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HomeMy WebLinkAboutF0114 RV park integrated audit PUBLISHED 6-16-25To request this information in an alternate format, please call (541) 330- 4674 or send email to internal.audit@Deschutes.org Recreational Vehicle Integrated Audit Follow-up: No future performance reporting. Slow start to implementing recommendations to reduce financial risk and improve compliance. June 2025 Our 2024 audit of the Recreational Vehicle Park found areas for improvement related to cash handling, information security, performance reporting, and website accessibility. Nine months later, staff made little progress but were still committed to improvements. They were starting work with the Finance Department to assess risk and implement new procedures. They were also planning to upgrade the website. Management chose not to implement the recommendation to improve Park performance reporting. Deschutes County Office of the Internal Auditor Page 1 of 4 Audit Follow-up Report: June 2025 Recreational Vehicle Park Integrated Audit Recommendation Status Key: Initial finding: 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. Recommendation: Fair and Expo Center management should conduct a fraud risk assessment for the Recreational Vehicle Park and document outcomes. Update: Fair and Expo Center management reported that they are working with the Finance Department to strengthen internal controls and fiscal transparency. The work will include onsite observations and evaluations. Initial finding: Management did not complete comprehensive accounting procedures to adequately provide effective control, supervision, and adherence during the implementation of new procedures at the Park. 0 Resolved 4 In Process 1 Accept Risk Management addressed risk. Auditors will no longer monitor. Recommendations are in progress. Auditors will continue to monitor. Management accepted the risk of not implementing the recommendation. Working with Finance to assess fraud risks. Plans to update cash handling procedures. Deschutes County Office of the Internal Auditor Page 2 of 4 Audit Follow-up Report: June 2025 Recreational Vehicle Park Integrated Audit Recommendation: Fair and Expo management should incorporate fraud risk assessment results into updated cash handling updated for the Recreational Vehicle Park. Update: Fair and Expo Center management reported that they are working with the Finance Department to strengthen internal controls and fiscal transparency. Following completion of the work, management will update written cash handling procedures to align with best practices and reinforce the commitment to strong fiscal stewardship. Initial finding: As new information systems were implemented, Management did not establish procedures to address information security. Initially, management had broad permissions for system evaluation and process creation. However, these permissions should have been redistributed among staff once the system was operational to mitigate risks associated with concentrated duties. Recommendation: Fair and Expo management should incorporate the fraud risk assessment results into information security procedures for the Park reservation system. Update: Fair and Expo Center management reported that they are working with the Finance Department to strengthen internal controls and fiscal transparency. Following completion of the work, management will update information security procedures to align with best practices and reinforce the commitment to strong fiscal stewardship. Information security procedure updates planned. Deschutes County Office of the Internal Auditor Page 3 of 4 Audit Follow-up Report: June 2025 Recreational Vehicle Park Integrated Audit Initial finding: The Park website may not meet Americans with Disabilities Act compliance requirements. Recommendation: 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. Update: Fair and Expo management reported that they have conducted an initial review of their website and are working on improvements and have implemented some changes. They also reported planning to work with an outside web development contractor on a complete rebuild of their website which will prioritize accessibility and user experience for all users, including those with disabilities. Initial finding: Performance measures play a crucial role in guiding decisions, fostering improvement, and enhancing understanding. Less than favorable outcomes can lead to evaluations that identify root causes and solutions. Recreational Vehicle Park performance reporting 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." Recommendation: Fair and Expo management should establish and report on performance measures for the Recreational Vehicle Park. Working towards website compliance with Americans with Disabilities Act. No future reporting on Recreational Vehicle Park performance. Deschutes County Office of the Internal Auditor Page 4 of 4 Audit Follow-up Report: June 2025 Recreational Vehicle Park Integrated Audit Update: Management decided not to establish performance measures for the Park. Instead of providing more concrete performance measures for the Recreational Vehicle Park, management chose to incorporate park measures into aggregate reporting for the Fair and Expo Center. Without specific performance measures, management and oversight bodies will have less information available to guide decision-making and proactively identify problems. Conclusion and Next Steps We will continue to report on the status of in process audit recommendations in our Global Follow-up Report at the end of each calendar year. Deschutes County Office of the Internal Auditor Audit Follow-up Report: County Legal Integrated Audit The mission of the Office of Internal Audit is to improve the performance of Deschutes County government and to provide accountability to residents. We examine and evaluate the effectiveness, efficiency, and equity of operations through an objective, disciplined, and systematic approach. The Office of Internal Audit: Audit committee: Elizabeth Pape – County Internal Auditor Daryl Parrish, Chair – Public member Susan DeJoode – Performance Auditor Phil Anderson – Public member Jodi Burch – Public member Phone: 541-330-4674 Joe Healy – Public member Email: internal.audit@deschutes.org Summer Sears – Public member Web: www.deschutes.org/auditor Kristin Toney – Public member Patti Adair, County Commissioner Charles Fadeley, Justice of the Peace Lee Randall, Facilities Director 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.