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Saturday, July 18, 2015

Section II: 1-2013 Material Weakness


1-2013
(Text taken directly from Audit report- items in parentheses are mine alone)
Findings- Material Weakness 1-2013
(The reference to 2013 indicates a REPEAT finding from the prior year's audit.)
Criteria: An appropriately designed system of internal controls should have a routine period close procedure which would require the reconciliation of fund transfers.
Condition: The Due To and Due From accounts do not balance at the end of the fiscal year.
Context: The audit plan and programs require the auditor to look at current assets and current liabilities to statist specific assertions such as an account balance being a right or an obligation of the County and that is valued properly. REPEAT FINDING.
Cause: The County does not currently have a period end close procedure that would identify recurring issues and ensure the financial reporting framework in accurate. (sic)
Effect: Account balances for fund transfers are not reconciled and allows the individual fund balances to be misstated.
Recommendation: A defined close schedule should be developed and adhered to that establishes a routine schedule based upon a set number of business days to accomplish specific tasks in order to effectively close an accounting period.
(The lack of reconciliation close dates makes it impossible to ascertain county cash assets. A plan to finally resolve this has been presented by Painter to the OMB office and all offices is to reconcile our bank accounts monthly on a certain day. This is a countywide directive; it will be interesting to see which departments don't follow it)

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