Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Finance Audit topic
No spam. Unsubscribe anytime.
Audit committee: Chester County needs $468,640 in adjustments; committee accepts corrective-action plan
Summary
Chester County audit reported material errors in the general fund and trustee accounts totaling $468,640. The audit committee accepted a corrective-action plan that includes policy changes to purchasing and quarterly progress reporting to the county legislative body.
The Chester County audit committee reported material audit adjustments totaling $468,640 and accepted a corrective-action plan aimed at correcting repeated accounting deficiencies.
Why it matters: The audit noted material misstatements in the county’s general-fund balances, trustee cash reconciliations and accounts receivable that persisted across multiple years, raising concerns about financial controls, purchasing procedures and timely budget approval.
Findings and corrective steps The committee said material audit adjustments were required for cash with trustee accounts, deferred revenue, accounts payable and restricted-account balances, totaling $468,640. The finance office and budget director presented a plan to correct ledger balances, monitor trustee reports monthly and use audit recommendations to avoid future discrepancies.
Bank-account and reconciliation issues included a discontinued bank account that had not been reconciled monthly; a new account has been established and is being reconciled by staff. The committee reported staff names assigned to reconciliation tasks and said it will request an audit adjustment once final reconciliations are complete.
Purchasing deficiencies identified included instances where competitive bids were not solicited and where purchase orders or supporting documentation were missing. The committee accepted a draft policy change that would require submission of bid documents to the finance office before invoice payment, allow a maximum of three purchase-order exemptions per department head per year, and define rules for emergency purchases. The policy also calls for scanning invoices and associated documents into the local-government document-management system.
The finance office will monitor progress, work with department heads and provide quarterly reports to the county legislative body. Committee members emphasized the importance of passing the fiscal 2025–26 budget before June 30; the committee noted that not having an approved budget in July strains year-end processes.
The audit committee accepted the corrective-action plan during the meeting. The full county legislative body was informed that the purchasing-policy changes will be presented for review at a future meeting.
