HomeMy WebLinkAboutFollow-up report on 2005 County FairReport# 05/06-9 (Dated June 9, 2006)
Follow-up on 2005 County Fair -
Review of Internal Controls
Over Gate Receipts
(Internal audit report #05/06-2 issued November 3, 2005)
Presented to the
Deschutes County Audit Committee
by the
Internal Audit Program
David Givans, CPA – County Internal Auditor
Report# 05/06-9 Dated June 9, 2006
Deschutes Count y,
Oregon
Report# 05/06-9 (Dated June 9, 2006)
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Report# 05/06-9 (Dated June 9, 2006)
To: Audit Co mmittee
CC: Mike Daly, Bev Clarno, Dan Despotopulos
From: David Givans, Count y Internal Auditor
Subject: Fo llow-up on audit of 2005 County Fair (Report #05/06-2)
Date: June 9, 2006
This fo llow-up report covers the performance review of the 2005 County Fair as covered in
Internal Audit Report #05/06-2. The audit covered internal controls over gate receipts and
was issued November 3, 2005.
This fo llow-up report was compiled fro m informatio n provided by Dan Despotopulos, Fair
& Expo Director.
Deschutes Count y,
Oregon
Internal Audit Program
David Givans, CPA, CIA
County Internal Auditor
Deschutes County- Administrative Services
1300 NW Wall Street, Suite 200
Bend, OR 97701
Phone: 541-330-4674
Fax: 541-385-3202
davidg@co.deschutes.or.us
Report# 05/06-9 (Dated June 9, 2006)
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Report# 05/06-9 (Dated June 9, 2006)
Follow -up on 2005 County Fair -
Review of Internal Controls Over Gate Receipts
(Internal audit report #05/06-2 issued November 3, 2005)
TABLE OF CONTENTS:
1. INTRODUCTION
1.1. Background ……………………………………………………………………….... 1
1.2. Object ives & Scope ……………………………………………………………...… 1
1.3. Methodology ……………………………………………………………………….. 1
2. OVERVIEW of FOLLOW-UP RESULTS …………………………………….. 1-2
3. Appendix
3.1. Appendix I –2005 County Fair internal audit recommendaitons workplan
and status of recommendat ions ………………………………......…………........ 2-6
Report# 05/06-9 (Dated June 9, 2006) 1
1. INTRODUCTION
1.1 BACKGROUND
Audit Authorit y:
The Deschutes County Audit Committee has suggested that follow-ups occur within nine
mo nths of the reports. The Audit Co mmittee’s would like to make sure depart ments
satisfactorily address recommendat ions. In the case of the 2005 County Fair report, the
Audit Co mmittee asked that the fo llow-up occur prior to the 2006 County Fair.
1.2 OBJECTIVES and SCOPE
Object ives:
The object ive was to follow-up on recommendat ions ident ified in the audit report performed
for the Fair and Expo.
Scope:
The fo llow-up included all pert inent recommendat ions made in the original internal audit
report (#05/06-2) covering internal controls over receipts (issued November 3, 2005).
1.3 METHODOLOGY
The fo llow-up report was developed from informatio n provided by Dan Despotopulos, Fair
and Expo Director. In cases where the recommendations had not been implemented, these
were noted and the explanat ion. The fo llow-up is, by nature, subject ive. In determining the
status of recommendations that were fo llowed up, we relied on assertions provided by those
invo lved and did not attempt to independent ly verify those assert ions.
Since no substant ive audit work was performed, Government Auditing Standards issued by
the Comptroller General o f the United States were not fo llowed.
2. Overview of Follow-up Results
We fo llowed up on 36 recommendations made in the report. Figure I provides a breakdown
of the status of these recommendations. All reco mmendat ions have been implemented or
are in the process of being implemented.
There were a number of confidential findings and recommendations not within this report.
From discussio ns with Dan Despotopulos, it appears he is aware and in the process of
implement ing those recommendat ions.
See Appendix I for the completed workplan, which outlines Fair management’s response
and implementation status.
Report# 05/06-9 (Dated June 9, 2006) 2
F igure I - How were recommendations
implemented?
P lanned
3%
Completed
80%
Underway
17%
3. Appendix
3.1 Appendix I – 2005 County Fair recommendation workplan
and status (as of 6-9-06)
INTERNAL AUDIT RECOMMENDATIONS -
WORKPLAN
#05/06-2 2005 Deschutes County
Fair
Implementation Status
Recommendations Agree Disagree Completed Underway Planned Estimated
or Actual
Date of
Completion
Comments
It is recommended that Fair
management document ticket
selling policies and procedures.
X X May-06 Policies and
procedures drafted,
discussed with
Rotary, July
training to occur.
Any changes from the prior
year should be highlighted.
X X May-06 No significant
changes
It is also recommended that all
ticket sellers should be required
to attend training sessions (each
year) and document their
adherence to the Fair’s policies
and procedures.
X/R X May-06 Rotary has been
notified of training
sessions that begin
the week of July
10, 2006. Paid staff
will be required to
complete training.
These policies and procedures
should continue to be available
to all ticket sellers during the
Fair.
X X May-06 They will be made
available.
Ticket seller training session should include:
Customer service -
Courteousness and professional
assistance should be
emphasized.
X X May-06 Included in training
manual and will be
discussed in
training.
Using ticket-selling equipment
including KIS machines and use
of credit card machines,
including how to change the
paper in the various machines.
X/R X May-06 Included in training
manual and will be
discussed in
training.
Report# 05/06-9 (Dated June 9, 2006) 3
INTERNAL AUDIT RECOMMENDATIONS -
WORKPLAN
#05/06-2 2005 Deschutes County
Fair
Implementation Status
Recommendations Agree Disagree Completed Underway Planned Estimated
or Actual
Date of
Completion
Comments
Detail of identification needed
for credit card sales (if
applicable, whether the
signature on the credit card
should be checked and if so
what is appropriate support),
X X May-06 Included in training
manual and will be
discussed in
training.
Comparing credit card charges
to the amount of the sale,
X X May-06 Included in training
manual and will be
discussed in
training.
Whether checks are taken or not
(if so, what form of
identification is needed when
taking a check),
X/R X May-06 Checks are not
accepted and this is
clearly stated in the
policy. No
exceptions for
general gate
admissions.
Vendors or other
unique
circumstances will
be sent to the
office.
Proper cash handling for
counting out money in front of
customer,
X X May-06 Included in training
manual and will be
discussed in
training.
How to handle various issues
with customers in a consistent
manner, and
X X May-06 Included in training
manual and will be
discussed in
training.
Ticket seller responsibilities for
ticket booth until following
shift arrives or a closeout is
performed.
X X May-06 Included in training
manual and will be
discussed in
training. Longer
shifts (~6 hours)
will help reduce
this issue.
It is recommended for Fair
management to approve a slate of
ticket seller attendants and time
slots.
X X May-06 Fair management
will review
assigned sellers for
compliance with
training rules.
Time slots should only be filled
with ticket sellers meeting Fair
management requirements.
X/R X May-06 Rotary will provide
the Fair with a
schedule and which
ticket sellers will
take which slots.
Fair management
will review
assigned sellers for
compliance with
training rules.
Fair management should
manage the schedule for ticket
sellers.
X X May-06 Management
should oversee the
schedule, however
Rotary is paid for
the staff they
provide. The new
Report# 05/06-9 (Dated June 9, 2006) 4
INTERNAL AUDIT RECOMMENDATIONS -
WORKPLAN
#05/06-2 2005 Deschutes County
Fair
Implementation Status
Recommendations Agree Disagree Completed Underway Planned Estimated
or Actual
Date of
Completion
Comments
contract has
provisions to
reduce payment if
Rotary does not
provide adequate
staff.
Fair management should make
sure ticket sellers have taken
their training and have adequate
experience and skill level
required.
X X May-06
No staffing substitutions
should be allowed except by
other properly trained staff.
X X May-06
It is recommended a certain
number of backup ticket sellers
are available during each shift
to provide breaks for other
ticket sellers and fill-in when
needed.
X X May-06
Fair management might consider
longer and recurring ticket selling
shifts to maximize utilization of
trained ticket sellers.
X X May-06 Fair management is
asking for longer
shifts (~6 hours) to
reduce turnover in
ticket booths.
It is suggested that ticket sellers
maintain adequate separation of
sales for their window and not
commingle sales with adjacent
ticket windows. It is recommended
that management closeout ticket
windows at the end of each shift.
X X May-06 The scheduling of
longer hours will
allow for closeouts
after each shift,
however if some
shifts are too short
it might be
difficult.
It is recommended for season pass
ticket stock and off-site ticket sales
be controlled and tickets sold
reconciled to the revenues received.
X X May-06 All stores will stop
sales the day before
the fair. This will
also occur for ticket
booths during the
closeout process.
Improved control would result
from issuance by machine or
reconciliation of numbers of
issued tickets. This would
require purchasing adequate
pre-numbered stock.
X X May-06
All unused ticket stock should
be returned and counted for
reconciliation to the figures
provided by outside sales
locations.
X X May-06
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 X Ongoing Fair 2006 will use
the same machines,
however we are
continuing to look
for better
equipment.
Report# 05/06-9 (Dated June 9, 2006) 5
INTERNAL AUDIT RECOMMENDATIONS -
WORKPLAN
#05/06-2 2005 Deschutes County
Fair
Implementation Status
Recommendations Agree Disagree Completed Underway Planned Estimated
or Actual
Date of
Completion
Comments
It is recommended that ticket booth
windows be closed out each shift so
that problems with specific ticket
sellers/shifts can be identified. This
will need to be coordinated so the
inconvenience to customers is
minimized.
X X May-06 This should be
better with longer
shifts.
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 X Jul-06
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 X Jul-06
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 initials. The log
should also include a record of
the machine closeout sales so
the log can be maintained
separate from the monies for
control purposes. While
counting monies for each ticket
window, Finance should log the
tamperproof bag numbers. Fair
management can compare the
Finance log to the log from the
ticket booths.
X X Jul-06
It is recommended that Fair
management institute policies
restricting the access to collected
tickets or destroying the tickets
during collection.
X X May-06 We will use locked
boxes to dispense
collected tickets.
At the end of the
day, tickets will be
removed.
The easiest safeguard is to have
some form of canceling or
destruction of tickets as the
tickets are collected. Ticket
collection boxes should be
locked and secured during the
Fair.
X X May-06
Ticket takers should not
accumulate tickets in their
hands and should promptly
cancel and deposit tickets into
ticket boxes after collection.
No one should be allowed
access into the ticket boxes
during the Fair.
X X May-06 This will be part of
the training.
Report# 05/06-9 (Dated June 9, 2006) 6
INTERNAL AUDIT RECOMMENDATIONS -
WORKPLAN
#05/06-2 2005 Deschutes County
Fair
Implementation Status
Recommendations Agree Disagree Completed Underway Planned Estimated
or Actual
Date of
Completion
Comments
It is recommended for ticket sellers
to keep the ticket booth doors
locked and only open them for staff
with the proper credentials.
X X May-06 This will be part of
the training.
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 X Jul-06 Because this is a
temporary change
fund, a policy may
work better than a
resolution. We will
work with Finance
to document the
change funds in an
appropriate
manner.
It is recommended that Fair
management (in consultation with
Finance) consider reducing the
amount of change funds. They
should consider making change
from daily receipts (or during the
skinning process) and develop the
additional procedures to
accommodate this during the
deposit preparation process.
X X May-06 We will schedule
for more change
from the bank to be
picked up during
Fair. We are also
looking at the
composition of
change funds since
ticket prices will be
raised.
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 X Jul-06 We believe this can
work if adequate
procedures are in
place to balance
monies first. Will
work with Finance.
It is recommended that Finance
monitor change fund issuance with
approved resolutions.
X X Jul-06 We will work with
Finance to
document the
change funds in an
appropriate
manner.
COUNT 36 0 29 6 1
Percentage of total (%) 100% 0% 80% 17% 3%
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