Luallen Releases Audit of See the audit report for Full Details |
Crit Luallen |
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(Frankfort - August 18, 2008)
State Auditor Crit Luallen today released the audit of the 2007 financial statement of the Bracken County Sheriff, Charles Rechtin. State law requires the Auditor to annually audit the accounts of each county sheriff. In compliance with this law, the Auditor issues two sheriff’s reports each year: one reporting on the audit of the sheriff’s tax account and the other reporting on the audit of the fee account used to operate the office.
The audit found that the Sheriff’s financial statement presents fairly the revenues, expenditures, and excess fees of the Bracken County Sheriff in conformity with the regulatory basis of accounting. As part of the audit process, the Auditor must comment on non-compliance with laws, regulations, contracts and grants. The Auditor must also comment on material weaknesses involving the internal control over financial operations and reporting. The audit contains the following comments: Monthly bank reconciliations were not properly completed. The Sheriff did not reconcile the receipts and disbursements ledgers to the bank statement each month. Good internal control dictates bank statements should be reconciled monthly and agreed to the receipts and disbursements ledgers. Failure to reconcile on a monthly basis could cause errors to occur and not be detected. The audit recommends the Sheriff complete bank reconciliations monthly. The Bracken County Sheriff, Charles Rechtin, responded, “Will implement procedure to correct this issue.” The Sheriff’s office lacks adequate segregation of duties. The bookkeeper collects receipts, records transactions, issues checks, and posts to the receipts and disbursements ledgers. Good internal controls dictate the same employee should not handle and record receipts and disbursements. The Sheriff should either segregate these duties or perform the following compensating controls to help offset this weakness. If the Sheriff performs these compensating controls, he should initial the supporting documentation reviewed.
The Bracken County Sheriff, Charles Rechtin, responded, “Will implement procedure to involve Sheriff, bookkeeper and clerk checking receipts and disbursements, postings and Sheriff will sign/check all transactions.” The Sheriff’s responsibilities include collecting property taxes, providing law enforcement and performing services for the county fiscal court and courts of justice. The Sheriff’s office is funded through statutory commissions and fees collected in conjunction with these duties. |
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