Finding Text
Criteria - A primary control over accurate financial statements is the timely and accurate recording of
each receipt of revenue to the appropriate revenue account within the accounting software.
Condition – The Treasurer’s Deputy Clerk posts the daily receipts to a general receivable account in the
accounting software rather than the appropriate revenue account in the accounting software. The County
Auditor’s department then allocates the revenue to the appropriate account by journal entry.
Effect – Inaccurate financial information was provided to Commissioners’ Court as revenue was
recorded to the accounts receivable account rather than the revenue account in the accounting software
system. Therefore, revenues were understated throughout the year.
Cause – The Treasurer is recording the revenue as a receivable in the balance sheet account rather than a
revenue in the Statement of Revenues and Expenditures. The County Auditor is then correcting the
entries at a later date.
Recommendation – The County Treasurer should be posting all revenues to the appropriate accounts on
the Statement of Revenues and Expenditures. They should only post to the Balance Sheet accounts when
transactions are directly related. Segregation of duties should be improved and staff should be
appropriately trained to avoid excessive journal entries. The auditor’s office should be auditing these
transactions not performing them. The County Treasurer and assistants should receive additional training
in recording revenue (with continued support from outside professionals, if necessary), until revenue is
recorded correctly within the software system.