Finding 485178 (2022-003)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-08-27
Audit: 317989
Organization: County of Caldwell (TX)

AI Summary

  • Core Issue: The County is not maintaining a complete schedule of Fiduciary Funds due to elected officials not reporting trust and agency account information.
  • Impacted Requirements: GASB Statement No. 84 mandates accurate tracking of Fiduciary Activities, which is currently not being met.
  • Recommended Follow-Up: Elected officials should submit account information monthly, and all fund activities must be recorded in the accounting software to ensure compliance.

Finding Text

Criteria –As per GASB Statement No. 84, Fiduciary Activities, the County is required to maintain a complete and accurate schedule of Fiduciary Funds (agency and trust funds) from the various elected officials. Condition – Each elected official is currently monitoring trust and agency accounts and not sending this information to the auditor to record in the centralized accounting system. The County was unable to provide a summarized schedule of Fiduciary Funds at year end. In addition, there were two Special Revenue Accounts that were not included in the financial accounting software and current year activity was not recorded. Effect – Misappropriation of assets could occur as well as inaccurate information provided in the financial statements. Cause – The elected officials are not providing timely information to the County Auditor’s office and the County Auditor’s office is not following up on the missing information. Additionally, the information is not recorded in the centralized accounting system. Recommendation – Information from the various elected officials bank accounts for such things as commissary funds, trust accounts, hot check funds, etc. should be provided to the County Auditor’s office on a monthly basis. Activity for these funds should be included in the accounting software. A complete and accurate schedule of Agency Funds and Special Revenue Funds should be maintained. In addition, all special revenue activity should be recorded in the accounting software system. Although, improvement has been made, improvement is still necessary.

Corrective Action Plan

The County Auditor’s office receives and reviews the fifteen (15) agency bank accounts on a monthly basis from various departments. An action plan includes identifying the fund and/or department/division these agency accounts will be appropriated and/or allocated.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 485176 2022-001
    Material Weakness Repeat
  • 485177 2022-002
    Material Weakness Repeat
  • 485179 2022-004
    Significant Deficiency Repeat
  • 485180 2022-005
    Significant Deficiency Repeat
  • 485181 2022-006
    Significant Deficiency Repeat
  • 1061618 2022-001
    Material Weakness Repeat
  • 1061619 2022-002
    Material Weakness Repeat
  • 1061620 2022-003
    Significant Deficiency Repeat
  • 1061621 2022-004
    Significant Deficiency Repeat
  • 1061622 2022-005
    Significant Deficiency Repeat
  • 1061623 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.39M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $243,728
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $191,008
16.593 Residential Substance Abuse Treatment for State Prisoners $17,910
97.042 Emergency Management Performance Grants $7,200