HomeMy WebLinkAbout0809-12 Global follow-up report (6-15-09)Global Follow-up report #08/09-12 June 2009
GLOBAL FOLLOW-UP REPORT
Outstanding recommendations–
Finance, Extension & 4H, CCF, Fair & Expo,
ABHA, Adult Parole & Probation
Deschutes County,
Oregon
David Givans, CPA, CIA
Deschutes County Internal Auditor
1300 NW Wall St
Bend, OR 97701
(541) 330-4674
davidg@co.deschutes.or.us
Audit committee:
Jade Mayer, Chair
James Kerfoot
Greg Quesnel
Michael Shadrach
Dennis Luke
Tom Anderson
Scot Langton
Global Follow-up report #08/09-12 June 2009
TABLE OF
CONTENTS:
1. INTRODUCTION
1.1. Background ………………………………………...………………........ 1
1.2. Objectives & Scope ……………………………………..……………… 1
1.3. Methodology ……………………………………………………..……… 2
2. OVERVIEW of FOLLOW-UP RESULTS ………………………….….... 2-3
APPENDIX I – Current status by audit report and recommendation …....… 4-12
Global Follow-up report #08/09-12 June 2009
Page 1
1. Introduction
1.1 BACKGROUND
Audit Authority:
The Deschutes County Audit Committee has suggested that follow-ups occur within nine months of
the reports. The Audit Committee’s would like to make sure departments satisfactorily address
recommendations. This is the first global follow-up looking back to unresolved recommendations in
prior follow-ups.
1.2 OBJECTIVES and SCOPE
Objectives:
The objective was to follow-up on previously incomplete recommendations.
Scope:
This global follow-up included reports with incomplete recommendations that did not have a follow-
up report completed in approximately a year. Status was determined through discussions with
departments in April through June 2009. Some delay in issuance was encountered due to this effort
being made during budget season.
The following audit reports were covered in this report.
Department
Report
#
Date
Report
Issued
Initial
Follow-up
Report#
Initial
Follow-up
Date
# Recommendations
Followed up
Finance 04/05-5 2/2005 05/06-6 1/2006 6
Ext & 4H 04/05-8 7/2005 05/06-8 4/2006 1
CCF 04/05-9 7/2005 05/06-10 7/2006 6
County Fair 05/06-2 11/2005 05/06-9 6/2006 7
ABHA 06/07-2 11/2006 07/08-5 9/2007 7
Fair & Expo 06/07-5 3/2007 07/08-8 1/2008 7
AP&P 06/07-12 6/2008 08/09-6 10/2008 3
Total # of recommendations in follow-up 37
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Page 2
1.3 METHODOLOGY
The follow-up report was developed from information provided by appropriate staff in the associated
departments. The follow-up is, 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.
Since no substantive audit work was performed, Government Auditing Standards issued by the
Comptroller General of the United States were not followed.
2. Overview of
Follow-up
Results
The original reports should be referenced for the findings and associated recommendations. A
detailed listing of all of the recommendations followed up on and their status in included at the end
of the report in Appendix I.
The Audit committee has also recommended that Internal audit categorize and highlight any
significant recommendations that have not been addressed. Internal audit does not believe any of
these yet incomplete recommendations would be characterized as significant. Internal audit is
working on developing a scale for categorizing the level of recommendations made.
The follow-up included 37 recommendations made over the various reports. The follow-up indicates
31 of these (or 84%) have been completed. Some of the departments have 1 or 2
recommendations that require additional work. It is not unexpected that implementation takes time,
but the idea would be to have these incomplete recommendations resolved as soon as practicable.
Figure I provides a breakdown of the status of these recommendations.
Global Follow-up report #08/09-12 June 2009
Page 3
Figure I -
How were
recommendations
implemented?
4
1
4
7 7 7
1
2 2
2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FINANCE /
#04/05-5 / Cash
controls
EXT & 4H /
#04/05-8 / Cash
controls
CCF / #04/05-9
/ Organization
review
County Fair /
#05/06-2 / Cash
controls
ABHA / #06/07-
2 / Internal
controls
Fair & Expo /
#06/07-5 / Cash
handling and
business
practices
AP&P / #06/07-
12 / Cash
handling
Dept / Audit# / Topic
%
c
o
m
p
o
s
i
t
i
o
n
Completed Underway
Global Follow-up report #08/09-12 June 2009
Page 4
APPENDIX I Current status by audit report and recommendation
Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
FINANCE #04/05-5 Cash controls (Finance/Tax/Treasury/Investment) (Last Follow-up 1/06)
1 It is recommended that reports be developed
which list unusual or exception type transactions.
This includes reversals by other users, changes to
the tax collection system, utilizing transaction
dates other than the current date, etc... These
reports along with supporting documentation
should be reviewed by the Finance Director.
X DONE -
This report has been completed.
Finance's procedure will be for the
accounting manager to be
responsible to review these
transactions on a quarterly basis.
8 It is recommended Finance develop a sufficient
business continuity plan in the event they loose
access to computers and software for an extended
period of time. This includes obtaining
prenumbered forms imprinted with the County’s
name and department for use on these occasions.
These forms should be in duplicate.
X DONE -
Finance has provided their business
continuity plan, which includes
restoring the primary County
financial system (HTE).
9 It is recommended Finance staff document its
accounting policies and procedures. The
procedures should emphasize the areas of
monitoring, supervision and segregation of duties.
These policies and procedures should be available
to all employees and should include, in detail, the
responsibilities of each employee. Operating
departments should be informed, in writing, of the
duties they should perform to provide effective
control over their deposits and expenditures.
X Project is underway. Some
additional documentation is needed
from the accounting manager,
which is expected to be completed
by June 30, 2009.
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Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
10 It is recommended non Finance staff should not
have routine access to Finance work areas unless
specifically approved by Finance. Building
services and IT staff access should be limited to a
smaller roster of staff.
X DONE
11 It is recommended Finance work with Risk
management to enhance physical controls over the
front desk areas. These might include some
combination of glass barrier, surveillance, and/or
alarm system. In responding to this
recommendation, Finance will have to weigh the
benefits of customer access, communication and
staff safety to develop a meaningful solution.
X Currently working with Risk
management to identify how best to
address needs for department and
facility.
25 It is recommended, based on discussion with
County legal counsel, that Finance develop an
agreement to be signed by taxing districts and
other entities posting monies with the County,
authorizing their investments to be subject to
County investment policies, which includes
assessment of the fee.
X DONE -
Finance is no longer investing funds
for outside taxing districts.
Count 4 2 -
EXTENSION & 4H #04/05-8 Cash controls (Last Follow-up 4/06)
22 It is recommended a supervisor periodically
reconcile deposits to registration information
entered.
X DONE
Count 1 - -
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Page 6
Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
CCF (Commission on Children and Families) #04/05-9 Organization review (Last Follow-up 7/06)
1 Deschutes County CCF should consider options in
developing a performance measurement system to
meet their local Commission's needs. This would
allow direct review of accomplishments based on
the CCF Commission’s stated priorities.
X DONE -
a) State outcome measures estab. &
implemented July '08;
b) Working w/Administration and
MH & Scott Johnson to re-write
County outcome measures with
effort to align with state
performance measures
4 Director might want to consider having staff track
time by identified areas (such as projects or
priorities) with sufficient detail so they may
appropriately prioritize and allocate their resources
X Need assistance - uncertainties with
current org structure due to funding
cuts.
7 Does CCF have existing staff with training to
comply with A&D70 after the departure of the
current program manager?
X DONE –
Both Staff involved have completed
necessary course work and have
applied for certification (Jan. 2009)
10 CCF Commission/Governing board should re-visit
priorities and how they utilize staff and determine
what agencies to fund. Is it possible to do more
with volunteers or outsourcing?
X DONE –
Implementation of Action Team
structure has resulted in ~25% or
more increase in board/volunteer
participation in efforts. Board
members taking on more functions
historically done by staff (i.e. letters
to the editor and other support
letters, contacts, researching
specific bills or practices,
community engagement, etc.)
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Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
13 Consider whether other departments could better
supervise and manage grants and associated staff.
This would shift indirects and operational costs to
other departments but would reduce burden of
supervision on director of CCF.
X Several options have been
considered and continue to be
discussed but none have been found
to be feasible at this time. Currently
working with Scott Johnson to
explore admin support functions
14 The County should consider developing an
indirect costs plan to recover indirect costs from
federal grant sources.
X Need assistance - something county
needs to do as an entity, not
something CCF can do on it's own.
{IA - County has previously decided
to not explore this but that may
change down the road -Consider
completed}
Count 4 2 -
Fair & Expo Center #05/06-2 County fair - cash controls (Last Follow-up 6/06)
7 It is recommended for Fair management to
consider alternative ticket machines that could
control all forms of tickets and utilize tendered
money information to provide change amounts.
X DONE –
Addressed through how season
tickets are issued. New practices
are working much better, always
looking at new technology.
9 It is recommended that Fair management/Finance
consider a method to assure monies taken from
ticket sellers are controlled until they are counted
and deposited.
X DONE
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Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
9.1 The best form of control is to have dual custody of
all receipts from ticket booths and count the
monies before they are placed in the safe.
X DONE
9.2 Another option is for ticket sellers to maintain a
log to account for the tamperproof bags used to
transport monies. The log will include the date;
time; full name of seller and money taker;
tamperproof bag# used in pickup; and sellers and
money takers
X DONE
12 It is recommended that Fair management (in
consultation with Finance prepare an updated
resolution for County Fair change funds. It would
need to be updated to reflect the appropriate
amount (or range of appropriate amounts) of
change funds to be used.
X DONE
13.1 By utilizing daily funds collected to make change
this will reduce the pressure to have additional
change funds to handle the needs of the ticket
booths.
X DONE
14 It is recommended that Finance monitor change
fund issuance with approved resolutions.
X DONE
Count
7 - -
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Page 9
Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
ABHA (Accountable Behavioral Health Alliance) #06/07-2 Internal controls (Last Follow-up 9/07)
5 It is recommended that ABHA staff document
their accounting policies and procedures.
X DONE -
We have revised or created a
number of policies and procedures
per the findings of the DC audit.
We are confident that we are in
good shape. That said, when the
current Financial Manager leaves
ABHA in a month or two and hands
off the documentation of her
procedures to her replacement, we
will assess if there any remaining
gaps of significance.
7 It is recommended that the account require dual
signatures. If dual signatures are not possible, in
specific circumstances, a subsequent review and
sign-off of the disbursements by one of the
authorized co-signers could be done.
X DONE -
We have done the latter.
9 It is recommended that ABHA consider providing
additional object categories to provide useful
accounting information for monitoring travel and
meals costs. It is recommended that supplies be
separated from other type of operating expenses.
X DONE
10 It is recommended that ABHA review their chart
of accounts to make sure they are gathering
appropriate accounting information.
X DONE
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Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
11 It is recommended that expenditures from the
corporate credit card or employee reimbursements
include sufficient evidence to support the
expenditure.
X DONE -
The ABHA Expense
Reimbursement Policy has been
completely rewritten.
12 It is recommended that ABHA consider using a
separate trust fund account for these receipts
X DONE -
We have a completely new credit
card set of accounts that accomplish
this goal….and more.
13 It is recommended that staff discuss these specific
types of expenditures with their accountant or
independent auditor to determine the proper
matching of the expenditure with the period.
X DONE
Count
7 - -
Fair & Expo #06/07-5 Cash handling and business practices (Last Follow-up 1/08)
11 It is recommended the Concessionaire (as
provided for in the contract) provide an annual
marketing plan where they identify the anticipated
marketing and expenses for attracting events to the
Fair & Expo.
X DONE -
Receive every March
12 It is recommended on a quarterly basis they
provide details of the expenses and an accounting,
which compares spending to the Plan and 1% of
gross revenues. In cases where there is under
spending, the amounts under spent should be
carried forward to the next years marketing plan.
X DONE
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Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
13 It is recommended the Department more fully
develop their written policies and procedures
governing their business operations.
X DONE -
Ongoing
17 It is recommended the Fair & Expo management
develop a replacement reserve plan, which would
include assessing the nature, timing and cost of
needed replacements and significant maintenance
over a span of fifteen or more years. This will
allow them to address this in their cost of services
or through a separate funding mechanism that will
match with those needs.
X DONE
19.5 Consider more consistent reporting into the
County system to make reconciliation easier.
X DONE -
Ongoing
21 It is recommended that Fair & Expo management
monitor the level of discounts they are giving to
make sure they are adequately compensated on the
facility and on the kitchen concessions when
looking at total revenues.
X DONE
27 It is recommended the Department review the
amount of petty cash and change cash needed for
normal operations and prepare a resolution
documenting the amount for each of these and the
need for these monies. It is recommended the
department round the cash amount needed to the
nearest hundred dollars.
X DONE
Count 7 -
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Status
Rec
#
Recommendation text
Completed
Underway
Planned
Auditee - status comments
Adult Parole & Probation #06/07-12 Cash handling (Last Follow-up 10/08)
3 Develop written policies and procedures
addressing cash-handling and billing environment
X Working on.
4 Develop a process to make more timely deposits -
Investigate sharing the bank deposit duties with
nearby departments (Sheriff and Juvenile) and
placing monies in tamperproof bank bags to secure
while being transported.
X DONE
8 Work with County Finance to establish the proper
accounting and presentation of receivable balances
for the County financial statements.
X Working on.
Count 1 2 -
COUNT TOTAL 31 6 -
{END OF REPORT}