HomeMy WebLinkAbout2223-10 Follow-up Admin and Risk Cash Handling (Final 2-24-23)Follow-up Administrative Services and Risk Management Cash Handling #2223-10 February 2023
FOLLOW-UP REPORT
Administrative Services and Risk Management
Cash Handling
(Internal audit report #2122-10 issued May 2022)
To request this information in an alternate format, please call (541) 330-4674 or send email to internal.audit@deschutescounty.gov
Deschutes County,
Oregon
Internal Audit
David Givans, CPA, CIA – County Internal Auditor
Aaron Kay – Performance Auditor
internal.audit@deschutescounty.gov
Audit committee members:
Daryl Parrish, Chair - Public Member
Jodi Burch - Public Member
Joe Healy – Public Member
Scott Reich - Public Member
Summer Sears - Public Member
Stan Turel - Public Member
Patti Adair, County Commissioner
Charles Fadeley, Justice of the Peace
Lee Randall, Facilities Director
Follow-up Administrative Services and Risk Management Cash Handling #2223-10 February 2023
Table of Contents
1. INTRODUCTION ...................................................................................................................................... 1
1.1. OBJECTIVES AND SCOPE .............................................................................................................................. 1
1.2. METHODOLOGY ......................................................................................................................................... 1
2. FOLLOW-UP RESULTS ............................................................................................................................. 2
3. APPENDIX - UPDATED WORKPLAN (STATUS AS OF FEBRUARY 2023) ............................................... 3
Follow-up Administrative Services and Risk Management Cash Handling #2223-10 February 2023
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1. Introduction
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.
1.1. OBJECTIVES and SCOPE
“Audit
objectives” define
the goals of the
audit.
Objectives:
The objective was to follow-up on recommendations from the original audit. One recommendation
had been implemented prior to the issuance of the original report.
Scope:
The follow-up included two recommendations from the internal audit report for Administrative
Services and Risk Management Cash Handling (#2122-10), issued in May 2022. The original internal
audit report should be referenced for the full text of the recommendations and associated
discussion. The follow-up reflects the status as of February 2023.
1.2. METHODOLOGY
The follow-up report was developed from information provided by Sherri Pinner, Senior
Management Analyst, Community Development Department (CDD). Responsibilities for liquor
license review processes were transferred from Administrative Service to CDD after report issuance.
CDD’s comments were offered for the status of the outstanding recommendation as the
responsible party. 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 the
Appendix.
Follow-up Administrative Services and Risk Management Cash Handling #2223-10 February 2023
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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 two outstanding recommendations agreed to by Administrative Services and
the Community Development Department. The third recommendation was implemented prior to
issuance of the audit report by Risk Management. Figure I provides an overview of the
implementation status of the recommendations.
With this follow-up, sixty-seven percent (67%) of the outstanding recommendations have been fully
addressed. As indicated in the provided responses, CDD will request raising OLCC application fees
during the Fiscal Year 2024 fee setting process and public hearing. If approved by the Board, the
final outstanding recommendation will be fully addressed.
Follow-up Administrative Services and Risk Management Cash Handling #2223-10 February 2023
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The details of the follow-up is included at the end of the report in the Appendix. In interpreting the
status, Internal Audit may sometimes raise or lower the status provided by the department based
on the communication(s) received from the department.
3. APPENDIX - Updated workplan (status as of February 2023)
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 Risk Management centralize
the process for receiving checks by mail to ensure
security of funds, daily deposits, and immediate
endorsement.
Completed May-22 Recommendation has been implemented.
2 It is recommended the County raise OLCC
application fees to the maximum levels allowable
in accordance with ORS 471.166(8).
Currently, the $25 fee is allocated to departments
providing the services.
Planned June-23 OLCC tiered fees will be requested during the FY 24
fee setting process and public hearing. If approved by
the Board, new fees will be effective July 1, 2023.
3 It is recommended the County revise the liquor
license review process to utilize electronic
systems for workflow and payment.
It is suggested that CDD be the initial contact and
utilize their electronic systems to coordinate with
other departments. Administrative Services can
be removed from the process entirely.
Completed July-22 CDD has already started working with departments on
moving the OLCC application review process into
CDD’s electronic workflow and payment system.
{End of Report}