Critical Audit of LaRue Clerk on Segregation of Duties | Local News

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A recent audit by the Office of the State Auditor for the LaRue County Clerk’s Office received comment.

The audit of County Clerk Rhonda Metcalf’s office released Thursday found that the office did not have adequate segregation of duties regarding receipts, disbursements and reconciliations, according to a press release from the auditor’s office.

However, the release says the Registrar’s financial statements are presented fairly in accordance with the regulatory basis of accounting, which is an acceptable reporting methodology.

According to the statement, the clerk collects cash, has access to all cash, issues receipts, prepares sheets and daily cash reports, deposits tickets and reconciles daily, weekly and monthly reports.

The clerk also prepares and signs checks, posts them in receipts and disbursements ledgers, reconciles bank accounts and prepares quarterly financial reports.

“According to the county clerk, this condition is the result of a limited budget, which limits the number of employees the county clerk can hire or delegate to tasks,” the statement said. “A lack of oversight could result in the undetected misappropriation of assets and could also result in inaccurate financial reporting to external agencies.”

He said the separation of these accounting tasks is necessary to protect against misappropriation of assets and inaccurate financial reporting, and to prevent the same person from playing a significant role in these tasks.

If this is not possible due to staffing shortages, the release says cross-checking procedures could be implemented and documented by the person performing the procedure. Auditors recommended the Clerk’s Office segregate duties or implement documented compensating controls, according to the report.

The county clerk did not provide a response to the audit, according to the statement.

The audit covered the financial statements from March 1 to December 31, 2020 of the office.

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