Section II: 1-2009 Significant Deficiency

(Taken directly from the 2014 audit- items in parentheses are mine alone. The numbering of 1-2009 specifies this is a REPEAT finding SINCE 2009.)

1-2009- Significant Deficiency

Criteria: Grant reimbursement requests should be reconciled to the general ledger as there are instances where a portion of a reimbursement request is envied and the associated revenues and expenditures should be adjusted accordingly.

Condition: Grant reimbursement requests are not being reconciled which results in an overstatement of revenues and corresponding expenditures which a portion of the request has been denied.

Context: the audit plan and programs user the auditor to look at the revenues and expenditures of the entity to artistry specific assertions such as revenues and expenses being in existence and that they are 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 teamwork in accurate.

Effect: Without reconciling grant reimbursement requests to the General Ledger the account balances can be misstated which affects the financial statements and the Schedule of Expenditures of Federal Awards. 

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.

(In the past, some County officials have viewed grant funds as merely a "pass-through" since expenses are reimbursed. This makes some simple sense, except that method does not acknowledge the liability to the County in case the paperwork and/or procedures are flawed and reimbursements are not approved. Also, neglecting to include these in the budget or on a balance sheet grossly misrepresents the County's cash position between the time the grant money is spent and the time it is presumably reimbursed. See the next Material Weakness 8-2014 for an example of all this.)