Luallen Releases Audit of
Gallatin County Sheriff’s Office



See the audit report for Full Details

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

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(Frankfort - July 30, 2008) State Auditor Crit Luallen today released the audit of the 2007 financial statement of the Gallatin County Sheriff, Nelson Brown. 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 Gallatin 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 comment: the Sheriff’s office lacks adequate segregation of duties. This deficiency occurs when someone has custody over assets and the responsibility of recording financial transactions. The bookkeeper collects, deposits, records all receipts, and prepares the bank reconciliation. In auditors’ judgment, this control deficiency could adversely affect the Sheriff’s ability to record, process, summarize, and report accurate financial information. The audit recommends the Sheriff’s office segregate these duties or implement the following compensating controls:

  • The Sheriff should periodically, compare the daily bank deposit to the daily checkout sheet and then compare the daily checkout sheet to the receipts ledger. Any differences should be reconciled. The Sheriff should document this review by initialing and dating the bank deposit, daily checkout sheet, and receipts ledger.
  • The Sheriff should periodically, compare the bank reconciliation to the balance in the checkbook. Any differences should be reconciled. The Sheriff should document this review by initialing and dating the bank reconciliation and the balance in the checkbook.
  • The Sheriff should compare the quarterly financial report to the receipts and disbursements ledgers for accuracy. The Sheriff should also compare the salaries listed on the quarterly report to the individual earnings records. Any differences should be reconciled. The Sheriff should document this review by initialing and dating the quarterly report.

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.

 

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