McBride, Lock, and Associates, LLC of Kansas City have released the Grundy County Annual Financial Report for 2017 and 2018. The certified public accountants found no material weaknesses in internal control or significant internal control deficiencies.
Under items of noncompliance regarding budgetary compliance, the CPAs found actual expenditures exceeded budgeted expenditures for juvenile programs, 911, and the Senior Citizens Tax Board in 2017 and record preservation, law enforcement training, victims of domestic violence, and local drug court in 2018. Grundy County also budgeted for a deficit fund balance for the Deputy Salary Fund in 2017 and 2018. The Deputy Salary Fund is a reimbursement fund that is negative until the county receives reimbursement from the state for salaries paid to sheriff deputies.
The CPAs recommended Grundy County ensure compliance with state statutes by refraining from approving expenditures in excess of budgeted amounts and budgeting expenditures in excess of beginning balances plus anticipated revenues. It was also recommended budgetary amendments be discussed in a public meeting and formally adopted by the county commission if the originally adopted budget is inadequate to finance the current year unforeseen expenditures.
Grundy County responded by explaining the county is trying to stay in compliance and follow state statutes to understanding and belief, and the county has asked auditors questions in the past to understand and follow statutes correctly regarding amending budgets. The county also noted the budgeting of the fund balance plus expected revenues and budgeting all as expenditures are funds controlled mostly by the sheriff’s and prosecuting attorney’s offices without county control. The county is to advise those offices to be more realistic with budgeting of those funds, work harder at watching balances closer, and advise departments to pay closer attention to their budgets.
McBride, Lock, and Associates reported the bank reconciliation for the Sheriff Inmate account as of December 31st, 2017 listed a total of $644 in outstanding checks from 2014 to 2016, and the reconciliation for the Inmate Security account as of December 31st, 2018 listed a total of $746 in outstanding checks from 2014 to 2017. The bank reconciliation for the Prosecuting Attorney account as of December 31st, 2017 listed three checks that were outstanding for more than 120 days totaling $841, and the reconciliation for that account as of December 31st, 2018 listed 17 checks that were outstanding more than 120 days totaling nearly 15 hundred dollars ($1,496). The CPAs noted reconciliations performed on the Prosecuting Attorney account during the audit period were inaccurate due to the system showing an incorrect beginning bank balance on the reconciliation, and the account had a negative book balance of $117 as of December 31st, 2018 as a result.
It was recommended that Grundy County implement procedures to ensure stale outstanding checks are followed up within a timely manner and removed from the bank reconciliation when it becomes apparent the checks will not be cashed. Checks that have remained unclaimed for more than three years are deemed abandoned and are required to be turned over to the state treasurer pursuant to state statutes. The CPAs also recommended the Prosecuting Attorney ensure bank reconciliations are accurate and properly reconciled between book and bank balance and any issues are addressed in a timely manner.
The Senior Citizens Tax Board approved budgets for 2018 and 2019 could not be provided to the CPAs as well as bank statements, reconciliations, and board minutes for 2018. The board treasurer indicated she recently moved and could not locate the documents.
It was recommended the Senior Citizens Tax Board implement procedures to ensure financial statements are kept in a safe and secure location to support financial transactions, approved budgets, and meeting minutes of the board.
County Commissioner Joe Brinser noted the Grundy County Commission has no control over the Senior Citizens Tax Board.
The CPAs reported a sheriff fuel credit card statement for May 2017 selected for testing indicated the county paid $29 in late fees and $11 in interest. A recommendation was made for the county to implement procedures to ensure expenses are paid in a timely manner to ensure proper use of taxpayer funds.
McBride, Lock, and Associates reported Grundy County had resolved or partially resolved findings from the audit report for 2015 and 2016 regarding the Senior Citizens Tax Board, Fred Fitch Trust Fund or Crippled Children Trust Fund, and Senate Bill 40 Board.