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HomeMy WebLinkAboutFollow-up Solid Waste report Report# 04/05 - 2 (Dated August 9, 2004) Follow-up Update on Solid Waste Department - Evaluation of Internal Controls over Service Fees Presented to the Deschutes County Audit Committee by the Internal Audit Program David Givans, CPA – County Internal Auditor Report# 04/05 - 2 Dated August 9, 2004 Deschutes County, Oregon Report# 04/05 - 2 (Dated August 9, 2004) {This page left blank} Report# 04/05 - 2 (Dated August 9, 2004) To: Audit Co mmittee CC: Mike Daly, Tom DeWolf, Timm Schimke From: David Givans, Count y Internal Auditor Subject: Update on Solid Waste Department recommendat ions (Reports #03/04-1) Date: August 9, 2004 This update covers the Solid Waste report covering the “Evaluat ion of Internal Controls Over Service Fees” as covered in Internal Audit Report #03/04-1. As directed by the Audit Committee, a brief update was requested from the Solid Waste Department on their implementation of recommendations to the audit report. Timm Schimke, Director of the Solid Waste Department, prepared the attached update. The audit report had eighteen findings and two items for additional study. Solid Waste has indicated their intent was to implement many of the recommendat ions in coordinat ion with the construction of new facilit ies. Delays in construction and staff turnover have led to only minimal implementation. They also indicated some confusio n over the timeline for which they are to respond to these recommendat ions. Solid Waste management should implement as many o f the recommendat ions as possible in the next twelve mo nths. They should develop a timeline for implementation in keeping wit h the severit y o f the findings and the complexit y o f the reco mmendat ions. To the extent they believe new facilit ies will alleviate the need for changes, they should put in place sufficient temporary controls to reduce any risks. To the extent the department requires addit ional resources, those needs should be discussed wit h the Board and considered during their budget requests. The findings related to accounts receivable are particularly important and should be addressed as soon as possible. The issues raised are not likely to be cured by the construction of new facilit ies. Resolut ion will take some so ftware improvements, new procedures and additional segregation of dut ies. The department has implemented some addit ional procedures in this area but addit ional work is st ill required. Internal audit is available if So lid Waste needs assistance as they implement improvements in their systems or as they develop new systems for new facilit ies. A fo llow-up should occur in twelve mo nths or as directed by the Audit Committee. Internal Audit Program David Givans, CPA County Internal Auditor Deschutes Services Center 1300 NW Wall Street, Suite 200 Bend, OR 97701 Phone: 541-330-4674 Fax: 541-385-3202 davidg@co.deschutes.or.us Report# 04/05 - 2 (Dated August 9, 2004) {This page left blank} Report# 04/05 - 2 (Dated August 9, 2004) Page 1 ! "# "$% & ' ! "# "$% & ' ! "# "$% & ' ! "# "$% & ' ( !"( !"( !"( !" ))))"*"*"*"* David Givans "!* "!* "!* "!* Timm Schimke * * * * 7/30/2004 * * * * Audit Report This memo is in response to your request for an update on the department’s implementation of the recommendat ions made in the document tit led SOLID WASTE DEPARTMENT – Evaluat ion of Internal Controls Over Service Fees. We are working to effect ively provide addit ional separation of the Accounting Tech's duties. These dut ies are being documented as they are transferred to other personnel. Improvements to data collect ion and related reporting issues have been referred to IT as a low priority jo b. As indicated in the report, major changes are expected to take place when our proposed expansion mo ves ahead. Unnumbered, manual cash receipts have been destroyed. As time permits, logs will be required and implemented for all cash, charge, and manual tickets at each site. We are now invo icing all Count y Departments for disposal fees that do not fall wit hin the fee waiver policy. Alt hough I am not aware of a specific t ime frame for implementation of the various recommendat ions in the report, I will admit that we are not as far along as I would like to be. As you know, many o f the recommendat ions were planned to be implemented with the construction of new facilit ies at the landfill. That is st ill our intent; however, that project has been delayed due to land-use issues. In addition, the department has experienced a fairly significant turnover in emplo yees over the last year. The work load associated with training new emplo yees has taken time away fro m office staff. Much of the separation of account ing dut ies you wish to see implemented would invo lve the customer service clerk posit ion in our office. This is a posit ion that has recent ly been Report# 04/05 - 2 (Dated August 9, 2004) Page 2 vacated. Our solicitat ion to fill this posit ion included descript ions of so me o f the accounting assistance that would help fill our needs. We hope to reclassify the costumer clerk posit ion and fill this position wit h an emplo yee that would help us to accomplish the recommendat ion. Finally, I would like to reiterate a comment that management made in response to the report. This department processes a very large amount of data and transactions and we do so with a minimal staff. If a more timely response to the recommendat ions is required, I would be happy to discuss with the BOCC addit io nal help through temporary emplo yees, or consultants in order to accomplish these tasks.