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FinCmteAgendaPkt20230816FINANCE COMMITTEE A.Action Items A.1.The Commissioner of the Revenue requests an FY 2024 General Fund supplemental appropriation in the amount of $20,500. This amount represents a carry forward of unspent FY 2023 funds for ChangeFinder services through Pictometry. A.2.The Department of Social Services requests an FY 2024 General Fund supplemental appropriation in the amount of $16,443. This amount represents an auto claim and will be used towards the cost of a replacement vehicle. No local funds required. A.3.The Fire & Rescue Chief requests an FY 2023 General Fund supplemental appropriation in the amount of $10,673.08. This amount represents an insurance auto claim and was used for repairs. No local funds required. A.4.The Fire & Rescue Chief requests an FY 2024 General Fund revenue appropriation in the amount of $75,000 and an expenditure appropriation in the amount of $17,132.50. These amounts represent a carry forward from FY 2023 for the VDEM State AGENDA FINANCE COMMITTEE WEDNESDAY, AUGUST 16, 2023 8:00 AM FREDERICK COUNTY ADMINISTRATION BUILDING FIRST FLOOR CONFERENCE ROOM 107 N. KENT STREET, WINCHESTER, VA 22601 FinCmte20230816A1CORPictometryCF.pdf FinCmte20230816A2DSSAutoClaim.pdf FinCmte20230816A3FireAutoClaim.pdf 1 Homeland Security Grant. No local funds required. A.5.The EMS Billing Manager requests an FY 2023 EMS Expense Recovery Fund supplemental appropriation in the amount of $412,989. This amount represents revenue collected in excess of budgeted revenue. No local funds required. A.6.The Stephens City Volunteer Fire & Rescue Company requests an FY 2024 General Fund supplemental appropriation in the amount of $249,000. This amount represents available proffer funds to be used toward the purchase of an ambulance and the tower truck. Both items are in the County's CIP. No local funds required. A.7.The Clear Brook Volunteer Fire & Rescue Company requests an FY 2024 General Fund supplemental appropriation in the amount of $50,000. This amount represents available proffer funds to be used for the apron replacement at the station. Item is in the County's CIP. No local funds required. A.8.The NRADC Superintendent requests an FY 2024 NRADC Fund supplemental appropriation in the amount of $10,300. This amount represents proceeds from the sale of ammo and will be used to purchase a different type of ammo. No local funds required. A.9.The Finance Director requests an FY 2024 NRADC Fund budget reduction in the amount of $250,312 and a General Fund budget reduction in the amount of $112,737. This amount represents the decrease of the total budget due to the change in the COLA percentage approved by the Board of Supervisors, and the corresponding local portion decrease. A.10.The Parks & Recreation Director requests an FY 2023 General Fund supplemental appropriation in the amount of $2,850 and an FY 2024 General Fund supplemental appropriation in the amount of $900. FinCmte20230816A4FireVDEMGrantCF.pdf FinCmte20230816A5EMSExpRecoverySA.pdf FinCmte20230816A6SCVFRProfferRequest.pdf FinCmte20230816A7CBProfferRequest.pdf FinCmte20230816A8NRADCSurplusAmmo.pdf 2 These amount represent donations for the purchase of park benches. No local funds required. A.11.The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $4,430. This amount represents a donation for the purchase of permanent StoryWalk Boards along the trail at the Bowman Library. The additional local funds required have been budgeted. A.12.The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $12,191. This amount represents a carry forward of unspent FY 2023 funds for the design of Old Charlestown Road Park. A.13.The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $1,040,686.50. This amount represents a carry forward of unspent FY 2023 funds for the Abrams Creek Trail design and construction. A.14.The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $130,509.50. This amount represents a carry forward of unspent FY 2023 funds for the pickleball courts and field leveling at Sherando Park. A.15.The Sheriff requests an FY 2024 General Fund supplemental appropriation in the amount of $2,989.95. This amount represents an auto insurance claim and will be used for repairs. No local funds required. A.16.The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $9,116.48. FinCmte20230816A10ParksBenchDonations.pdf FinCmte20230816A11ParksKiwanisDonation.pdf FinCmte20230816A12ParksCF.pdf FinCmte20230816A12ParksCF.pdf FinCmte20230816A12ParksCF.pdf FinCmte20230816A15SheriffAutoClaim.pdf 3 This amount represents reimbursements from the DEA to be used for overtime. No local funds required. A.17.The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $1,752 and an FY 2024 General Fund supplemental appropriation in the amount of $7,500. These amounts represent donations and will be used toward the building at the impound lot. No local funds required. A.18.The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $10,000. This amount represents funds from the HEAT grant and was used to purchase three (3) license plate readers. No local funds required. A.19.The Sheriff requests an FY 2024 General Fund revenue appropriation in the amount of $53,628. This amount represents State funds to be received for an SRO. The local portion of the is grant is $37,903 which was budgeted. A.20.The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $19,320. This amount represents reimbursements for traffic control to be used toward overtime. No local funds required. A.21.The Deputy County Administrator requests an FY 2024 General Fund supplemental appropriation in the amount of $1,423. This amount represents a carry forward of unspent FY 2023 funds for a steel plate at Millwood Fire Station. A.22.The Deputy County Administrator requests an FY 2024 General Fund supplemental appropriation in the amount of $7,851. This amount represents a carry forward of unspent FY 2023 funds for cabinets FinCmte20230816A16SheriffDEA.pdf FinCmte20230816A17SheriffDonations.pdf FinCmte20230816A18SheriffHEAT.pdf FinCmte20230816A19SheriffSROGrant.pdf FinCmte20230816A20SheriffTraffic.pdf FinCmte20230816A21MaintCF.pdf 4 at Round Hill Fire Station. A.23.The Deputy County Administrator requests an FY 2024 General Fund supplemental appropriation in the amount of $2,410. This amount represents a carry forward of unspent FY 2023 funds for the new door in the Wellness Room. A.24.The Finance/Audit Committee charter adopted by the Board of Supervisors requires an annual review and reassessment. B.Items Not Requiring Action B.1.The Parks & Recreation Director returns unused proffer funds from the Stonewall Park playground project and the Bowman Amphitheater project. C.Items For Information Only C.1.The Finance Director provides a General Fund Transfer Report for July 2023. AUDIT COMMITTEE – The internal audits dated August 31, 2022 and February 28, 2023 are provided for review and discussion. FinCmte20230816A21MaintCF.pdf FinCmte20230816A21MaintCF.pdf FinCmte20230816A24FinAuditCmteCharter.pdf FinCmte20230816B1ParksProfferReturn.pdf FinCmte20230816C1TxfsJuly2023.pdf AuditCmte20230816InternalAudit20230228.pdf AuditCmte20230816InternalAudit20220831.pdf 5 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Commissioner of the Revenue requests an FY 2024 General Fund supplemental appropriation in the amount of $20,500. This amount represents a carry forward of unspent FY 2023 funds for ChangeFinder services through Pictometry. Attachments: FinCmte20230816A1CORPictometryCF.pdf 6 Frederick County, Virginia OFFICE OF COMMISSIONER OF THE REVENUE 107 North Kent Street Winchester VA 22601 P.O. Box 552 Winchester VA 22604-0552 seth.thatcher@fcva.us www.fcva.us/cor SETH T. THATCHER Phone: 540-665-5681 COMMISSIONER Fax: 540-667-6487 August 1, 2023 TO: Finance Committee FROM: Seth T. Thatcher, Commissioner of the Revenue RE: Payment for Pictometry International Corp. _________________________________________________________________________________________________________ Please approve a carry forward of allocated unspent funds at the end of FY 2023 in the amount of $20,500 for flat fee payment of ChangeFinder services being rendered by Pictometry International Corp. (“Pictometry”) under the category of Professional Services (12100-3002). In September 2022, Frederick County entered into an Agreement with Pictometry for its delivery of specific products including updated digital building outlines from the change detection/newer imagery source and their classification attributes in shapefile and geodatabase formats. From high-altitude aircraft with variable-aim cameras, Pictometry uses an electronic field study application to obtain oblique imagery and provides multiple views of each photographed area looking to the north, south, east, and west in order to see all sides of buildings and other features. Pictometry also includes orthophoto views looking straight down. A major advantage of aerial imagery is that planes can fly at different altitudes and capture imagery at different resolutions to provide a detailed and consistent viewing experience from property to property—across our entire County’s area. Pictometry began this process in May but has not yet completed the project. The visual aerial imagery, measurements, and contour information that we receive will assist the Commissioner’s office in creating and updating its real estate files for purposes of County reassessment (currently conducted every two years). YE balance: $20,500 7 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Department of Social Services requests an FY 2024 General Fund supplemental appropriation in the amount of $16,443. This amount represents an auto claim and will be used towards the cost of a replacement vehicle. No local funds required. Attachments: FinCmte20230816A2DSSAutoClaim.pdf 8 Frederick County Department of Social Services Memo To: Finance Committee/Cheryl Shiffler From: Delsie D. Jobe CC: Tamara Green, Director Date: August 7, 2023 Re: FY 2024 General Fund Supplemental Appropriation Request Department of Social Services is requesting a general fund supplemental appropriation in the amount of $16,443.00 for an auto claim dated July 7, 2023. We wish to have this funding within our budget in order to apply to the cost of a replacement vehicle. g/l code: 4-010-053160-8005-000-000 Thank you for your consideration. Delsie D. Jobe, Administrative Services Manager 3-010-018990-0001 c.s. 8/3/23 9 10 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Fire & Rescue Chief requests an FY 2023 General Fund supplemental appropriation in the amount of $10,673.08. This amount represents an insurance auto claim and was used for repairs. No local funds required. Attachments: FinCmte20230816A3FireAutoClaim.pdf 11 12 13 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Fire & Rescue Chief requests an FY 2024 General Fund revenue appropriation in the amount of $75,000 and an expenditure appropriation in the amount of $17,132.50. These amounts represent a carry forward from FY 2023 for the VDEM State Homeland Security Grant. No local funds required. Attachments: FinCmte20230816A4FireVDEMGrantCF.pdf 14 15 (1075) $57,867.50 spent FY23 (per K. Jenkins) No revenue received FY23. Will receive in FY24. C/F request to FY24 Aug 2023 Fin Cmte. approved through FY23 budget adoption 16 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The EMS Billing Manager requests an FY 2023 EMS Expense Recovery Fund supplemental appropriation in the amount of $412,989. This amount represents revenue collected in excess of budgeted revenue. No local funds required. Attachments: FinCmte20230816A5EMSExpRecoverySA.pdf 17 (540) 665-5618 cbauserm@fcva.us Fax (540) 678-4739 COUNTY OF FREDERICK, VIRGINIA FIRE AND RESCUE DEPARTMENT 1080 Coverstone Drive Winchester, VA 22602 Christine Bauserman EMS Billing Manager The EMS Expense Recovery Fund (Fund 30) budgeted estimated revenue in the amount of $2,209,014 for FY23. Through June 30,2023, revenue has been collected in the amount of $2,622,003. These totals show a revenue surplus of $412,989 over estimated budget. Since revenues less expenses are split 50-50 between the County and the Volunteer Companies, a supplemental appropriation in the amount of $412,989 is requested. No local funds are required. FY23 – Fund 30 Budgeted revenue 2,209,014 Revenue received through 6/30/22 (2,622,003) Estimated budgeted revenue & exp S/A (412,989) Thank you. 18 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Stephens City Volunteer Fire & Rescue Company requests an FY 2024 General Fund supplemental appropriation in the amount of $249,000. This amount represents available proffer funds to be used toward the purchase of an ambulance and the tower truck. Both items are in the County's CIP. No local funds required. Attachments: FinCmte20230816A6SCVFRProfferRequest.pdf 19 20 21 22 23 24 25 26 27 28 29 30 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Clear Brook Volunteer Fire & Rescue Company requests an FY 2024 General Fund supplemental appropriation in the amount of $50,000. This amount represents available proffer funds to be used for the apron replacement at the station. Item is in the County's CIP. No local funds required. Attachments: FinCmte20230816A7CBProfferRequest.pdf 31 Clear Brook Volunteer Fire & Rescue Company, Inc. 1256 Brucetown Road, Clear Brook, Va. 22624 To Fire Chief Steve Majchrzak From Clear Brook Volunteer Fire and Rescue Subject Apron Replacement Proffer Request Date July 31, 2023 Earlier this year our building and grounds committee met to discuss any issues that needed to be addressed with our facility. Numerous items were addressed and discussed, with the apron in front of the apparatus bays being top priority. The old apron was installed in the early 90s when our existing apparatus bays were constructed. Over time, the past few years the pad had started deteriorating with numerous spots cracking and sinking causing places to hold water and allowing water to sink into the sub-grade below. The old concrete pad was a 75 x 50 foot, 4 to 6 inch thick and reinforced with wire mesh. The committee decided to move forward with removing the old pad and replacing it with a 75 x 65 foot, 8 inch thick concrete pad reinforced with #4 reinforcing steel, 24” on center. Three bids were received for the project to include demolition and removal of the old pad, prepping the area, installing the reinforcing, and placing 4,000 psi concrete. The bids ranged from $50,000 to $75,000 to complete the project. Weber's Nursery was the low bid on the project, and they were awarded the contract. The work was completed the first week of July with no interruption to service and the area reopened for use 6 days later. We would like to formally request proffer reimbursement for the $50,000 for this project as it meets and or exceeds all the requirements and should serve us for the next 30+ years. A copy of the invoice and a copy of the payment check are attached. Clear Brook Volunteer Fire & Rescue Lloyd C. Winters Lloyd C. Winters, President 32 33 34 37 Justification: See Station 23 Justification. Construction Schedule: Completion in FY 26-27. PRIORITY 3C - Aerial 23 Description: This project will be a NFPA 1901 approved aerial device for Station 23. The aerial apparatus will have a minimum 95ft aerial device on the apparatus. The aerial device will carry a large compliment of ground ladders and other specialized tools for firefighting operations. The aerial device will be on a custom chassis and hold five firefighters. Capital Cost: $1,800,000 Justification: See Station 23 Justification. Construction Schedule: Completion in FY 26-27. PRIORITY 4 - Station Renovations Description: As part of the Fire Rescue System 10-year planning process, preliminary survey and analysis was completed of each of the 9 volunteer fire stations. Based on the preliminary survey it was recommended that a place holder for $1,000,000 in building renovations and repairs be placed in each fiscal year. More detailed analysis by each station is under way to identify critical needs and to assign priority to each project. Capital Cost: $7,000,000 Justification: As part of the Fire Rescue System 10-year planning process, preliminary survey and analysis was completed of each of the 9 volunteer fire stations. None of the 9 volunteer stations were originally designed or constructed to house full-time staff 24- hours a day, 365 days a year. The volunteer companies have over the last 20 years made various renovations and additions as finances could allow to make accommodations for the minimum staffing levels. As the projected minimum staffing levels increase over the next 10-years additional renovations will be required. Over the last 2 years, Clearbrook and Greenwood Volunteer Fire Companies have renovated their living areas to accommodate additional staffing for between $600,000 to $1,300,000. Based on the preliminary survey, similar renovations will be necessary in the remaining stations as well as more comprehensive work on the basic infrastructure of the aging buildings and updating to current life, health, and safety standards for the facilities. The average cost of $1,000,000 is used as a place holder for planning purposes until completion of the more detailed analysis is completed. As described earlier, volunteer companies may undertake all or a portion of the renovation projects on, as their individual finances allow in the absence of a comprehensive funding approach to the needed renovations Construction Schedule: Completion in Beyond FY 28 35 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The NRADC Superintendent requests an FY 2024 NRADC Fund supplemental appropriation in the amount of $10,300. This amount represents proceeds from the sale of ammo and will be used to purchase a different type of ammo. No local funds required. Attachments: FinCmte20230816A8NRADCSurplusAmmo.pdf 36 37 38 39 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Finance Director requests an FY 2024 NRADC Fund budget reduction in the amount of $250,312 and a General Fund budget reduction in the amount of $112,737. This amount represents the decrease of the total budget due to the change in the COLA percentage approved by the Board of Supervisors, and the corresponding local portion decrease. Attachments: 40 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Parks & Recreation Director requests an FY 2023 General Fund supplemental appropriation in the amount of $2,850 and an FY 2024 General Fund supplemental appropriation in the amount of $900. These amount represent donations for the purchase of park benches. No local funds required. Attachments: FinCmte20230816A10ParksBenchDonations.pdf 41 42 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $4,430. This amount represents a donation for the purchase of permanent StoryWalk Boards along the trail at the Bowman Library. The additional local funds required have been budgeted. Attachments: FinCmte20230816A11ParksKiwanisDonation.pdf 43 C.S. 7/10/23 44 45 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $12,191. This amount represents a carry forward of unspent FY 2023 funds for the design of Old Charlestown Road Park. Attachments: FinCmte20230816A12ParksCF.pdf 46 A12 A13 A14 line item bal 8/9/23: 150,311 line item bal 8/9/23: 1,040,686.50 line item bal 8/9/23: 173,201.95 VDOT $1,029,066.50 proffer $11,620 47 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $1,040,686.50. This amount represents a carry forward of unspent FY 2023 funds for the Abrams Creek Trail design and construction. Attachments: FinCmte20230816A12ParksCF.pdf 48 A12 A13 A14 line item bal 8/9/23: 150,311 line item bal 8/9/23: 1,040,686.50 line item bal 8/9/23: 173,201.95 VDOT $1,029,066.50 proffer $11,620 49 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Parks & Recreation Director requests an FY 2024 General Fund supplemental appropriation in the amount of $130,509.50. This amount represents a carry forward of unspent FY 2023 funds for the pickleball courts and field leveling at Sherando Park. Attachments: FinCmte20230816A12ParksCF.pdf 50 A12 A13 A14 line item bal 8/9/23: 150,311 line item bal 8/9/23: 1,040,686.50 line item bal 8/9/23: 173,201.95 VDOT $1,029,066.50 proffer $11,620 51 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Sheriff requests an FY 2024 General Fund supplemental appropriation in the amount of $2,989.95. This amount represents an auto insurance claim and will be used for repairs. No local funds required. Attachments: FinCmte20230816A15SheriffAutoClaim.pdf 52 53 C.S. 7/7/23 54 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $9,116.48. This amount represents reimbursements from the DEA to be used for overtime. No local funds required. Attachments: FinCmte20230816A16SheriffDEA.pdf 55 C.S. 6/9, 6/14, 6/28 FY2023 56 57 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $1,752 and an FY 2024 General Fund supplemental appropriation in the amount of $7,500. These amounts represent donations and will be used toward the building at the impound lot. No local funds required. Attachments: FinCmte20230816A17SheriffDonations.pdf 58 C.S. 5/25/23 FY23 C.S 7/14/23 FY24 59 60 61 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $10,000. This amount represents funds from the HEAT grant and was used to purchase three (3) license plate readers. No local funds required. Attachments: FinCmte20230816A18SheriffHEAT.pdf 62 FY 2023 c.s. 7/10/23 AA 239008 6/30/23 pd a/p 6/16/23 chk #20575 PO #22940 63 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Sheriff requests an FY 2024 General Fund revenue appropriation in the amount of $53,628. This amount represents State funds to be received for an SRO. The local portion of the is grant is $37,903 which was budgeted. Attachments: FinCmte20230816A19SheriffSROGrant.pdf 64 65 66 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Sheriff requests an FY 2023 General Fund supplemental appropriation in the amount of $19,320. This amount represents reimbursements for traffic control to be used toward overtime. No local funds required. Attachments: FinCmte20230816A20SheriffTraffic.pdf 67 FY 2023 all received as of 8/8/23 68 7/18/237/19/237/5/238/1/2369 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Deputy County Administrator requests an FY 2024 General Fund supplemental appropriation in the amount of $1,423. This amount represents a carry forward of unspent FY 2023 funds for a steel plate at Millwood Fire Station. Attachments: FinCmte20230816A21MaintCF.pdf 70 107 North Kent Street • Winchester, Virginia 22601-5000 COUNTY of FREDERICK Jay E. Tibbs Deputy County Administrator 540/665-6382 Fax 540/667-0370 E-mail: jtibbs@fcva.us TO: Finance Committee FROM: Jay E. Tibbs, Deputy County Administrator DATE: August 10, 2023 RE: Carry Forward Requests The following are carry forward requests for the Maintenance Department. 1.This is a request for a General Fund supplemental appropriation in the amount of $1,423.00. This amount represents a carry forward request for the fabrication and installation of a steel plate for the oil separator at Millwood Fire Station. The parts remain on order and have not shipped. - GL 4-010-043040-3004-000-021 2.This is a request for a General Fund supplemental appropriation in the amount of $7,851.00. This amount represents a carry forward request for the purchase and installation of cabinets at the Round Hill Fire Station. The cabinets have been ordered but have not been received or installed. – GL 4-010-043040-3004-000-008 3.This is a request for a General Fund supplemental appropriation in the amount of $2,410.00. This amount represents a carry forward request for the purchase and installation of a new door and door jamb to be installed in the Wellness Room. The door has been ordered but not yet received. –GL 4-010-043040-3004-000-003 We respectfully request approval of these carried forward amounts so we can complete these projects. Should you have any questions, please do not hesitate to contact me. A 21 A 23 A 22 line item bal 8/11/23: 1,423 line item bal 8/11/23: 7,851 line item bal 8/11/23: 43,256.27 71 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Deputy County Administrator requests an FY 2024 General Fund supplemental appropriation in the amount of $7,851. This amount represents a carry forward of unspent FY 2023 funds for cabinets at Round Hill Fire Station. Attachments: FinCmte20230816A21MaintCF.pdf 72 107 North Kent Street • Winchester, Virginia 22601-5000 COUNTY of FREDERICK Jay E. Tibbs Deputy County Administrator 540/665-6382 Fax 540/667-0370 E-mail: jtibbs@fcva.us TO: Finance Committee FROM: Jay E. Tibbs, Deputy County Administrator DATE: August 10, 2023 RE: Carry Forward Requests The following are carry forward requests for the Maintenance Department. 1.This is a request for a General Fund supplemental appropriation in the amount of $1,423.00. This amount represents a carry forward request for the fabrication and installation of a steel plate for the oil separator at Millwood Fire Station. The parts remain on order and have not shipped. - GL 4-010-043040-3004-000-021 2.This is a request for a General Fund supplemental appropriation in the amount of $7,851.00. This amount represents a carry forward request for the purchase and installation of cabinets at the Round Hill Fire Station. The cabinets have been ordered but have not been received or installed. – GL 4-010-043040-3004-000-008 3.This is a request for a General Fund supplemental appropriation in the amount of $2,410.00. This amount represents a carry forward request for the purchase and installation of a new door and door jamb to be installed in the Wellness Room. The door has been ordered but not yet received. –GL 4-010-043040-3004-000-003 We respectfully request approval of these carried forward amounts so we can complete these projects. Should you have any questions, please do not hesitate to contact me. A 21 A 23 A 22 line item bal 8/11/23: 1,423 line item bal 8/11/23: 7,851 line item bal 8/11/23: 43,256.27 73 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Deputy County Administrator requests an FY 2024 General Fund supplemental appropriation in the amount of $2,410. This amount represents a carry forward of unspent FY 2023 funds for the new door in the Wellness Room. Attachments: FinCmte20230816A21MaintCF.pdf 74 107 North Kent Street • Winchester, Virginia 22601-5000 COUNTY of FREDERICK Jay E. Tibbs Deputy County Administrator 540/665-6382 Fax 540/667-0370 E-mail: jtibbs@fcva.us TO: Finance Committee FROM: Jay E. Tibbs, Deputy County Administrator DATE: August 10, 2023 RE: Carry Forward Requests The following are carry forward requests for the Maintenance Department. 1.This is a request for a General Fund supplemental appropriation in the amount of $1,423.00. This amount represents a carry forward request for the fabrication and installation of a steel plate for the oil separator at Millwood Fire Station. The parts remain on order and have not shipped. - GL 4-010-043040-3004-000-021 2.This is a request for a General Fund supplemental appropriation in the amount of $7,851.00. This amount represents a carry forward request for the purchase and installation of cabinets at the Round Hill Fire Station. The cabinets have been ordered but have not been received or installed. – GL 4-010-043040-3004-000-008 3.This is a request for a General Fund supplemental appropriation in the amount of $2,410.00. This amount represents a carry forward request for the purchase and installation of a new door and door jamb to be installed in the Wellness Room. The door has been ordered but not yet received. –GL 4-010-043040-3004-000-003 We respectfully request approval of these carried forward amounts so we can complete these projects. Should you have any questions, please do not hesitate to contact me. A 21 A 23 A 22 line item bal 8/11/23: 1,423 line item bal 8/11/23: 7,851 line item bal 8/11/23: 43,256.27 75 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Action Items Title: The Finance/Audit Committee charter adopted by the Board of Supervisors requires an annual review and reassessment. Attachments: FinCmte20230816A24FinAuditCmteCharter.pdf 76 Frederick County Board of Supervisor’s Finance/Audit Committee Charter I. Organization There shall be a committee of the Board of Supervisors (“Board”) of Frederick County, Virginia (“County”) known as the Finance Committee (“Committee”). The Committee shall be comprised of three (3) members of the Board of Supervisors who will be appointed by the Chairman of the Board, with one appointed as Chair, three (3) citizen members as appointed by the Chairman of the Board, and two (2) non-voting liaisons: the County Treasurer and the County Commissioner of the Revenue. The Finance Director will serve as secretary of the Committee with the duties including preparing agendas and reports to the Board. This Charter shall govern the Committee with regard to its duties and responsibilities. The goal of the Committee shall be to provide oversight for all financial policies, procurement policy, financial planning, risk management, debt issuance, budget development and other fiscal related issues. II. Purpose The primary function of the Committee is to review matters of a financial nature including proposed changes to fiscal/procurement policies and the review and recommendation for matters of a financial nature coming forward to the Board including, but not limited to, supplemental appropriations, transfers and contracts. The Committee’s primary duties and responsibilities are as follows: • To provide to the Board means for determining the manner in which policies, programs, and resources authorized by the Board are being deployed by management consistent with the intent of the Board and in compliance with all appropriate statutes, ordinances, and directives. • Develop and submit reports, draft policies and/or recommendations regarding audits and the finances of the County to the full Board for its consideration. • To serve as the Audit Committee to assist the Board in carrying out its oversight responsibilities by reviewing financial information provided in the County’s annual financial report. The Committee will primarily fulfill these responsibilities by carrying out the activities enumerated in Section IV of this Charter. III. Meetings and Quorum The Committee shall meet monthly or more or less frequently as circumstances dictate. The Chairman of the Board, the Chair of the Committee, or a majority of the Committee members may call or cancel meetings of the Committee. The Chair of the Committee shall prepare or approve an agenda in advance of each meeting. The County Administrator and the Director(s) with the responsibilities for finance shall be invited to all meetings. Other management officials and counsel to the Board may be invited as necessary. With the exception of Directors, the Chair may excuse any non-Committee members from attendance at any meeting or portion of any meeting. A majority of 77 the total Committee composition shall constitute a quorum for the purposes of conducting the business of the Committee. IV. Responsibilities The Committee shall have the following duties and responsibilities: A. Finance 1. Review and advise the Board and senior management of the County with respect to finance initiatives, policies and procedures, including activities relating to procurement. 2. Provide direction during the preparation of the annual budget. Review the County Administrator’s final budget proposal and provide recommendations to the Board with respect to those proposals including tax rates and fees. 3. Review and advise the Board on supplemental appropriation requests, transfers and change orders as dictated by policy. 4. Review the budgetary and financial implications of management’s tactical and strategic plans. 5. Review periodic or interim budget and/or financial statements to ensure the County is operating within approved financial and budgetary allocations and that the County is appropriately safeguarding its financial resources. B. Audit 1. Perform independent review and execute oversight of the financial reporting process, internal controls and independent auditors. 2. Provide a forum separate from management in which auditors and other interested parties can discuss the annual audit. 3. Meet with the external auditors during the entrance and exit conferences and at other times as needed or upon request of the external auditors. Review and approve the annual external audit engagement letter. 4. Manage the County’s internal audit function including review and approval of the internal annual audit work plan, reports and recommendations. The internal auditor shall report functionally to the Chair of the committee or designee. The Committee chair, along with the County Administrator and Finance Director, shall conduct annual evaluations of the auditor's performance. The Committee Chairman shall participate in decisions regarding the appointment of the internal auditor and the acceptance of the internal audit plan. C. Other Duties Related to Review, Reports and Improvement Procedures 1. Review and reassess annually the adequacy of this Charter, and conduct an annual self- assessment of this Committee’s performance. 78 2. Report all meetings of the Committee to the Board on the matters discussed at each Committee meeting, as appropriate. 3. Perform any other activities consistent with this Charter, the County’s goals, objectives and governing law, as the Committee or the Board deems necessary or appropriate. Original: Adopted by Board of Supervisors 1/25/2012 Revisions: 9/9/2013: reduced Board of Supervisor representatives from four (4) to three (3) 9/29/2014: no changes 10/21/2015: no changes 9/13/2017: no changes 9/12/2018: no changes 9/11/2019: no changes 9/9/2020: no changes 11/10/2021: no changes 8/10/2022: no changes 79 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Items Not Requiring Action Title: The Parks & Recreation Director returns unused proffer funds from the Stonewall Park playground project and the Bowman Amphitheater project. Attachments: FinCmte20230816B1ParksProfferReturn.pdf 80 81 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: Items For Information Only Title: The Finance Director provides a General Fund Transfer Report for July 2023. Attachments: FinCmte20230816C1TxfsJuly2023.pdf 82 BUDGET TRANSFERS JULY 2023 DATE DEPARTMENT/GENERAL FUND REASON FOR TRANSFER FROM TO ACCT CODE AMOUNT Page 1 7/1/2023 PARKS AND RECREATION ADMINISTRATION CORRECT BUDGET YOUTH DEVELOPMENT CENTER/GYM SPACE 7101 5604 000 001 (14,615.00) RECREATION CENTERS AND PLAYGROUNDS 7104 3010 000 000 14,615.00 7/1/2023 JAIL COUNTY SHARE -JUVENILE DETENTION REDUCE JUVENILE DETENTION BUDGET 3301 5605 000 001 (11,965.00) TRANSFERS/CONTINGENCY 9301 5890 000 000 11,965.00 7/21/2023 PUBLIC SAFETY COMMUNICATIONS COVER INVOICES INCURRED IN FY24 3506 5413 000 000 (800.00) PUBLIC SAFETY COMMUNICATIONS 3506 3004 000 000 800.00 PUBLIC SAFETY COMMUNICATIONS 3506 5413 000 000 (5,000.00) PUBLIC SAFETY COMMUNICATIONS 3606 4003 000 000 5,000.00 PUBLIC SAFETY COMMUNICATIONS 3506 5411 000 000 (200.00) PUBLIC SAFETY COMMUNICATIONS 3506 5408 000 000 200.00 7/31/2023 FIRE AND RESCUE PURCHASE (2) AMBULANCES 3505 8005 000 000 799,482.00 TRNSFERS/CONTINGENCY 9301 5890 000 000 (799,482.00) 8/2/2023 SHERIFF ALERRT TRAINING EQUIPMENT 3102 5409 000 000 (93,805.90) SHERIFF 3102 8001 000 000 93,805.90 8/2/2023 ANIMAL SHELTER SUPPLEMENT LINE ITEM COPIER LEASE FY24 4305 5401 000 000 (1,100.00) ANIMAL SHELTER 4305 9001 000 000 1,100.00 8/7/2023 FIRE AND RESCUE HGAC ADMINISTRATION FEE FOR AMBULANCE PURCHASE 3505 5413 000 000 (1,000.00) FIRE AND RESCUE 3505 8005 000 000 1,000.00 8/7/2023 INFORMATION TECHNOLOGY MOVING SOPHOS TO LEASE LINE ITEM 1220 3005 000 000 (54,336.61) INFORMATION TECHNOLOGY 1220 9001 000 000 54,336.61 83 Finance Committee Agenda Item Detail Meeting Date: August 16, 2023 Agenda Section: AUDIT COMMITTEE Title: The internal audits dated August 31, 2022 and February 28, 2023 are provided for review and discussion. Attachments: AuditCmte20230816InternalAudit20230228.pdf AuditCmte20230816InternalAudit20220831.pdf 84 COUNTY OF FREDERICK, VIRGINIA INTERNAL AUDIT ENGAGEMENT February 28, 2023 85 CONTENTS Page INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES .........................................................................................................1 PROCEDURES PERFORMED .................................................................................................................2 FINDINGS AND RECOMMENDATIONS ............................................................................................12 86 Your Success is Our Focus 3906 Electric Road • Roanoke, VA 24018 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES Mr. Charles S. DeHaven, Jr. Chairman of the Board of Supervisors County of Frederick, Virginia We have performed the procedures enumerated on pages 2 through 11 on selected accounting records and transactions of the County of Frederick, Virginia (the “County”) for the period September 1, 2022 to February 28, 2023. The County’s management is responsible for the accounting records and transactions. The County has agreed to and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and associated findings can be found on pages 2 through 14. We were engaged by the County to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the County’s accounting records and transactions. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the County and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. The entity’s responses, titled Corrective Action Plans,to our recommendations are included in this report. The responses were not subjected to the agreed-upon-procedures performed during our engagement and, accordingly, we express no opinion or report on them. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. CERTIFIED PUBLIC ACCOUNTANTS Roanoke, Virginia July 11, 2023 87 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED 2 Accounts Payable Disbursements (COUNTY) Select a random sample of ten disbursements (of the ten disbursements, at least two for items between $10,000 and $100,000, two for items between $5,000 and $10,000, and one under $5,000 each period and five disbursements in excess of $100,000, if available)noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If amount is between $5,000 and $9,999, there was documentation of one written quote. If amount is between $10,000 and $99,999, there was documentation of use of unsealed bidding or unsealed request for proposals. If amount is greater than $100,000, determine that there is evidence of public bid notice. o If amount is greater than $80,000 and for professional services, or if the amount is greater than $100,000 and for goods and nonprofessional services, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Using CAAT’s, evaluate electronically all A/P cash disbursements for: Duplicate check numbers. Gap detection of check sequences. Duplicate payments (same date, payee, and amount). Using CAAT’s: Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with the same addresses and investigate those which had activity during the period under review. Examine vendors with the same address. Compare the current to date vendor master listing with the prior vendor master listing and examine ten new vendors for validity. General Government Payroll (COUNTY) Select a sample of five payroll disbursements noting: Rate of pay used to calculate gross pay agrees to authorize amount per Personal Action Form (“PA”). Time is supported by an approved time card signed by the department head. Recalculate gross pay based on approved hours and rate of pay. Agree amount per cancelled check or voucher to payroll register. 88 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 3 General Government Payroll (COUNTY)(Continued) Select five new employees noting: Department head or supervisor has signed the PA form. Employee file contains an I-9 form. Data on the PA form agrees to the employee master file in the system. If individual is replacing someone in a budgeted position, test system to determine that former employee has been inactivated in the system. Using CAAT’s, compare employee payrolls from period to period and select five individuals whose gross pay changed and agree the change to personnel records. Bank Reconciliations Select one bank reconciliation during the period under review and perform the following: Compare the balance on the reconciliation to the general ledger. Examine fifteen treasurer checks and fifteen other checks shown as outstanding noting: o That payee is in compliance with County policy. (No checks written to cash or bearer) o The person signing the check is authorized to issue the check. Examine all outstanding checks greater than $15,000 noting: o That payee is in compliance with County policy. (No checks written to cash or bearer) o The person signing the check is authorized to issue the check. Read the outstanding check schedule noting all checks outstanding for more than 217 days. Examine the bank statement for the following month to verify all deposits in transit cleared the bank. Examine all checks greater than $15,000 and ten smaller checks that cleared the bank the first ten days in the subsequent month to proper inclusion/exclusion on the outstanding check list. Verify the clerical accuracy of the bank reconciliation. Agree the bank balance to the bank statement. Examine checks from the prior visit sample of checks that had not cleared the bank noting: o That payee is in compliance with County policy. (No checks written to cash or bearer) o The person signing the check is authorized to issue the check. Treasurer’s Checks Select a sample of ten treasurer’s checks noting: Evidence of authorized approval. Payee and amount agree to supporting documentation. Abatements Obtain an electronic file of abatements and select twenty abatements and agree to supporting documentation. 89 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 4 Accounts Payable Disbursements (SCHOOLS) Select a random sample of ten disbursements (of the ten disbursements, three will be for items greater than $5,000, two for items under $5,000, and five disbursements in excess of $200,000) noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If amount is less than $5,000, one quote was obtained. If amount is between $5,000 and $30,000, three verbal quotes were obtained. If the amount is between $30,000 and $200,000, four written quotes were obtained. If the amount is greater than $200,000, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. For construction contracts in excess of $100,000, examine bid bond from Surety Company that accompanies contract. Using CAAT’s, evaluate electronically all A/P cash disbursements for: Duplicate check numbers. Gap detection of check sequences. Duplicate payments (same date, payee, and amount). Using CAAT’s: Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with the same addresses and investigate those which had activity during the period under review. Examine vendors with the same address, excluding employee HSA accounts. Compare the current to date vendor master listing with the prior vendor master listing and examine five new vendors for validity. General Payroll (SCHOOLS) Select a sample of five payroll disbursements noting: Rate of pay used to calculate gross pay agrees to authorized amount per Assignment and Annual Contract memo from the Superintendent. Time is supported by an approved time card signed by the department head (if applicable). Recalculate gross pay based on approved hours and rate of pay. Agree amount per cancelled check or voucher to payroll register. Select five new employees noting: Department head has signed the PA form. Employee file contains an I-9 form. Data in employee file and new hire paperwork agrees to employee information per employee master file on payroll system. If individual is replacing someone in a budgeted position, test system to determine that former employee has been inactivated in the system. 90 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 5 General Payroll (SCHOOLS)(Continued) Using CAAT’s, compare employee payrolls from period to period and select five individuals whose gross pay changed and agree the change to personnel records. Using CAAT’s, search for employees that were paid twice within the same period. Select individuals to examine. Analysis of A/R Cash Receipts (SCHOOLS) Compare two days of cash receipts scheduled by the clerk opening the mail with the amounts deposited by the Accounts Receivable Clerk noting: The deposit slip agrees to the sum of all checks received. Support for all receipts is maintained in the A/R binder. The coding of revenue accounts compares appropriately to type of receipt. Program Expenditures (SOCIAL SERVICES) Select a random sample of ten purchase orders noting: Amount in client’s case file matches purchase order. Vendor established in the system matches name in purchase order. Name on purchase order matches client. Purchase order was approved prior to any encumbrances. Obtain the preliminary warrant register with caseworker’s and aide’s approval and compare that to the warrant register approved by the Director to ensure that no warrants were issued after approval by the Director. Select a random sample of ten program expenditure disbursements noting: Evidence of timely authorized approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Examine cancelled check to determine that payee and amount agree to information on warrant register. Review case file to determine if client is authorized to receive this specific type of assistance. Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with the same addresses and investigate those which had activity during the period under review. 91 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 6 Accounts Payable Disbursements (SOCIAL SERVICES) Select a random sample of ten disbursements noting: Evidence of approval by the Director of Social Services. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Examine cancelled check to determine that payee and amount agree to information on warrant register. Payroll (SOCIAL SERVICES) From the payroll register, select a sample of five payroll disbursements noting: Rate of pay used to calculate gross pay agrees to authorized amount in employee file. Agree amount to payroll register. Compare direct deposit authorization signed by the employee to the account number that the direct deposit went into on the confirmation returned from the bank. Select two payrolls during the period and compare net pay per the payroll register to the confirmation returned from the bank to ensure that net payroll register agrees to amount deposited by the bank. Examine confirmation returned from the bank for duplicate employee account numbers. Based on the number of days in the month, recalculate the maximum amount of “beeper pay” that could be paid. Compare this to the total amount of beeper pay for the month. Select three new employees each period noting: Data in the personnel file matches information keyed into the Peachtree module, such as name, pay rate, bank account number. If individual is replacing someone, test system to determine that former employee has been inactivated in the system. Compare payroll warrant registers for several periods looking for employees that are no longer on payroll. For employees no longer on the payroll, determine that their last payment coincides with their final day of work. Cash Disbursements (REGIONAL JAIL) Select a sample of ten disbursements from the inmate account and five disbursements from the canteen account noting: Evidence of authorized departmental approval or inmate approval. Payee and amount agree to supporting documentation. Consider the appropriateness of the expenditure in relation to the type of account. 92 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 7 Bank Reconciliations (REGIONAL JAIL) Select one bank reconciliation and perform the following: Compare the balance on the reconciliation to the general ledger. Examine five checks shown as outstanding noting: o Payee and amount agree with supporting documentation. o The person signing the check is authorized to issue the check. Read the outstanding check schedule noting all checks outstanding for more than 217 days. Examine the bank statement for the following month to verify all deposits in transit cleared the bank. Verify the clerical accuracy of the bank reconciliation. Agree the bank balance to the bank statement. Accounts Payable Disbursements (REGIONAL JAIL) Select a random sample of five disbursements noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If amount is between $5,000 and $9,999, there was documentation of one written quote. If amount is between $10,000 and $99,999, there was documentation of use of unsealed bidding or unsealed request for proposals. If amount is greater than $100,000, determine that there is evidence of public bid notice. o If amount is greater than $80,000 and for professional services, or if the amount is greater than $100,000 and for goods and nonprofessional services, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Using CAAT’s: Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with same addresses and investigate those which had activity during period under review. Examine vendors with the same address. Accounts Payable Disbursements (SHERIFF) Select a random sample of ten disbursements (of the ten disbursements, at least two for items between $10,000 and $100,000, two for items between $5,000 and $10,000, and one under $5,000 each period and five disbursements in excess of $100,000, if available) noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If amount is between $5,000 and $9,999, there was documentation of one written quote. If amount is between $10,000 and $99,999, there was documentation of use of unsealed bidding or unsealed request for proposals. 93 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 8 Accounts Payable Disbursements (SHERIFF)(Continued) If the amount is greater than $100,000, determine that there is evidence of public bid notice. o If amount is greater than $80,000 and for professional services, or if the amount is greater than $100,000 and for goods and nonprofessional services, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Using CAAT’s, compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with same addresses and investigate those which had activity during period under review. Using CAAT’s, run a summary of disbursements each period summarized by vendor name. Examine dates of payments and amounts below $2,000 to indicate possible order splitting. Focused Testing (SOCIAL SERVICES) Select the two most current quarterly 941 filings for the two federal ID’s at Social Services (in-home services and social services) and perform the following: Examine documentation that they were prepared and completed timely (by the last day of the month following the quarter end). Inquire about and review any delinquent notices from the IRS that have been reviewed. Examine reconciliation from Social Services records to 941 filed with IRS and agree balances from reconciliation to 941. Recalculate the calculations of payroll taxes on the 941. Examine documentation of timely payment with filed 941. Select two monthly Special Welfare reconciliations and perform the following: Agree ten entries per month between Social Services ledgers and County general ledger. Review reconciliation and document that reconciling items between Social Services and County consist of interest or cancelled checks. Gain an understanding of any other reconciling items. Document any unidentified reconciling items. Test for clerical accuracy. Select ten voided checks during the period under review and perform the following: Examine notification of voided check to Treasurer using standard void check notification. Ensure notification was made timely (within a day). Request documentation that quarterly review of outstanding check report was performed and that checks that needed voiding were properly voided. 94 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 9 Focused Testing (SOCIAL SERVICES)(Continued) Select the annual, quarterly, or monthly State LASER report reconciliation. Verify that the department of Social Services has reconciled the LASER report to the internal Social Services Thomas Brothers system and the County’s general ledger. Review and determine that all reconciling items have been identified. Select five individual gas card expenditures, noting the following: Examine documentation of the use of the check-in and check-out log. Per review of the log, ensure the gas cards were returned reasonably after stated use. Trace individual expenditure to gas card billing statement. Review disbursement to gas card vendor noting timely payment and avoidance of penalties. Ensure documentation has been made of the individual case name that any expenditure is related to. Ensure approval has been made for expenditure and that approval is properly documented. Select five individual credit card expenditures noting the following: The card has a single purchase limit. Training was provided to card user. Trace one expenditure for each card to billing statement and monthly reconciliation. If an item purchased for a program expense is returned, ensure that the credit on the statement is applied to the same budget item. Ensure case name was properly documented with expenditure. Ensure approval has been made for expenditure and that it is properly documented. Review disbursement to credit card company, noting timely payment and avoidance of penalties. Purchase is within “Card Use” section of Purchasing Card Policies and Procedures prepared by the Frederick County Finance Department dated November 1, 2019. Select ten travel reimbursements filed and review for the following: Review documentation noting proper approval for travel reimbursements. Travel reimbursements should include employee’s signature, as well as Supervisor and Director. Ensure per diem limits, as authorized, have been complied with. Ensure documentation has been made noting the individual case name that any expenditure is related to. Ensure County approved mileage rates are used. Ensure supporting documentation is filed with travel reimbursement. Revenue Recovery Program (FIRE AND RESCUE) Select a sample of ten daily logs and perform the following: Verify patient and/or hospital authorization for each run. Verify that a staff record was submitted to hospital. Check to see that the log was sent to the billing company in a timely manner. Any amounts that were written off are accompanied by supporting documentation. Select the two most recent Quarterly Allocation Spreadsheets and perform the following: Verify that the report was reconciled to the G/L. Review and determine that all reconciling items have been identified. Test the mathematical accuracy of the reconciliation. 95 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 10 P-Card Program (COUNTY) Select a sample of 5 individual cards noting: The card has a single purchase limit. Training was provided to card user. Select a sample of 3 departments, and the associated summary statement for that department, noting: Purchases fall within the following criteria: o Has an associated purchase order and/or, o Is $5,000 or greater and has a standing PO and/or, o Is $5,000 or greater and does not require a PO and/or, o Utility payments (phone, cellular phone, cable, water/sewer, gas). Log is maintained for all charges made on department cards for the month associated with the statement selected. Department card is maintained in secure location Inquire of department p-card managers if they maintain a list of PINs for all cardholders. Additionally, inquire of a cardholder for the department if they are aware if a list of PINs is maintained by the department manager or another department staff. For all card statements selected above verify that: Purchases are within “Card Use” section of Purchasing Card Policies and Procedures prepared by the Frederick County Finance Department dated November 1, 2019. A monthly reconciliation was performed. Payment summary is prepared by Program manager and signed by department head and another individual if the department head used the card. Payment was made within 25 day grace period. Computer Inventory (COUNTY) For purchases of computer equipment subject to asset tagging during the period: For a sample of five purchases, compare the number purchased per invoice to number of items tagged by IT as new equipment and ensure procurement policy was followed for the purchase. Using CAATs, determine the amount of unused equipment remaining in inventory based on the listing provided. Report if unused equipment purchased prior to three months exceeds 10% of inventory on hand. Using CAATS, review list of issued and tagged equipment for duplicate issuances to employees. Select a sample of five terminated employees during the period and review listing of issued equipment from IT to determine: All equipment issued to the employee was returned and the device asset tag was unassigned. Equipment was returned within one week of employee termination. 96 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 11 Computer Inventory (SCHOOLS) For a sample of five purchases of computer equipment subject to asset tagging during the period, compare the number purchased per invoice to number of items tagged by IT as new equipment and ensure procurement policy was followed for the purchase. Using CAATS, review list of issued and tagged equipment for duplicate issuances to employees. Select a sample of five terminated employees during the period and review listing of issued equipment from IT to determine all equipment issued to the employee was returned and the device asset tag was unassigned. Student Device Inventory (SCHOOLS) Using CAATs, review list of tagged devices issued to students during the period under review for duplicate issuances to students. For the school year beginning in the period under review: Using CAATs, compare list of enrollment to the list of students who received tagged devices to ensure only students enrolled in the County Schools or a fiscal agent, or enrolled through a private school receiving County School funding obtained devices. For the school year ended in the period under review: Using CAATs, obtain a listing of tagged equipment marked as “Lost” after the end of school year inventory. For a sample of 10 computers, review documentation to note: o Effort was made to bill the student for missing equipment. o If the lost item was determined to be unrecoverable, equipment was deactivated in the system. Commissioner of the Revenue Examine real estate rezoning reports approved by the Board of Supervisors and resulting documentation from taxation system noting that zoning classification was changed accordingly and within a timely manner. Examine the most recent update from the Virginia Department of Motor Vehicles. Select 20 additions, not already identified through the sale of a County decal. Note that date taxed, used for prorating of tax, is appropriate. 97 COUNTY OF FREDERICK, VIRGINIA FINDINGS AND RECOMMENDATIONS 12 Accounts Payable Disbursements (COUNTY) No exceptions noted. General Government Payroll (COUNTY) No exceptions noted. Bank Reconciliations No exceptions noted. Treasurer’s Checks No exceptions noted. Abatements No exceptions noted. Accounts Payable Disbursements (SCHOOLS) No exceptions noted. General Payroll (SCHOOLS) No exceptions noted. Analysis of A/R Cash Receipts (SCHOOLS) No exceptions noted. Program Expenditures (SOCIAL SERVICES) No exceptions noted. Accounts Payable Disbursements (SOCIAL SERVICES) No exceptions noted. Payroll (SOCIAL SERVICES) No exceptions noted. Cash Disbursements (REGIONAL JAIL) No exceptions noted. 98 COUNTY OF FREDERICK, VIRGINIA FINDINGS AND RECOMMENDATIONS (Continued) 13 Bank Reconciliations (REGIONAL JAIL) No exceptions noted. Accounts Payable Disbursements (REGIONAL JAIL) No exceptions noted. Accounts Payable Disbursements (SHERIFF) No exceptions noted. Focused Testing (SOCIAL SERVICES) No exceptions noted. Revenue Recovery Program (FIRE AND RESCUE) No exceptions noted. P-card Program (COUNTY) No exceptions noted. Computer Inventory (COUNTY) Unused inventory is tracked outside of the asset tagging system. The listing provided did not have any support regarding the length of time in storage, when the equipment was purchased, or whether it is a new or used item. We were unable to calculate the amount of unused equipment purchased prior to three months from February 28, 2023. There were eight community computers that were assigned to an individual instead of a specific location. There is no documentation regarding the return of terminated employees’ equipment. 99 COUNTY OF FREDERICK, VIRGINIA FINDINGS AND RECOMMENDATIONS (Continued) 14 Computer Inventory (SCHOOLS) No exceptions noted. Student Device Inventory (SCHOOLS) No exceptions noted. Commissioner of the Revenue No exceptions noted. 100 CORRECTIVE ACTION PLAN Findings: Computer Inventory (COUNTY) Unused inventory is tracked outside of the asset tagging system. The listing provided did not have any support regarding the length of time in storage, when the equipment was purchased, or whether it is a new or used item. We were unable to calculate the amount of unused equipment purchased prior to three months from February 28, 2023. There were eight community computers that were assigned to an individual instead of a specific location. There is no documentation regarding the return of terminated employees’ equipment. Corrective Action Plan (CAP): The following policy has been created to resolve the findings identified in the audit. 101 IT ASSET TRACKING POLICY I. PURPOSE: To establish policy, procedure and responsibili�es for the asset tracking of Frederick County owned IT equipment and peripherals (“equipment” shall include peripherals) to include agencies for which Frederick County serves as fiscal agent. II. SCOPE: This policy applies to all Frederick County Departments and those agencies for which Frederick County serves as fiscal agent. III. POLICY: Unless otherwise specified in this policy, all IT equipment iden�fied in the IT Procurement Policy will be tracked by the IT Department. Records maintained by the IT Department will include, but not limited to, equipment inventory, equipment user and equipment loca�on. IV. DEFINITIONS: Employee Equipment Form: An agreement signed by the County employee accep�ng responsibility for returning County owned assets upon employment termina�on. Equipment Inventory: A record of County owned IT Equipment that includes per�nent informa�on regarding the asset and its loca�on. Equipment Location: The physical loca�on of IT equipment. Equipment User: County employee (or County Department in the case of general use and enterprise/voca�onal IT equipment) who is assigned the asset and accepts responsibility for the asset. IT Equipment: All computer equipment, or other asset that is connected to a computer to increase func�onal range or efficiency to including but not limited to: personal computers, laptops, file servers, printers, bar code readers, palm pilots, copiers, and wireless communica�ons. Master Spreadsheet: Asset tracking record maintained by the IT Department. Termination Alert: Email generated by the HR Department to no�fy iden�fied staff of the termina�on of employment of a County employee. V. RESPONSIBILITIES: a. The Frederick County IT Department shall: 102 i. Procure all IT equipment per the IT Procurement Policy and Frederick County Procurement Policy. ii. Establish and maintain an IT equipment asset tracking system. 1. As IT equipment is ordered, enter purchase informa�on in the master spreadsheet and verify that all purchased equipment is received. 2. As IT equipment is received, enter iden�fying equipment informa�on in the master spreadsheet. 3. Prior to IT equipment being distributed, the IT Department will verify that an Employee Equipment Agreement Form has been signed by the user. a. The Employee Equipment Agreement Form is signed during the New Employee Orienta�on and is on file in the HR Department. b. HR will make the form part of the employee’s file. 4. As IT equipment is distributed, enter equipment user and equipment loca�on in the master spreadsheet. a. An IT Help Desk �cket is created by either the IT Department or the user department. General use equipment and enterprise/vocational IT equipment not assigned to an individual user will identify the using department as the user and the Department Head will maintain custodial responsibility. 5. As users are iden�fied as terminated by the HR Department, the IT Department will verify that all assigned equipment is returned to the County and the master spreadsheet is updated to reflect that the equipment is available to be assigned to another user. a. IT will be no�fied of terminated employees via the Termina�on Alerts that are sent to key personnel by the HR Department. b. IT will no�fy the HR Department if equipment is not returned within three business days of employment separa�on. c. HR will no�fy the Finance Department (Payroll) when there is a need to recoup funds for unused equipment. d. The Finance Department (Payroll) will withhold the equipment funds from the employee’s final pay. 6. As equipment is reassigned, add a new record to the master spreadsheet reflec�ng the new user, loca�on, and iden�fying equipment informa�on. a. The user department will submit an IT Help Desk “New Employee Request”. 7. As equipment is permanently taken out of service, the master spreadsheet is updated to reflect the disposal. The equipment is disposed of by the IT Department following County policy. b. Frederick County Cons�tu�onal Officers, Department Heads and Chiefs of other agencies for which Frederick County serves as fiscal agent shall: 103 i. Establish a departmental procedure to ensure �mely submission of New Employee Requests through the IT Help Desk. ii. Establish a departmental procedure to report to the IT Department, within 1 week of termina�on, that equipment assigned to terminated employee has been returned. iii. Establish a departmental procedure to ensure general use and enterprise/voca�onal IT equipment is accounted for and report to the IT Department for disposal per County policy. iv. Establish a procedure to request IT equipment replacement, through the IT Help Desk, for items that fall outside of the Computer Replacement Process (IT Procurement Policy, sec�on VI), to include budge�ng funds and following both the IT Procurement Policy and Frederick County Procurement Policy. VI. COMPLIANCE: This policy is subject to the biannual Internal Audit and reported to the Frederick County Audit Commitee. The County engages an independent auditor from a public accoun�ng firm to perform agreed-upon procedures to provide independent assurance that the County’s risk management, governance and internal control processes are opera�ng effec�vely. The agreed-upon procedures are approved annually by the County Administrator. The County Administrator shall be no�fied of policy viola�ons through the dra� Internal Audit. The County Administrator, or designee, shall request and assess correc�ve ac�on plan(s) (CAP). An approved CAP will become part of the final Internal Audit Report. The final report is forwarded to the Frederick County Audit Commitee for review and, if necessary, ac�on. Viola�on of this policy may result in disciplinary ac�on up to and including termina�on of employment. 7/10/23 104 COUNTY of FREDERICK 107 North Kent Street  Winchester, Virginia 22601 I acknowledge that while I am working for Frederick County, I will take proper care of all company equipment that I am issued. I further understand that upon termination, I will return all Frederick County’s property, and that the property will be returned in proper working order, subject to ordinary wear and tear. I understand I may be held financially responsible for lost or damaged property. According to Frederick County policy, all employees are required to return all County property upon separation of employment. Upon separation, you will have three business days to return County equipment. Failing to do so will result in a deduction being made to the employee’s final paycheck. Please return all property to your Department Head or their designee. _________________________ _______________ Employee Signature Date 105 COUNTY OF FREDERICK, VIRGINIA INTERNAL AUDIT ENGAGEMENT AUGUST 31, 2022 106 CONTENTS Page INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES .........................................................................................................1 PROCEDURES PERFORMED .................................................................................................................2 FINDINGS AND RECOMMENDATIONS ............................................................................................12 CORRECTIVE ACTION PLANS ...........................................................................................................15 107 Your Success is Our Focus 3906 Electric Road • Roanoke, VA 24018 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES Mr. Charles S. DeHaven, Jr. Chairman of the Board of Supervisors County of Frederick, Virginia We have performed the procedures enumerated on pages 2 through 11 on selected accounting records and transactions of the County of Frederick, Virginia (the “County”) for the period March 1, 2022 to August 31, 2022. The County’s management is responsible for the accounting records and transactions. The County has agreed to and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and associated findings can be found on pages 2 through 14. We were engaged by the County to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the County’s accounting records and transactions. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the County and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. The entity’s responses, titled Corrective Action Plans,to our recommendations are included in this report. The responses were not subjected to the agreed-upon-procedures performed during our engagement and, accordingly, we express no opinion or report on them. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. CERTIFIED PUBLIC ACCOUNTANTS Roanoke, Virginia November 17, 2022 108 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED 2 Accounts Payable Disbursements (COUNTY) Select a random sample of ten disbursements (of the ten disbursements, at least two for items between $5,000 and $70,000, two for items between $2,000 and $5,000, and one under $2,000 each period and five disbursements in excess of $70,000, if available)noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If prior to July 1, 2022: o If amount is between $2,000 and $4,999, there was documentation of three verbal quotes. o If amount is between $5,000 and $69,999, there was documentation of four written quotes. o If amount is greater than $70,000, determine that there is evidence of public bid notice. If after July 1, 2022: o If amount is between $5,000 and $9,999, there was documentation of one written quote. o If amount is between $10,000 and $79,999 for professional services or if amount is between $10,000 and $99,999 for goods and nonprofessional services, eVA was used to publicly post request for quotes, unsealed bids or unsealed proposals, or in lieu of eVA, a rideable or cooperative contract was used. o If amount is greater than $80,000 and for professional services, or if the amount is greater than $100,000 and for goods and nonprofessional services, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Using CAAT’s, evaluate electronically all A/P cash disbursements for: Duplicate check numbers. Gap detection of check sequences. Duplicate payments (same date, payee, and amount). Using CAAT’s: Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with the same addresses and investigate those which had activity during the period under review. Examine vendors with the same address. Compare the current to date vendor master listing with the prior vendor master listing and examine ten new vendors for validity. General Government Payroll (COUNTY) Select a sample of five payroll disbursements noting: Rate of pay used to calculate gross pay agrees to authorize amount per Personal Action Form (“PA”). Time is supported by an approved time card signed by the department head. Recalculate gross pay based on approved hours and rate of pay. Agree amount per cancelled check or voucher to payroll register. 109 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 3 General Government Payroll (COUNTY)(Continued) Select five new employees noting: Department head or supervisor has signed the PA form. Employee file contains an I-9 form. Data on the PA form agrees to the employee master file in the system. If individual is replacing someone in a budgeted position, test system to determine that former employee has been inactivated in the system. Using CAAT’s, compare employee payrolls from period to period and select five individuals whose gross pay changed and agree the change to personnel records. Bank Reconciliations Select one bank reconciliation during the period under review and perform the following: Compare the balance on the reconciliation to the general ledger. Examine fifteen treasurer checks and fifteen other checks shown as outstanding noting: That payee is in compliance with County policy. (No checks written to cash or bearer) The person signing the check is authorized to issue the check. Examine all outstanding checks greater than $15,000 noting: That payee is in compliance with County policy. (No checks written to cash or bearer) The person signing the check is authorized to issue the check. Read the outstanding check schedule noting all checks outstanding for more than 217 days. Examine the bank statement for the following month to verify all deposits in transit cleared the bank. Examine all checks greater than $15,000 and ten smaller checks that cleared the bank the first ten days in the subsequent month to proper inclusion/exclusion on the outstanding check list. Verify the clerical accuracy of the bank reconciliation. Agree the bank balance to the bank statement. Examine checks from the prior visit sample of checks that had not cleared the bank noting: That payee is in compliance with County policy. (No checks written to cash on bearer) The person signing the check is authorized to issue the check. Treasurer’s Checks Select a sample of ten treasurer’s checks noting: Evidence of authorized approval. Payee and amount agree to supporting documentation. Abatements Obtain an electronic file of abatements and select twenty abatements and agree to supporting documentation. 110 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 4 Accounts Payable Disbursements (SCHOOLS) Select a random sample of ten disbursements (of the ten disbursements, three will be for items greater than $5,000, two for items under $5,000, and five disbursements in excess of $200,000) noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If amount is less than $5,000, one quote was obtained. If amount is between $5,000 and $30,000, three verbal quotes were obtained. If the amount is between $30,000 and $200,000, four written quotes were obtained. If the amount is greater than $200,000, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. For construction contracts in excess of $100,000, examine bid bond from Surety Company that accompanies contract. Using CAAT’s, evaluate electronically all A/P cash disbursements for: Duplicate check numbers. Gap detection of check sequences. Duplicate payments (same date, payee, and amount). Using CAAT’s: Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with the same addresses and investigate those which had activity during the period under review. Examine vendors with the same address, excluding employee HSA accounts. Compare the current to date vendor master listing with the prior vendor master listing and examine five new vendors for validity. General Payroll (SCHOOLS) Select a sample of five payroll disbursements noting: Rate of pay used to calculate gross pay agrees to authorized amount per Assignment and Annual Contract memo from the Superintendent. Time is supported by an approved time card signed by the department head (if applicable). Recalculate gross pay based on approved hours and rate of pay. Agree amount per cancelled check or voucher to payroll register. Select five new employees noting: Department head has signed the PA form. Employee file contains an I-9 form. Data in employee file and new hire paperwork agrees to employee information per employee master file on payroll system. If individual is replacing someone in a budgeted position, test system to determine that former employee has been inactivated in the system. 111 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 5 General Payroll (SCHOOLS)(Continued) Using CAAT’s, compare employee payrolls from period to period and select five individuals whose gross pay changed and agree the change to personnel records. Using CAAT’s, search for employees that were paid twice within the same period. Select individuals to examine. Analysis of A/R Cash Receipts (SCHOOLS) Compare two days of cash receipts scheduled by the clerk opening the mail with the amounts deposited by the Accounts Receivable Clerk noting: The deposit slip agrees to the sum of all checks received. Support for all receipts is maintained in the A/R binder. The coding of revenue accounts compares appropriately to type of receipt. Program Expenditures (SOCIAL SERVICES) Select a random sample of ten purchase orders noting: Amount in client’s case file matches purchase order. Vendor established in the system matches name in purchase order. Name on purchase order matches client. Purchase order was approved prior to any encumbrances. Obtain the preliminary warrant register with case-worker’s and aide’s approval and compare that to the warrant register approved by the Director to ensure that no warrants were issued after approval by the Director. Select a random sample of ten program expenditure disbursements noting: Evidence of timely authorized approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Examine cancelled check to determine that payee and amount agree to information on warrant register. Review case file to determine if client is authorized to receive this specific type of assistance. Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with the same addresses and investigate those which had activity during the period under review. 112 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 6 Accounts Payable Disbursements (SOCIAL SERVICES) Select a random sample of ten disbursements noting: Evidence of approval by the Director of Social Services. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Examine cancelled check to determine that payee and amount agree to information on warrant register. Payroll (SOCIAL SERVICES) From the payroll register, select a sample of five payroll disbursements noting: Rate of pay used to calculate gross pay agrees to authorized amount in employee file. Agree amount to payroll register. Compare direct deposit authorization signed by the employee to the account number that the direct deposit went into on the confirmation returned from the bank. Select two payrolls during the period and compare net pay per the payroll register to the confirmation returned from the bank to ensure that net payroll register agrees to amount deposited by the bank. Examine confirmation returned from the bank for duplicate employee account numbers. Based on the number of days in the month, recalculate the maximum amount of “beeper pay” that could be paid. Compare this to the total amount of beeper pay for the month. Select three new employees each period noting: Data in the personnel file matches information keyed into the Peachtree module, such as name, pay rate, bank account number. If individual is replacing someone, test system to determine that former employee has been inactivated in the system. Compare payroll warrant registers for several periods looking for employees that are no longer on payroll. For employees no longer on the payroll, determine that their last payment coincides with their final day of work. Cash Disbursements (REGIONAL JAIL) Select a sample of ten disbursements from the inmate account and five disbursements from the canteen account noting: Evidence of authorized departmental approval or inmate approval. Payee and amount agree to supporting documentation. Consider the appropriateness of the expenditure in relation to the type of account. 113 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 7 Bank Reconciliations (REGIONAL JAIL) Select one bank reconciliation and perform the following: Compare the balance on the reconciliation to the general ledger. Examine five checks shown as outstanding noting: Payee and amount agree with supporting documentation. The person signing the check is authorized to issue the check. Read the outstanding check schedule noting all checks outstanding for more than 217 days. Examine the bank statement for the following month to verify all deposits in transit cleared the bank. Verify the clerical accuracy of the bank reconciliation. Agree the bank balance to the bank statement. Accounts Payable Disbursements (REGIONAL JAIL) Select a random sample of five disbursements noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If amount is between $2,000 and $4,999,there was documentation of three verbal quotes. If amount is between $5,000 and $69,999,there was documentation of four written quotes. If amount is greater than $70,000, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. Using CAAT’s: Compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with same addresses and investigate those which had activity during period under review. Examine vendors with the same address. Accounts Payable Disbursements (SHERIFF) Select a random sample of ten disbursements (of the ten disbursements, at least five will be for items between $5,000 and $69,999, two for items between $2,000 and $4,999, one under $2,000, and two disbursements in excess of $70,000, if applicable) noting: Evidence of authorized departmental approval. Payee and amount agree to supporting documentation, i.e. invoice, purchase order, receiving documentation, as applicable. If amount is between $2,000 and $4,999, there was documentation of three verbal quotes. If amount is between $5,000 and $69,999, there was documentation of four written quotes. If amount is greater than $70,000, determine that there is evidence of public bid notice. Consider the appropriateness of the expenditure account charged and trace expenditure to the general ledger. 114 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 8 Accounts Payable Disbursements (SHERIFF)(Continued) Using CAAT’s, compare the most current to date vendor master listing to the most current to date employee master listing for vendors and employees with same addresses and investigate those which had activity during period under review. Using CAAT’s, run a summary of disbursements each period summarized by vendor name. Examine dates of payments and amounts below $2,000 to indicate possible order splitting. Land Use and Tax Relief (COMMISSIONER OF REVENUE) Select a sample of five Land Use tax relief deferrals and five Tax Relief for the Elderly or Permanently Disabled deferrals during the period under review noting: A formal application was received and approved by the Commissioner of Revenue’s office. Using guidelines from the state, eligibility was properly determined. Documentation exists that information on applications was verified by Commissioner of Revenue employees. For Tax Relief applications, inquire of the Commissioner how they have ensured that the asset and/or income information on the application is complete. Review documentation that these procedures were performed. Focused Testing (SOCIAL SERVICES) Select the two most current quarterly 941 filings for the two federal ID’s at Social Services (in-home services and social services) and perform the following: Examine documentation that they were prepared and completed timely (by the last day of the month following the quarter end). Inquire about and review any delinquent notices from the IRS that have been reviewed. Examine reconciliation from Social Services records to 941 filed with IRS and agree balances from reconciliation to 941. Recalculate the calculations of payroll taxes on the 941. Examine documentation of timely payment with filed 941. Select two monthly Special Welfare reconciliations and perform the following: Agree ten entries per month between Social Services ledgers and County general ledger. Review reconciliation and document that reconciling items between Social Services and County consist of interest or cancelled checks. Gain an understanding of any other reconciling items. Document any unidentified reconciling items. Test for clerical accuracy. Select ten voided checks during the period under review and perform the following: Examine notification of voided check to Treasurer using standard void check notification. Ensure notification was made timely (within a day). Request documentation that quarterly review of outstanding check report was performed and that checks that needed voiding were properly voided. 115 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 9 Focused Testing (SOCIAL SERVICES)(Continued) Select the annual, quarterly, or monthly State LASER report reconciliation. Verify that the department of Social Services has reconciled the LASER report to the internal Social Services Thomas Brothers system and the County’s general ledger. Review and determine that all reconciling items have been identified. Select five individual gas card expenditures, noting the following: Examine documentation of the use of the check-in and check-out log. Per review of the log, ensure the gas cards were returned reasonably after stated use. Trace individual expenditure to gas card billing statement. Review disbursement to gas card vendor noting timely payment and avoidance of penalties. Ensure documentation has been made of the individual case name that any expenditure is related to. Ensure approval has been made for expenditure and that approval is properly documented. Select five individual credit card expenditures noting the following: The card has a single purchase limit. Training was provided to card user. Trace one expenditure for each card to billing statement and monthly reconciliation. If an item purchased for a program expense is returned, ensure that the credit on the statement is applied to the same budget item. Ensure case name was properly documented with expenditure. Ensure approval has been made for expenditure and that it is properly documented. Review disbursement to credit card company, noting timely payment and avoidance of penalties. Purchase is within “Card Use” section of Purchasing Card Policies and Procedures prepared by the Frederick County Finance Department dated November 1, 2019. Select ten travel reimbursements filed and review for the following: Review documentation noting proper approval for travel reimbursements. Travel reimbursements should include employee’s signature, as well as Supervisor and Director. Ensure per diem limits, as authorized, have been complied with. Ensure documentation has been made noting the individual case name that any expenditure is related to. Ensure County approved mileage rates are used. Ensure supporting documentation is filed with travel reimbursement. Revenue Recovery Program (FIRE AND RESCUE) Select a sample of ten daily logs and perform the following: Verify patient and/or hospital authorization for each run. Verify that a staff record was submitted to hospital. Check to see that the log was sent to the billing company in a timely manner. Any amounts that were written off are accompanied by supporting documentation. Select the two most recent Quarterly Allocation Spreadsheets and perform the following: Verify that the report was reconciled to the G/L. Review and determine that all reconciling items have been identified. Test the mathematical accuracy of the reconciliation. 116 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 10 P-Card Program (COUNTY) Select a sample of 5 individual cards noting: The card has a single purchase limit. Training was provided to card user. Select a sample of 3 departments, and the associated summary statement for that department, noting: Purchases fall within the following criteria: o Has an associated purchase order and/or, o Is $5,000 or greater and has a standing PO and/or, o Is $5,000 or greater and does not require a PO and/or, o Utility payments (phone, cellular phone, cable, water/sewer, gas). Log is maintained for all charges made on department cards for the month associated with the statement selected. Department card is maintained in secure location Inquire of department p-card managers if they maintain a list of PINs for all cardholders. Additionally, inquire of a cardholder for the department if they are aware if a list of PINs is maintained by the department manager or another department staff. For all card statements selected above verify that: Purchases are within “Card Use” section of Purchasing Card Policies and Procedures prepared by the Frederick County Finance Department dated November 1, 2019. A monthly reconciliation was performed. Payment summary is prepared by Program manager and signed by department head and another individual if the department head used the card. Payment was made within 25 day grace period. Computer Inventory (COUNTY) For purchases of computer equipment subject to asset tagging during the period: For a sample of five purchases, compare the number purchased per invoice to number of items tagged by IT as new equipment and ensure procurement policy was followed for the purchase. Using CAATs, determine the amount of unused equipment remaining in inventory based on the listing provided. Report if unused equipment purchased prior to three months exceeds 10% of inventory on hand. Using CAATS, review list of issued and tagged equipment for duplicate issuances to employees. Select a sample of five terminated employees during the period and review listing of issued equipment from IT to determine: All equipment issued to the employee was returned and the device asset tag was unassigned. Equipment was returned within one week of employee termination. 117 COUNTY OF FREDERICK, VIRGINIA PROCEDURES PERFORMED (Continued) 11 Computer Inventory (SCHOOLS) For a sample of five purchases of computer equipment subject to asset tagging during the period, compare the number purchased per invoice to number of items tagged by IT as new equipment and ensure procurement policy was followed for the purchase. Using CAATS, review list of issued and tagged equipment for duplicate issuances to employees. Select a sample of five terminated employees during the period and review listing of issued equipment from IT to determine all equipment issued to the employee was returned and the device asset tag was unassigned. Student Device Inventory (SCHOOLS) Using CAATs, review list of tagged devices issued to students during the period under review for duplicate issuances to students. For the school year beginning in the period under review: Using CAATs, compare list of enrollment to the list of students who received tagged devices to ensure only students enrolled in the County Schools or a fiscal agent, or enrolled through a private school receiving County School funding obtained devices. For the school year ended in the period under review: Using CAATs, obtain a listing of tagged equipment marked as “Lost” after the end of school year inventory. For a sample of 10 computers, review documentation to note: o Effort was made to bill the student for missing equipment. o If the lost item was determined to be unrecoverable, equipment was deactivated in the system. Commissioner of the Revenue Examine real estate rezoning reports approved by the Board of Supervisors and resulting documentation from taxation system noting that zoning classification was changed accordingly and within a timely manner. Examine the most recent update from the Virginia Department of Motor Vehicles. Select 20 additions, not already identified through the sale of a County decal. Note that date taxed, used for prorating of tax, is appropriate. 118 COUNTY OF FREDERICK, VIRGINIA FINDINGS AND RECOMMENDATIONS 12 Accounts Payable Disbursements (COUNTY) No exceptions noted. General Government Payroll (COUNTY) No exceptions noted. Bank Reconciliations No exceptions noted. Treasurer’s Checks No exceptions noted. Abatements No exceptions noted. Accounts Payable Disbursements (SCHOOLS) No exceptions noted. General Payroll (SCHOOLS) No exceptions noted. Analysis of A/R Cash Receipts (SCHOOLS) No exceptions noted. Program Expenditures (SOCIAL SERVICES) No exceptions noted. Accounts Payable Disbursements (SOCIAL SERVICES) No exceptions noted. Payroll (SOCIAL SERVICES) No exceptions noted. Cash Disbursements (REGIONAL JAIL) No exceptions noted. 119 COUNTY OF FREDERICK, VIRGINIA FINDINGS AND RECOMMENDATIONS (Continued) 13 Bank Reconciliations (REGIONAL JAIL) No exceptions noted. Accounts Payable Disbursements (REGIONAL JAIL) No exceptions noted. Accounts Payable Disbursements (SHERIFF) No exceptions noted. Land Use and Tax Relief (COMMISSIONER OF REVENUE) One electronic application did not have documentation of Commissioner of Revenue review or verification. Focused Testing (SOCIAL SERVICES) No exceptions noted. Revenue Recovery Program (FIRE AND RESCUE) One write-off was not accompanied by supporting documentation. P-card Program (COUNTY) One department maintained a list of PINs for some of the p-cards held by individuals. Computer Inventory (COUNTY) New equipment purchases are not tagged in the system until assigned to an employee. As a result, there is no tracking of assets for their full life cycle. Unused inventory is tracked outside of the asset tagging system. The listing provided did not have any support regarding the length of time in storage, when the equipment was purchased, or whether it is a new or used item. We were unable to calculate the amount of unused equipment purchased prior to three months from August 31, 2022. Six units of decommissioned equipment were still showing as “operational” within the system and assigned to users. Fifteen units of equipment were assigned to the incorrect user. Additionally, there were thirty-four community computers that were assigned to an individual instead of a specific location. There is no documentation regarding the return of terminated employees’ equipment. 120 COUNTY OF FREDERICK, VIRGINIA FINDINGS AND RECOMMENDATIONS (Continued) 14 Computer Inventory (SCHOOLS) Ten duplicate issuances of equipment to employees were noted. Student Device Inventory (SCHOOLS) One duplicate issuance of equipment to a student was noted. Eight items noted as lost did not have evidence of effort being made to bill student for missing equipment. One item was assigned to the wrong student ID. Commissioner of the Revenue No exceptions noted. 121 Frederick County, Virginia OFFICE OF COMMISSIONER OF THE REVENUE 107 North Kent Street Winchester VA 22601 P.O. Box 552 Winchester VA 22604-0552 seth.thatcher@fcva.us www.fcva.us/cor SETH T. THATCHER Phone: 540-665-5681 COMMISSIONER Fax: 540-667-6487 Brown Edwards Audit November 2022 FINDINGS: Land Use & Tax Relief (COR) One electronic application did not have documentation of COR review of application CORRECTIVE ACTION PLAN: For review of online applications, a spreadsheet has been created for staff to indicate their initials and date upon review. 15 122 M E M O R A N D U M TO: Sharon Kibler Finance Department FROM: Christine M. Bauserman, EMS Billing Manager Fire and Rescue Department SUBJECT: Corrective Action Plan (Revenue Recovery) DATE: December 16, 2022 This memo is to address the findings and recommendations from the fall County audit. Findings: One write-off was not accompanied by supporting documentation. Response: A refund request was received and forwarded to the third-party billing company. Another primary payor was identified and added to the account. This happened at the same time as the billing company’s program was set to automatically write off the account due to time and meeting all other requirements. It was not caught by either the Billing Manager or the billing company. This has been corrected. Action Plan: All refund requests received by the EMS Billing Manager will be logged in outlook tasks with a reminder date for regular follow-up to ensure future situations do not occur. If you have any questions or need additional information, please do not hesitate to contact me. CMB 16 123 1080 Coverstone Drive Winchester, Virginia 22602 Office (540) 662-6168 Fax (540) 504-6400 Sheriff Lenny Millholland Major Steve A. Hawkins TO: Finance FROM: Angela Carroll – Sheriff’s Office SUBJECT: AUP REPORT DATE: December 7, 2022 There was a finding for the Sheriff’s Office in the audit report for keeping a list of pcard PINSs. We have destroyed the list of PINs and will no longer keep a record of them. I’ve informed others to not keep a list of the PINs from here on out. Thank you Angela Carroll 17 124 Computer Inventory – County Finding-New Equipment purchases are not tagged in the system until assigned to an employee. As a result, there is no tracking of assets for their full cycle. Corrective Action Plan- Assets will be tagged when received. Finding-Unused inventory is tracked outside the asset tagging system. The listing provided did not have any support regarding the time in storage, when the computer was purchased, or whether it is a new or used item. We were unable to calculate the amount of unused equipment purchased prior to three months from August 31, 2022. Corrective Action Plan- Tagging the assets when received will provide this information on unused inventory. Finding- Six units of decommissioned equipment was still showing as “operational” with the system and assigned to users. Corrective Action Plan- Spreadsheets will be updated when equipment is decommissioned. Finding- Fifteen units of equipment were assigned to the incorrect user. Additionally, there were thirty-four community computers that were assigned to and individual instead of a specific location. Corrective Action Plan- Community Computers are assigned to an employee of the department to provide greater accountability. Finding-There is not documentation regarding the return of terminated employees ‘equipment. Corrective Action Plan- Staff will pursue developing a form of return items when developing the centralized inventory system. Staff in pursing demos for a centralized inventory system. While the intent of the system was for radios, the system will be available for all inventory management. Each department could utilize the system eliminating the need for multiple inventory systems. 18 125 Director of Information Technology yostr@frederick.k12.va.us 1415 Amherst Street www.frederick.k12.va.us 540-662-3889 ext. 164 P.O. Box 3508 540-722-2788 fax Winchester, Virginia 22604-2546 TO: Sharon Kibler FROM: Rob Yost DATE: December 9, 2022 RE: Audit Report Corrective Action Plan Computer Inventory (SCHOOLS) Ten duplicate issuances of equipment to employees were noted. •These items have been corrected in inventory. Monthly database checks will be initiated to identify employees who may have duplicate inventory assigned to them. Staff will be reminded at monthly department meetings to check inventory assignments before assigning new inventory. Student Device Inventory (SCHOOLS) One duplicate issuance of equipment to a student was noted. •This item has been corrected in inventory. Staff will be reminded at monthly department meetings to check inventory assignments before assigning new inventory. Eight items noted as lost did not have evidence of effort being made to bill students for missing equipment. •For those items that need to be billed, documented communications will be maintained and reviewed weekly from the computer technician to the school bookkeeper. One item was assigned to the wrong student ID. •This item has been corrected in inventory. Staff will be reminded at monthly department meetings to check inventory assignments before assigning new inventory. 19 126