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Union County Fiscal Court Receives Harsh Audit from State Auditor’s Office

Union County Fiscal Court Receives Harsh Audit from State Auditor’s Office

Bill Stephens

May 10th, 2017


Mike Harmon, Auditor of Public Accounts, released Union County Fiscal Audit for the fiscal year ending June 30, 2015. State law requires annual audits of county fiscal courts. In the release it is stated that as part of the audit process, the auditor must comment on non-compliance with laws, regulations, contracts, and grants. In the Summary of the Audit there were 15 instances of non compliances. At each instance there was an example, a recommendation from the State Auditor, and also a response from the Union County Fiscal Court.

The following are just a few non compliance issues the state addressed to the fiscal court in the audit.

The Fiscal Court lacks segregation of duties over cash receipts, disbursements, transaction posting, and bank reconciliations. The treasurer performs all accounting duties except for the occupational tax, and is allowed to perform these duties. The lack of internal controls allowed errors to go undetected and uncorrected.

Internal controls over disbursements and credit card were weak. The audit stated that the fiscal court did not maintain proper supporting documentation for all disbursements.

The Fiscal Court failed to follow proper purchasing procedures for small contracts and purchases. Two examples giving was that there was no documentation of quotes being obtained for four small purchase disbursements and also no documentation that the county had not exceeded the bid price for the contractor on the Levee Project.

The Fiscal Court failed to spend coal severance funds properly. The audit stated that the fiscal court failed to expend 30 percent of coal severance money on county haul roads.

The Fiscal court did not implement internal controls over payroll, properly compensate employees for overtime and properly account for hours worked. As stated in the Audit, that while time records are maintained by the finance office, the treasurer prepares payroll checks without anyone verifying payments against time records.

The Union County Jail also received many non compliance issues stated in the state audit.
The Union County Jail lacks adequate segregation of duties over the accounting functions, did not make daily deposits, and The jailer did not submit an accurate year-end commissary report to the county treasurer.
These are just a few of the 15 non compliance issues on the Audit. For the Full Summary report on the 2014-2015 Audit click on the link below.


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