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Committee raises questions about prior-audit adjustments after large fund reallocation; schedules follow-up
Summary
Finance committee members pressed staff on a set of prior-year audit adjustments that shifted more than $1 million among county funds. Members asked outside auditors to explain the entries and agreed to schedule a special meeting to review the journal entries and reconciliation work papers.
Committee members asked staff to explain journal entries made to clear a prior-year accounts-receivable balance and to reallocate funds across multiple county accounts. A finance staff member said outside auditors had removed a prior-year accounts receivable of roughly $1.1 million and reallocated balances across funds to bring the books into balance for audit preparation.
The staff account described adjustments that moved several large amounts among funds: for example, the nursing home and insurance funds gained sizable amounts while some grant and mental-health funds lost reported balances. The staff member said county cash records and treasurer records balanced to cash at the end of 2023 and that the reallocation stemmed from incomplete prior-audit work papers supplied by the previous auditor. "Mac and Associates sent me some audit adjustments in advance of 20 20 four's audits to wipe out a prior year adjustment that they have done," the staff member said, explaining Mac and Associates asked for work papers that were not fully provided and then posted a clearing adjustment.
Committee members requested the outside auditor provide supporting work papers and asked that Kate (named in the meeting as an outside-audit contact) attend a follow-up meeting. Craig asked why cash accounts appeared negative on the balance sheet and requested a detailed conversation with staff and the outside auditor. The committee agreed to call a special meeting and to ask Kate to appear; Amanda was asked to coordinate scheduling.
Staff said no cash transfers had yet been reversed and that the adjustments had been posted as journal entries to clean up the audit record. Committee members said they want the outside auditor to explain the methodology and the work papers before any further accounting entries are made public or reversed.
The committee asked for the outside auditor to meet with committee members before the next full-board meeting and suggested inviting additional members of finance and the treasurer—s office to participate; scheduling will be coordinated by administrative staff.
