Wednesday, July 15, 2015

Section II: Findings- 5-2014 Material Weakness

(Taken directly from Audit; items in parentheses are mine alone)

Material Weakness

Criteria: Sales Tax payments should be made to State Comptroller on a regular basis.
Condition: Since the jail has reopened, the sales to inmates at the Commissary have (sic) been charging sales tax, but the amounts collected have never been remitted to the State Comptoller.
Context: A review of all the bank accounts confirmed identified cash balances not being carried on the County's financial statements. Upon further inquiry it was determined the Jail's Commissary Fund is maintained on a separate accounting system. The amount of sales tax collected since re opening totaled $6332.
Cause: A Texas Sales Tax Permit has never been obtained.
Effect: A sales tax liability is not being reported on the County's financial statements and without continual reporting and remittance of sales tax amounts the County will incur fines and penalties from the State Comptroller's Office.
Recommendation: Obtain a Texas Sales. Tax Permit and establish an internal control reporting framework to ensure amounts are reported and remitted to the State as required and to be incorporated with finding 1-2014.

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