Audit Services Second Quarter 2014 Implementation of … · Second Quarter 2014 Implementation of...

Audit Services Second Quarter 2014

Implementation of Audit Recommendations Release Date: August 14, 2014 Report No: QR-2014-02

Executive Summary

Recommendations Implemented or Closed

1. Two recommendations implemented this reporting period originated in the Fee for Services Audit. Developing a County-wide User Fee Policy (page 1) and Making the County’s fee setting process available to the public (page 2)

2. Three recommendations implemented are applicable to the Wastewater Management Audit

Developing a policy to manage the Wastewater O&M fund (page 19) Accounts Receivable management (page 20) Establishing benchmarks (page 21)

3. One recommendation implemented originated in Review of the Johnson County Sheriff’s Office.

JCSO providing the City of Olathe dispatch support without a contract (page 28) Aging of Recommendations

Aging Schedule Comments

1. The two recommendations in the over two year category relate to the Mental Health Center (MHC), Fee for Services Audit, managing receivables. Management suspended action to implement due to the current audit (Phase II) in MHC.

Recommendations Number Days Past Original Comp Date

Total

Implemented

Closed

Open

Not Due 1 Day to 6

Months 7-12

Months 13-18

Months 19-24

Months Over 2 Years

76 6 70 40 5 4 12 7 2

Executive Summary

Matters of Interest for the Commission

1. Johnson County Library – Fee for Services Audit

Identify and link the SIRSI process to record amounts received on indebted accounts. (page 5) Cash Drawer Lives !

2. Introduce new reporting format and suggested business rule changes at the August 2014 General Government SPAR.

Implementation of Audit Recommendations As of Second Quarter 2014

When updating this document quarterly, all items noted as resolved on the prior matrix will be dropped. ‘Completed’ comments are the representations of management. ‘No Response’ comments indicate Management declined to comment on, or respond to, this quarter’s report. Updated information will be obtained each quarter from the responsible party within the applicable department. All comments shown are direct auditee responses and have not been audited by our department.

Implementation Status of Audit Recommendations Fee for Services Activities .................................................................................................................................................................... 1 Fee for Services – Specific Departments: Library....................................................................................................................................................................................... 3 Mental Health............................................................................................................................................................................ 6 Key Systems Security Enhancements ................................................................................................................................................... 8 Treasury-Financial Internal Control Review ........................................................................................................................................ 9 Management of IT (Hardware) Resources .......................................................................................................................................... 12 ARRA ……... ..................................................................................................................................................................................... 14 JCW Sanitary Sewer Connection Process ........................................................................................................................................... 15 Wastewater Management .................................................................................................................................................................... 19 Review of Johnson County Sheriff’s Office ....................................................................................................................................... 22

Recently Issued Reports Corrections Adult Programs ............................................................................................................................................................... 29


1

Fee for Services Activities

Audit Comment Department Date

Comment Appeared

Responsible Management Action Plan & Management Comments Resolution Date

Develop a County-wide User Fee Policy that includes the following minimum characteristics:

Factors to consider when pricing goods and services

Specifies whether the County’s fee setting philosophy is to recover the full costs of providing goods and services

Circumstances in which fee(s) might be established at more or less than full costs

Rationale for management decisions if fee(s) are not established at cost recovery

County Manager/Budget

and Financial Planning

2nd Quarter

2011

Hannes Zacharias/Scott

Neufeld

A costing model has been developed and used for a portion of County departments. This model was also presented to the BOCC in a SPAR session last year. One of the concepts presented was that the portion of costs charged via fees should align with the portion of costs contributing to individual good as opposed to the portion contributing to the overall public good. A fee to offset County costs for DMV was included in the County Manager’s Proposed FY 2014 Budget but was not ultimately adopted by the BOCC. An agenda item was approved by the BOCC on October 10, 2013 to increase the fees to include indirect costs in the fee structure for Contractor’s Licensing. An agenda item to revise the Fees for Service policy 120.5 was adopted by a 7-0 vote of the BOCC on April 17, 2014.

Submit for Legal review 03/30/2013 12/31/2013 03/31/2014 04/30/2014 Completed

Calculate the full costs of providing the products/services to provide a basis for establishing charges or fees. Full cost is defined as: (1.) direct costs that can be specifically identified to the service; (2.) indirect departmental costs and (3.) overhead, including charges for the use of capital facilities.



2nd Quarter

2011


Neufeld

BFP will develop full costs of products/services for all departments not included in the MGT report and make recommendations to the BOCC on changes to fees. This will occur as staff time allows and over the course of the next two years. Ten department costs have been reviewed to date with an additional four departments scheduled for this spring.

07/31/2012 09/30/2012 12/31/2014

Periodically review and update charges and fees based on the impact of inflation and other costs or economic pressures.



2nd Quarter

2011


Neufeld

BFP to review bi-annually and update schedule on an annual basis subsequent to completion of departmental full cost analysis reviews

07/31/2013 12/31/2014

Additional Comments:


2

Fee for Services Activities (Continued)


Comment Appeared


Make information regarding the County’s fee setting process available to the public.



2nd Quarter

2011


Neufeld

BFP has incorporated the fee user policy, on the County’s website upon adoption of the revised Financial Policy 120. In addition, the fees will be included in the County’s annual budget.

07/31/2013 03/31/2014 12/31/2014 Completed

Reevaluate differing pricing schedules based on customer served.



2nd Quarter

2011


Neufeld

As part of the MGT report and presentation for the Fee Study, there was discussion about the purpose of different fees, and who is paying them. Going forward BFP will make recommendations on different fee schedules as appropriate when they are presenting changes to department fees.

12/31/2012 12/31/2014

Establish a fee for use of all meeting rooms owned or managed by County activities. Fee components should include any direct costs incurred, i.e., security and set-up charges, and the incremental costs associated with renting the room such as utilities and custodial charges.



2nd Quarter

2011


Neufeld

MGT’s report included total costs for County meeting rooms under the control of Facilities. JCL and PRK will be evaluated as staff time in BFP and the departments allows, along with a study of all their other fees structures.

12/31/2012 12/31/2014

Migrate those activities not using the County-wide standard to the County standard.

County Manager/Treasury

and Financial Management

2nd Quarter

2011

Hannes Zacharias/Tom

Franzen

Of the 55 operating merchant accounts, staff has actively migrated 45 accounts to Elavon. Of the remaining ten accounts, staff plans to migrate four of those accounts to Elavon. Of the remaining six accounts, given their complexity, corresponding business processes and minimal value to be gained, staff does not plan to migrate these to the county standard.

03/31/2013 09/30/2013 06/30/2013 01/01/2015

Additional Comments: *Based on discussion with TFM management, a determination was made to close the recommendation “Expand use of the County’s centralized A/R system.


3



Comment Appeared


Specific Departments: Identify reporting tools required from SIRSI to effectively manage, track, and monitor, on a regular basis, the progress made collecting delinquent accounts.

Library 2nd

Quarter 2011

Sean Casserley

Since 2007, JCL has considered various solutions such as SIRSI cash drawers, TFM cash management software and Comprise cash management software. There were issues with the SIRSI and TFM software that could not easily be resolved. JCL has decided to purchase cash management software from Comprise which will link patron fine and fee transactions to their SIRSI record. An action plan will be developed by the JCL technology committee. We have experienced some technical problem with the installation of this product and continue to work with the vendor to find a solution. I am hoping this project will be complete by the end of May. There are still outstanding issues concerning the handling of delinquent accounts. I will be working with the auditor’s office to create an action plan in the first quarter of 2014. The plan has been created, the tools identified and we are in the implementation stage to resolve this issue.

Hold Open for Future Follow-

up Action Plan by

09/30/2012 Comprise Revisit -

12/31/2012 Completed

Action Plan – February 2013

06/30/2013 12/31/2013 06/01/2014 09/01/2014

Additional Comments: Recommendations were made to departments that were included in detailed and/or targeted reviews during the course of the Fee for Services Activities Audit, and are listed above. Generalized recommendations, that were considered enterprise-wide, were included in the overall Fee for Services Audit Report.


4



Comment Appeared


Specific Departments: Develop and implement procedures that pursue collection of account balances under $15 in a timely manner. At a minimum, adopt the following business practices:

Request payment due at a subsequent checkout, rather than just identifying the balance due amount to the patron.

Display signage at the checkout counter encouraging payment.

Email notifications of amounts due to patrons under $15 after 30, 60, and 90 days.

Educate staff in debt collection techniques that subscribe to the Library’s intent of using a “soft sell” approach when collecting debt.

Library 2nd

Quarter 2011

Sean Casserley

Staff has investigated the feasibility of sending email notifications for amounts due under $15 after specified periods per current policy intervals. There is a notification report in SIRSI, but bugs need to be worked out before the report is usable. The first, second and fourth bullets are resolved. Staff reminds patrons of fines and are encouraged to request payment. Signage does not incentivize fine/fee payment; rather, the marketing of the online payment option on the library webpage and elsewhere should result in increased debt collection. Status summary 7/8/2014 1st bullet completed 2nd bullet completed and we have decided not to add any additional signage 3rd bullet. The plan has been created and is the process of being implemented. 4th bullet This has been completed.

06/30/2012 Email

notifications: 12/31/2012 03/31/2013 06/30/2013 07/01/2014

Staff collection

efforts & signage: Completed

09/01/2014



5



Comment Appeared


Specific Departments: Develop formal written billing procedures. At a minimum, these procedures should:

Document library practices for billing amounts owed.

Provide for more aggressive collection effort of those accounts with balances under $15 in a timely manner.

Email notifications of amounts due to patrons under $15 after 30, 60, and 90 days.

Address accounts and dollar amounts that are not collected via a third party. Document what, if any collection efforts, are continued after the third party processing has not yielded results.

Identify and link the SIRSI process to record amounts received on indebted accounts.

Library 2nd Quarter 2011 Sean Casserley

It has been determined that the SIRSI “cash drawer” software will not work for AR purposes, so JCL is considering purchase of cash management software from Comprise Technologies, pending cost An action plan will be developed based on discussion with Comprise. 2nd & 4th bullet points: JCL is satisfied with the work that our materials recovery vendor, Unique Management Services, is doing. They are aggressive enough for library purposes, and many libraries use them. In addition, JCL policy allows patron accounts to carry less than $15 in fines and fees. The 2nd, 3rd and 4th bullet are resolved by the previous plan and we are in the implementation phase for the 5th bullet point. This project will be completed by the end of the third quarter. We have had some staff turnover and this has delayed the project. Here is the implementation schedule for the 5th bullet. We have resolved the technical issues surrounding the cash drawer. ·June 17 (train), June 18 (live) Lackman ·June 23, 24 (train), June 25 (live) Central · July 15 (train), July 16 (live) Antioch, Leawood, DeSoto ·July 22 (train), July 23 (live) Gardner, Edgerton, Cedar Roe ·July 29 (train), July 30 (live) Corinth, Oak Park

Hold Open for Future Follow-

up

Billing practice documentation:

Completed

Email notifications: 12/31/2012 03/31/2013 06/30/2013 07/01/2014

2nd & 4th

bullet points: Completed

5th bullet point:

12/31/2012 Completed

Action Plan – February 2013

06/30/2013 07/01/2014 09/01/2014



6



Comment Appeared


Specific Departments: Modify policy #PS 40-20-60 in the following manner:

Prohibit cash refunds to patrons until such time the library has the capability and established procedures to reconcile SIRSI to daily deposits reports.

Following the establishment of

reconciliation procedures, consult with TFM payables to determine an acceptable dollar limit on cash refunds if advisable. Further, require supervisory approval on all refunds.

Library 2nd

Quarter 2011

Sean Casserley

Effective January 1, 2012, cash refunds will only be issued for $25 or less. Any refunds greater than $25 will be sent to TFM for processing.

Once we can implement the SIRSI or

Comprise software to enable reconciliation capability, we will proceed. Effective January 1, 2012, supervisors must approve all cash refunds.

The second bullet is resolved by the

implementation of the cash drawer. The implementation schedule is included previously.

Refund items Completed.

Undetermined

pending software

affordability and staffing

09/01/2014

Specific Departments: Establish A/R write-off criteria that more accurately reflects trends existing within Mental Health’s business environment, collectability of their debt and sound business practices. Write-off criteria should include provisions for waiving debt in those instances where appropriate.

Mental Health 2nd

Quarter 2011

Maury Thompson

We will update the A/R write-off criteria. Changes will be incorporated into the new EMR. We plan on having the finalized procedures worked out by the end of the first quarter of 2014. We will finalize procedures once the new EHR is operating and stable. (See Additional Comments **.)

12/31/2011 03/31/2012 Completed* 06/01/2013 09/01/2013 03/31/2014 07/01/2014



7



Comment Appeared


When managing receivables of a family unit, discontinue the practice of linking accounts of immediate families together (de-link outstanding familial accounts) and treat each family member independently.

Mental Health 2nd

Quarter 2011

Maury Thompson

Our current software does not allow this. We are currently in the process of considering new billing software. The RFP process is nearing completion. Vendor interviews will be concluded by the end of this month. Selection will be made. Contract negotiations are expected to be concluded by 12-31-2013 with implementation to begin 5-1-2014. (See Additional Comments **.)

12/31/2012 10/31/2013 01/01/2014 04/01/2014 05/01/2014 Suspended

Develop financial procedures documenting write-off criteria and methods used to write-off A/R.

Mental Health 2nd

Quarter 2011

Maury Thompson

Financial procedures documenting write-off criteria and methods used to write-off A/R will be updated and submitted for review in late August. Changes will be incorporated into the new EMR. We plan on having the finalized procedures worked out by the end of the second quarter of 2014. But we will not finalize procedures until the new EHR is stabilized.

12/31/2011 03/31/2012 Completed* 06/01/2013 09/01/2013 03/31/2014 07/30/2014

Develop procedures to begin using the State of Kansas Offset Program regardless of system capabilities or limitations.

Mental Health 2nd

Quarter 2011

Maury Thompson

Our current procedures to specify balances over 1 year will be sent to the Setoff program. Our current billing/AR software does not allow us to adequately track this process. New software will be installed during the coming year that will allow us to utilize the Kansas Setoff Program.

12/31/2012 Hold Open for Future Follow-

up

Additional Comments: Recommendations were made to departments that were included in detailed and/or targeted reviews during the course of the Fee for Services Activities Audit, and are listed above. Generalized recommendations, that were considered enterprise-wide, were included in the overall Fee for Services Audit Report. * Completed per Mental Health 1st Quarter 2012; Audit Services determined insufficient completion 3rd Quarter 2012. ** Management action to implement these recommendations has been suspended due to commencement of an audit in MNH.


8

Key Systems Security Enhancements


Comment Appeared


Develop procedures to safeguard both employee privacy and County interests in these matters.

County Manager

3rd Quarter

2011

Hannes Zacharias/Becky

Salter

Legal and HRD will continue to work on both and will then consult with the CMO on guidance for next steps. TFM has been asked to share their concerns with regard to the form so those can be addressed.

06/30/2012 12/31/2012 06/30/2013 09/01/2013 12/31/2013 01/31/2014 08/31/2014



9

Treasury-Financial Management Internal Control Review


Comment Appeared


Develop a list of all of the tasks performed by TFM staff, determine which of the tasks are incompatible with one another, and document the incompatibilities as a set of segregation of duties rules. (Item 1.1)

Treasury and Financial

Management

4th Quarter 2011 Tom Franzen

TFM staff will develop the list of tasks as described and document any incompatibilities found. TFM has established a standardized set of internal controls by business discipline. TFM is working with DTI staff to implement a new software package that will help with automating identification of internal control conflicts within Oracle responsibilities.

09/30/2012 12/31/2012 06/30/2013 10/01/2013 12/31/2014

Determine which employees have been assigned incompatible duties then design and implement mitigating controls for those individuals. (Item 1.2)


Management


Based on the conflicts identified by the software, TFM staff will determine if any employees have incompatible duties and either eliminate the incompatibilities or design and implement mitigating controls for those individuals.

09/30/2012 12/31/2012 06/30/2013 10/01/2013 12/31/2014

Design and implement testing procedures for the transactions determined to need mitigating controls. (Item 1.3)

Oracle Support Center

4th Quarter 2011 Paul Haugan

OSC staff will conduct a comprehensive study of the Oracle system as it has been setup at the County and determine whether custom responsibilities should be eliminated and determine whether additional Oracle features need to be purchased and/or implemented that can catch and/or eliminate incompatible duties. OSC staff will design and implement any testing procedures that are deemed necessary. 6/30/13 Update: Custom responsibilities have been reviewed and deemed appropriate. Monitoring will be put in place based on TFM forthcoming recommendations due 10/1/13. Extend date to 4/1/14.

04/01/2013 04/01/2014 04/01/2015



10

Treasury-Financial Management Internal Control Review (Continued)


Comment Appeared


To the extent possible, automate the segregation of duties by designing Oracle reports that will indicate incompatible functions when responsibilities are assigned. (Item 1.4)


4th Quarter 2011 Paul Haugan

OSC staff will design any Oracle reports deemed necessary. 6/30/13 Update: Waiting on TFM direction due 10/1/13. Extend date to 4/1/14.

04/01/2013 04/01/2014 04/01/2015

Determine the staffing levels needed to maintain adequate internal controls. (Item 1.5)


Management


TFM staff will study the staffing levels needed to maintain adequate internal controls.

09/30/2012 12/31/2012 06/30/2013 10/01/2013 12/31/2014

Develop a list of all of the tasks assigned to current Oracle responsibilities and apply the set of segregation of duties rules developed as a result of Recommendation 1.1.


4th Quarter 2011

Paul Haugan

Oracle staff will develop a list of tasks assigned to current Oracle responsibilities and with the assistance of TFM will apply segregation of duties rules. 6/30/13 Update: TFM work is a prerequisite due 10/1/13. Extend date to 4/1/14.

04/01/2013 04/01/2014 04/01/2015

Develop and document a naming scheme for Oracle Responsibilities along with a standardized set of tasks for each named responsibility to assure that no responsibility has incompatible tasks built in.


4th Quarter 2011

Paul Haugan

Oracle staff will develop a naming scheme and a standardized set of tasks for each named responsibility. 6/30/13 Update: Update: TFM work is a prerequisite due 10/1/13. Extend date to 4/1/14.

04/01/2013 04/01/2014 04/01/2015



11

Treasury-Financial Management Internal Control Review (Continued)


Comment Appeared


Develop a monitoring program to ensure that variances from the adopted naming scheme are not allowed.


4th Quarter 2011

Paul Haugan

Oracle staff will develop a monitoring program. 6/30/13 Update: Update: TFM work is a prerequisite due 10/1/13. Extend date to 4/1/14.

04/01/2013 04/01/2014 04/01/2015

Create and monitor mitigating controls for any assignment of incompatible duties such as the assignment of incompatible responsibilities to a single employee.


4th Quarter 2011

Paul Haugan

Oracle staff will create and monitor controls for the assignment of incompatible duties. Ongoing monitoring will also need to be conducted at the department level. 6/30/13 Update: Update: TFM work is a prerequisite due 10/1/13. Extend date to 4/1/14.

04/01/2013 04/01/2014 04/01/2015

Develop and document procedures to be used by those entrusted with assignment of Oracle Responsibilities to ensure uniformity, security, and appropriate levels of internal control.


4th Quarter 2011

Paul Haugan

Oracle staff will develop and document such procedures. 6/30/13 Update: Update: TFM work is a prerequisite due 10/1/13. Extend date to 4/1/14.

04/01/2013 04/01/2014 04/01/2015



12

Management of IT Hardware Resources


Comment Appeared


Develop and implement an enterprise-wide IT governance structure specifically tailored to meet Johnson County’s business needs, strategic initiatives and enterprise-wide objectives. The IT governance structure should include, but not be limited to, the following features:

A governance “body” consisting of representation from the IT community and key County leaders and department heads. These decision makers will review and approve all County IT investments and ensure IT investments align with County objectives and goals.

Formal policies and procedures describing the criteria used to evaluate and approve IT investments.

A requirement that IT investments will be supported by a formal business case. The formal business case will include:

o Detailed description of project

o Return on investment o Identification of associated

risks o Risk mitigation plan

County Manager

1st Quarter 2012

Hannes Zacharias/Paul

Haugan

DTI is further distilling the framework of a possible IT Governance structure to more fully address the needs of the County while capturing the value of a solid governance philosophy. Discussions will continue.

07/01/2013 01/01/2014 01/31/2015



13

Management of IT Hardware Resources (Continued)


Comment Appeared


Require all IT equipment hardware purchases be centrally procured, purchased from Purchasing’s recommended source and approved by the IT governance structure previously recommended in this report.

County Manager

1st Quarter 2012


Haugan

DTI is continuing to research the potential for centrally managed, approved or tracked technology purchases. Recommend combining this recommendation as an item to address with the IT Governance recommendation.

07/01/2013 01/01/2014 06/30/2015

For those support functions the County determines are critical to the success of its IT program, determine the most efficient/effective mechanism for service delivery.

County Manager

1st Quarter 2012


Haugan

DTI continues to evaluate support functions and to catalog and inventory skill sets. DTI sees this as an ongoing process that will continue as the County continues to grow and evolve.

07/01/2013 01/01/2014

Ongoing



14

ARRA Assurance Audit


Comment Appeared


Expand the role of the Grant Manager to ensure County departments and agencies are complying with federal and grant requirements and meeting reporting responsibilities. Such expansion should include:

Annual certification by grant managers and financial managers associated with grants, that they’ve read and understand the requirements of OMB Circular No. A-87 (covers allowable costs) and County Administrative Procedure 180.130 (County’s Grant Administrative Procedure).

Incorporate a narrative description of the basic guidelines and requirements of OMB Circular No. A-87 into County Administrative Procedure 180.130.

County Manager/

Budget and Financial Planning

3rd Quarter 2012


Neufeld

BFP will establish a training program to get all grant and financial managers familiar with OMB Circular No. A-87 and develop a certification form to accompany the training. BFP will establish an annual update for employees on OMB Circular No. A-87 that will coincide with annual end-of-year training and track attendees in order to maintain certification by grant and financial managers. BFP will develop basic guidelines and requirements for OMB No. A-87 and update County Administrative Procedure 180.130 to include these.

12/31/2013 12/31/2014

Emphasize to all departments the importance of following grant requirements including familiarizing with all the requirements pertinent to the grant recipient. This would include Federal and State requirements as applicable. OMB Circular No. A-87 contains the Federal cost principles for all federal grants and includes specific allowances and disallowances of costs and should be emphasized in retraining grants staff.

County Manager/

Budget and Financial Planning

3rd Quarter 2012

Hannes Zacharias/ Scott Neufeld

BFP will establish training and end-of-year updates to ensure all grant and financial managers are certified on OMB No. A-87. These will be part of the regular schedule to highlight the importance of the requirements.

12/31/2013 12/31/2014



15

JCW Sanitary Sewer Connection Permit Process


Comment Appeared


Adopt “E-filing” as the methodology to file legal documents with the Records and Tax Administration Department (RTA) and pursue electronic or digital signatures for signatures required of Johnson County officials.

Wastewater 1st Quarter 2013 John O’Neil

1.2.a. Adopt E-filing: Staff assigned to project. Due to the restriction on digital signatures, e-filing is not needed. 1.2.b. Evaluate an increase in fees to cover the additional costs: Due to the restriction on digital signatures, fee evaluation is not needed. 1.2.c. Add digital signature capability for JCW staff and other JOCO staff as needed (work with DTI): Due to State Statute, RTA cannot accept digital signatures from signatories bound by the agreement to be recorded. JCW cannot implement this recommendation at this time due to restrictions. JCW will coordinate with RTA and implement when RTA can accommodate.

1.2.a. 06/01/2014

To Be Determined

1.2.b. 06/01/2014

To Be Determined

1.2.c. 06/01/2014

To Be Determined

Additional Comments: Management responded to the audit recommendation by providing multiple steps with the possibility of differing resolution dates to one recommendation. In instances where more than one resolution date is noted, timeliness will be tracked by the latest date identified.


16

JCW Sanitary Sewer Connection Permit Process (Continued)


Comment Appeared


Reevaluate current metrics/establish formal metrics for the commercial plan review program such as:

three submittals (on average) per project,

in-house processing time as a percentage of total processing time,

a weighting scale denoting plan complexity, and

a recurring report to identify the number of plan reviews in process.


1.5.a. Develop a rating or weighting scale to plan reviews: In development. Weighting scale has been developed but still need to formally document in the log in process. 1.5.b. Modify reports from databases to identify the complexity of plan reviews and capture in-house processing time as a percentage of total processing time: Complete: JCW in-house and total processing time has been added to reports for new sewers and commercial database. 1.5.c. Evaluate the value this information adds to the process:

1.5.a. 04/01/2014 05/30/2014 07/01/2014

1.5.b. 04/01/2014 05/30/2014 Completed

1.5.c. 10/01/2014 12/01/2014

Develop a monthly reporting tool for the General Manager and other leadership that compares program results against established metrics.


1.6. Develop monthly reporting tool for GM: : resolving summary issues for new sewers database but commercial was complete by 5/30 deadline.

1.6.a. Explore condensing existing reports to one page. Cannot condense existing report. 5/2014. 1.6.b. Explore putting this report information on a dash board. . Dashboard in process, reviewed by LT on 6/30/14 and set to “live” status that day. Will be adapted as noted going forward. Completed 6/30/2014.

1.6. 04/01/2014 05/30/2014 09/30/2014

1.6.a.

01/01/2014 05/30/2014 Completed

1.6.b.

01/01/2014 07/01/2014 Completed



17



Comment Appeared


Develop actions which engage reviewers and stakeholders early within the process:

Incorporate an Initial Screening Process into the commercial plan review process

Conduct Pre-Application meetings with developers, contractors and design professionals

Collaborate with City of Overland Park to participate in their Pre-Application Meeting


1.8. Develop actions to engage reviewers and stakeholders early: Project assigned to staff and procedures will be documented to reflect changes. 1.8.a. Explore with Overland Park and other cities what opportunities and benefits exist by coordinating pre-application meetings. Attending monthly OP staff planning meetings. Utilizing information to contact applicants to prompt submittals to JCW. Coordinating with City of Shawnee

1.8. 09/01/2014

1.8.a. 09/01/2014

Consult with Department of Technology and Innovation (DTI) and develop a “needs assessment” analysis leading to a Request for Proposal for an off-the-shelf automated permit tracking software system which will meet JCW’s current requirements and provide flexibility to meet future needs. This recommendation has the potential to extend to other permits issued by JCW.


2.1. Develop needs assessment: Project assigned to staff and DTI. DTI assigned a Project Manager to this project on 7/9/2013. Needs analysis in development. Started meeting with SMEs 12/20/2013 to develop list of requirements. Currently in process of finalizing requirements with DTI project manager. 2.1.a. Investigate possibilities and select replacement. Project assigned to staff and DTI.

2.1. 06/01/2014 09/01/2014

2.1.a. 04/01/2016



18



Comment Appeared


Pursue a completely web based (electronic) permitting application and issuance process that migrates the permit process – application, plan submission, plan review, collaboration, payment of fees, status updates, permit issuance – to on-line processing.


2.2 Pursue web based permitting application. Project assigned to staff and DTI. DTI assigned a Project Manager to this project on 7/9/2013. 2.2.a. Options will be evaluated as part of the effort to purchase permitting software. Project assigned to staff and DTI. DTI assigned a Project Manager to this project on 7/9/2013.

2.2. 04/01/2016

2.2.a. 04/01/2016

Develop additional website content addressing:

JCW User’s Guide for Permitting Permit Process flow charts illustrating process from start to finish


2.3.a. Develop content. Project assigned to staff. To be done in conjunction with County’s web redesign project. 2.3.b. Load to website. Project assigned to staff. To be done in conjunction with County’s web redesign project.

2.3.a. 08/01/2014

2.3.a. 08/01/2014



19

Wastewater Management


Comment Appeared


Develop an Operating Reserve financial management framework for BOCC approval recommending adoption of a formal policy consisting of:

The proposed O&M framework presented to the BOCC in March 2006 is recommended methodology to calculate the Enterprise Fund’s O&M operating reserve target levels. This is an excellent baseline and starting point which considers JCW’s unique operating environment.

Minimum and maximum O&M operative reserve target levels, or ranges, based on the March 2006 framework.

A process which triggers and specifies management action as the fund balance approaches either the minimum or maximum operating levels.

Business rules to administer the fund, such as:

o Required management action if balance approaches or falls below the minimum threshold

o Required management action if balance approaches or exceeds the maximum threshold

Wastewater 2nd Quarter 2013 John O’Neil

JCW General Manager will notify the BOCC, as part of the 2015 budget process, that he will be preparing a formal operating reserve policy for their future discussion and consideration.

03/01/2014 09/01/2014 Completed



20

Wastewater Management (Continued)


Comment Appeared


Revise internal procedures and incorporate key policy points found in the County’s AR Policy Draft. This includes:

Writing off uncollectible accounts from accounting records (at least annually)

Properly valuing accounts receivable through the regular review of uncollectible accounts

Developing and following internal guidelines regarding uncollectible accounts

Beginning collection activities in a timely and effective manner

Maintaining an optimum accounts receivable turnover ratio


2013 Writeoffs will occur in the 4th Quarter according to internal procedures. Completed December 2013. Collection activities will be enhanced through the addition of a third party collection agency. Completed 11/21/2013 Evaluation of maintaining an optimum accounts receivable turnover ratio will be an ongoing process. In the 2nd Quarter of 2014 conditions will be revaluated to determine if internal procedures need to be revised prior to the 2014 writeoff process.

6/30/2014 Completed

Implement a continuous monitoring program of accounts receivable that incorporates ratio and trend analysis


A continuous monitoring program is in place now through month end aged accounts receivable reporting. Supplementing that process with ratio and trend analysis is the next step in the process. Loss of our financial manager has delayed this activity. Our new financial manager starts July 9. Due to the time for him to get up to speed on our systems, a new resolution date has been established for the end of this year.

6/30/2014 12/31/2014

Establish a new complaint rate success goal using past performance as a benchmark. Wastewater 2nd Quarter

2013 John O’Neil JCW will review when more history is available. 12/31/2015



21

Wastewater Management (Continued)


Comment Appeared


Implement the following benchmark measurements to determine employee efficiency, customer service costs and billing accuracy:

Customer Accounts per Employee Wastewater Processed per

Employee Customer Service Cost per Account Billing Accuracy


All reports have been completed except billing accuracy. Work has been conducted to create a billing accuracy report but staff is unable to accurately identify and track error-driven billing adjustments with current CIS configuration and cancel/rebill functionality. JCW will evaluate the benefits of reporting billing accuracy against an extensive project to configure error specific item types and a vendor modification to the one-off and mass cancel/rebill processes. Once the evaluation is complete, a decision will be made on whether to pursue development of this report. Due to how the water companies send water data corrections and the resulting required cancel/rebilling, there is no way to accurately track JCW’s billing accuracy. However, JCW will consolidate header adjustments reasons and use to track manual adjustments specific to JCW billing errors.

01/01/2014 09/01/2014 Completed



22

Review of Johnson County Sheriff’s Office


Comment Appeared


Build the management capability, in-house, to perform a staffing analysis of all 24x7 posts within the JCSO to address immediate and on-going staffing issues.

Sheriff’s Office

1st Quarter 2014 Frank Denning

Convert all sworn positions in the Communications Division performing call taker/dispatcher duties to civilian. Sworn personnel previously occupying call-taker/dispatch positions should be realigned to a centrally managed relief pool.

Sheriff’s Office


Utilize call volume data and integrate relevant information into the staffing model used in Communications when determining current and future staffing levels.

a. Re-evaluate the requirement for three primary dispatchers and three secondary dispatchers during low call volume time frames, namely the 0300 – 0700 shift. Develop a staffing model for this shift that embraces some configuration of less than six total dispatchers.

b. Re-evaluate the requirement for three call-takers on 11 of the 42 four-hour blocks noted on Table 1. 5.

c. Re-evaluate staffing the 1500-1900 shift on Monday, Tuesday and Wednesday with two call-takers where historic call volume indicates calls are at their highest.

Sheriff’s Office




23

Review of Johnson County Sheriff’s Office (Continued)


Comment Appeared


In Detention:Convert sworn positions performing Alarm Monitoring duties to civilian and reduce the alarm monitoring posts to one on the midnight shift- Realign sworn personnel to a centrally managed relief pool.

Sheriff’s Office


In Detention: Convert sworn positions performing Classifications duties to civilian- Realign sworn personnel to a centrally managed relief pool.

Sheriff’s Office

1st Quarter 2014

Frank Denning

In Detention: Convert sworn positions performing Escort duties on the midnight shift to civilian - Realign sworn personnel to a centrally managed relief pool.

Sheriff’s Office

1st Quarter 2014

Frank Denning

Convert sworn positions operating the x-ray and magnetometer machines at the Johnson County Court House and Justice Annex locations to civilian. Sworn positions previously operating the x-ray and magnetometer machines should be realigned to a centrally managed relief pool.

Sheriff’s Office


Establish a centrally managed relief pool to maximize using relief deputies to staff a planned or unexpected absence or Special Event at a regular hourly rate of pay in lieu of paying overtime. The relief pool (roster) should replace the current overtime sign-up method and management.

Sheriff’s Office




24



Comment Appeared


Improve current practices and procedures used to manage overtime and institute new techniques which call for building a management structure for recording, approving and analyzing overtime and making policies about the use of overtime and how it will be managed.

Sheriff’s Office


Purchase an automated timekeeping/tracking solution to replace the current practice of JCSO employees’ manually entering and reporting time and attendance.

Sheriff’s Office


Develop standardized reporting elements for employees to use in Oracle’s Time & Attendance “Comments” section explaining certain time and attendance entries and require employees to use.

Sheriff’s Office


Develop formal written time and attendance approval procedures for use at the supervisory level. Such guidance will instruct supervisors the validation steps necessary to ensure hours worked, hours in a pay status and hours absent are properly reported and recorded in Oracle Time and Attendance.

Sheriff’s Office


Import staffing schedules to a common Sheriff’s Office share point drive so supervisory personnel throughout the JCSO can access, as T&A approving officials, to validate time worked in other bureaus.

Sheriff’s Office




25



Comment Appeared


Consider in-house development or acquiring off-the-shelf software, of a uniform staffing schedule for use throughout the entire JCSO organization. In addition to ensuring all essential posts are adequately covered, the staffing schedule should have a secondary objective of supporting time and attendance entries.

Sheriff’s Office


Develop a management reporting system focusing on overtime incurred at the employee and unit level to manage overtime and its use by supervisory and command level personnel. The intended purpose of this reporting tool includes:

a. Identifying individuals working significant amounts of overtime and those with the least

b. Ensuring overtime assignments are equitably distributed among employees

c. Ensuring employees are working overtime on activities that could only be performed in an overtime status.

d. Ensuring officer fatigue or safety is not at issue.

Sheriff’s Office




26



Comment Appeared


Modify Employee Compensation Policy # 2004-01 to include the following:

a. Expand the narrative to include the Sheriff’s overtime philosophy and requirements at the supervisory and command level for managing overtime. Sheriff’s philosophy should identify scenarios when overtime can and should be used and require JCSO staff to explore alternatives other than incurring overtime to accomplish work requirements.

b. Identify a specific methodology to distribute overtime when an insufficient number of personnel have volunteered

c. Establish a ceiling of overtime hours Deputies and Master Deputies may work on an annual basis

d. Require command level staff to monitor overtime consumption at the employee level

e. Hold supervisors accountable and responsible for ensuring hours reported are complete and accurate

f. Include JCSO policy and criteria for assessing fees related to special events. Articulate a process within the Sheriff’s Office to elevate that decision making.

Sheriff’s Office




27



Comment Appeared


Establish overtime as a condition of employment and distribute overtime assignments equally among deputies and master deputies in those bureaus that have posts and assignments required to be filled on a 24x7 basis.

Sheriff’s Office


Establish a JCSO Fee Policy guided by the following principles:

a. Factors to consider when pricing services to include knowing the full cost of service delivery

b. Circumstances in which fees might be established at more or less than full costs. For example: programs and services

benefiting specific users versus those that benefit both the general public and specific users.

a beneficiary’s ability and willingness to pay

c. Rationale for management decisions if fee(s) are not established at cost recovery.

Sheriff’s Office


Calculate the full costs of providing the services to provide a basis for establishing fees. Full cost is defined as: (1) direct costs that can be specifically identified to the service; (2) indirect departmental costs and (3) overhead, including charges for the use of capital facilities.

Sheriff’s Office




28



Comment Appeared


Perform periodic fee reviews to ensure fees are aligned with costs; to improve transparency and to serve as an incentive to reduce costs where possible.

Sheriff’s Office


Notify the City of DeSoto an error occurred in the calculation of vehicle fuel costs for 2013 and the total was understated by approximately $7,000. Seek reimbursement for that amount

Sheriff’s Office


In future policing services agreements with the Cities of DeSoto and Edgerton:

discontinue the practice of capping overtime allowance and bill all overtime hours generated in the normal scope of duties or

maintain overtime cap but base the allowance on a rolling average of most recent three years.

consider labor expenses, regular and overtime, in support of Special Events to be mutually exclusive of the police protection agreements and bill separately.

Sheriff’s Office


Seek legal counsel and advice regarding the unresolved contract issue and whether or not future Board action is needed. Options for consideration include:

Codifying original contract Negotiating a new contract with the

City of Olathe for dispatch services.

County Manager

1st Quarter 2014 Hannes Zacharias

The issues have been reviewed by legal counsel and discussed with the Board of County Commissioners. No action is to be taken and the item is closed.

Completed



29

Recently Released Audits


Comment Appeared


Johnson County Corrections Adult Programs Establish a management control framework to ensure actions, such as, case management plans and LSI-Rs, are administered in accordance with state and local requirements.

Corrections 2nd Quarter 2014 Betsy Gillespie

Will ensure a better internal management control framework is developed and implemented, and will request JIMS to develop case management and case file audit reports.

Coordinate with the Justice Information Management Systems (JIMS) Office to develop an electronic data gathering tool (record or report) within the system reporting the results of case audits.


Will work with JIMS to ensure the same type of information (in TOADS) is collected and appropriate reports produced to measure compliance on misdemeanor cases. We will also ask JIMS to create case file audit reports and case management audit reports to be used for both felony and misdemeanor cases.

Reassess and evaluate data elements/records within the JIMS system to ensure all required and critical case management information is being captured and archived.


Will review scanned document processes to ensure an adequate file record. We will also work with JIMS to ensure scanned documents that are relevant to multiple court case records are linked or easily located from each court record.

Additional Comments: This report was issued in the Second Quarter 2014. Due to the release date, we have not requested that management supply resolutions dates at this time. Audit Services will be requesting resolution dates during the Third Quarter 2014.


30

Recently Released Audits (Continued)


Comment Appeared


Johnson County Corrections Adult Programs Enhance the existing Compliance Manager position to perform independent policy and procedure compliance audits. Program characteristics would include:

Compliance audits performed on a pre-determined number of policies, prioritized by risk level, and having the greatest impact when “non-compliance” is a result.

A predetermined number of compliance audits performed annually determined by management.

Checking for compliance with policy and procedures in instances of clients absconding or going AWOL.

Reporting results of compliance audits to department leadership.


Will prioritize policies according to risk and set a pre-determined number of compliance checks to be conducted annually by Compliance Manager. - Will ensure better reporting of audit results to division directors. - Will report percentage of formal reviews that are compliant in Balanced Score Card. - Compliance Manager will review each AWOL from ARC to determine if staff followed policies and report to ARC Director. - Senior Case Managers will conduct case audits of files for each AWOL and Absconder to determine any gaps in services that may have contributed to the action. - Reports for AWOL and Absconder audits will be forwarded to the appropriate division director for action.

Develop standard operating procedures documenting the process for updating the Balanced Scorecard. Operating procedures will:

Require a quality control review be performed periodically of the reporting, and

Identify personnel involved in compiling and reporting results and define responsibilities.


Will develop written procedures for data collection and reporting for all measurements. The new Project Specialist will conduct quality control reviews regularly.

Additional Comments: This report was issued in the Second Quarter 2014. Due to the release date, we have not requested that management supply action plans or resolutions dates at this time. That request will occur in the Third Quarter 2014.


31



Comment Appeared


Johnson County Corrections Adult Programs Choose a quantifiable range or tolerance for target-setting, rather than a single, fixed point goal, where applicable. Target setting will require Program Managers to work collaboratively with Division Directors in establishing acceptable ranges for performance to include facts supporting the range or target


Will develop a process to set target ranges rather than single targets wherever appropriate.

Re-evaluate internal A/R procedures and processes, and the associated time frames involved. Revise A/R processing steps to:

Resolve and close indebted accounts in the most expedient manner available, and

Include using all alternatives available to collect outstanding debt, such as, Kansas State Set-off Program, TFM Collections Unit, credit bureau reporting and/or an outside A/R Management firm.


Will resolve and close indebtedness accounts in most expedient manner possible. - Use best alternatives available to collect outstanding debt such as KS Set Off Program, TFM Collections Unit, and/or outside AR Management Firm. - will not use credit bureau reporting.

Develop criteria and standard operating procedures for uncollectible accounts addressing:

Write-offs from department subsidiary records at least annually,

Year-end estimating and reporting to TFM, and Valuation of the allowance for doubtful accounts.


Departmental policy will be revised to include distinction between write off and forgiveness of debts to occur annually. - Corrections staff will work with TFM to develop year-end reporting and a formula for valuation of doubtful accounts.



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Comment Appeared


Johnson County Corrections Adult Programs Revise current Accounts Receivable policy 02.01A to include written policy regarding client fees as required by the Kansas Community Corrections Standards Manual.


Will revise this policy when revising accounts receivable policies and procedures for audit recommendations.

Evaluate the feasibility of designating a single department within County government responsible for performing county-wide delinquent account collection activity. The recommendation envisions a centralized debt collection service provider operating as the County’s primary First Party Collection Agency for all county departments and agencies. A single department whose focus is collecting delinquent debt has the potential to:

Achieve economies of scale through the elimination of inefficient collection practices,

Develop a cohesive County-wide debt collection strategy for delinquent debt,

Concentrate debt collection expertise and proficiently use all debt collection tools and latest technology enhancements available, and

Allow county activities to focus more attention to core mission and preventing more of their AR portfolio from becoming delinquent.

County Manager’s

Office

2nd Quarter 2014 Hannes Zacharias


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