Finding Text
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.