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HomeMy WebLinkAbout2021-5 Follow-up Cellular costs - Verizon (Final 12-29-20)Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 FOLLOW-UP REPORT Cellular Costs - Verizon (Internal audit report #17/18-5 issued March 2020) 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 County Internal Auditor 1300 NW Wall St Bend, OR 97703 David.Givans@deschutes.org Audit committee: Daryl Parrish, Chair - Public member Jodi Burch - Public member Tom Linhares - Public member Scott Reich - Public member Summer Sears - Public member Stan Turel - Public member Patti Adair, County Commissioner Nancy Blankenship, County Clerk Nick Lelack, Community Development Director Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 TABLE OF CONTENTS: HIGHLIGHTS 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 APPENDICES Appendix I – Updated workplan (status as of December 2020) …….…............ 3-6 Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 Page 1 1. Introduction 1.1 BACKGROUND ON AUDIT Audit Authority: The Deschutes County Audit Committee has suggested that follow-ups occur within nine months of the report. The Audit Committee would like to make sure departments satisfactorily address recommendations. 1.2 OBJECTIVES and SCOPE “Audit objectives” define the goals of the audit. Objectives: The objective was to follow-up on recommendations from the original audit. Scope: The follow-up included nine (9) recommendations from the internal audit report for Cellular Costs - Verizon (#1718-5), issued in March 2020. The original internal audit report should be referenced for the full text of recommendations and associated discussion. The follow-up reflects the status as of December 2020. 1.3 METHODOLOGY The follow-up report was developed from information provided by Erik Kropp, Deputy County Administrator. Mr. Kropp has been working with County departments on addressing the cellular cost report recommendations. Comments were sought for the status of the outstanding recommendations. Follow-ups are, 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 Cellular costs - Verizon #20/21-5 December 2020 2020 Page 2 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 nine (9) outstanding recommendation agreed to by County departments. Figure I provides an overview of the implementation status of the recommendations. With this follow-up, four (4) of the nine (9) recommendations or forty-four percent (44%) have been completed. Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 Page 3 The details of the one outstanding recommendation followed up on and its status is included at the end of the report in Appendix I. In interpreting the status, the County Internal Auditor may sometimes raise or lower the status provided by the department based on the communication(s) received from the department. APPENDIX Appendix I – Updated workplan for identifed outstanding recommendations for #17/18-5 (status as of December 2020) Items that are not completed are greyed out. Rec # Recommendations Status Estimated or Actual Date of Completion Updated Follow-up comments 1 It is recommended for the County to consider updating the Cell Phone Policy to address management and expectations around utilization. This would include monitoring and routine assessment as to whether an employee truly needs the device/phone, what services, and what plan best fits their intended usage. Underway March-21 Administration has been meeting with a work group made up of department representatives to update the policy. Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 Page 4 Rec # Recommendations Status Estimated or Actual Date of Completion Updated Follow-up comments 2 It is recommended for account managers to use the suspend feature cautiously as the charges will start up after 90 days. Completed Oct. 2020 The Cell Audit work group provided instructions/best practices on how to avoid suspend feature charges. Departments reported to Administration that they have either implemented this recommendation or it didn't apply. 3 It is recommended as part of the employee exit process, that any County purchased cellular services be discontinued or transitioned. Completed Oct. 2020 The Cell Audit work group provided instructions/best practices on how to manage cell phones of exiting employees. Departments reported to Administration that they have either implemented this recommendation or it didn't apply. 4 It is recommended for the account managers to assign County phones individually using the official employee name when possible. Completed Oct. 2020 The Cell Audit work group provided instructions/best practices on assigning County cell phones individually. Departments reported to Administration that they have either implemented this recommendation or it didn't apply. Some departments use County cell phones as an "on-call" phone -- these were not assigned individually. 5 It is recommended for the County departments (in particular the Verizon account managers) to periodically receive a stipend report and review to make sure the individuals are not using a County provided phone. Completed Oct. 2020 HR and the Cell Audit work group provided instructions on how departments can run a report to check that an employee assigned to a County cell phone is not also receiving a stipend. Departments reported to Administration that this has been completed or in some cases, doesn't apply. Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 Page 5 Rec # Recommendations Status Estimated or Actual Date of Completion Updated Follow-up comments 6 It is recommended for departments to periodically review their cellular plans by line to align them with plan design, device, availability, usage, and cost. Underway March-21 The Cell Audit work group discussed using a third party vendor to complete this task. The discussions continue. 7 It is recommended for the County to consider updating policies regarding cellular devices to improve adherence to policy, reduce costs, and reduce risks. The policy improvements should consider addressing: • relationship of stipend levels to the cost of cellular phone services to the County; • developing plan selection criteria for business needs aligned with anticipated usage to right size costs; • developing legal and information technology framework to assure that technologies, data, and security are aligned and appropriate given the rise in new technologies and software; • criteria for selecting between employee phone (stipend) and County owned phone; • monitoring and modification of plan levels (including elimination of Underway March-21 The Cell Audit work group and smaller subcommittee has been discussing these issues. Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 Page 6 Rec # Recommendations Status Estimated or Actual Date of Completion Updated Follow-up comments devices) for actual usage below anticipated; • utilizing free devices and upgrades to maintain the level of technology as well as getting credits for devices sold back. • establishing when devices require mandatory applications and restrictions from modification for protecting data; and • addressing applicability of policy to non-employee users. 8 It is recommended the County consider how to address the risks that come with allowing mobile device access or external computer access to internal County information and who and how the risks will be mitigated. Underway March-21 The Cell Audit work group and smaller subcommittee has been discussing these issues. 9 It is recommended the County provided forms for cell phone allowance be updated to reflect any updated policy language. Underway March-21 This will be completed once the Cell Phone policy has been updated. Follow-up Cellular costs - Verizon #20/21-5 December 2020 2020 Page 7 {End of Report}