GLASGOW – State auditors have made note of a material misstatement regarding Monroe County Fiscal Court’s 2019 audit.
The audit report was released Monday. An accompanying press release said state auditors discovered several reporting errors in the county’s fourth quarter financial report.
“Six months of it is mine and six months of it is Tommy’s (Willett, former judge-executive). Some of the findings were mine. Some of them were his. It wasn’t anything major, … I have no comment,” said Monroe County Judge-Executive Mitchell Page.
Page took office as judge-executive in January 2019. Willett was his predecessor. An attempt to reach Willett was unsuccessful.
One of the errors involved the reporting of transfers. Three cash transfers from the general to the jail totaling to $150,000 were not included as transfers out on the fourth quarter report. The actual transfers out were $510,000 for the audit period.
Two checks written for $13,330 and $12,730 were not included in the fourth quarter report, but they were recorded to the disbursements ledger and included on the treasurer’s annual settlement, the press release said.
Road materials and supply disbursements of $654,758 were not recorded to the fourth quarter reporter, but were recorded to the disbursements ledger and included on the treasurer’s annual settlement, the press release said.
The fourth quarter liabilities page on the quarterly report was materially inaccurate. The Monroe County Public Properties Corporation First Mortgage Refunding Revenue Bonds Series 2016 and the un-refunded portion of the First Mortgage Revenue Bonds Series 2009 were not included.
The fourth quarter report export file sent to the Department for Local Government did not agree to the accounting records and did not report the correct amount of total receipts and disbursements on the summary page sine this was manually entered to agree to the county treasurer’s settlement, the press release said.
The original budget and budget amendments did not agree to the fourth quarter report. Budgeted receipts were overstated by $1,004,643 and budgeted disbursements were understated by $601,500 due to not recording including budget amendments as inter-fund transfers in error on fourth quarter report, the press release said.
“These errors resulted from a lack of oversight over the financial reporting process and preparation of the fourth quarter report export file performed by the county treasurer. The fourth quarter financial report was not reconciled to the original budget, budget amendments and accounting records or reviewed by another employee for accuracy to ensure amounts were reported correctly prior to submission to DLG,” state auditors said in the press release.
The also said road materials and supply errors were a result of inter-fund transfers being shown as actual disbursements on the manual ledger and once they were manually entered to the quarterly report file they included the wrong amount, the press release said.
Cash transfers also were not properly recorded on the financial statement required an $870,000 adjustment to the general fund for cash transfers out to other funds. By not included all outstanding debt of the Monroe County Public Properties Corporation on the quarterly report liabilities page, principal of $6,335,000 and interest of $1,024,538 was not reported, the press release said.
Other material misstatements were noted requiring adjustments due to the errors noted above on the quarterly report. This lack of oversight could result in undetected misappropriation of assets and resulted in inaccurate financial reporting to external agencies such as DLG and the fiscal court, the press release said.
“Strong internal controls over the reporting process is vital in ensuring the fiscal court’s financial reports accurately reflect the financial activity of the fiscal court,” state auditors said in the press release.