HomeMy WebLinkAboutAudit Committee Minutes 11-13-2014
Minutes of the Meeting of the
Deschutes County Audit Committee
Thursday, November 13, 2014
Members consist of 5 Public (P), and 3 County Management (CM)
Quorum = five
Committee Members present:
Facilitator: David Givans, County Internal Auditor
Jennifer Welander, (P) Director of Finance – St Charles Health System
Exc Chris Earnest, (P) Director of Finance, NVHG – Oregon resorts
Shawn Armstrong, (P)
Gayle McConnell, (P) Retired corporate executive
Michael Shadrach, (P) Retired corporate executive
Lindsey Lombard, (P)
Anthony DeBone, (CM) County Commissioner
Nancy Blankenship, (CM) County Clerk
Dan Despotopulos, (CM) Deschutes County Fair & Expo Center Director
Others Present:
Tom Anderson, County Administrator
Erik Kropp, Deputy County Administrator
Alan Unger, County Commissioner
Tammy Baney, County Commissioner
Wayne Lowry, Finance Director
Jeanine Faria, Accounting Manager
External Auditors: Aly Steele and Lealan Miller -via conference call
IT: Joe Sadony
Sharon Ross, Administrative Assistant – BOCC
CALL TO ORDER: Chair Jennifer Welander called the meeting to order at 12:05 p.m.
AGENDA:
Lunch/Introductions/Announcements: Introductions were made. Congratulations to everyone
recently re-elected.
OUTSTANDING AUDIT COMMITTEE TOPICS: Discussion of resolution of audit
committee observations. Chair Welander reported discussions have been held with
Management to discuss the mechanism for the Audit Committee to raise a question or concern
since there is no formal process for recommendations. Commissioner Baney commented on the
role of the Audit Committee and the benefit and value of the Audit Committee as advisors to the
Board of Commissioners. Chair Welander opened this topic up for discussion. Discussion held
For Recording Stamp Only
AUDIT COMMITTEE MEETING Thursday, November 13, 2014 Page 2 of 3
on several items of concern. The process for the Audit Committee to bring forward concerns
should be to communicate with the County Administrator and any issues will be given to the
Board of Commissioners. Discussion held on creating a list of recommendations that could be
kept as a standing item on the agenda.
Member Shadrach noted he had requested a list of lessons learned from the Behavioral Health
department regarding the E.H.R. software process. County Administrator Anderson gave an
update. With the hiring of the new Health Department director, one item she assessed was the
electronic health record system and she had found weaknesses. This information was prepared
and presented at the Audit Committee meeting in June. Also in that report was a plan to move
forward with a different system and as part of that plan moving forward they had also reviewed
what they found to not work with the current system. Member Shadrach suggested giving other
departments information on the lessons learned by Behavioral Health when moving forward with
a new software system. There were no outstanding items requiring further follow-up.
Presentation of County’s Comprehensive Annual Financial Report for Fiscal Year ended
June 30, 2014: Aly Steele, present and Lealan Miller on conference call.
Mr. Miller stated the audit went as expected. In regards to the hours involved, the original
estimate was 850 hours and the actual was 1,073 hours. The additional district audits involved
brought the total to 1400 hours. The report has been issued. The auditors commended the
County staff for a job well done. Ms. Steele stated they issued an unmodified report opinion and
have issued the required planning and conclusion letters to report on internal control and on
compliance. Ms. Steel reviewed the representation letter (see attached). The planning
communication letter was issued on March 28, 2014 and the field work began September 1st.
Commissioner DeBone requested a copy of the Representation Letter from Finance Department
to the auditors.
The Audit Committee proposed some questions . One item was the resolution of the grant
tracking and management recommendation. They didn’t find any issues and noted the system is
working. Another question related to the use of internal audit reports. Depending on the projects
that Mr. Givans has, the auditors may use or not use. They did not identify any issues that
impacted the financial statement audit.
The auditors reviewed the upcoming GASB reporting for pensions. Discussion held on the
CAFR, PERS, on-site clinic, the new 9-1-1 communications system, and the Sisters Health
Clinic.
BREAK: Chair Welander called a 5 minute break from 1:55 p. m. – 2:00 p.m.
Chair Welander went over the annual audit committee accomplishments report. Discussion held
on the use of internal audit surveys to receive feedback on internal audit reports.
Approval of Minutes from the Meeting on September 11, 2014:
Member Shadrach, supported by Member Lombard moved to approve the minutes of the
meeting of the Audit Committee of September 11, 2014.
Audit Chair Discussion:
Chair Welander inquired if anyone was interested in serving as chair of the committee.
Member Armstrong volunteered. Chair Welander, supported by Member Blankenship, made
motion for Shawn Armstrong to serve as chair of the Audit Committee. Motion Carried.
AUDIT COMMITTEE MEETING Thursday, November 13, 2014 Page 3 of 3
Internal Audit Report: Solid Waste Accounting System:
An internal audit was initiated to reconcile electronic records from the Solid Waste Department’s
accounting system to the County’s financial system. The system was purchased in 2011 and has not been
fully implemented. There were problems identified receiving support and training from the software
implementation vendor. The accounting software provider has stepped in and will provide support. Mr.
Givans will follow-up in the spring of 2015.
Follow-ups
Global Follow-up (see attached 2014 Global Follow-up Report) Global updates are done once
per year to ensure departments address recommendations.
Health Benefits Trust Follow-up (see attached Deschutes Onsite Clinic & Onsite Pharmacy
Performance)
Updates/Other items:
Mr. Givans reported he has received his performance evaluation.
Current audits include the transition audit with the District Attorney’s Office and the Juvenile
department
Mr. Givans noted for awareness to the committee that he has reviewed two financial statements:
Central Oregon Drug Enforcement CODE 2013 – and also WEBCO – the public and behavioral
health controlled by the tri counties – Deschutes, Jefferson, and Crook.
Mr. Givans presented for the first time at this year’s County College on October 28th. Gayle
McConnell noted she thoroughly enjoyed this year’s County College. She recommended to the
committee that they attend.
Attached for review is the Internal Audit Program Status Report for September and October 2014.
NEXT MEETING: Thursday, March 12, 2015.
Adjournment: Being no further issues brought before the Committee, Chair Welander adjourned the
meeting at 3:00 p.m.
Respectfully submitted,
______________________________
Sharon Ross
Administrative Assistant - BOCC