HomeMy WebLinkAbout1718-6 Follow-up Legal Cash Handling 1617-5 (FINAL 4-20-18)Follow-up County Legal Counsel – Cash Handling #1718-6 April 2018
March 2018
Follow-up Report
County Legal Counsel – Cash Handling
(Internal audit report #16/17-5 issued June 2017)
To request this information in an alternate format, please call (541) 330-4674 or send email to David.Givans@Deschutes.org
Deschutes County,
Oregon
David Givans, CPA, CIA, CGMA
County Internal Auditor
1300 NW Wall St
Bend, OR 97703
Audit committee:
Daryl Parrish, Chair - Public member
John Barnett - Public member
Tom Linhares - Public member
Lindsey Lombard – Public member
Wayne Yeatman - Public member
Anthony DeBone, County Commissioner
Nancy Blankenship, County Clerk
Dan Despotopulos, Fair & Expo Director
Follow-up County Legal Counsel – Cash Handling #1718-6 April 2018
March 2018
TABLE OF
CONTENTS:
1. INTRODUCTION
1.1. Background on Audit …………..……………………………………………………………. 1
1.2. Objectives and Scope ………………….……………………………..……………………… 1
1.3. Methodology …………………………………….……………………………………………. 1-2
2. FOLLOW-UP RESULTS ……………………….…………………………………................… 2
3. APPENDIX – Updated workplan for Report #16/17-5
(Status as of April 2018) …………..…………………………………………………….... 3-4
Follow-up County Legal Counsel – Cash Handling #1718-6 April 2018
March 2018
Page 1
1.
Introduction
1.1 BACKGROUND ON AUDIT
Audit Authority:
The Deschutes County Audit Committee has suggested that follow-ups occur from nine months to
one year after the original report issuance. The Audit Committee’s would like to make sure
departments satisfactorily address recommendations.
1.2 OBJECTIVES and SCOPE
Objectives:
The objective was to follow-up on the outstanding audit recommendations.
Scope:
The follow-up included seven (7) recommendations from the internal audit report on the County
Legal Counsel – Cash Handling (#16/17-5 issued June 2017).
The follow-up reflects the status as of April 2018. The original internal audit report should be
referenced for the full text of recommendations and discussion.
1.3 METHODOLOGY
The follow-up report was developed from information provided by Pauline Word, Paralegal for
County Legal Counsel. In cases where recommendations have not been implemented, comments
were sought for the reasons why and the timing for addressing these. The follow-up is, by nature,
subjective. In determining the status of recommendations that were followed up, we relied on
assertions provided by those involved and did not attempt to independently verify those assertions.
The updates received are included in Appendix I.
Follow-up County Legal Counsel – Cash Handling #1718-6 April 2018
March 2018
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Since no substantive audit work was performed, Government Auditing Standards issued by the
Comptroller General of the United States were not followed.
2. FOLLOW-UP
RESULTS
Figure I -
How were
recommendations
implemented?
The follow-up included seven (7) recommendations agreed to by management. Management in
substance agreed with all recommendations. Figure I provides an overview of the implementation
status of the recommendations. The details of the updated workplan are provided in Appendix I.
With this follow-up, one hundred (100%) of the recommendations have been completed.
County Legal Counsel should be commended for addressing all of these recommendations by the
first follow-up.
Follow-up County Legal Counsel – Cash Handling #1718-6 April 2018
March 2018
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3. APPENDIX UPDATED WORKPLAN FOR REPORT #16/17-5 (Status as of April 2018)
Audit # 16/17-5 Workplan
Rec # Recommendations Management Comments Current
Status
Updated Comments
1 It is recommended for Finance and Legal Counsel
• to document the reimbursement process handled
by Finance for the legal imprest checking account;
• to work through the details of establishing a
clearing account for outstanding checks;
• to identify and track those checks that are
outstanding; and
• to share a copy of the monthly bank statement
and checking account reconciliation, current book
balance of the checking account, and listing of all
outstanding checks.
Complete Completed protocols 7/2017- Still
working to improve coordination
of bank statements between
Finance and Legal; completed the
documentation of the
reimbursement process and
clearing account and tracking.
2 It is recommended Legal Counsel not use the
imprest checking account for disbursements in
excess of $600. Legal Counsel should collect W-9’s
for all payers consistent with the County’s policies
and practices in case they will have to perform tax
information reporting.
Complete Completed at release of report
3 It is recommended for County Legal Counsel to
utilize the new County accounting system to bill
and record collection of fees, services and
reimbursements.
Legal will utilize Tyler Munis
processes as soon as
available.
Complete/
Ongoing
Tyler Munis processes have not
been used because we have had
no activity on the checking
account, however, we have
received instructions from Finance
on how to do this.
Follow-up County Legal Counsel – Cash Handling #1718-6 April 2018
March 2018
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Audit # 16/17-5 Workplan
Rec # Recommendations Management Comments Current
Status
Updated Comments
4 It is recommended for County Legal Counsel to
have a receipt book that complies with County
policy if they will receipt monies manually. {Tyler
Munis eliminates the need for a receipt book.}
Legal will utilize Tyler Munis
processes as soon as
available.
Complete/
Ongoing
We will not issue receipts and will
ask Admin/Risk front office staff to
issue receipts for any walk-ins; we
hope to process other items
through Munis.
5 It is recommended for a supervisor to periodically
compare receipts to deposit activity and review for
any billing adjustments.
Complete/
Ongoing
This has not occurred yet because
there was a delay in getting
statements from Finance; we have
calendared this for a review every
four months by County Counsel -
Expected 4/25/18.
6 It is recommended Legal Counsel eliminate its
petty cash fund.
Completed at release of
report
Complete As you have noted, the petty cash
fund has been closed.
7 It is recommended for all monies received by Legal
Counsel be immediately receipted (with a county
approved pre-numbered receipt book or through
Tyler Munis) and deposited in 24 hours in
accordance with County policy.
Completed at release of
report.
Complete
{End of Report}