Finding 1217452 (2025-002)

Material Weakness Repeat Finding
Requirement
ABGHILM
Questioned Costs
-
Year
2025
Accepted
2026-06-12
Audit: 403648
Organization: Saunders County (NE)

AI Summary

  • Core Issue: The County lacks the necessary accounting expertise to ensure accurate financial statements.
  • Impacted Requirements: Management must maintain internal controls for fair presentation of financial statements in line with cash basis accounting.
  • Recommended Follow-Up: The County should review auditor adjustments and assess financial statements before final approval.

Finding Text

Financial Reporting Condition: The County does not have the accounting expertise to provide the Board with reasonable assurance that the County's financial statements and related disclosures are presented in accordance with the applicable accounting principles. Criteria or Specific Requirement: Management is responsible for establishing and maintaining internal controls that should include the fair presentation of financial statements, including the notes to the financial statements, in conformity with the cash basis of accounting. Context: The County has requested that the auditor draft the financial statements and accompanying notes, to ensure they meet the required applicable standards, as the County personnel lacks the expertise to prepare these without assistance. Effect: Financial statements prepared by the County could contain errors that might not be detected by the County. Cause: The County has limited staffing resources with skills, experience, and competency to prepare the financial statements in conformity with the basis of accounting described in Note 1. Recommendation: The County should carefully review the adjustments proposed by the auditor, and should evaluate the adequacy of the financial statements prior to approving the final financial statements. Response: The County Board of Supervisors, along with the Clerk and the Treasurer, will carefully review the financial statements drafted by the auditor, prior to issuing their final approval. The Board and management will also review the audit adjustments, and discuss any questions they may have with the auditor.

Corrective Action Plan

The County recognizes the deficiencies in their internal control related to segretation of duties and preparation of the financial statements. They will continue to update, implement, and monitor their financial procedures, and implement mitigating controls as much as possible. In view of cost considerations, adding personnel to address these deficiencies would not be practical.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1217429 2025-001
    Material Weakness Repeat
  • 1217430 2025-002
    Material Weakness Repeat
  • 1217431 2025-001
    Material Weakness Repeat
  • 1217432 2025-002
    Material Weakness Repeat
  • 1217433 2025-001
    Material Weakness Repeat
  • 1217434 2025-002
    Material Weakness Repeat
  • 1217435 2025-001
    Material Weakness Repeat
  • 1217436 2025-002
    Material Weakness Repeat
  • 1217437 2025-001
    Material Weakness Repeat
  • 1217438 2025-002
    Material Weakness Repeat
  • 1217439 2025-001
    Material Weakness Repeat
  • 1217440 2025-002
    Material Weakness Repeat
  • 1217441 2025-001
    Material Weakness Repeat
  • 1217442 2025-002
    Material Weakness Repeat
  • 1217443 2025-001
    Material Weakness Repeat
  • 1217444 2025-002
    Material Weakness Repeat
  • 1217445 2025-001
    Material Weakness Repeat
  • 1217446 2025-002
    Material Weakness Repeat
  • 1217447 2025-001
    Material Weakness Repeat
  • 1217448 2025-002
    Material Weakness Repeat
  • 1217449 2025-001
    Material Weakness Repeat
  • 1217450 2025-002
    Material Weakness Repeat
  • 1217451 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.87M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $840,846
93.563 CHILD SUPPORT SERVICES $112,319
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $42,724
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $1,275
20.600 State and Community Highway Safety $1,135