(Taken directly from the Audit- items in parentheses are mine alone)
Criteria: Cash balances and the corresponding unassigned fund balance should be reported on the County's financial statements.
Condition: The Governmental Funds Balance Sheet is not correctly stated as a result of nine depository accounts for which the County is a custodian of not being reported.
Context: A review of all the bank accounts confirmed identified cash balances not being carried on the County's financial statements. The cash balance confirmed totaled $197,257.
Cause: Cash reconciliations are not being prepared which would agree cash balances to the general ledger.
Effect: The County's financial statements would be misstated without the inclusion of these nine depository accounts and the associated unassigned fund balances. (I believe there to be one of these in my office, as our account has a "cushion" of upwards of $10,000, based on my rudimentary analysis at this time of writing)
Recommendation: An internal control framework should be established for these nine cash balances that includes a reconciliation to the general ledger resulting in the reporting of unassigned fund balances to the County for inclusion in the financial statements.
(Will result in beginning assets for the following fiscal year insofar as cash being correct; the basis of cash valuation)