Audit 410862

Criteria: Good internal control requires entities have personnel in place to produce financial statements, which includes the notes to the financial statements, in accordance with GAAP and other applicable standards. Condition: Though management demonstrates the capability of running a governmental organization, we noted a lack of expertise and knowledge was evident in the area of financial statement preparation in accordance with cash basis and other applicable standards. Additionally, numerous material audit adjustments were brought to management’s attention during the audit. Effect: Without proper personnel, there is an increased risk the financial statements may be materially misstated. Recommendation: We recommend the County weigh the cost benefit of providing training to current personnel in the areas of GAAP and financial statement preparation or hiring additional personnel with this expertise. Response: The County will consider the costs benefit of training provisions or hiring additional personnel. Questioned Costs: No questioned costs were identified.

Criteria: Good internal control over financial reporting requires entities have proper segregation of duties in the accounting function so that no one person can authorize a transaction, record the transaction in account, and be responsible for the custody of the asset resulting from the transaction. Condition: Though management demonstrates the capability of running a governmental organization, we noted a lack of segregation of duties as one person could handle all phases of a transaction from beginning to end. Effect: Without proper segregation of duties, there is an increased risk the financial statements may be materially misstated. Repeat Finding: Yes Recommendation: We recommend the County weigh the cost benefit of hiring personnel with accounting function capabilities in order to properly segregate duties. Response: The County’s Board will consider the costs benefit of hiring additional personnel. Additionally, the Board takes an active interest in the finances of the County and provides additional oversight. Questioned Costs: No questioned costs were identified.

Criteria: Each month, the County Sheriff’s Office remits fees collected to the County Treasurer. Condition: During testing it was noted the County Sheriff’s Office dates the check for the last day of the month the fees were earned rather than the date the check was written. Further, it was noted some checks were written more than 2 months later than the last earned fee for that period. Effect: Without proper procedures regarding the process to remit and date checks to the treasurer, there is an increased risk for the loss, misuse, or theft of public funds. Repeat Finding: Yes Recommendation: We recommend the County create a control process for the timing and monitoring of remittances to the Treasurer’s Office. Response: The Sheriff will discuss with the administrative staff to develop policies to ensure timely and accurate remittances to the Treasurer’s office. Questioned Costs: No questioned costs were identified.

Criteria: Federal regulations require entities expending Federal awards to comply with the applicable reporting requirements under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). The County is responsible for monitoring its Federal award activity and ensuring required reporting is completed and submitted within the applicable deadlines. Sound internal controls require timely communication and coordination regarding Federal award activity and applicable compliance requirements. Condition: The required Federal award reporting package was not submitted within the applicable federal deadline. The timing of communication and coordination necessary to complete the required reporting and address applicable Federal compliance requirements contributed to the delay. Effect: Delayed submission of required Federal award reporting may result in noncompliance with federal reporting requirements and could affect the County's standing with Federal awarding agencies. In addition, untimely communication regarding Federal award activity and applicable compliance requirements may increase the risk that required procedures or reporting deadlines are not addressed timely. Repeat Finding: No Recommendation: Maintain timely communication and coordination throughout the reporting process to help ensure Federal award activity and applicable compliance requirements are identified and addressed timely. Establishing procedures for monitoring Federal award activity and applicable reporting deadlines may also help facilitate the timely completion and submission of required reporting. Response: The County will review its procedures for monitoring Federal award activity and applicable compliance requirements and will work to maintain timely communication and coordination with its auditors to help ensure required reporting is completed and submitted within the applicable timeframe. Questioned Costs: No questioned costs were identified.