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Theme Overview - 3.5.1

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Theme Overview - 3.5.1 POLICY 3.5 PROTECTION OF ASSETS MONITORING REPORT TO: Board of County Commissioners FROM: County Manager RE: Internal Monitoring Report – Management Limitations POLICY: 3.5 Protection of Assets DATE: May 26, 2015 I hereby present my monitoring report on Management Limitation 3.5 – Protection of Assets. This report is presented in accordance with the monitoring schedule set forth in the Board’s Policy Manual revised March 12, 2013. I certify that the information contained in this report is true and correct. Signed: _________________________, County Manager Date: ______May 20, 2015 _________ Table of Contents 3.5 Protection of Assets Compliance Matrix .............................................................................................................................................. 3 Overview - 3.5 Protection of Assets ............................................................................................................................................................ 6 Theme Overview - 3.5.1 .............................................................................................................................................................................. 9 3.5.2 ...................................................................................................................................................................................................... 13 3.5.3 ...................................................................................................................................................................................................... 14 3.5.4 ...................................................................................................................................................................................................... 15 3.5.5 ...................................................................................................................................................................................................... 17 3.5.6 ...................................................................................................................................................................................................... 18 3.5.7 ...................................................................................................................................................................................................... 19 3.5.8 ...................................................................................................................................................................................................... 20 3.5.9 ...................................................................................................................................................................................................... 21 3.5.10 .................................................................................................................................................................................................... 22 Attachment #1 - Eide Bailly Statement on Auditing Standards (SAS) No. 112 letter, April 9, 2015 ......................................................... 23 Attachment #2 – Five-Year Capital Improvement Planning Documents .................................................................................................. 27 3.5 Protection of Assets Compliance Matrix County Manager Monitoring Report 3.5 – Protection of Assets Partial- Non- Management Limitation Compliance Compliance Compliance 3.5 Within the scope of his/her authority in the County X and given available resources, the County Manager shall not allow the County’s assets to be unprotected, inadequately maintained or unnecessarily risked. Accordingly, the County Manager shall not: 3.5.1 Fail to have in place a Risk Management program X that insures against property losses and against liability losses to Commissioners, staff and Douglas County to the amount legally obligated to pay, or allow the organization to be uninsured: 3.5.1.1 Against theft and casualty losses X 3.5.1.2 Against liability losses to Board members, staff X and the organization itself in an amount equal to or greater than the average for comparable organizations 3.5.1.3 Against employee theft and dishonesty. X 3 County Manager Monitoring Report 3.5 – Protection of Assets Partial- Non- Management Limitation Compliance Compliance Compliance 3.5.2 Allow un-bonded personnel access to material X amounts of funds, or fail to provide adequate insurance to protect against employee dishonesty and theft. 3.5.3 Subject facilities and/or equipment to improper X wear and tear or insufficient maintenance (except normal deterioration and financial conditions beyond County Manager control). 3.5.4 Unnecessarily expose County government, the X BOCC or staff to claims of liability. 3.5.5 Fail to protect intellectual property (including X intellectual property developed using County resources), information, and files from loss or significant damage. 3.5.6 Acquire, encumber, dispose or contract for real X property except as expressly permitted in the county’s procedure for disposal of county-owned land. 4 County Manager Monitoring Report 3.5 – Protection of Assets Partial- Non- Management Limitation Compliance Compliance Compliance 3.5.7 Allow internal control standards for the receipt, X processing and disbursement of funds to be less than that necessary to satisfy generally accepted accounting/auditing standards recognizing that the cost of internal control should not exceed the benefits expected to be derived. 3.5.8 Endanger the County’s public image, its X credibility, or its ability to accomplish the Board’s Goals. 3.5.9 Fail to adequately plan for short and long-term X capital or facility needs. 3.5.10 Compromise the independence of the Board’s X auditor or other external monitors or advisors. Engaging parties already chosen by the BOCC as consultants or advisers is not permitted. 5 Overview - 3.5 Protection of Assets Description: Within the scope of his/her authority in the County and given available resources, the County Manager shall not allow the County’s assets to be unprotected, inadequately maintained or unnecessarily risked. County Manager’s Interpretation: • Assets are interpreted to represent physical and intellectual property of the County with a value greater than $25,000. • Unprotected is interpreted to mean assets without insurance or without basic security measures in place. • Inadequately maintained is interpreted as a lack of preventive maintenance, repair, or renovation which may cause an asset to deteriorate and experience an accelerated depreciation. • Unnecessarily risked is interpreted as exposure of assets to circumstances resulting in a higher likelihood of theft or otherwise being unavailable for the asset’s intended purpose. This Period's Performance - 2014 Score: 8.3 Historical Performance Series Color Scorecard Object 2012 2013 2014 ML 3.5 Protection of Assets 8.3 8.1 8.3 6 Data Used in Calculations Name Actual Value Score ML 3.5.1 Compliance 3 10 ML 3.5.2 Compliance 3 8.33 ML 3.5.3 Compliance 3 8.33 ML 3.5.4 Compliance 3 8.33 ML 3.5.5 Compliance 3 8.33 ML 3.5.6 Compliance 3 8.33 ML 3.5.7 Compliance 3 8.33 ML 3.5.8 Compliance 3 8.33 ML 3.5.9 Compliance 3 8.33 ML 3.5.10 Compliance 3 8.33 I report compliance based on the information that follows in this report. 7 Accordingly, the County Manager shall not: 3.5.1 Fail to have in place a Risk Management program that insures against property losses and against liability losses to Commissioners, staff and Douglas County to the amount legally obligated to pay, or allow the organization to be uninsured: 3.5.1.1 Against theft and casualty losses, 3.5.1.2 Against liability losses to Board members, staff and the organization itself in an amount equal to or greater than the average for comparable organizations, and 3.5.1.3 Against employee theft and dishonesty. County Manager’s Interpretation: I interpret this to mean that I will ensure that the county has a trained, experienced Risk Manager on staff or on contract. The Risk Manager will ensure that there is a process for making and implementing decisions that will minimize the adverse effects of accidental loss upon the county. The county will maintain an appropriate amount of liability and casualty insurance and bonds to insure against theft. I interpret comparable organizations to mean county or city governments of similar size in terms of employee population, overall budget and those providing similar services. 8 Theme Overview - 3.5.1 Description: Fail to have in place a Risk Management program that insures against property losses and against liability losses to Commissioners, staff and Douglas County to the amount legally obligated to pay, or allow the organization to be uninsured: This Period's Performance - 2014 Score: 10 Historical Performance Series Color Scorecard Object 2011 2012 2013 2014 ML 3.5.1 Compliance 10 10 10 10 Data Used in Calculations Name Actual Value Score ML 3.5.1.1 Compliance Yes 10 ML 3.5.1.2 Compliance Yes 10 ML 3.5.1.3 Compliance Yes 10 9 I report compliance with 3.5.1 based on the following: • The county has a risk manager on staff and insurance contracts are in place to protect the county against property and liability losses. • County insurance contracts carried for 2015-2016 include: o Excess Public Entity Liability o Excess Public Officials Liability o Property/Boiler and Machinery o Auto Physical Damage o Island Marine & Equipment o Excess Workers’
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