Audit committee urges fixes to tax-payment system, separation-of-duties controls after failed fraud-risk assessment

Summary

At its March 5 meeting the Davis County Audit Committee discussed long-running problems with the county's tax payment software and cash-handling controls, noting a failed fraud-risk assessment, unresolved year-end close issues and recommendations to tighten procedures or add interim staffing while systems are fixed.

Davis County's internal audit committee on March 5 pressed county finance and information-technology officials to fix longstanding problems in the tax-payment system and stronger separation-of-duties controls after the county failed a state fraud-risk assessment.

The committee, chaired by Neil Gabbis, said software limitations and process gaps have prevented the county from closing fiscal years, creating recurring reconciling differences and leaving large 'parked' or escrowed prepayments that obscure whether funds belong to the current year or prior years. Gabbis said the treasurer answered the risk-assessment questions candidly and the committee must now follow up to close the gaps.

Why it matters: the committee said an inability to close a fiscal year prevents accurate reconciliation, leaves errors rolling forward and raises the risk that misstatements or misuse of funds could go undetected. Members urged either a prompt software fix or temporary manual processes/staffing to ensure daily reconciliation and to reduce risk to taxpayer funds.

Committee members and staff described three intertwined problems: software that reflects outdated processes, complex prepayment…

Audit committee urges fixes to tax-payment system, separation-of-duties controls after failed fraud-risk assessment

Summary

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