County audit reveals major issues with cash reconciliations and fiduciary fund management

Wayne County officials are facing significant financial oversight challenges following the recent Audit 7/9/25 meeting, which revealed multiple material weaknesses in cash reconciliations and fiduciary fund management.

Key findings from the audit highlighted ongoing issues with cash reconciliations, particularly concerning inmate property cash accounts. A staggering $290,000 discrepancy was identified between the bank statements and the jail management system, a problem that has persisted for several years. Additionally, the cash receipts fund lacked adequate controls, leading to unsubstantiated asset and liability accounts.

The audit also pointed out deficiencies in the county's fiduciary fund management. Procedures were not in place to ensure that funds held in fiduciary capacity were accurately accounted for, raising concerns about the proper allocation of resources between fiduciary and general funds. This mismanagement could lead to further financial complications if not addressed promptly.

Another significant finding involved the undistributed tax fund, which still contains balances that have not been reconciled. While improvements have been noted in reconciling major accounts, smaller balances remain unresolved, indicating a need for continued oversight.

The audit further revealed IT-related weaknesses, particularly in data backup procedures. Current practices involve only incremental backups of key applications, which could hinder data recovery efforts in the event of a loss. The auditors recommended more frequent full backups to mitigate this risk.

These findings underscore the urgent need for Wayne County to enhance its financial controls and accountability measures. As officials work to address these issues, the implications for public trust and fiscal responsibility remain critical. The county's next steps will be crucial in restoring confidence and ensuring sound financial management moving forward.