Finding 1191813 (2023-001)

Finding 2023-001: Material Restatement to Fund Balance/Net Position Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct a change in the Reporting Entity and split out funds required for separate reporting. Criteria: A good system of internal controls would provide for accurate recording and reporting of funds reported within the Reporting Entity on a regular basis to provide for accurate financial reporting. Cause: Year-end entries related to the Reporting Entity and Fund Balance/Net Position were required in order to accurately present the County’s financial statements. Effect: A material adjustment to the County’s beginning fund balance was required to properly state funds to be reported within the Entity. Recommendation: We recommend the County implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The County Administrator’s Office and all other offices impacting financial reporting will implement internal controls to properly record necessary funds to be reported at the Entity level.