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Date: 8/18/2004 1:07 PM
Deschutes County – Audit Committee
MINUTES – 3/11/2003
Re: Deschutes County Audit Committee Meeting Minutes – March 11, 2003 (Noon to 2:30 PM)
Present: Dennis Luke, Barry Jordan, Laurie Miller, Mike Maier, Marty Wynne, George Read, David Givans
Barry Jordan – Chair called the meeting to order
David Givans went through the various advance materials and meeting handouts:
1. The Ethics-point program used at Bank of the Cascades was discussed. The group discussed
the plusses and minuses of an anonymous reporting system. Barry Jordan will keep the
committee apprised of how this is going.
2. The draft fraud policy was handed out and discussed. Suggestions included:
a. Dennis Luke suggested adding a preamble indicating that the expectation is that a
vast majority of employees are honest.
b. George Read raised the question of whether the “indicators of fraud” information in
the policy itself should be included. They were informative but he was concerned with
employees getting the idea that one behavioral item would institute an allegation.
c. The group discussed the idea of releasing a draft to department heads for input. The
audit committee members are to spend time reviewing the policy and get any
feedback to David. David will make changes and distribute to department heads for
input.
d. The group discussed the need to set some materiality for frauds and how immaterial
frauds should be disposed of.
e. George Read discussed the need for department heads to resolve minor frauds and
what kind of notification should occur. The group agreed.
f. Marty Wynne discussed some of the issues that initiated the policy. There was an
incident at the jail involving ex-inmates who were able to access the jail’s inmate trust
account for some services utilizing the check they received on departure. This matter
was addressed by Sheriff staff but no one specifically contacted County management
about the incident.
3. Barry Jordan and Lauri Miller discussed some of the issues with Credit card fraud they are
seeing.
4. The minutes for the last meeting (12/19/02) were reviewed. Marty Wynne believed there was
an approval for the CAFR (as presented by Moss Adams). No other members seemed to
recall voting on it. Some discussion occurred whether a staff person should be present to take
better minutes. Mike Maier will look into having Connie take the minutes. Dennis Luke moved
approval, George Read seconded and the minutes were unanimously approved.
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5. The February internal audit status report was reviewed. Indirect audit work was stopped due
to poor timing and may be revisited in the future. Solid waste audit planning is commencing.
Some work was performed for the Clerk at her request on transitioning the position to the new
Clerk. The group discussed whether certain procedures should be performed with a change in
department head. They left it to David to do some research on the subject and bring this back
in the next meeting.
6. Discussed use of “Post audit survey” for internal audits performed. David indicating that he
would be sending these out and getting back responses. There was some discussion as to
whether he should receive those replies.
7. The final Humane Society – Dog Boarding Costs report was distributed. There was discussion
on some of the points. Most of the discussion centered on license fees and how those could
be improved. It was proposed that perhaps a dog steering committee might be needed to
cover these issues.
The audit committee members were informed of the status of the Sheriff’s reports with the expectation
that the drafts would be finalized within two weeks. The committee requested to see a draft of those
reports before they are finalized. In most circumstances those will be e-mailed or mailed as confidential
working drafts.
Marty Wynne brought up a potential agenda item for consideration of the committee. He thought it
would be good for the audit committee to hear what Moss Adams was planning for this year’s audit.
This way the committee might be able to express any concerns that could impact the planning of the
audit. The committee was in favor of this and it will be scheduled for the next meeting on June 10.
David Givans then went through a power point presentation on data analysis. The purpose of the
presentation was to create awareness of the techniques used by internal auditors in auditing. The
future audits will incorporate various aspects of data analysis.
Barry Jordan adjourned the meeting