Finding 602390 (2022-001)

Condition: The accounting records required numerous adjustments to be proposed and recorded in order for the implementation of GASB 87 to be fairly presented in accordance with generally accepted accounting principles in the United States of America. Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are detected and corrected by management in a timely manner. Effect or Potential Effect: Management may produce financial statements that are materially misstated. Cause: Management did not have controls over financial reporting specifically related to the implementation of GASB 87. Recommendation: Management should undertake a review of internal controls over financial reporting to determine who is preparing adjustments related to new GASB implementations and who is reviewing the adjustments and ensure that financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in the future. Views of Responsible Official(s) and Planned Corrective Actions: The Accounting office plans on utilizing DebtBook which was purchased earlier in the fiscal year to assist with this corrective action plan for GASB 87 implementation and compliance. This will include the formation of a Lease committee which would meet quarterly (at a minimum) beginning with FY23 ? quarterthree (3). The Lease committee will have representatives from various departments tasked with ongoing lease collection and compliance for all leases where the County is the Lessor or the Lessee. Our goal will be to continue to understand our obligations, obtain lease data, better organize our leases, and test for compliance so that Accounting can improve the creation of proper Schedules, Journal Entries, and Year-End Audit Notes for our Annual Comprehensive Financial Report (ACFR). In addition, Accounting will review the internal controls for booking these entries into our Financial Management System (FMS) so that we have separation of duties between those preparing the adjustments and those reviewing the adjustments to ensure the financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in FY23 and future fiscal years.