Finding Text
Material Audit Adjustments
Condition: During our audit, adjustments were needed to record a number of audit adjustments, including the follwing material entries:
- To adjust beginning fund balances
- To adjust capital asset activity and realted retainage
- To adjust state and federal aid revenues and receivables
- To adjust special assessment classifications
- To adjust sales tax activity
- To record additional receivable and payable accruals
- To record accrued interest on investments
- To record internal service fund activity
Criteria: The financial statements are the responsibility of the County's management; therefore, the County must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures.
Cause: County staff has not prepared a year-end trial balance reflecting all necessary accounting entries.
Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the County's system of internal control. The audit firm cannot serve as a compensating control over this deficiency.
Recommendation: We recommend that mangement review each journal entry. obtain an understanding of why the entry was necessary and modify procedures to ensure that future corrections are not needed.
Management Response: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necessary for future audits. The County Finance Coordinator plans to remedy this finding in future years.
Updated Progress Since Prior Year: No changes have been made to address this finding.