Finding Text
Criteria: In accordance with Texas Government Code Title 10, Subtitle F, Chapter 2257, a deposit
of public funds shall be secured by eligible securities to the extent and in the manner required by
Government Code.
Condition: During the 2021 audit of cash balances, instances of uncollateralized deposits were
discovered as stated in Note 4 of the Notes to Financial Statements.
Effect: Public funds are not collateralized due to County funds exceeding FDIC insurance
coverage and pledged securities were not sufficient to cover the remaining balance.
Cause: County Treasurer does not have access to review bank balances for all funds in custody
of the County.
Recommendation: We recommend the County review bank balances and maintain pledged
securities sufficient to cover all deposits of public funds.
Views of responsible official and planned corrective ations:The County Treasurer will gain online access to all bank statements via the online banking platform. The County Judge will prepare a memo to present to all departments that deposit cash to notify the County Treasurer when there is a large, unexpected deposit that is to be made. In
this case, the County Treasurer or her assistant, if she is not available, will notify the bank of the
large deposit in order to ensure that all funds are covered by pledged securities.
In addition to the controls being put in place, the Bank has agreed to start sending monthly
pledge reports to the County Treasurer to ensure that pledges are maintained in order to cover
bank balances. The County Treasurer will review these reports monthly to ensure compliance.