Luallen Releases Audit of See the audit report for Full Details |
Crit Luallen |
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(Frankfort - August 25, 2008)
State Auditor Crit Luallen today released the audit of the 2007 financial statement of the Pendleton County Sheriff, Charles Peoples. 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 Pendleton 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. Most employees of the Sheriff’s office collect receipts. The bookkeeper prepares the daily bank deposit and posts items to the receipts ledger. The bookkeeper prepares the quarterly financial report and bank reconciliations that are agreed to the receipts and disbursements ledgers. The bookkeeper also prepares checks for all disbursements, signs checks, and posts to the disbursements ledger. The Sheriff does not require dual signatures on checks. Good internal controls dictate that the same employee should not handle, record, and reconcile receipts and disbursements. The Sheriff should segregate these duties or implement some compensating controls to help strengthen the internal control structure which may include:
The Pendleton County Sheriff, Charles Peoples, responded, “Understand topics in exit conference discussed and will make efforts to follow.” 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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