Atchison County audit flags late daily statements, unreconciled bank items and negative fund balances

April Swartz, an auditor with Varney & Associates, told the Atchison County Commission on July 8 that the county'9s 2024 financial statements received a clean opinion under the Kansas Municipal Audit/Regulatory basis but that multiple operational control issues need attention.

Swartz said special procedures were required because the county spent more than $750,000 in federal funds (COVID-era CSLFRF), and the sampled federal expenditures were allowable. "Because you spent more than 750,000 in federal money this year, you were required to have additional procedures...we didn't see anything that looked out of line," she said.

The auditor highlighted several areas of concern that she said reduce day-to-day transparency and increase risk: delayed daily cash statements, uncleared bank reconciliation items amounting to roughly $200,000 that could not be traced to individual funds, several funds finishing the year with negative unencumbered cash, missing quarterly treasurer publications, and incomplete tracking of depository coverage and certificate of deposit balances.

Why it matters: county daily statements and reconciliations are the primary operational controls that let department heads and commissioners know current cash-by-fund balances. The audit said the most recent daily statement in the clerk's office was dated July 1 while the meeting occurred…