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Audit finds recurring internal-control gaps; county to tighten capital-asset disposal and inventory procedures
Summary
The finance director reviewed FY23 audit findings that cited internal-control weaknesses, drainage-district accounting errors and capital-asset inventory gaps; the committee directed staff to improve reconciliations, asset inventories and reporting controls.
The finance committee reviewed FY23 audit findings that the finance director described as generally "good" but containing recurring material weaknesses in internal controls, capital-asset disclosures and some drainage-district accounting.
Why it matters: the audit flagged processes that affect financial transparency and fund reconciliations, which can influence bond ratings, grant compliance and fund stewardship.
Key audit findings and committee responses: - Internal controls: The auditors recommended strengthening internal controls and, as one standard remedy, increasing staffing or oversight so more transactions have multiple reviewers. The finance director said turnover in key finance and grant positions contributed to recurring weaknesses. - Drainage-district accounting: The audit found some drainage-district activity that was not reported or was recorded incorrectly. The finance office said the new deputy clerk in the treasurer's office is addressing those reconciling entries. - Capital assets and inventory: The audit noted outdated or inaccurate capital-asset listings and incomplete inventory procedures, particularly in the highway department. Committee members asked for a more formal approval process for capital-asset disposals (for example, vehicles or equipment) and for clearer thresholds requiring committee review. - Prepaid expenses and fund rollforwards: The audit identified errors in prepaid expense reporting and some fund-balance rollforward entries that were not posted in the accounting software; the finance director said she will perform interim reconciliations to reduce future audit adjustments.
Committee direction: Finance staff will conduct pre-audit reconciliations, improve capital-asset inventory procedures, propose a formal disposal approval threshold for committee review and follow up with departments to confirm asset VINs and disposition plans. No personnel hires or budget amendments were approved at this meeting; staff said corrective work is already underway and additional hires may be recommended later if needed.
The committee also discussed whether to periodically rotate external auditors as a matter of good practice. The FY24 audit was already underway with the current firm; the committee agreed to consider whether to request bids for the FY25 audit later this year.
