expo Center management should conduct a fraud risk assessment for the Recreational Vehicle Park and document outcomes. 2) Fair and Expo management should incorporate results into cash handling updated procedures for the Recreational Vehicle Park. Updated procedures and segregation of duties for the online reservation system could reduce risk. The Park reservation software offered role and permissions options that could be utilized to segregate duties. Management roles allowed individuals to perform both transaction processing and financial review tasks, which increased the risk of errors and misconduct. Operational staff roles were correctly configured and segregated. Some of the risk in concentrated duties was mitigated because management and operational staff were physically separated in different buildings, but management staff was trained to provide coverage if needed. According to the Federal Information System Controls Audit Manual, incompatible duties should be segregated within the system. Key responsibilities such as authorizing, processing, recording, and reviewing transactions need to be separated to enhance control effectiveness. Dividing critical tasks and responsibilities among different individuals or groups reduces the risk of errors, fraud, or misuse of resources by preventing any single person from having complete control over a transaction or process from beginning to end. As new systems were implemented, no procedures were established addressing information security. Initially, management had broad permissions for system evaluation and Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 8 of 18 process creation. However, these permissions should be redistributed among staff once the system is operational to mitigate risks associated with concentrated duties. While the system contains an activity log that could be used to detect misuse, reviewing these logs would require significant time and effort. Preventive controls, which prevent actions from occurring in the first place, are preferred over detective controls, which identify issues after they have occurred. Recommendations: 3) Fair and Expo management should incorporate the fraud risk assessment results into information security procedures for the Park reservation system. The Park’s performance reporting was restricted to finances. Fiscal performance was reported to various bodies, such as the Fair Board, County Budget Committee, and Board of County Commissioners. These reports focused on revenues, expenses, and local economic impact. However, narrative operational indicators discussed at committee meetings often did not include verifiable evidence, as suggested by phrases such as "appears to" and "may." Other operational performance metrics, particularly those related to visitor counts and emergency operations, were combined into the County’s performance dashboard for the Fair and Expo Center. According to the Government Finance Officer Association, it is best practice for governments to identify, track, and communicate performance measures that are useful, relevant, reliable, adequate, collectible, and consistent. Figure 4 Excerpts from Fair and Expo Center presentations to the Budget Committee from FY24 and FY25. Additional competition in market and economic impacts •Appears to have impacted Winter business, Spring, Summer, and Fall appear unaffected to date Change in consumer behavior and visitation continues •Cost of fuel, and discretionary income may reduce the number of visitors; although they may stay longer Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 9 of 18 Performance measures play a crucial role in guiding decisions, fostering improvement, and enhancing understanding by telling the story of what the government function does and how well it’s doing. Less than favorable outcomes can lead to evaluations that identify root causes and solutions. However, inadequate performance measures hinder these processes. The Park, viewed as part of the broader Fair and Expo Center, has not been explicitly directed to develop more detailed performance measures. In Fiscal Year 2024, the Commissioners have initiated a camping feasibility study to consider expanding County campground operations. The consultant modeled seasonal demand patterns for two of the three campground options, using historical occupancy data from the Park.1 However, while this data is available, it is not being communicated, shared, or utilized effectively. There is a clear need for improved reporting practices to ensure that decision-makers have access to accurate and comprehensive information. Recommendations: 4) Fair and Expo management should establish and report on performance measures for the Recreational Vehicle Park. The Park website may not meet Americans with Disabilities Act’s compliance requirements. The Park website scored 61 out of 100 on an accessibility checker tool, revealing a shortcoming in meeting standards for visual and motor accessibility. The website was created in 2021 using a dynamic content model that adapts to different devices and has not been reevaluated to ensure compliance with Americans with Disabilities Act rules, which have become clearer through recent lawsuits and court rulings. Management anticipates rebuilding the website in Fall 2024. 1 ECOnorthwest: Deschutes County Campground Feasibility Study, November 2023 Pg. 32 Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 10 of 18 The Department of Justice asserts that the Americans with Disabilities Act’s requirements apply to all the services, programs, or activities of state and local governments, including those offered on the web. By not making websites accessible, businesses miss out on the purchasing power of people with disabilities. Accessible websites not only enhance accessibility but also promote inclusivity and potentially boost customer satisfaction and loyalty. Recommendations: 5) Fair and Expo Center management should follow through with plans to rebuild the webpage to improve accessibility and establish procedures to periodically evaluate web content for Americans with Disabilities Act compliance. Observations The Recreational Vehicle Park was not required to pursue competitive procurement because all purchases were below the dollar amount thresholds. Staff used the procurement card appropriately with adequate documentation. The Recreational Vehicle Park complied with procurement policies. Competitive procurement helps ensure that the county government gets the best value for its money. By soliciting bids from multiple vendors, the government can compare prices and select the most cost-effective option. This process promotes transparency and accountability. Ensuring a fair and open bidding process provides equal opportunities for all vendors, including small and minority-owned businesses, to compete for government contracts. This promotes diversity and inclusivity in the market. County Code 2.37 establishes signatory authority, thresholds triggering competitive procurement, exemptions, and standard contract provisions. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 11 of 18 All Recreational Vehicle Park purchases were within the signatory authority of the Fair and Expo Center Director and under the thresholds requiring competitive procurement. The purchasing card was used appropriately. Purchasing cards are convenient for making purchases for small items or training registrations where invoicing is not possible. However, they also create risk because of the potential for inappropriate use. Staff could use the purchasing card to make disallowed or personal purchases without identification. The County Purchasing Card Policy F-3 requires card holders to only use cards for appropriate transactions and to keep cards secure. Disallowed purchases include cash, alcohol, tobacco, firearms, casinos, and meals while on travel status. The Recreational Vehicle Park does not have a dedicated purchasing card. The card is issued to Fair and Expo Center management and accounted for within the County financial system. There were no inappropriate or unauthorized transactions related to purchases for the Park. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 12 of 18 3. Management Response Park staff should update financial procedures. Management agrees; see below for specific responses to observations included in this report Staff accounted for the change fund using a count-in and count-out process, but all collected revenues remained at hand until deposited. Collected revenues were held longer than one business day. There was no written Chief Financial Officer approval for deviation from the 24- hour deposit policy. While a minimal amount of cash transactions occur, Fair & Expo agrees and since audit work was completed, has received approval from the current Chief Financial Officer for deviation from the 24-hour deposit policy. • The combination of the safe protecting currency was not changed regularly. While a minimal amount of funds are kept on-site at any time, Fair & Expo agrees and will regularly adjust the combination to all safes. • Staff had the ability to void transactions without supervisor’s approval. Fair & Expo agrees with this observation, that it may be possible to void a transaction without supervisor approval. However, due to operational hours (12 hours per day, 7 days a week, 365 days a year) it would be difficult and cost prohibitive for a supervisor to always be on shift or available to provide approval for the few voided transactions (29 total voids in 12 months; including both duplicate reservations and test transactions) that may occur in a year. The RV Park system has a log of all actions, and each user logs in with a unique identifier, allowing for transparency of any/all activities; and the ability to identify any fraud or malfeasance. Fair & Expo will continue to monitor the system regularly, and implement a quarterly review of system logs to ensure appropriate use of the system is occurring. • Collected revenues were not balanced daily against a system report or grand total. Instead, manual processes were used as evidence of convenience item sales, and reservations paid in cash were maintained individually by transaction. Fair & Expo has invested in and utilizes an RV Park management system that provides the ability to track and record reservations, both cash and credit, as well as individual item sales. Fair & Expo staff will further define or develop procedures for the use of sales system, and ensure that all team members are properly trained in the use of the RV Park Management system including Geoff Hinds, Fair and Expo Director Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 13 of 18 the use of the inventory system and using this module as established; and that these process are utilized to balance against system total reports. • The combined collected revenues were transferred to the supervisor without an agreement on totals between staff. Reconciliation between the RV Park and the Administration office is available in multiple ways. Staff are trained to provide pre-post shift reporting of funds, and pre-post shift balancing of cash, to ensure correct cash amounts are on site. Fair & Expo staff will develop procedures for transfer of revenues from any staff member to another, or from staff member to a supervisor, and ensure that all team members are properly trained in the use of existing pre-post shift balancing, the RV Park Management system, in addition to any newly developed process. • Convenience item sales could not be traced to inventories due to the absence of an inventory system. Fair & Expo has invested in and utilizes an RV Park management system that provides the ability to maintain inventories, as well as individual item sales. Currently this system is used to track sales of Ice and Laundry soap, with cash sales totaling $332.00 for the period of Oct 31 – June 27, 2024. Fair & Expo staff will further define or develop procedures for the use of inventory systems for all items, and ensure that all team members are properly trained in the use of the RV Park Management system including the use of the inventory system and using this module as established. • Manual backup processes for electronic disruptions were not established. The RV Park utilizes a cloud-based program, which can be operated from any location with power and internet. The current protocol for power/internet outages would be to manage the RV park from the Administration office, which has separate and redundant internet service. In the event of a power outage, Fair & Expo maintains a cache of Laptop computers that remain charged; as well as the ability to generate some power onsite for prolonged outages. Staff will document these backup procedures and ensure that all team members are trained on them. • Fair and Expo Center management should conduct a fraud risk assessment for the Recreational Vehicle Park and document outcomes. • Fair and Expo management should incorporate results into cash handling updated procedures for the Recreational Vehicle Park. • Fair and Expo management should incorporate the fraud risk assessment results into information security procedures for the Park reservation system Fair & Expo will document completion of Fraud Risk Assessment per this recommendation. While Fair & Expo acknowledges that a fraud risk assessment can be a valuable tool in mitigating risk, it is important to note that there are various effective risk management strategies available. As such, we have utilized a balanced approach to risk management that includes multiple tools and strategies to safeguard our operations effectively. While Deschutes County does not currently have a policy mandating the completion or documentation of a Fraud Risk Assessment; this balanced approach is continually updated, and per this recommendation, we will document completion of a Fraud Risk assessment; and update procedures accordingly should need exist. The Park’s performance reporting was restricted to finances. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 14 of 18 • Fair and Expo management should establish and report on performance measures for the RV Park. Historically, the Park's performance reporting has focused primarily on financial metrics, which are regularly reported to various bodies such as the Fair Board, County Budget Committee, and Board of County Commissioners. These reports emphasize revenues, expenses, and local economic impact. However, we recognize the value of including detailed operational performance metrics. Currently, metrics related to visitor counts and emergency operations are combined into the County’s performance dashboard for the Fair and Expo Center. To address this, we will consider two approaches: either developing individual performance measures specifically for the RV Park or incorporating RV Park reporting into other existing performance measures. This consideration will help us provide more accurate and useful data to guide decision-making, foster continuous improvement, and enhance transparency and accountability. By either establishing individual measures or integrating RV Park data into broader performance metrics, we aim to enhance our performance reporting to better serve the community and support the ongoing success of the RV Park and the broader Fair & Expo Center operations. • Fair and Expo Center management should follow through with plans to rebuild the webpage to improve accessibility and establish procedures to periodically evaluate web content for Americans with Disabilities Act compliance. Fair & Expo agrees with this recommendation and intends to complete a rebuild of its existing website; which will include enhanced focus on the needs of all web and park visitors; specifically, those with needs as outlined under the Americans with Disabilities Act. Fair & Expo will also work with Deschutes County IT, and our external website contractor/contractors on the develop procedures for the regular and continued evaluation of websites, and legal requirements to assure compliance with all applicable law and regulation. 4. Auditor Comments We sincerely appreciate the cooperation of the Fair and Expo’s management and staff during the audit, as well as their commitment to continuous improvement. Their expertise and insights were invaluable in conducting the audit and identifying area for enhancement. However, there are some aspects of the management response that require further clarification. 1. Fraud Risk Assessment: We commend management’s agreement to complete a fraud risk assessment, which has the potential to uncover additional Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 15 of 18 areas of concern beyond those identified in the report. While County policy does not use the term “fraud risk assessment”, it does require management to periodically review internal control policies to determine if they are working as intended. Fraud risk assessments serve as a valuable tool for department heads in designing internal controls to prevent fraud. We encourage management to utilize their results to inform the design, implementation, and monitoring of effective cash handling procedures, in alignment with County Policy F-7, to better safeguard cash. 2. Financial Procedures and the RV Park Management System: Management agreed with most of the findings related to financial procedures. They indicated that the RV Park management system would address some of the identified deviations in cash controls. However, despite the system being operational during the audit, management had not directed staff to fully utilize it to balance daily collections or accurately inventory convenience items. For example, receipts could have been printed to assist in balancing, but staff opted to use manual tallies. Additionally, inventory totals could be manually altered by staff, either at the RV Park or Administration, effectively overriding the system’s controls. Management’s commitment to developing and documenting comprehensive procedures is expected to mitigate these control gaps, regardless of the amount of revenue collected. 3. Revenue Transfer Practices: Handing over collected revenues from staff to the supervisor without mutual agreement is concerning, particularly because it is unrelated to reconciliation processes or shift balancing. When transferring money from one person to another, both parties should jointly recount the funds to ensure accuracy. This process helps prevent disagreements and ensures that any discrepancies are immediately identified and resolved. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 16 of 18 5. Appendix A: Objective, Scope, and Methodology 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. The audit included limited procedures to understand the systems of internal control around revenues. 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. Objectives and Scope Objectives included: 1. Review of internal controls for cash handling with the Recreational Vehicle Park as outlined in County Finance Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 17 of 18 policy for cash handling (F-7). Additionally, review management of any change cash, petty cash, receipts, credit cards, judgements, collections, and billings, as applicable. 2. Review performance reporting from County dashboard and compare measures to prior reporting. Test against Government Finance Officers Association standards. Request back-up materials supporting reported goals and measures. 3. Identify top five vendors for the agency. Verify audit clause, licensing requirements, current insurance record. Review payment methods for vendors. Test against County Policy for payments to suppliers (F-15). 4. Determine budgetary significance of grants for the agency. Review selected grant agreements. Test against County Policy for grant applications and administration (GA-20). 5. Use an Information security checklist to test information security controls. Check against standards in the Federal Information Security Controls Audit Manual. 6. Review safety committee meeting materials for compliance with Occupational Safety and Health Administration rules. Review any safety training records for regularity and compare them to active roster. Complete an Americans with Disabilities Act checklist. Test against County policy for Americans with Disabilities Act notice and grievance policy (GA-13). 7. Be aware of any issues with compliance with federal and state regulations and requirements, as may be applicable. Be aware of any opportunities for improvement. Scope and timing: The audit occurred in May through July 2024 and included all activities in Fiscal Year 2024. “Audit objectives” define the goals of the audit. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Page 18 of 18 Methodology Audit procedures included: • Interviewing staff about cash handling, information systems, purchasing, performance measurement, and physical security and safety. • Reviewing documents provided including policies and procedures, performance measures, vendor contracts, and purchasing card documentation. 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.) Audit procedures are created to address the audit objectives. Fair and Expo Center Recreational Vehicle Park Integrated Audit #23/24-20 Aug 2024 Deschutes County Office of the Internal Auditor Please take a survey on this report by clicking this link: https://forms.office.com/g/FCeUNxKVBC Or use this QR Code: 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.