HomeMy WebLinkAbout2025 Global Follow-up report (PUBLISHED 12-18-25)2025 Global Follow-up December 2025
Audit Report
2025 Global Follow-up and
Annual Report
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or send email to internal.audit@Deschutes.org
2025 Global Follow-up December 2025
Table of Contents
1. Introduction ....................................................................................... 1
Office Mission and Goals ............................................................................................. 1
2. Annual Report .................................................................................... 2
Reports Issued in 2025 ................................................................................................ 2
Performance Metrics .................................................................................................... 3
Informational Metrics .................................................................................................. 6
3. Global Follow-Up ................................................................................ 8
Appendix A: Authority, Objective, Scope, and Methodology ............ 11
Audit Authority ............................................................................................................ 11
Objective and Scope ................................................................................................... 12
Methodology ............................................................................................................... 12
Appendix B: Global Update Details ....................................................... 13
2025 Global Follow-up December 2025
2025 Global Follow-up Executive Summary
The Global Follow-up includes recommendations from all audits published over
the last four years as well as recommendations from older audits that still have
outstanding recommendations. The analysis includes 37 audit reports comprising
210 recommendations. This report emphasizes the County’s achievements made
thus far and identifies areas requiring further attention. The table below
summarizes the status of those audit reports.
Resolved In Process Accept Risk
Management addressed risk.
Auditor will no longer monitor
Recommendations are in
progress. Auditor will continue
to monitor.
Management accepted the risk
of not implementing the
recommendation.
Audits that were published prior to the four-year look back but still have
outstanding recommendations are noted with “4+”. Audits with all
recommendations implemented are noted with a star.
Audit Report Summary
Human
Resources Cash
Handling (2019)
Our 2019 audit found the Department performed well overall in
providing fiscal controls over collected revenues.
Recommendations included additional controls to safeguard
petty cash, better safekeeping of monies through to deposit,
and additional oversight procedures over billings and collection
systems. At the time of the 2025 update, most cash handling
risks were resolved, but the department was working to use the
County system for receipts.
13 1 0
Cellular Costs
(2020)
Our 2020 audit of cellular charges revealed a number of
underutilized phones and devices with estimated costs of $44
thousand per year. Some employees had an assigned device
while receiving a stipend to compensate for official use on a
personal device. Five years after the report, recommendations
to update policy and improve monitoring were drafted but still
pending approval by the Board of County Commissioners.
6 3 0
Munis
Purchasing
Topics Part III -
Purchasing
Cards (2021)
For the calendar year 2020, County employees spent $1.3
million through 2,595 purchase card transactions. A random
sample indicated approximately seven percent of transactions
did not have adequate backup documentation. At the time of
the 2025 Global report, staff selected a new vendor and
updated policies but were still updating approval forms and
invoice entry instructions.
3 2 0
4+
4+
4+
2025 Global Follow-up December 2025
Audit Report Summary
Clerk's Office
Transition
(2021)
Our 2021 audit found that the Office performed well in fiscal
controls, but monitoring was needed for contract renewals and
access controls. The Clerk had yet to implement security
recommendations provided by an outside consultant. At the
2025 Global update, the Clerk had improved Office security
measures but still had not improved contract monitoring.
7 2 0
Munis
Purchasing
Topics Part IV –
Analyses (2021)
A 2021 audit of the new accounting system found risks for
duplicate payments, bulk approvals limiting oversight, and
unusual activity around three-way matches. Recommendations
related to guidance and training were implemented and
strengthened the financial system. Despite anticipated
recommendation resolution in the summer of 2025, staff
turnover prevented development of an automatic report to
assess bulk approvals.
9 1 0
Management of
Pandemic Case
Investigation
and Contact
Tracing (2022)
Our 2022 audit of pandemic contract tracing found that Health
Services performed well compared to peer counties. However,
the County needed to improve management of temporary staff
including updating the service contract with improved terms
and providing regular performance review to staff based on
metrics related to their assigned tasks. As was the case last
year, limited Human Resources staffing has delayed
implementation of these recommendations.
0 4 1
Adult Parole
and Probation -
Cash Handling
(2022)
Our 2022 audit of Adult Parole and Probation found robust
controls which were adequate for infrequent client payments
but recommended eliminating the petty cash fund because
purchasing cards could perform the same function with better
security and efficiency. The petty cash fund was eliminated at
the time of the follow-up.
1 0 0
Administrative
Services & Risk
- Cash handling
(2022)
Administrative Services and Risk Management's cash handling
audit highlighted strong fiscal controls over limited customer
payments. Recommendations include centralizing check
processing with Risk Management, increasing liquor license
fees, and leveraging electronic systems for state license
applicants to improve efficiency. All recommendations were
implemented at the time of the follow-up.
3 0 0
4+
4+
2025 Global Follow-up December 2025
Audit Report Summary
Assessor's
Office Cash
Handling (2022)
The audit of the Assessor's Office identified inconsistent
controls over cash handling. Key issues included irregular
receipting, insufficient segregation of duties, delayed fund
turnovers, and inadequate reconciliation processes.
Recommendations included consolidating cash handling
procedures, providing proper employee training, and improving
accountability by using an independent review of financial
activities. All recommendations were implemented at the time
of the follow-up.
10 0 0
Initial
Cybersecurity
Assessment
(2022)
The initial cybersecurity assessment identified areas for
improvement in information technology infrastructure. Key
recommendations included maintaining an accurate inventory
of all enterprise assets, implementing secure configuration
processes for devices and software, and enhancing data
protection through encryption and access controls. The report
emphasized the need for regular updates and reviews across
these areas to bolster cybersecurity defenses.
Recommendations were implemented three years after the
initial audit report.
3 0 0
Justice Court
Cash Handling
(2022)
The audit of Deschutes County Justice Court cash handling
revealed effective fiscal controls, with well-documented
procedures. Recommendations included regular fiduciary and
collections account reconciliations. The Court utilizes third-party
collections, but discrepancies existed between court and agency
records. All recommendations were implemented at the time of
the follow-up.
2 0 0
Sheriff's Office
Cash Handling
(2022)
Our 2022 audit of cash handling at the Sheriff's Office found
good performance in control over receipts. However, a need for
improvements was noted related to cash collection, deposits,
and other practices. At the time of the 2025 update, staff
resolved the issues identified by strengthening internal control
systems, updating policies and procedures, and making timely
deposits.
3 0 0
Vacation and
Sick Leave
(2022)
Our 2022 audit of vacation and sick leave management found
controls were effective and working as intended. However,
some areas for improvement were noted including negative
leave balances, employees not using leave as required, and
accrual policies that were out of compliance with state law. At
the time of the 2024 update, staff were waiting for approval
from the Board on a draft policy to address most of the issues.
Other issues were on hold due to contract negotiations and a
new employee performance evaluation process led by Human
Resources.
6 4 0
2025 Global Follow-up December 2025
Audit Report Summary
District
Attorney
Transition
(2023)
The Elected District Attorney Transition report detailed the
handover of the office. Recommendations included establishing
a written transition plan, improving information technology
purchasing via county agreements, enforcing daily money
deposits, using the Munis system for financial management,
and completing policy updates to comply with state law. All
recommendations were implemented at the time of the follow-
up.
5 0 0
Personal
Information
Data Privacy-
Initial (2023)
The audit assessed handling of personal information privacy
and recommended assigning dedicated staff to oversee security
programs, updating technology for data communication,
reducing unnecessary data collection, and revising policy to
align with legislative changes. The audit found strong data
privacy practices, but highlighted improvements needed in
administrative safeguards and technology utilization to enhance
compliance and efficiency. Recommendations were
implemented two years after the report release.
4 0 0
Treasurer
Transition
(2023)
The Treasurer Transition report outlined recommendations for
improving the Deschutes County Treasurer's office functioning
due to the Chief Financial Officer's departure. Key
recommendations involved clarifying Treasurer duties,
documenting responsibilities, evaluating compensation,
appointing investment officers, and enhancing internal control
documents. The report stressed the importance of
collaboration between the County and the Treasurer to ensure
statutory responsibilities are met. All recommendations were
implemented at the time of the follow-up.
7 0 0
Finance/Tax -
Controls over
receipts (2023)
The audit of the Finance/Tax Department's receipt controls
recommended improving cash handling, reviewing redundant
bank accounts, resuming audits of transient room taxpayers,
and ensuring periodic review of property tax adjustments. The
Finance/Tax department was found to manage fiscal controls
well, but enhancements were suggested for accountability, daily
reconciliations, and policy updates. Staff updated procedures,
adopted procedures for monthly tax adjustments, and
eliminated the Tax Refund account at the time of the follow-up.
Staff contracted for an external transient room tax audit two
years after the report was issued.
4 0 0
2025 Global Follow-up December 2025
Audit Report Summary
Continuity of
Operations
Plans (2023)
Our 2023 audit of emergency planning found steps taken to
identify essential functions and consider critical operational
capacities. However, planning was hindered by data constraints
and a need for training to increase staff awareness and
understanding of procedures. At the time of the 2024 update,
most recommendations were resolved but the County had still
not resumed regular emergency planning exercises.
4 1 1
Behavioral
Health -
Processes
Improvement
(2023)
Our 2023 audit found that Behavioral Health used many
effective performance measures. However, there was room to
improve in areas such as measuring staff productivity and
clarifying expectations, accurately reflecting time spent on
direct care, and equitably distributing work among teams. At
the time of the 2025 update, staff had redistributed caseload,
improved staff training and oversight, and created report
templates to increase efficiency. Staff hired a consultant to
assist with developing productivity measures with anticipated
completion by early 2026.
7 2 0
District
Attorney's
Office Cash
Handling (2023)
The audit of the Deschutes County District Attorney's Office
cash handling revealed non-compliance with county policy on
smaller payments, exposing potential fraud risks. Issues
included infrequent deposits and lack of pre-numbered
receipts. Recommendations focus on updating procedures to
adhere to the county's cash handling policy, thereby reducing
opportunities for theft and enhancing internal controls.
Recommendations were implemented at the time of the follow-
up.
1 0 0
Facilities Cash
Handling (2023)
Our 2023 audit of Facilities cash handling found the department
performed well in control over receipts. Areas noted for further
improvement included updated procedures. The Facilities
Department documented written cash handling policies and
procedures at the time of the 2024 follow-up.
1 0 0
Property
Management
Cash Handling
(2023)
Our 2023 audit of Facilities and Property Management cash
handling found the departments performed well in control over
receipts. Areas noted for further improvement included
updated procedures and a process for identifying conflicts of
interest. At the time of the 2025 update, procedures had been
updated but Human Resources was still working to develop
countywide conflict of interest policies and procedures.
2 1 0
2025 Global Follow-up December 2025
Audit Report Summary
Overtime and
Compensatory
Time (2024)
Overtime expenses surged over 30% in Fiscal Year 2023
outpacing increases in overall personnel costs. As the County
increasingly depends on overtime to maintain the delivery of
quality services, the need for a strong control foundation
becomes more crucial. Finance began reporting overtime
regularly to the Board and improved information system
management. Human Resources continued to work on
centralizing overtime documentation and Administration was
refining policies.
4 4 0
Fair and Expo
Cash Handling
(2024)
As a money-making County enterprise, Fair and Expo has a
higher revenue-related risk-profile than other County
departments. Our 2024 audit found that Fair and Expo did not
have complete policies and procedures to ensure that revenue
due to the organization was received and deposited and had
not conducted assessments to document risks. At the time of
the follow-up, Fair and Expo planned to document a fraud risk
assessment and update fiscal procedures. Progress was made
on documentation of roles.
3 2 0
Wage Equity
(2024)
Our 2024 audit of wage equity found race and gender wage
gaps at the County. Nine months after the audit report, the
County was in the process of conducting an equal-pay analysis
with plans for completion by Spring of 2025. Human Resources
updated procedures for the equity review process and added
the process to the Supervisor Tool Kit but was waiting on advice
from consultants before proposing updates to personnel rules.
3 2 0
Custom
Developed
Software (2024)
Our 2024 audit of custom developed software found increasing
reliance on decentralized information technology without
robust governance, documentation, and oversight to mitigate
custom software development risks. Nine months later, the
Information Technology Department created a new policy to
guide software development across departments but additional
procedures to increase security, efficiency, and performance
were still in the planning stages.
2 11 0
Clerk's Office
Integrated
Audit (2024)
Our 2024 integrated audit of the Clerk’s Office found areas for
improvement related to cash handling, purchasing, information
systems, purchasing cards, and performance measurement.
Nine months later, the Office implemented information system
controls, secured the purchasing card, and committed to
improved measures. However, the Office still had not
conducted a fraud assessment to identify and resolve risky cash
handling practices or corrected discrepancies with County
procurement rules.
9 4 0
2025 Global Follow-up December 2025
Audit Report Summary
County Legal
Integrated
Audit (2024)
Our 2024 audit of the County Legal Department found areas for
improvement related to performance reporting and cash
handling. Nine months later, the Department conducted a fraud
risk assessment and updated procedures such as a new cash
handling policy with better segregation of duties. The
Department was still working on updating performance
measures to better describe what the Department does and
how well it does it.
2 1 0
Recreational
Vehicle Park
Integrated
Audit (2024)
The 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.
0 4 1
Courthouse
Pre-
Construction
Management
(2024)
Our 2024 audit of the Courthouse pre-construction phase
highlighted both strengths and areas for improvement in the
Facilities Department’s approach to managing capital
construction projects. Nine months later, the Department was
in a better position to ensure that large projects are delivered
on schedule and on budget. The Department developed a
Construction Manual with improved practices for risk
assessment and oversight. It also took steps towards improving
construction manager/general contractor contract language to
hold contractors accountable and control costs.
3 0 0
Health Benefits
Program (2024)
Our 2024 audit of health benefits raised questions about rising
costs, data security, and payment accuracy. Nine months later,
the County has made progress by revising financial models but
continues to work on performance reporting and procedures.
Even after a data mishap led to the inadvertent sharing of
personal health records with Deschutes County auditors,
management opted not to require contractors to report on
their internal controls.
1 3 2
2025 Global Follow-up December 2025
Audit Report Summary
Public Health
Integrated
Audit (2024)
Our 2024 audit of Public Health found compliance with
procurement policies, grant requirements, and safety meeting
standards. However, several areas presented risks to
operational efficiency, transparency, and accountability. Nine
months later, the Department emphasized the importance of
annual employee evaluations with supervisors but was still
working to update cash control procedures and performance
reporting. Staff committed to reporting Human Resources data
errors that impacted operations but not to tracking and
reporting data about errors.
1 4 1
Language
Access (2025)
Our 2025 audit of the language access program found unclear
guidance and procedures around language access services that
led to confusion and inconsistency. Though the County
provided language access services there was some risk of
noncompliance with federal law. Nine months later,
Administration assigned responsibility for the program to Risk
Management but was still working to update the Civil Rights Act
policy to include language access, create a plan for improving
language access, and implement procedures across the County
to ensure staff complied with policy.
1 4 0
Elected Sheriff
Transition
(2025)
Our Office traditionally performs a basic survey level audit
whenever an elected department head leaves office. The
outgoing sheriff’s transition plan exceeded legal requirements,
aiding leadership change. Statutory obligations were met,
access controls were enforced, and county assets were
returned. However, auditors identified some fiscal issues
including procurement practices, financial reporting, and
revenue controls.
0 5 0
Fair Alcohol
Sales (2025)
County fair alcohol sales program changes, from a fully in-
house model to a partnership model with an outside
Contractor, prompted a review of the new model to determine
whether alcohol sales were cost effective. We found mixed
results with higher alcohol sales and net profits in 2024 but a
lower return on sales. We also found that the partnership
model was a patchwork of in-house and concessionaire
programs where roles and responsibilities were not clear and
introduced loss of cash and inventory risks.
0 3 0
2025 Global Follow-up December 2025
Audit Report Summary
Clerk's Office
Elections (2025)
Overall, we found controls were working as intended. Voter rolls
were appropriately maintained, signatures were verified, and
staff properly interpreted voter intent. These observations
inspire trust in the Deschutes County election process.
However, we also found room for improvement in accessibility
both for people with physical disabilities and those needing
language assistance. Finally, the auditor could not draw
conclusions related to ballot counting software because the
Clerk refused to provide auditors with information about the
system's information security.
0 2 0
Sheriff's Office
Body and Auto
Cameras (2025)
The Sheriff's Office's body camera program had a solid
foundation but needed enhanced transparency. The program
was relatively new, and staff were continuing to evaluate and
implement lessons learned. The audit uncovered limited
accountability for supervisor monitoring and report availability.
Auditors were not permitted to review camera footage and so
could not verify footage was recorded and categorized in line
with policy which is crucial for the program to meet
accountability and operational goals. By improving information
system reporting capabilities and addressing challenges in
public records tracking and information security, the Sheriff's
Office can increase community trust and operational
effectiveness.
0 6 1
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 1 of 30
1. Introduction
This is the seventeenth annual global follow-up looking back at
recommendations included in prior follow-ups. The Office tracks
performance using key data points, such as:
• Reader survey satisfaction rate
• Audit duration
• Audit work schedule adherence
• Recommendation resolution rates
Additionally, other metrics, used primarily for annual risk
assessments, are included in this report for informational
purposes.
Office Mission and Goals
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.
Our goals are to:
1. Increase public trust in Deschutes County government.
2. Be a trusted advisor to Elected officials and County
management.
3. Create positive change in County government.
4. Strengthen team knowledge, skills, and fulfillment.
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2. Annual Report
Reports Issued in 2025
New Audit Reports
The Office released five
audit reports in 2025.
(10 performance audits
were issued in the prior
year.) Overall,
Management concurred
with 90 percent of
recommendations. One
of the two
recommendations
where Management
accepted risk was
moved to in process
during the follow-up
review.
Follow-up Audit Reports
The Office released nine
follow-up audit reports in
2025. (Five were issued in
the prior year.)
Management resolved 35
percent of
recommendations and
was in the process of
implementing 58 percent.
Management accepted
the risk of not
implementing 7 percent of
recommendations.
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Performance Metrics
Recommendation Resolution Rate
The percentage of audit recommendations that are agreed
upon and fully resolved serves as a key indicator of the
effectiveness and impact of audits on County operations. This
resolution rate reflects the County’s commitment to
implementing audit findings and improving its processes over
time. The Office aims to have 75 percent of recommendations
resolved within four years of the original report. The 2025 four-
year resolution rate was 66 percent, falling short of the target.
The four-year resolution rate in 2025 continued a trend of below
target resolution since 2022.
Reader Survey Satisfaction Rate
Each audit report includes a survey inviting the public and staff
to provide feedback. In addition to evaluating the report, the
public can also share comments or suggest topics for future
audits. This valuable communication channel enables the Office
to continuously assess and enhance the quality of its reports
and services.
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Reader satisfaction exceeds target value and historical levels.
Audit Duration
The duration of an audit is a key indicator of the Office’s
operational efficiency. Audit timelines vary significantly
depending on the scope, complexity, and risk level of the
subject being audited. Audit duration was higher than historic
average in 2025. This is most likely due to data access
challenges during the election and body and auto camera
audits.
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Audits in 2025 took more months to complete than historical
averages.
Audit Work Schedule Adherence
The Office Audit Work Schedule is developed every two years
following a comprehensive risk assessment process designed to
identify the most significant risks facing the County. This risk-
based approach ensures that the allocation of audit resources is
strategic, prioritizing areas that pose the greatest financial,
operational, or compliance risks. The schedule is aligned with
the County’s Fiscal Year, which begins each July 1st, and
provides a clear roadmap for planned audits during the two-
year cycle.
The ability to follow the Work Schedule closely reflects the
accuracy and reliability of the initial risk assessment process. A
well-executed schedule indicates that the risk assessment was
thorough and that planned audits adequately addressed the
most critical areas. Unplanned audits are an inevitable and
necessary part of the audit process, often triggered by new risks
or developments that were not foreseeable during the initial
planning phase, such as legislative changes, fraud
investigations, or issues raised by external stakeholders,
regulatory bodies, or the public.
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All the audits started in Fiscal Year 2025 were Planned. None
were Added or Started Late.
Informational Metrics
County Elected Offices and Departments Audit Coverage
Distributing audit activities throughout the County ensures that
risks are systematically identified, accountability is reinforced,
and opportunities for improvement are maximized. This
balanced allocation of resources ultimately strengthens the
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County's control environment and enhances its long-term
resilience. The Office hopes to engage each elected office or
department at least once every eight years.
The Office has not audited Solid Waste or Veteran Services
within the eight-year goal.
Office Staffing Ratio
An audit office’s ability to perform thorough, timely reviews is
directly tied to its staffing levels relative to the size of the
organization. An optimal ratio ensures the department has the
capacity to manage its workload effectively and identify risks in
a timely manner. The decrease in 2022 and increase in 2025 was
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due to an addition and reduction of audit staff and not a change
in County full-time equivalents.
Audit staff ratios decreased in 2022 with the addition of staff but
returned to historically high levels when the position was cut.
3. Global Follow-Up
The Office of County Internal Audit follows up on all
recommendations until resolution. Any unresolved
recommendations after the initial report and one-year follow-up
are included in the Global Follow-Up. Status updates and
commentary were requested from elected offices and
departments. Status updates were requested for all audits with
outstanding recommendations that were not either issued or
followed up on in 2025. Details of individual recommendation
statuses can be found in Appendix B.
Global Updates
In 2025, there were 35 recommendations included in the Global
Follow-Up. Responsibility for outstanding recommendations
included Administration, Clerk’s Office, Finance, Health Services,
Human Resources, and the Sheriff’s Office. Human Resources
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had the most outstanding recommendations, 11, and did not
make progress on any during the year. Finance resolved half of
outstanding recommendations and the Sheriff’s Office resolved
all recommendations. Health Services resolved two
recommendations but also accepted risk on a recommendation
to use performance metrics to evaluate temporary staff.
Administration implemented one recommendation.
Count of 2025 Outstanding Audit Recommendations with
Resolution Status.
Duration to resolution
The average time for recommendation implementation duration
was 1.3 years for recommendations issued since 2022.
Department/Office implementation ranged from one year to 3.5
years for the Sheriff’s Office. In most cases recommendations
extending beyond the average have been recently
implemented.
• The Sheriff’s Office average included recommendations
from a 2022 cash handling audit which were
implemented this year.
• Information Technology had a longer resolution duration
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due to recommendations implemented last year from a
2022 audit related to cyber security.
Average Years to Resolution by Department/Office
Resolution duration does not tell the whole story of a
department or office success in implementing
recommendations. Some departments have long outstanding
recommendations that if implemented would raise the average
implementation duration. The average age of in-process
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recommendations was 2.2 years, ranging from one year to four
years in the Finance Department. Finance Department
recommendations were related to a 2021 audit of enterprise
resource planning system implementation. Human Resources
recommendations were delayed by staff turnover.
Appendix A: Authority, Objective, Scope, and Methodology
Audit Authority
The Deschutes County Audit Committee has suggested that the
Office follows up on audit recommendations after reports are
issued. The Audit Committee would like to make sure
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departments satisfactorily address any prior recommendations
that have not been completed at the time of the initial or
subsequent follow-ups.
Objective and Scope
Objective:
The objective was to follow up on previously unresolved
recommendations.
Scope and timing:
This 2025 Global Follow-up included all reports issued with
unresolved recommendations.
Status was determined through information provided by elected
offices and departments in December 2025. The original
internal reports should be referenced for the full text of
recommendations and associated discussion. All internal audit
performance reports are published on the County website at
https://www.deschutes.org/administration/page/internal-audit-
reports.
Methodology
The follow-up report was developed from information provided
by appropriate staff in the associated offices and departments.
In cases where recommendations have not been implemented,
comments were sought for the reasons why and the timing for
addressing these. The 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
limited documentation. We did not repeat original audit
procedures.
Since no substantive audit work was performed, Government
Auditing Standards issued by the Comptroller General of the
United States were not followed.
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Appendix B: Global Update Details
Global Updates
Audit Title Summary
Cellular Costs
Resolved: 1
In Process: 3
Prior Resolved: 5
Accept Risk: 0
Our 2020 audit of cellular charges revealed a number of
underutilized phones and devices with estimated costs of $44
thousand per year. Some employees had an assigned device while
receiving a stipend to compensate for official use on a personal
device. Five years after the report, recommendations to update
policy and improve monitoring were drafted but still pending
approval by the Board of County Commissioners.
In Process
Finding: Analyses of cellular charges indicated a number of
underutilized phones and devices. Nine percent (9%) of phones
and twenty-two percent (22%) of devices had no usage in the last
three months of 2019. These underutilized services were
estimated to cost the County around $44 thousand per year.
Recommendation: The County should consider updating the Cell
Phone Policy to address management and expectations around
utilization. This would include monitoring and routine assessment
as to whether an employee truly needs the device/phone, what
services, and what plan best fits their intended usage.
Update: Staff drafted policy updates that include monitoring and
assessment. The Policy Advisory Committee, Department Heads,
and the Board have completed reviews. Updates will be shared
with unions in early 2026, which is necessary before policy
adoption.
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Global Updates
Audit Title Summary
In Process
Finding: County policies need to be updated for cellular
phones/devices.
Recommendation: It is recommended for the County to consider
updating policies regarding cellular devices to improve adherence
to policy, reduce costs, and reduce risks. The policy improvements
should consider addressing: relationship of stipend levels to the
cost of cellular phone services to the County; developing plan
selection criteria for business needs aligned with anticipated usage
to right size costs; developing legal and information technology
framework to assure that technologies, data, and security are
aligned and appropriate given the rise in new technologies and
software; criteria for selecting between employee phone (stipend)
and County owned phone; monitoring and modification of plan
levels (including elimination of devices) for actual usage below
anticipated; utilizing free devices and upgrades to maintain the
level of technology as well as getting credits for devices sold back;
stablishing when devices require mandatory applications and
restrictions from modification for protecting data; and addressing
applicability of policy to non-employee users.
Update: Staff drafted policy updates that address these issues.
The Policy Advisory Committee, Department Heads, and the Board
have completed reviews. Updates will be shared with unions in
early 2026, which is necessary before policy adoption.
Resolved
Finding: Cellular devices have the potential for providing
significant work efficiencies and productivity. However, there has
been no universal approach to how to safeguard County data and
information that can be accessed from outside device and
computers.
Recommendation: The County Should consider how to address
the risks that come with allowing mobile device access or external
computer access to internal County information and who and how
the risks will be mitigated.
Update: Staff said that this recommendation was resolved
through new controls implemented by the Information Technology
department.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 15 of 30
Global Updates
Audit Title Summary
In Process
Finding: County policies need to be updated for cellular
phones/devices.
Recommendation: The County should provide forms for cell
phone allowance be updated to reflect any updated policy
language.
Update: Staff have drafted new forms. The forms will be
implemented after the updated policy is adopted.
Human Resources
Cash Handling
Resolved: 0
In Process: 1
Prior Resolved: 13
Accept Risk: 0
Our 2020 audit found the Department performed well overall in
providing fiscal controls over collected revenues.
Recommendations included additional controls to safeguard petty
cash, better safekeeping of monies through to deposit, and
additional oversight procedures over billings and collection
systems. At the time of the 2025 update, most cash handling risks
were resolved, but the department was working to use County
system for receipts.
In Process
Finding: Human Resources did not use the County accounting
system (Munis) for receipting, billing or accounting. Munis
provides greater accountability and control over these
transactions. It also can provide workflow and oversight to some
of the transactions.
Recommendation: Human Resources should consider using
Munis to enter and provide receipts and bill and manage
receivables.
Update: Though Human Resources implemented a pilot program
in the Spring of 2024 to enter some receivables into Munis, staff
said the program has not been expanded to all receivable due to
staffing shortages. Staff said they monitor for issues and will revisit
the recommendation during the next budget cycle.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 16 of 30
Global Updates
Audit Title Summary
Munis Purchasing
Topics Part III –
Purchasing Cards
Resolved: 2
In Process: 2
Prior Resolved: 1
Accept Risk: 0
For the calendar year 2020, County employees spent $1.3 million
through 2,595 purchase card transactions. A random sample
indicated approximately seven percent of transactions did not
have adequate backup documentation. At the time of the 2025
global report, staff selected a new vendor and updated policies but
were still updating approval forms and invoice entry instructions.
In Process
Finding: A couple of invoices were identified as paid by normal
means and by payment card. In most of the cases, the vendor or
staff identified the duplicate and were able to get a credit for the
duplication. On entering purchasing card transactions staff do not
generally include the underlying invoice/reference number. The
transactions identified were relatively minor in dollar amount and
frequency.
Recommendation: It is recommended for cardholders to enter in
invoice/receipt numbers to help prevent duplicate payments.
Update: Finance contracted with a new purchasing card vendor
with a new documentation process. Finance will provide additional
staff training, including instructions to enter invoices, as the new
program rolls out starting in December 2025.
Resolved
Finding: There were anomalies in payment card issuance. There
were a couple of employees that had more than one procurement
card assigned to them. A contracted employee was assigned a
procurement card and at a level above most Department heads
signing authority. A number of departments are having
cardholders share their cards with other employees. In discussion
with the Bank, their preference is to have only the cardholder use
the payment card.
Recommendation: It is recommended the policy clarify whether
an employee can have more than one payment card assigned to
them; whether other employees can use the payment card; and
whether non-employees can be provided a payment card.
Update: The updated 2025 purchasing card policy improved on
the policy in place during the audit by prohibiting sharing of
individually assigned cards and creating a new department
purchasing card category with specific procedures. Finance
committed to switch out multiple cards assigned to individuals
with department cards as cards were replaced.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 17 of 30
Global Updates
Audit Title Summary
In Process
Finding: Finance has issued a $300 thousand and a $100
thousand monthly limit payment cards to Finance and Information
Technology, for the primary purposes of making payments on
large purchases or vendor balances for departments. As noted in
the prior report, the use of payment cards to make these
payments is to obtain the benefit of a 1.5% rebate on payment
card purchases.
Recommendation: It is recommended for the policy to address
deployment of these high-dollar P-Cards and procedures and
controls over their usage.
Update: The updated 2025 purchasing card policy referenced
policies for cards with high-dollar limits but the associated
approval forms were not implemented at the time of the follow-
up. Finance anticipated issuing new approval forms, including
justification for high-dollar limits, in December 2025.
Resolved
Finding: Observations with procurement cards suggest some
policy and procedure improvements.
Recommendation: It is recommended for the County to consider
the suggested policy improvements (recommendations 1-8) in an
updated policy and any associated changes to procedures.
Update: The Board of County Commissioners adopted an updated
purchasing card policy in October 2025. Finance worked with the
policy advisory committee to create a policy that addressed issues
identified in the audit.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 18 of 30
Global Updates
Audit Title Summary
Munis Purchasing
Topics Part IV -
Analyses
Resolved: 0
In Process: 1
Prior Resolved: 9
Accept Risk: 0
A 2020 audit of the new accounting system found risks for
duplicate payments, bulk approvals limiting oversight, and unusual
activity around three-way matches. Recommendations related to
guidance and training were implemented and strengthened the
financial system. Despite anticipated recommendation resolution
in the summer of 2025, staff turnover prevented development of
an automatic report to assess bulk approvals.
In Process
Finding: Approvers using bulk approvals may result in ineffective
oversight.
Recommendation: It is recommended for Finance to assess,
periodically, the usage of bulk approving and the impacts on the
purchasing workflow.
Update: Despite anticipated recommendation resolution in the
summer of 2025, staff turnover prevented development of an
automatic report to assess bulk approvals. However, Finance staff
said that they conducted ad hoc reviews.
Clerk's Office
Transition
Resolved: 0
In Process: 2
Prior Resolved: 7
Accept Risk: 0
Our 2021 audit found that the office performed well in fiscal
controls but that monitoring was needed for contract renewals
and access controls. The Clerk had yet to implement security
recommendations provided by an outside consultant. At the 2025
Global update, the Clerk had improved Office security measures,
but still had not improved contract monitoring.
In Process
Finding: The Clerk's Office has a couple of significant vendors that
could require contracts or contract renewals. The County Clerk
should review County Code 2.36 and 2.37 to make sure to address
for each vendor whether competitive bids are required and who
should approve. Currently, many of these contracts are paid
though individually approved invoices. Each is reviewed and
approved based on the value of the individual invoices.
Recommendation: It is recommended for the Clerk's Office
identify and proceed with developing contracts and contract
renewals with significant vendors.
Update: Clerk’s Office staff said that they have begun the process
of developing contracts with significant vendors.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 19 of 30
Global Updates
Audit Title Summary
In Process
Finding: The County financial system allows the entry of contracts,
which makes for a more efficient and effective process. This allows
any associated invoices to be paid without a secondary set of
approvals. Having these contracts entered in Munis allows tracking
of contract expiration dates; insurance; other terms; and gathering
appropriate authorizations based on the overall contract amount.
Recommendation: It is recommended the Clerk's Office enter any
contracts into the County financial system as contracts so that
effective approvals and contract management can occur.
Update: Clerk’s Office staff said that they would begin entering
new contracts into Munis.
Management of
Pandemic Case
Investigation and
Contact Tracing
Resolved: 0
In Process: 4
Prior Resolved: 0
Accept Risk: 1
Our 2022 audit of pandemic contract tracing found that Health
Services performed well compared to peer counties. However, the
County needed to improve management of temporary staff
including updating the service contract with improved terms and
providing regular performance review to staff based on metrics
related to their assigned tasks. As was the case last year, limited
Human Resources staffing has delayed implementation of these
recommendations.
In Process
Finding: The primary temporary labor vendor for the response to
the pandemic charged their highest margin (29.5%) on all Health
Service labor. It is not clear there was any negotiation for a lower
rate. This job type is not a higher risk category such as road crews.
The primary vendor with the increased margin (29.5% vs 25.5%)
was able to charge an additional $78 thousand on the $2.5 million
in temporary labor used by Health Services communicable disease
program (from December 2020-November 2021).
Recommendation: It is recommended for the County to develop a
new invitation to bid to cover the newer needs of the County for
temporary labor and address the handling of margin and concerns
noted above.
Update: A planned request for proposals for a new temporary
staffing contract continued to be delayed. Human Resources staff
said the delay was due to staffing shortages in the department.
Staff said they monitor for issues and will revisit the
recommendation during the next budget cycle.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 20 of 30
Global Updates
Audit Title Summary
In Process
Finding: The contract with primary vendor for temporary labor
was technically expired and the County has not reached out for
new bids. County Counsel thinks that an interim contract is
needed until new bids can be obtained.
Recommendation: It is recommended the current contract with
the primary vendor for temporary labor be extended out 12-18
months until an invitation to bid can be developed and issued.
Update: Though staff’s 2024 update indicated that a contract
extension had been drafted with plans for execution by January
2025, staff said the extension was delayed due to staffing
shortages in the department. Staff said they monitor for issues
and will revisit the recommendation during the next budget cycle.
In Process
Finding: Health Services was the primary recruiter for temporary
staff and the vendor did not recruit many staff to meet the needs
of the department. Human Resources performed the pre-service
screenings for new contracted staff. With the County taking over
some screening activities should the County be paying a higher
labor margin to the vendor? Are there ways to get credit with a
lower margin for the additional work that happens by the County?
Recommendation: It is recommended for the County to establish
more effective leadership and management of the temporary
labor contracts and how they are used by County departments.
They may want to consider a policy or procedures to address the
variety of human resource (HR) issues that come with using a
temporary workforce. This would include whether an in-house
labor pool could be developed and when departments should
consider contracted labor. Human Resources has indicated they
will be taking over efforts to work on the temporary labor request
for proposals / contracts.
Update: Human Resources committed to drafting guidelines, but
staff said the drafting was delayed due to staffing shortages in the
department. Staff said they monitor for issues and will revisit the
recommendation during the next budget cycle.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 21 of 30
Global Updates
Audit Title Summary
In Process
Finding: Generally, on call staff are supposed to receive
evaluations when they have reached a thousand hours and have
worked at least 12 months. A number of our temporary staff
would have reached these levels. However, there are no practices
in place to provide formal feedback and there does not appear
enough informal feedback.
Recommendation: It is recommended for the County (and Health
Services) consider what practices should be employed to provide
feedback (formal and informal and to what extent) to contracted
temporary staff working for the County.
Update: Human Resources said that guidance for providing
feedback for temporary staff would be addressed during a project
to update the County employee performance management
program. Staff said the project was delayed due to staffing
shortages in the department. Staff said they monitor for issues
and will revisit the recommendation during the next budget cycle.
Accept Risk
Finding: County staff did not obtain and did not look at the
performance down to a staff level to see how particular staff were
performing. Oversight staff periodically reviewed data quality
reports which can identify staff needing additional data entry
training. Granted this is a pandemic and resources and time are
limited for staff, but the use of metrics is a great way to monitor
and manage performance. It also can give information on whether
staffing levels are at the right level.
Recommendation: It is recommended for Health Services and the
County to consider using more metrics as they manage temporary
and remote staffing workloads (for case investigation and contact
tracing).
Update: The Behavioral Health Department deferred
responsibility for implementing this recommendation to Human
Resources. Using metrics to evaluate staff performance and
workload increases efficiency and effectiveness of County
programs.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 22 of 30
Global Updates
Audit Title Summary
Sheriff's Office Cash
Handling
Resolved: 3
In Process: 0
Prior Resolved: 0
Accept Risk: 0
Our 2022 audit of cash handling at the Sheriff's Office found good
performance in control over receipts. However a need for
improvements were noted related to cash collection, deposits,
and other practices. At the time of the 2025 update, staff resolved
the issues identified by strengthening internal control systems,
updating policies and procedures, and making timely deposits.
Resolved
Finding: Overall, the Sheriff’s Office performed well in providing
fiscal controls over collected monies. However, the
implementation of the cash handling control system was
inconsistent across all the divisions of the Sheriff’s Office creating
identified control gaps. Control gaps are potential vulnerabilities to
the effective stewardship of public resources.
Recommendation: It is recommended the Sheriff’s Office
strengthen the internal control system to better oversee all
payments they receive and periodically assess their operating
environment to assure the system is operating as intended.
Update: The Office Implemented most aspects of this
recommendation at the 2023 follow-up including eliminating staff
cash hand-offs, using a locked cash box, assigning responsibility
for cash to individuals, and endorsing checks. At the time of the
2025 Global Report, staff resolved the recommendation, saying
they were using the County’s financial system to document
payment receipt.
Resolved
Finding: Deposit activities are disparate among the divisions of
the Sheriff’s Office. The Corrections Division makes daily deposits
of collected monies to the bank, while other division’s deposits are
less frequent. Funds carried over daily increases the potential for
errors or irregularities to occur.
Recommendation: It is recommended the Sheriff’s Office develop
procedures to make more timely deposits.
Update: The Office Implemented most aspects of this
recommendation at the 2023 follow-up including consolidating
responsibility for deposits and options for electronic payments. At
the time of the 2025 Global Report, staff resolved the
recommendation, saying that cash associated with evidence was
deposited within a week according to policy.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 23 of 30
Global Updates
Audit Title Summary
Resolved
Finding: For appropriate design, implementation, and operating
effectiveness, internal control activities must be consistently
applied through established policies and procedures. Control
activities occur at all levels and functions of the Office. The Sheriff’s
Office had not developed policies and procedures to mitigate risks
associated with meeting the objectives of the Office in some areas.
Recommendation: It is recommended the Sheriff’s Office
implement additional control activities through policies and
procedures.
Update: The Office Implemented most aspects of this
recommendation at the 2023 follow-up including segregating
duties, reviewing deposit activity, and eliminating petty cash. At
the time of the 2025 Global Report, staff resolved the
recommendation by entering the regional drug enforcement
team’s bank statements into the County financial system.
Vacation and Sick
Leave
Resolved: 1
In Process: 4
Prior Resolved: 5
Accept Risk: 0
Our 2022 audit of vacation and sick leave management found
controls were effective and working as intended. However some
areas for improvement were noted including negative leave
balances, employees not using leave as required, and accrual
policies that were out of compliance with state law. At the time of
the 2024 update, staff were waiting for approval from the Board
on a draft policy to address most of the issues. Other issues were
on hold due to contract negotiations and a new employee
performance evaluation process led by Human Resources.
Resolved
Finding: Vacation and sick leave maximum balances are
inconsistently enforced.
Recommendation: It is recommended Human Resources and
Payroll establish secondary review processes for employee leave
balance limit calculations and adjustments.
Update: Payroll implemented a new procedure that involves
running a report of forfeited hours, or hours rolled into the sick
leave bank, and reconciling the amounts to a report from Human
Resources.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 24 of 30
Global Updates
Audit Title Summary
In Process
Finding: Employees are not using sufficient vacation leave as
directed by policy.
Recommendation: It is recommended the County develop a
process to support supervisors in monitoring employees’ use of
vacation leave in compliance with policy.
Update: Human Resources staff said that attendance
expectations would be added to the employee evaluation form
during the project to update the County employee performance
management program. Staff said the project was delayed due to
staffing shortages in the department. Staff said they monitor for
issues and will revisit the recommendation during the next budget
cycle.
In Process
Finding: County policy for leave accrual timing not in conformance
with Oregon law.
Recommendation: It is recommended the County revise leave
policy HR-16 to be in conformance with State law.
Update: The Human Resources 2024 update indicated that
updated policy language had been drafted and was waiting for
review by the policy advisory committee in December 2024. A year
later, staff said the policy was delayed due to staffing shortages in
the department. Staff said they monitor for issues and will revisit
the recommendation during the next budget cycle.
In Process
Finding: County policies and collective bargaining agreements
need to be updated to match current practice for maximum
vacation and sick leave timing.
Recommendation: It is recommended the County update policy
and collective bargaining agreement language to align with
practice.
Update: The County updated bargaining agreements to align
timing for leave balances in contracts with practice. The
department was still working to update the policy for non-
represented employees.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 25 of 30
Global Updates
Audit Title Summary
In Process
Finding: Cash out election provisions of time management leave
may accelerate employee taxable income.
Recommendation: It is recommended for the County to consider
adjustments to the leave cash out policies to further address
constructive receipt.
Update: Human Resources and Finance have determined an
annual process for vacation sellback which addresses constructive
receipt. Implementation was scheduled to occur in time for 2026
vacation sellback activities, but Human Resources was not able to
provide an update due to staff capacity.
Continuity of
Operations Plans
Resolved: 0
In Process: 1
Prior Resolved: 4
Accept Risk: 1
Our 2023 audit of emergency planning found steps taken to
identify essential functions and consider critical operational
capacities. However, planning was hindered by data constraints
and a need for training to increase staff awareness and
understanding of procedures. At the time of the 2024 update,
most recommendations were resolved but the County had still not
resumed regular emergency planning exercises.
In Process
Finding: The County canceled a planned all-office/ department
tabletop exercise in April 2020 and did not reschedule it after the
pandemic. Although the pandemic provided a real-world event to
improve preparedness effort, as of 2023, stand-alone exercises
have occurred only once in each office/ department.
Recommendation: It is recommended the County conduct
regular continuity of operations plan exercises and make
necessary improvements identified as weaknesses.
Update: Staff said that as departments update their continuity
plans, the County will conduct regular continuity of operations
exercises.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 26 of 30
Global Updates
Audit Title Summary
Behavioral Health -
Processes
Improvement
Resolved: 2
In Process: 2
Prior Resolved: 5
Accept Risk: 0
Our 2023 audit found that Behavioral Health used many effective
performance measures. However there was room to improve in
areas such as measuring staff productivity and clarifying
expectations, accurately reflecting time spent on direct care, and
equitably distributing work among teams. At the time of the 2025
update, staff had redistributed caseload, improved staff training
and oversight, and created report templates to increase
efficiencies. Staff hired a consultant to assist with developing
productivity measures with anticipated completion by early 2026.
In Process
Finding: The division set individual productivity targets for
clinicians based on their team and role. However, targets
determined by the service hour tool's calculated percentage
seemed to be low. For instance, crisis clinicians are expected to
spend over 30% of their time on client care. Despite the low target
threshold, 73% of all clinicians (including both efficiency and
output productivity) were not meeting their target as of February
2023. Conversations from supervisors and staff indicated
confusion about the division’s expectations, and there were no
consequences for employees who did not meet the target.
Recommendation: It is recommended Behavioral Health go
through the process to develop appropriate productivity measures
as well as clarify expectations for staff.
Update: The Health Department hired a consultant to assist with
developing productivity measures and expectations. They
anticipate the work will be complete in early 2026.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 27 of 30
Global Updates
Audit Title Summary
Resolved
Finding: Performance measures did not provide managers with a
complete picture of the efforts of clinicians. Several key data
points were missing or lacked sufficient controls ensuring
accuracy. For example, the division was not tracking time spent on
documenting client care. The service hour tool measure is
dependent on data from the electronic health records system to
measure efficiency, which was susceptible to several problems
including clinician discretion in reporting billable hours, delays in
data entry, and manual adjustments to data from other
information systems.
Recommendation: It is recommended Behavioral Health review
the accuracy of the data contributing to clinician workload
measures.
Update: The Health Department hired a consultant to assist with
reviewing the accuracy of data. Staff said that they reviewed data
including number of encounters per month, billed events, number
of new cases, and client tenure.
In Process
Finding: Conversations with clinical staff on some teams
suggested a perception of unequal distribution of cases within the
team. There were notable disparities in caseloads among four of
the eight teams, with some clinicians carrying double the number
of cases than others. The Intake and First Treatment Appointment
Procedure authorized team supervisors to modify case
distribution based on their own discretion to accommodate client
complexity or clinician feedback on caseload levels.
Recommendation: It is recommended Behavioral Health
strengthen the controls for first treatment appointment
assignment and client discharge.
Update: The Health Department hired a consultant to assist with
appointment assignment and discharge. They anticipate the work
will be complete in early 2026.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 28 of 30
Global Updates
Audit Title Summary
Resolved
Finding: Writing clinical notes from scratch significantly increases
the time and effort required to complete documentation.
Clinicians often must rely on their own initiative to discover
shortcuts for documenting into the health records system. Many
clinicians have created templates outside of the system, which
they must manually copy into the system, adding extra steps.
Recommendation: It is recommended Behavioral Health create a
comprehensive library of division-approved smart tools to
improve clinical documentation efficiency and provide training to
clinicians on how to use them.
Update: Behavioral Health staff created new smart phrases for
staff to increase efficiency. They also said that they created a new
note template.
Overtime and
Compensatory Time
Resolved: 0
In Process: 4
Prior Resolved: 4
Accept Risk: 0
Overtime expenses surged over 30% in Fiscal Year 2023 outpacing
increases in overall personnel costs. As the County increasingly
depends on overtime to maintain the delivery of quality services,
the need for a strong control foundation becomes more crucial.
Finance began reporting overtime regularly to the Board and
improved information system management. Human Resources
continued to work on centralizing overtime documentation and
Administration was refining policies.
In Process
Finding: Insufficient documentation regarding premium pay
decisions hinders transparency.
Rcommendation: The County should establish a centralized
documentation repository for all payroll decisions that grant
overtime compensation to exempt status employees.
Update: Human Resources was working to inventory and
document approved overtime status for exempt employees and
hoped to have the work complete by November 2024 . At the time
of the 2025 update staff reported that they had not completed the
project due to low staffing levels.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 29 of 30
Global Updates
Audit Title Summary
In Process
Finding: The County’s comp time expiration rule is confusing and
unnecessary. County policy mandates that employees use comp
time hours within 180 days after the overtime was earned for
some employees, however this language in the policy has not been
enforced. County policy and the various labor union agreements
also limit overall comp time leave balances for each employee,
ranging between 50-96 hours, which is enforced.
Rcommendation:
The County should determine if the 180-day mandate is still
relevant and adjust practices/revise policy based upon the
determination.
Update: Administrative staff have decided to remove the 180-day
requirement from policy but official adoption is still pending.
In Process
Finding: Comp time liability moves from one department to
another when an employee undergoes a departmental transfer.
The receiving department is then compelled to acknowledge leave
hours they did not initially authorize.
Rcommendation: The County should incorporate policies which
include payouts for comp leave balances in cases of departmental
transfer or promotion to exempt status.
Update: Staff drafted policy updates that include compensatory
time payouts at the time of transfer or promotion to exempt
status. The Policy Advisory Committee, Department Heads, and
the Board have completed reviews. Updates will be shared with
unions in early 2026, which is necessary before policy adoption.
In Process
Finding: Leave time granted to part-time employees does not
align with the Fair Labor Standards Act definition of comp time.
Rcommendation: The County should establish and document
comprehensive leave options and procedures specifically tailored
to part-time employees.
Update: Staff drafted policy updates that include guidelines for
part-time employees. The Policy Advisory Committee, Department
Heads, and the Board have completed reviews. Updates will be
shared with unions in early 2026, which is necessary before policy
adoption.
2025 Global Follow-up December 2025
Deschutes County Office of the Internal Auditor Page 30 of 30
Global Updates
Audit Title Summary
Property
Management Cash
Handling
Resolved: 0
In Process: 4
Prior Resolved: 4
Accept Risk: 0
Our 2023 audit of Facilities and Property Management cash
handling found the departments performed well in control over
receipts. Areas noted for further improvement included updated
procedures and a process for identifying conflicts of interest. At
the time of the 2025 update, procedures had been updated but
Human Resources was still working to develop countywide conflict
of interest policies and procedures.
In Process
Finding: The County did not have a process in place for recording
conflicts of interest disclosures in official records.
Rcommendation: The Human Resources Department should
align Section 8.020 with State conflict-of-interest laws and
establish a standardized disclosure procedure. This could include
a template for written notifications.
Update: Human Resources agreed with the recommendation and
committed to updating personnel rules and procedures. Two years
later, staff said updates were delayed due to staffing shortages in
the department. Staff said they monitor for issues and will revisit
the recommendation during the next budget cycle.
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