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3-13-20 Audit Committee MinutesFor Recording Stamp Only Minutes of the Meeting of the Deschutes County Audit Committee Friday, March 13, 2020 Members consist of 6 Public (P), and 3 County Management (CMJ Quorum =five Committee Members resent: x Facilitator: David Givans County Internal Auditor x Daryl Parrish, Chair, (P) Retired - City Manager of Covina, CA Tom Linhares, (P), Retired - Executive Director, Multnomah County Tax Supervising and Conservation Commission Absent, excused x Scott Reich , Umpqua Bank— VP Fav Leading -VIA PHONE x Stan Turel , President Columbia Pacific Tex Service LLC x Patti Adair CM County Commissioner x Nancy Blankenship, (CM) County Clerk x 1 Nick Lelack (CW County Community Development Director x Jodi Burch CFO Redmond Fire and Rescue x Summer Sears, Summer Sears CPA, LLC -VIA PHONE Others Present: x Tom Anderson, County Administrator x GregMunn, County Chief Financial Officer x James Wood, County Accounting Manager x Cam Sparks, County Accountant x Casey Harden Accountant x Samantha Pepper, Administrative Assistant — BOCC CALL TO ORDER: Chair Parrish called the meeting to order at 12:06 pm. AGENDA: s Lunch/Introductions/Announcements. Introductions were made. Approval of Minutes: Motion made by Member Turel and supported by Member Burch to approve the minutes of the Audit Committee Meeting of December 5, 2019. Motion carried. Nick Lelack and Summer Sears abstained. Popular Annual Financial Report (PAFR) FY 2019 James Wood presented the Popular Annual Financial Report. Mr. Wood highlights county debt. Commissioner Adan asked why there was no reporting in PERS liability from 2010 to 2015. Mr. AUDIT COMMITTEE MEETING Friday, March 13, 2020 Page 2 of 4 Givans states that they weren't reporting that at the time. Mr. Wood explained that was the big hit from putting all of the PERS liability on the books. Mr. Anderson thanks the finance department for the great work and all the information. Them are a lot of taxes that the county doesn't assess that they can regarding tax base. Mr. Munn also thanked his department for the great work. Internal Audit Report: #19/20-7 Juvenile Cash Handlin David Givans presents the Juvenile Cash Handling Audit. Deevy Holcomb from Community Justice/ P & P was asked to present but could not make it today. This report took less time than Mr. Givans thought it would. Mr. Turel mentioned that he took a tour of the juvenile center and the occupancy is very low because they are diverted out of detention. He is not sure what benefit this facility is providing and suggest the group dive a little deeper into the operating financials of this department. Internal Audit Report: #17/18-5 Cellular Costs- Verizon Mr. Givans presents the Cellular Costs- Verizon Audit. He notes that the county supplies phones or a county stipend to employees. There are four different big Verizon accounts that had to be looked at. 53% were phone lines and the rest iPads, jetpacks and modems. There are a couple smaller venders providing cellular services. Stipend spending has gone down in regards to previous years as more departments are giving their employees county phones. There were 9% of the phone lines with no data or minutes. Mr. Givans suggest that department heads look at their phone lines and evaluate the best practices. Most county phones are smart phones. The most used phones plan is a first responder plan with unlimited data and minutes for $39.99. This is a plan that is geared towards first responders but can be used by some county government departments. Mr. Anderson thanks Mr. Uvans for the report. He mentions that it is time to revisit how the county uses cell phones by doing so correctly. Every department varies on their cell phone usage- some more than others. He has tasked Erik Kropp to evaluate the county cell phone policy and what changes might need to happen to best benefit the county's spending. Nick Lelack states that his department (CDD) is a big user of cellular phones. With their new software in place, it relies heavily on online usage and smartphones and iPads make it very easy to work diligently. Ms. Burch reminds every one of the privacy and that cellular phones are subject to public records requests. She asked how the usage at home vs. work is managed. Mr. Anderson did say that it is a problem and something that will be mitigated. He and his staff will use this audit as a tool of updating the cell phone policy in the future. Follow- un: 911 Cash Handline #19/20-8 David Givans states that this report is pretty much finished up. There was no discussion or questions. AUDIT COMMITTEE MEETING Friday. March 13. 2020 Pase 3 of 4 External Auditor Hours/ Trends & Guidance on External Audit RFP David Givans presents the trends of the External Audit RFP. The hours are down compared to prior years. This is also good information for proposing CPA firms to have. Commissioner Adair mentions that $152 is a low number for a partner billing rate. Mr. Givans asked if the county wants to have a sub -committee or another group prepping the RFP. Suggestions for the RFP to be issued in January/ February of next year. Several people stated they would be interested in the sub -committee work. It is tough to find a local firm that does CAFR work so a larger firm will probably bid. Mr. Munn recommends that the RFP be as open as possible to encourage bids. Discussion: County Code Review and Audit Committee Self- Assessment Survey David Givans presented the County Code Review. He asked if the group would like to do more with it. Everyone agreed to bring it back to the next meeting in June so they have more time to review. Mr. Givans also presented the Audit Committee Self- Assessment Survey. The last survey was taken and presented in 2017. Commissioner Adair mentions that diversity in our county committees are very important. Ms. Burch mentions that it is hard for her to take the survey being new, so she would like more time. Everyone agreed to pursue the survey and present the results at the meeting in June. UPDATES/Other Items: (David): Mr. Givans provided updates and explanations regarding other items: • He is doing a couple audits right now, Munis purchasing as well as the CCO. • The county is moving forward with the Whistleblower Policy which will be presented to the Board of Commissioners soon. • Mr. Turel compliments David Givans on the audit reports he puts together. They are very professional and through. • Commissioner Adair states how grateful the county is to have an internal auditor to take a close look at operations and financials. • Mr. Munn expresses his excitement to have Mr. Givans look at the Finance departments Monis software system regarding purchasing. Adiournment: Being no further issues brought before the Committee the meeting was adjourned at 1:11 p.m. AUDIT COMMITTEE MEETING Friday. March 13. 2020 Paee 4 of 4 Respectfully submitted, Samantha ep� Administrative Assistant - BOCC