Finding 1142482 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-06-24
Audit: 359690
Organization: County of Caldwell (TX)

AI Summary

  • Core Issue: Cash account reconciliations were not completed on time, leading to discrepancies.
  • Impacted Requirements: This violates Texas Local Government Code, Sec. 113.008, and affects accurate financial reporting.
  • Recommended Follow-Up: Provide training for the County Treasurer and staff on timely reconciliations, with ongoing professional support if needed.

Finding Text

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.

Categories

Cash Management

Other Findings in this Audit

  • 566038 2024-001
    Material Weakness Repeat
  • 566039 2024-002
    Material Weakness Repeat
  • 566040 2024-001
    Material Weakness Repeat
  • 566041 2024-002
    Material Weakness Repeat
  • 1142480 2024-001
    Material Weakness Repeat
  • 1142481 2024-002
    Material Weakness Repeat
  • 1142483 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.15M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.50M
16.593 Residential Substance Abuse Treatment for State Prisoners $13,340
16.582 Crime Victim Assistance/discretionary Grants $10,000
16.606 State Criminal Alien Assistance Program $4,488