Internal Controls Over the Bank Account Reconciliation of the General County Condition/Cause/Context: The County did not reconcile the operating account during the year under audit. This was discovered during audit procedures when County personnel were unable to provide a bank reconciliation that a...
Internal Controls Over the Bank Account Reconciliation of the General County Condition/Cause/Context: The County did not reconcile the operating account during the year under audit. This was discovered during audit procedures when County personnel were unable to provide a bank reconciliation that agreed to their accounting records. According to our auditors, the breakdown in internal controls resulted from both lack of oversight and lack of knowledge. The employee tasked with reconciling the bank accounts was not aware of the importance of the task and was not held accountable for completing it. The breakdown of internal controls allowed the County to operate for the entire fiscal year under audit without once reconciling the main operating account of the County Treasurer. The County does have an internal control policy in place requiring the monthly reconciliation of all bank accounts. However, the policy was not followed during the fiscal year under audit. Views of Responsible Officials and Planned Corrective Action: The Campbell County Board of Commissioners will request from the Treasurer’s Office a presentation of monthly reconciliation on all County bank accounts, including supporting documentation, to the Board as evidence of completion, approval, and enforcement of accountability. Internal controls and written policies and procedures over monthly bank reconciliation preparation and bank account maintenance will be significantly strengthened and expanded to include a multi-layer monitoring and review process to ensure timely and accurate reconciliations, consistent with the underlying accounting records within the Tyler Technologies financial management system utilized by the county. The following individuals can be contacted for further information: Treasurer’s Office: Rachael Knust, County Treasurer and Darcy Goni, Accounting Manager Commissioner’s Office: Shelly Edwards, Chief Finance Executive and Sandra Beeman, Administrative Director