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Knox County audit committee reviews single-audit findings, flags reconciliation problems and $154,500 in rental-assistance fraud
Summary
Pew & Company told the Knox County Audit Committee on March 19 that auditors found no material weaknesses but identified several significant deficiencies, including unreconciled trustee liability items, Clerk and Master reconciliation delays now corrected, a ~$50,000 check-approval incident under police investigation, and roughly $154,500 in suspected internal fraud in the Emergency Rental Assistance program; staff outlined remediation and investigations.
The Knox County Audit Committee received the external auditors governance letter and single-audit compliance report on March 19, which outlined seven findings and related corrective-action plans. Ted Hotez of Pew CPAs told the committee auditors did not identify any material weaknesses but did report multiple significant deficiencies and one federal-award finding that requires disclosure.
Hotez said auditors had recorded several audit adjustments that were reclassifications and did not change net position or fund balances. He noted the $6,000,000 sale of the Andrew Johnson building was reclassified for government-reporting purposes but left net results unchanged. "They really were reclassification type entries," Hotez said.
The auditors identified reconciliation issues involving trustee liability accounts, where receipts without clear coding left outstanding reconciling items. Hotez said some discrepancies dated from prior years but that finance and the trustees office were working together and had made progress: "Some of the reconciling items from a year ago…
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