Luallen Releases Audit of
Fulton County Clerk’s Fee Account

Crit Luallen
Auditor of Public Accounts
105 Sea Hero Road, Suite 2
Frankfort, KY 40601

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The audit found that the Clerk’s financial statement presents fairly the revenues, expenditures, and excess fees of the Fulton County Clerk 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 comment: internal controls over financial reporting should be strengthened. Deficiencies were noted in the County Clerk’s internal controls, which limit the effectiveness of the internal control system. The Clerk has implemented multiple compensating controls to offset weaknesses caused by a lack of segregation of duties. However, weaknesses still remain that could compromise the effectiveness of the Clerk’s internal control system and could lead to misstatements on the financial statement. The audit recommends the County Clerk continue to segregate duties to the extent possible and implement improvements to compensating controls as noted below.

• The County Clerk could require two signatures on all checks, with one being that of the County Clerk.
• The County Clerk could allow a deputy to complete the Legal Process Tax Report and agree the number of records on the report to the actual records that were recorded for that month.
• The County Clerk should cross-train deputies and periodically rotate their assigned duties. In the case of absence of the County Clerk or deputy, a second deputy should be allowed to carry-out the duties of the Clerk or deputy, as may be required.

The Fulton County Clerk, Betty Abernathy, responded, “The Clerk continues to segregate duties. Deputies are cross-trained and carry out duties of the Clerk in her absence. Legal Process Tax Report is balanced with the general ledger, daily report, and monthly computer print out.”

The County Clerk’s responsibilities include collecting certain taxes, issuing licenses, maintaining county records and providing other services. The Clerk’s office is funded through statutory fees collected in conjunction with these duties.

Crit Luallen
Auditor of Public Accounts
105 Sea Hero Road, Suite 2
Frankfort, KY 40601
WEB: www.auditor.ky.gov/