Finding Text
Condition
The County does not have an internal control policy in place over annual financial statement reporting that would enable management to prepare its annual financial statements including the Schedule of Expenditures of Federal Awards (SEFA) and ensure related footnote disclosures are complete and presented in accordance with the U.S. generally accepted accounting principles (GAAP).
Criteria
Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP.
Effect
The potential exists that a material misstatement of the annual financial statements and SEFA could occur and not be prevented or detected by the County’s internal controls.
Finding 2023-002 – Financial Statement Preparation (Continued)
Cause
The County relies on the audit firm to prepare the annual financial statements including the SEFA footnote disclosures. However, they have reviewed and approved the annual financial statements and related footnote disclosures.
Recommendation
Management should continue to evaluate their internal staff capacity to determine if an internal control policy over the annual financial reporting is beneficial.
Views of Responsible Officials and Planned Corrective Action
The County does not deem it cost effective to send designated employees to training classes nor to hire an individual with the proper qualifications.
Responsible Parties
Cari Meeker, County Treasurer