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Home My WebLink About2324-9 Combined Follow-up for the Office of the District Attorney (Final 11-1-23)Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Follow-up Reports Elected District Attorney Transition (Internal Audit report #22/23-4 issued January 2023) And Office of the District Attorney Cash Handling (Internal Audit Report # 23/24-4 Issued September 2023) The Office of County Internal Audit: Elizabeth Pape, CIA, CFE – County Internal Auditor Aaron Kay – Performance Auditor To request this information in an alternate format, please call (541) 330- 4674 or send email to internal.audit@Deschutes.org Audit committee: Daryl Parrish, Chair - Public member Jodi Burch – Public member Joe Healy - Public member Summer Sears – Public member Stan Turel - Public member Patti Adair, County Commissioner Charles Fadeley, Justice of the Peace Lee Randall, Facilities Director Total Recommendations 6 Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Table of Contents: 1. Introduction ....................................................................................... 1 Background on the Office and Original Transition Audit ........................................... 1 Background on the Original Cash Handling Audit ...................................................... 2 2. Follow-up Results .............................................................................. 2 3. Appendix A: Updated Transition workplan (status as of November 2023) ........................................................................................ 3 4. Appendix B: Updated Cash Handling workplan (status as of November 2023) ........................................................................................ 5 5. Appendix C: Objective, Scope, and Methodology .......................... 5 Objective and Scope ....................................................................................................... 5 Methodology ................................................................................................................... 6 Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Deschutes County Office of the Internal Auditor 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 offices satisfactorily address recommendations. We are reporting the results of two follow-ups in one report because the Office of the District Attorney reported the status of recommendations for both audits at the same time. Background on the Office and Original Transition Audit The Office of the District Attorney has been under the direction of the Elected District Attorney, John Hummel, since 2014. John Hummel announced his decision to not seek reelection after the end of his term on January 2, 2023. Subsequently, Steve Gunnels was elected in the May 2022 primary election to become the next Elected District Attorney and was sworn into office on January 3, 2023. Deschutes County has been in the practice of performing a basic fiscal level internal audit whenever an elected official leaves office. While the transition process was as seamless as possible, establishing a written transition plan could be useful to transitioning the Elected District Attorney position in the future. A transition plan can be an important resource for identifying necessary tasks and responsibilities specific to the position. The Office information technology purchasing could be improved through the use of County Information Technology resources and purchasing agreements. Overall, the Office performed well in providing fiscal controls. Additional areas noted for improvement include: • using Munis to enter and provide receipts for collected monies, balance daily revenues, and prepare deposits; and • performing daily deposit of collected monies. Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Deschutes County Office of the Internal Auditor The Office has implemented comprehensive written procedures in compliance with Oregon law. However, certain subject areas require further development to fully conform to these regulations. Background on the Original Cash Handling Audit The Deschutes County Audit Committee authorized the review of cash handling practices for the Office of the District Attorney in the Internal Audit Program Work Plan for 2022-2023. Internal audits of fiscal controls are routinely performed for identified County departments or functions. The Office of District Attorney did not comply with County cash handling policy when processing smaller and infrequent payments related to items like discovery. They did not make deposits daily which meant checks were sitting around unaccounted for. They also did not issue pre-numbered receipts, which made it easier to dispute transactions. These smaller payments made up less than 0.1 percent of Office revenue. The small amount of these collections might make this area seem low risk, but the same factor makes them vulnerable to fraud. Staff did not comply with County policy because the Office had outdated procedures in place which did not ensure compliance. Staff were working on updating procedures, but they were not yet complete. 2. Follow-up Results This follow-up includes five outstanding recommendations from the transition audit and one outstanding recommendation from the cash handling audit that were agreed to by the Office of the District Attorney. Figure I provides an overview of the resolution status of the recommendations. The Office of the District Attorney provided an update on the cash handling audit recommendation in advance of the nine-month timeline set forth by the Audit Committee. Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Deschutes County Office of the Internal Auditor With this follow-up, eighty-three percent (83%) of the outstanding recommendations have been fully addressed, as indicated in the provided responses. The details of the follow-up are included at the end of the report in Appendix A. In interpreting the status, Internal Audit may sometimes raise or lower the status provided by the office based on communication received from the office. 3. Appendix A: Updated Transition workplan (status as of November 2023) Recommendation Status Date Resolved Updated Comments It is recommended the Elected District Attorney document transitional information for their successor. Underway We have successfully compiled an outline of transitional information and are presently in the process of collecting data and making real-time updates as new items arise. Figure I – How were recommendations resolved? Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Deschutes County Office of the Internal Auditor Recommendation Status Date Resolved Updated Comments It is recommended the Office of the District Attorney utilize County purchasing agreements for technology related purchases. Resolved March-23 Upon this audit recommendation our DCDA IT Department was notified to implement this immediately, if applicable. Since then, IT has actively utilized the purchase agreement the County holds with DELL to complete technology-related purchases. They will continue to seek out other purchasing agreements, as needed. It is recommended the Office of the District Attorney utilize Munis to enter and provide receipts for collected monies; balance daily revenues; and prepare deposits. Resolved November- 23 In addition to the transitional audit, DCDA also underwent a cash handling audit. Through that audit we identified a need to strengthen our cash handling process, as a whole. This comprehensive initiative involved the successful adoption of the Tyler MUNIS systems, the consistent practice of daily deposit procedures, and the formulation of structured cash handling protocols to enhance financial transparency and accountability within our office. It is recommended the Office of the District Attorney deposit collected monies daily. Resolved November- 23 See above It is recommended the Office of the District Attorney complete written policies to be in conformance with State law. Resolved April-23 Revised policies were provided by the Office of the District Attorney prior to this follow-up. Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Deschutes County Office of the Internal Auditor 4. Appendix B: Updated Cash Handling workplan (status as of November 2023) 5. Appendix C: Objective, Scope, and Methodology Objective and Scope Objective: The objective was to follow up on recommendations from the original audits. Scope and timing: The follow-up included five recommendations from the internal audit report for Elected District Attorney Transition issued in January 2023 and one recommendation from the internal audit report for Office of the District Attorney – Cash Handling issued in September 2023. The original internal audit reports should be referenced for the full text of the recommendations and associated discussion. The follow-up reflects the status as of November 2023. Recommendation Status Date Resolved Updated Comment The Office of the District Attorney staff should update accounting procedures to help staff comply with the Deschutes County Cash Handling Policy and to decrease the chance cash is stolen. Resolved October-23 We have successfully implemented comprehensive cash handling procedures to align with recommended best practices. In addition, we have implemented the use of the Tyler MUNIS system for cash receipts, which will enhance efficiency and transparency in our financial operations. Another key change we have made is the enforcement of daily deposits, a crucial step in safeguarding the financial integrity of the office. “Audit objectives” define the goals of the audit. Office of the District Attorney—Combined Follow-ups #23/24-9 & #23/24-11 November 2023 Deschutes County Office of the Internal Auditor Methodology The follow-up report was developed from information provided by Jessica Chandler, Senior Management Analyst and Assistant to DA Steve Gunnels. 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 were included in Appendix A. Since no substantive audit work was performed, Government Auditing Standards issued by the Comptroller General of the United States were not followed. If you would like to receive future reports and information from Internal Audit or know someone else who might like to receive our updates, sign up at http://bit.ly/DCInternalAudit.