/5 ALAN YOUNTS COUNTY AUDITOR April 4, 2017 The Honorable Carbett "Trey" J. Duhon County Judge and Members of the Commissioners' Court Gentlemen: Subject: Waller County Sheriff?s Department Firearm Tracking System Audit i am pleased to attach the report and the Sheriff?s response for an audit requested by the Waller County Sheriff to review the Waller County Sheriff's Department (WCSD) firearm tracking system. The audit began on December 12, 2016 and concluded with the receipt of the Sheriff?s response on March 29, 2017. The WCSD should be commended for their cooperation, assistance and prompt responses during this audit. The WCSD plan indicates full acceptance of all six recommendations in our report. Respectfully submitted, Alan R. Youn Waller County Auditor Attachments: Waller County Sheriff? 5 Office Firearm Tracking System Audit Response Letter, R. Glenn Smith, Waller County Sheriff 836 Austin Street - Suite 221 Hempstead, Texas 77445 - 979.826.7740 - Fax:979.826.83l7 Email: a.younts@wallercounty.us cunt), ALAN YOUNTS COUNTY AUDITOR March 17, 2017 The Honorable R. Glenn Smith Waller County Sheriff 701 Calvit Street Hempstead, Texas 77445 Dear Sheriff Smith, I am pleased to send you this report for an audit requested by the Waller County Sheriff?s Of?ce (WCSD) that included a physical inventory of county owned weapons, 3 review of the internal controls in place and the reconciliation of prior inventory lists to current revised lists. The WCSD should be commended for their cooPeration, assistance and prompt responses during this review. I have included recommendations that if implemented should strengthen the ability to account for and track county owned ?rearms. Before I release the report to the Waller County Commissioners? Court please provide a written response to my recommendations. I want to personally thank you and your staff for the opportunity to serve you in this capacity and I am available to discuss this material with you individually at your convenience. Respectfully su mitted, Alan R. Waller County Auditor 836 Austin Street - Suite 22! - Hempstead, Texas 77445 - 979.826.7740 - Fax:979.826.83l7 Email: a.younts@wallercounty.us Waller County Sheriff?s Of?ce Firearm Tracking System Audit Overview This report is the result of a request made by the Waller County Sheriff to review the Waller County Sheriff?s Department (W CSD) ?rearm tracking system. The main objectives of this audit were to: 0 Inventory the current ?rearms owned by the WCSD and create an auditor weapons inventory list to compare to the WCSD inventory list. 0 Determine if internal controls over ?rearm tracking were adequate to ensure WCSD ?rearms are accounted for and properly tracked. - Reconcile a prior weapon list prepared by WCSD to list compiled at actual physical inventory. This report includes background information to assist the reader in understanding WCSD ?rearm tracking controls and processes. The body of this report consists of observations and recommendations. Results in Brief There were no written internal controls in place to track WCSD ?rearms. This report has identi?ed opportunities to improve accountability, modernize processes, enhance controls and reduce the potential for loss and misuse of county assets. Our recommendations are summarized below. We commend the WCSD efforts for already having implemented some of these since the initial request of this review. 0 Perform a physical inventory of all ?rearms at least once a year conducted by WCSD personnel. 0 Select an industry software system to track ?rearms that includes adequate security and audit trail functionality. 0 Develop written ?rearm tracking policies and educate and communicate expectations to all WCSD personnel. 0 Perform a physical inventory of all ?rearms at least once a year conducted by the Waller County Auditor?s of?ce (WCAO) and reconcile the WCSD ?rearm inventory list to the WCAO ?rearm inventory list. Waller County, Texas County Auditor's Of?ce 1 a Waller County Sheriff?s Of?ce Firearm Tracking System Audit 0 Create a transaction worksheet for every ?rearm transaction approved by those who are identi?ed in the new written policy as responsible for approving all transactions. These transactions should include purchases, sales; trade-in?s and transfers (transfers to and from inventory (safe) or transfers from employee to employee). A copy of each transaction worksheet must be sent to the WCAO when completed and as soon as practical. 0 Corrections or revisions to the ?rearm inventory list should be made as soon as practical to ensure that any WCSD registered ?rearm can be located and retrieved as necessary. Background It is the responsibility of the WCSD to ensure the ef?cient distribution and safe operation of all WCSD weapons and equipment. It is also the responsibility of the WCSD to track ?rearms owned and used by WCSD personnel. Prior to the request by the Waller County Sheriff, I could ?nd no record of a prior ?rearm audit/inventory that had ever been conducted by the WCAO. In addition, we determined that there were no written internal controls or policies in existence at the time of the audit. These facts led to the above listed audit objectives. Currently, the WCSD uses Excel to keep track of their weapons and it is the responsibility of Major Joe Hester to update the worksheet as transactions dictate. In the past few months Major Hester had conducted an internal review of the weapon inventory list and had updated the list prior to the dates scheduled for the joint inventory that included the WCSD and the WCAO. Objective 1 On December 12?14th the WCSD and the WCAO conducted an inventory of weapons in inventory and assigned to WCSD employees. All weapons were brought to the conference room at the Sheriffs of?ce and the auditor?s staff compiled a list of all the weapons that were presented to us. We ?lled out individual transaction sheets that included all pertinent information for future inventories. All transaction sheets were signed by the employee, Major Hester and the County Auditor. This action allowed the WCAO staff to prepare an independent list of weapons in inventory and assigned to employees. This list includes employee name, brand, model, serial number and date purchased/vendor if that information was readily available. Auditing when/where the weapons were purchased were not ever considered in the scope of this inventory. If the new internal controls are approved then future audits can include this audit step. Waller County, Texas County Auditor?s Of?ce 2 a Waller County Sheriff? 5 Of?ce Firearm Tracking System Audit Conclusion: WCAO staff then compared our newly created list of weapons to the updated list that Major Hester provided and reconciled the differences. As of December 16, 2016, the WCSD had 223 weapons. There were 187 weapons assigned to staff and 36 in inventory. Objective 2 The WCAO interviewed the Sheriff and staff and concluded that there were no internal controls in place prior to the request to review the WCSD ?rearm tracking system. This resulted in inventory lists that were not updated because frequent physical inventories of weapons were not conducted. This could potentially result in loss, theft and/or misuse of WCSD ?rearms. Conclusion: WCAO has offered recommendations to strengthen internal controls to track ALL weapon transactions. Again, I would like to commend the Sheriff and his staff for making some changes before we conducted our review. Objective 3 The ?nal step was to reconcile the differences between the WCSD original weapon list received by the WCAO in February/March, 2016 and the revised WCSD weapon list that Major Hester had prepared after his internal review. Conclusion: WCAO staff compared the WCSD original weapon list to the revised WCSD weapon list that Major Hester provided and reconciled all the differences. Waller County, Texas County Auditor?s Of?ce 3 I a OFFICE OF THE SHERIFF WALLER COUNTY 701 Calvit Street - Hempstead, Texas 77445-4699 979 826-8282 - 281 391-8755 - FAX 979 826-7781 R. GLENN SMITH CRAIG DAVIS Sheriff Chief Deputy March 29, 2017 Alan R. Younts Audnor Waller County Auditor Staff, I want to first thank you and staff for taking on this task, I know it was not the ?norm?, but as always your of?ce was up for the task at hand. I totally agree with your recommendations and as you referred to, some have already been established. All six are almost complete and lam happy to report that the Sheriff's Office has an IT advisor, along with a Reserve Captain, that have developed a software system that includes all personnel info, along with equipment issued. This software includes a complete weapon inventory, as well as a one click audit function at any time. It will be used to coincide with a transactional worksheet and firearm inventory. The really good news is the program will be donated to the county in the very near future from the newly created Waller County Sheriff? 5 Office Foundation. You will be invited to inspect the system in the next couple of weeks. Again, thank you and staff. The Sheriff?s Office looks forward to completely implementing all recommendations. Sincerely, Waller County