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Chester County audit committee told general fund adjustments exceeded materiality; members seek corrective plan
Summary
At a Chester County audit committee meeting, auditors said aggregated adjustments to the general fund exceeded the materiality threshold and discussed ongoing two-year reconciliation work; committee members said requesting a corrective action plan falls within the committee’s role.
At a Chester County audit committee meeting, auditors reported that aggregated adjustments to the county’s general fund exceeded the materiality threshold, which the auditors said triggered required material audit adjustments. The meeting record does not specify a date for the session or a numerical materiality threshold.
The finding matters because when accumulated audit adjustments pass the materiality threshold, auditors typically report that formal material audit adjustments are required, which can affect the county’s financial statements and require corrective steps. Committee members and staff discussed ongoing reconciliation efforts that auditors said cover roughly the past two years.
"We accumulate adjustments that we make and we add them together. And if the amount of those exceeds that materiality amount, then we say you require material audit adjustments," said Auditor 1, an auditor who presented the findings. Auditor 1 said the adjustments for the general fund included entries from an accounts-receivable analysis and that when those adjustments were aggregated they exceeded the materiality threshold, which "triggered material" audit adjustments.
Staff identified internal help working on reconciliations. "In the future, our plan is to we've got help with, Stacy is helping us. You can, Heather, and she's planning to get everything the I'm sorry. Judy and Stacy has been quite wonderful in helping us get the past 2 years reconciled," said Staff member 2.
Committee members questioned the scope of the reconciliation and who receives the audit results. "So who gets the results of the audit?" Staff member 2 asked during the discussion. Another participant described how the county’s finance and trustee functions relate: "The relationship with the trustee's office and the accounting office is like your own checkbook in the bank. Correct," said Committee member 3.
A committee member framed next steps as within the committee’s remit. "Well, it's the function of this committee to ask for a plan or corrective action plan," Committee member 3 said; the transcript does not record a formal vote or a named motion to require such a plan. The meeting record does not specify which office or external entity will formally receive the audit report or any deadline for a corrective plan.
The record notes departures and staffing context mentioned in the discussion: one speaker said reconciliation challenges predate the most recent two years, referencing a prior staff departure, "when Judy left," but said the precise earlier dates were "not specified." The committee discussed that additional follow-up will be required to reconcile records and address the material audit adjustments.
No formal motions or recorded votes on corrective actions appear in the transcript excerpts provided; the committee discussed requesting a corrective action plan and noted staff assistance on reconciling two years of records as the immediate operational next step.
