By MELINDA J. OVERSTREET
Glasgow Daily Times
A routine state audit found no major issues with the Barren County clerk’s financial statement from 2012, although the audit report did note an issue in the office that needed addressing.
The financial statement itself “presents fairly in all material respects, the revenues, expenditures and excess fees in conformity with the regulatory basis of accounting,” which is an acceptable reporting methodology, according to the audit report.
The findings of the audit were released Monday by the office of Adam Edelen, Kentucky’s auditor of public accounts. As part of the audit process, the auditor has to comment on any noncompliance with laws, regulations, contracts and grants and on any material weaknesses involving internal control over financial operations and reporting. The report contains one such comment, stating that the clerk’s office lacks adequate controls over computer terminal access.
“During our review of internal controls over computer systems, we noted and confirmed employees could access the computer system using another person’s initials to complete, change, or void a transaction, including manipulating the date and time,” the audit report states. “Adequate controls over computer terminal access is essential for providing protection to employees in the normal course of performing their duties and can help prevent inaccurate financial reporting and/or misappropriation of assets.”
The auditor recommended the clerk “take necessary action to prohibit any employee from using another person’s computer terminal or initials by implementing acceptable computer security policies and procedures.”
The report also contains a response from County Clerk Joanne London:
“I have spoken to my Software Company, they are already aware of this problem because clerk’s had already been audited for 2012 and are working on the problem. I have been assured by the owner of Software Management they would get it resolved.”
London declined to comment any further on the issue Tuesday afternoon.
The annual audit summarized the financial condition as well, noting that excess fees increased by $53,454 from the prior year, resulting in excess fees of $1.1 million for the year ending Dec. 31, 2012. Revenues increased by $454,192 from the prior year, and expenditures increased by $400,738.
Another note in the executive summary states that although the clerk’s deposits were covered by Federal Deposit Insurance Corp. insurance and a “properly executed collateral security agreement, ... the bank did not adequately collateralize the deposits in accordance with the security agreement.”
This left the clerk’s $209,445 in deposits as of Aug. 31, 2012, exposed to custodial credit risk by leaving them uncollateralized and uninsured.
The clerk’s financial statement shows total revenues of nearly $9.94 million, total expenditures of nearly $8.74 million.
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