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.