Audit 359690

FY End
2024-09-30
Total Expended
$4.68M
Findings
8
Programs
5
Organization: County of Caldwell (TX)
Year: 2024 Accepted: 2025-06-24

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
566038 2024-001 Material Weakness Yes P
566039 2024-002 Material Weakness Yes P
566040 2024-001 Material Weakness Yes P
566041 2024-002 Material Weakness Yes P
1142480 2024-001 Material Weakness Yes P
1142481 2024-002 Material Weakness Yes P
1142482 2024-001 Material Weakness Yes P
1142483 2024-002 Material Weakness Yes P

Contacts

Name Title Type
FLLMQ2FDCHY3 Danie Teltow Auditee
5123981801 Karl Goering Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 -- BASIS OF ACCOUNTING Accounting Policies: NOTE 1 -- BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of State Awards (SESA) and the Schedule of Expenditures of Federal Awards (SEFA) includes the state and federal grant activity for the County and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance and the State of Texas Single Audit Circular (Audit Circular). Uniform Guidance sets for the standards and requirements for the Federal Government. The Audit Circular was issued under the authority of the Texas Government Code, Chapter 783, entitled Uniform Grant and Contracts Management. This circular sets standards for obtaining consistency and uniformity among state agencies for the coordinated audit of local governments expending any state awards. Because the schedule presents only a selected portion of the operations of the county, it is not intended to and does not present the financial position of the County. De Minimis Rate Used: N Rate Explanation: Client did not use a indirect cost rate or take indirect costs only direct The accompanying Schedule of Expenditures of State Awards (SESA) and the Schedule of Expenditures of Federal Awards (SEFA) includes the state and federal grant activity for the County and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance and the State of Texas Single Audit Circular (Audit Circular). Uniform Guidance sets for the standards and requirements for the Federal Government. The Audit Circular was issued under the authority of the Texas Government Code, Chapter 783, entitled Uniform Grant and Contracts Management. This circular sets standards for obtaining consistency and uniformity among state agencies for the coordinated audit of local governments expending any state awards. Because the schedule presents only a selected portion of the operations of the county, it is not intended to and does not present the financial position of the County.

Finding Details

Criteria - A primary control over cash is the timely and accurate reconciliation of all cash accounts. Outstanding items in the closed pooled cash account were not cleared timely. Reconciliations of the County’s cash accounts is a requirement of Texas Local Government Code, Sec. 113.008, Reconciliation of Depository Accounts. Additionally, interest earned on investment accounts are not being recorded monthly. Condition – Claim on cash did not reconcile to the pooled cash account by a material degree until corrections were made during the audit. Interest earned on investment accounts was not recorded until the audit. Effect – Inaccurate financial information was provided to Commissioners’ Court as the bank reconciliations have large outstanding items and not all revenue was recorded. Cause – The former Treasurer was unable to reconcile the bank accounts on a timely basis which caused the issue to persist into the current fiscal year. Recommendation - The County Treasurer and assistants should receive training in reconciling bank accounts (with continued support from outside professionals, if necessary), until all bank accounts are reconciled on a timely basis and tie to the general ledger.
Criteria - A primary control over accurate financial statements is the reconciliation of the subsidiary accounts to the general ledger. Condition – The County Auditor is charged with maintaining the records of the County’s financial transactions including the general ledger. We noted numerous balance sheet accounts are not being reconciled to the supporting subsidiary ledgers and accounts. This includes accruals such as receivables and liabilities, as well as, interfund transactions including due to/from and transfers. Effect – Inaccurate financial information was provided to Commissioners’ Court. Additionally, the balance sheet accounts were either over or understated. Cause – Subsidiary Ledgers are not being compared to the corresponding general ledger accounts in the accounting software system by the County Auditor’s Office. Recommendation – Supporting subsidiary ledgers and accounts should be prepared by the appropriate department/personnel, such as the elected official, purchasing agent or grant coordinator and then audited and reconciled to the general ledger by the County Auditor’s office. There has been improvement in this area in the past year.
Criteria - A primary control over cash is the timely and accurate reconciliation of all cash accounts. Outstanding items in the closed pooled cash account were not cleared timely. Reconciliations of the County’s cash accounts is a requirement of Texas Local Government Code, Sec. 113.008, Reconciliation of Depository Accounts. Additionally, interest earned on investment accounts are not being recorded monthly. Condition – Claim on cash did not reconcile to the pooled cash account by a material degree until corrections were made during the audit. Interest earned on investment accounts was not recorded until the audit. Effect – Inaccurate financial information was provided to Commissioners’ Court as the bank reconciliations have large outstanding items and not all revenue was recorded. Cause – The former Treasurer was unable to reconcile the bank accounts on a timely basis which caused the issue to persist into the current fiscal year. Recommendation - The County Treasurer and assistants should receive training in reconciling bank accounts (with continued support from outside professionals, if necessary), until all bank accounts are reconciled on a timely basis and tie to the general ledger.
Criteria - A primary control over accurate financial statements is the reconciliation of the subsidiary accounts to the general ledger. Condition – The County Auditor is charged with maintaining the records of the County’s financial transactions including the general ledger. We noted numerous balance sheet accounts are not being reconciled to the supporting subsidiary ledgers and accounts. This includes accruals such as receivables and liabilities, as well as, interfund transactions including due to/from and transfers. Effect – Inaccurate financial information was provided to Commissioners’ Court. Additionally, the balance sheet accounts were either over or understated. Cause – Subsidiary Ledgers are not being compared to the corresponding general ledger accounts in the accounting software system by the County Auditor’s Office. Recommendation – Supporting subsidiary ledgers and accounts should be prepared by the appropriate department/personnel, such as the elected official, purchasing agent or grant coordinator and then audited and reconciled to the general ledger by the County Auditor’s office. There has been improvement in this area in the past year.
Criteria - A primary control over cash is the timely and accurate reconciliation of all cash accounts. Outstanding items in the closed pooled cash account were not cleared timely. Reconciliations of the County’s cash accounts is a requirement of Texas Local Government Code, Sec. 113.008, Reconciliation of Depository Accounts. Additionally, interest earned on investment accounts are not being recorded monthly. Condition – Claim on cash did not reconcile to the pooled cash account by a material degree until corrections were made during the audit. Interest earned on investment accounts was not recorded until the audit. Effect – Inaccurate financial information was provided to Commissioners’ Court as the bank reconciliations have large outstanding items and not all revenue was recorded. Cause – The former Treasurer was unable to reconcile the bank accounts on a timely basis which caused the issue to persist into the current fiscal year. Recommendation - The County Treasurer and assistants should receive training in reconciling bank accounts (with continued support from outside professionals, if necessary), until all bank accounts are reconciled on a timely basis and tie to the general ledger.
Criteria - A primary control over accurate financial statements is the reconciliation of the subsidiary accounts to the general ledger. Condition – The County Auditor is charged with maintaining the records of the County’s financial transactions including the general ledger. We noted numerous balance sheet accounts are not being reconciled to the supporting subsidiary ledgers and accounts. This includes accruals such as receivables and liabilities, as well as, interfund transactions including due to/from and transfers. Effect – Inaccurate financial information was provided to Commissioners’ Court. Additionally, the balance sheet accounts were either over or understated. Cause – Subsidiary Ledgers are not being compared to the corresponding general ledger accounts in the accounting software system by the County Auditor’s Office. Recommendation – Supporting subsidiary ledgers and accounts should be prepared by the appropriate department/personnel, such as the elected official, purchasing agent or grant coordinator and then audited and reconciled to the general ledger by the County Auditor’s office. There has been improvement in this area in the past year.
Criteria - A primary control over cash is the timely and accurate reconciliation of all cash accounts. Outstanding items in the closed pooled cash account were not cleared timely. Reconciliations of the County’s cash accounts is a requirement of Texas Local Government Code, Sec. 113.008, Reconciliation of Depository Accounts. Additionally, interest earned on investment accounts are not being recorded monthly. Condition – Claim on cash did not reconcile to the pooled cash account by a material degree until corrections were made during the audit. Interest earned on investment accounts was not recorded until the audit. Effect – Inaccurate financial information was provided to Commissioners’ Court as the bank reconciliations have large outstanding items and not all revenue was recorded. Cause – The former Treasurer was unable to reconcile the bank accounts on a timely basis which caused the issue to persist into the current fiscal year. Recommendation - The County Treasurer and assistants should receive training in reconciling bank accounts (with continued support from outside professionals, if necessary), until all bank accounts are reconciled on a timely basis and tie to the general ledger.
Criteria - A primary control over accurate financial statements is the reconciliation of the subsidiary accounts to the general ledger. Condition – The County Auditor is charged with maintaining the records of the County’s financial transactions including the general ledger. We noted numerous balance sheet accounts are not being reconciled to the supporting subsidiary ledgers and accounts. This includes accruals such as receivables and liabilities, as well as, interfund transactions including due to/from and transfers. Effect – Inaccurate financial information was provided to Commissioners’ Court. Additionally, the balance sheet accounts were either over or understated. Cause – Subsidiary Ledgers are not being compared to the corresponding general ledger accounts in the accounting software system by the County Auditor’s Office. Recommendation – Supporting subsidiary ledgers and accounts should be prepared by the appropriate department/personnel, such as the elected official, purchasing agent or grant coordinator and then audited and reconciled to the general ledger by the County Auditor’s office. There has been improvement in this area in the past year.