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HomeMy WebLinkAboutAudit Committee Minutes 06-09-2005 Deschutes County - Audit Committee MINUTES - 6/9/2005 Re: Deschutes County Audit Committee Meeting Minutes – Thursday, June 9, 2005 Committee Members Present: Commissioner Dennis Luke; Scot Langton, Assessor; Tom Anderson, Community Development; Jade Mayer, Jim Keller and James Kerfoot, Public Sector. Others present were: Marty Wynne and Jeanine Faria, Finance; Mike Maier, County Administrator; and David Givans, County Internal Auditor. Present for a portion of the meeting was Candace Fronk, Wes Price and Richard Bailey of Harrigan Price Fronk & Co LLP; Scott Johnson and Greg Canfield, Mental Health Department. Jade Mayer called the meeting to order at 12:15 p.m. External Audit Planning 1. Discussion of Audit Planning and Scope – Candace Fronk discussed last year’s management letter pertaining to full accrual adjustments. She said Jeanine Faria has developed procedures in HTE to show the adjustments made. Ms. Fronk said they pretty much went to every department last year and then they took a detailed look at Mental Health Department and the Sheriff’s Office. Her recommendations for departments to look at this year are Community Development and Solid Waste (Commissioner Luke stated that Solid Waste had been done a year and a half ago by Mr. Givans.) Ms. Fronk asked the group if there were other areas that they would like looked at. Areas discussed were: La Pine Industrial Group property, Property Management, Clerk’s Office, Health Department’s New Billing System, Measure 37 Claims, and Internet transactions. Ultimately, it was decided to look at Community Development Department, Clerk’s Office, and possibly La Pine Industrial Group property. Ms. Fronk said that timing wise, everything is going well. Commissioner Luke asked Ms. Fronk if they could contact other counties and find out where they may have had problems. Ms. Fronk said she would check into it and see what kind of information she could get. Minutes of Audit Committee Meeting Thursday, June 9, 2005 Page 1 of 4 Wes Price stated that Room Tax audits were being reviewed now. Mike Maier said that the new Room Tax Ordinance was going into effect and stated that it lays things out better than the old ordinance. 2. Discussion of Preliminary Audit Work – Ms. Fronk said that last year they came in August after the 60 day tax accruals were received. This year they are going to start in September and they will estimate the accruals. Approval of Minutes from the meeting on April 14, 2005 Jim Keller: Moved Approval of the Minutes from April 14, 2005 Scot Langton: Second. VOTE: Unanimous Approval. Discussion of Mental Health Audit Report Scott Johnson, Mental Health Director, was introduced to the group. Mr. Givans audit for the Mental Health Department was concerning the business practices of the Department as it relates to contracting and operations (See Attached Marked as Exhibit A.) Mr. Johnson said that he will also be having two other audits (ABHA and State) focusing on client records. Greg Canfield said that Mr. Givans made it very clear on what he was looking for. He stated that Mr. Givans interviewed a lot of people and the process went pretty smooth. Marty Wynne suggested a new system for billing. Although there would be upfront costs, in the long run it would save money. He stated that the Health Department has made real progress with their new system. Mr. Givans will be working with Mental Health on issues and a follow-up report. County Internal Auditor Ordinance - Mr. Givans passed out a draft of the County Internal Auditor Ordinance (See Attached Marked as Exhibit B.) Mr. Givans asked the committee for recommendations. Commissioner Luke said he did not have a problem with the ordinance but said that Commissioner DeWolf was concerned with who gets audited and who is able to ask Mr. Givans to do an audit. He felt that the Board of Commissioners should be able to ask for an audit as well as the Audit Committee. Minutes of Audit Committee Meeting Thursday, June 9, 2005 Page 2 of 4 Jim Keller: Moved approval that the County Internal Auditor Ordinance is given to the Board of County Commissioners for approval. Tom Anderson: Second. There was some discussion about the ordinance and the concern for the auditor to be as independent as possible. Mr. Givans stated that the County Commissioners are copied on almost everything and they are invited to the Audit Committee meetings. Commissioner Luke stated that over the next couple of years the County would have a new administrator/administration. Jim Keller asked if the ordinance could be changed in the future. Commissioner Luke stated that it could. Mr. Givans said the ordinance helps him with records in that he can get access to records easier. He felt that the ordinance gave him the right amount of latitude. No other discussion was offered. VOTE: Unanimous Approval. Overview of County Budget 05/06 Mr. Wynne gave a brief overview of the budget. He was mostly concerned with sustainability. He stated that you don’t want ongoing expense to be more than ongoing revenue. Mr. Wynne stated that money is being set aside for the PERS reserve as the rates are going up in July. He also said that Solid Waste Department is setting money aside for the future closure of Knott Landfill. Draft Audit Work plan 05/06 for Discussion - Mr. Givans handed out a draft copy of the 2005-2006 Work Plan (See Attached Marked as Exhibit C.) There was some discussion around item #5 (County Grants - revenues, reporting, compliance and matching requirements.) Mr. Maier said maybe look at who does grants, how many grants, and what kind of grants. On item #10 (Fair and Expo Center) Mr. Wynne stated he would like a written review of the Fair event/cash handling. Scot Langton: Move approval for the Work Plan to be taken to the Board of County Commissioners for final approval. Jim Keller: Second. VOTE: Unanimous Approval. Minutes of Audit Committee Meeting Thursday, June 9, 2005 Page 3 of 4 Status of Current Work – Mr. Givans went over status of current work. 1. Follow-up on Health Benefits Trust – Mr. Givans is getting input from his report. 2. Extension/4H Review of Cash Receipts – Draft given to Extension/4H and Mr. Givans is awaiting management comments. 3. Commission on Children and Families – Comparison of Mandated Services to Performed Services – Mr. Givans is working on finalizing the report. 4. Peer Review Preparation – Mr. Givans has started the process and auditors will be identified to perform the review. Tour of CDD Operations Being no further issues brought before the Committee, Jade Mayer adjourned the meeting a 3:15 p.m. Respectfully submitted, __________________ Connie Thomas Senior Secretary Minutes of Audit Committee Meeting Thursday, June 9, 2005 Page 4 of 4