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Saturday, July 18, 2015

Section II: Findings 2-2013- Material Weakness

Findings- Material Weakness 2-2013
(Taken directly from the 2014 audit- items in parentheses are mine alone. The reference to 2013 in the header indicates a REPEAT finding.)

2-2013- Material Weakness

Criteria: Capital Assets should be reported on the Statement of Net Position for Governmental Activities and for Business-Like Activities. Proprietary Funds report their account balances much like a business and all capital assets should be shown on the Statement of Net Position- Proprietary Funds.
Condition: Capital assets  are not being maintained on the Statements of Net Position (in other words, the County has no assets aside from cash and monetary assets listed. Capital assets account for the vast majority of County assets)
Context: The audit plan and programs require the auditor to look at the assets of the entity to satisfy specific assertions such as an account balance being a right of the County and that it is valued properly. REPEAT FINDING.
Cause: The Capital Assets of the County have not been maintained since 2007.
Effect: Without the inclusion of the Capital Assets on the Statements of Net Position the assets and the corresponding position are understated.
Recommendation: A full inventory and appraisal should be performed for all of the capital assets of the County for inclusion on the Statements of Net Position.

(SINCE 2007!) Judge Agan era. NOT fixed by Hunt. Firm RCI has been enlisted to do this by Commissioners Court and has taken, to the best of their ability, an inventory of assets, with tracking numbers, locations, etc. Painter says more work needs to be done. Judge Guevara has called for an asset counting day at the end of August to get this straight. County offices will be closed, will take full inventory of what they have.)

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