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Treasurer says state audit found a single clerical finding; Daviess County otherwise in compliance
Summary
Treasurer Johnson told the Daviess County Fiscal Court that the State Auditor's report for the year ending June 30, 2025, identified one control-deficiency finding tied to documentation of 19 disbursements totaling about $10.59 million and that the county will change procedures to follow the auditor's recommended purchase-order practice.
Treasurer Johnson told the Daviess County Fiscal Court on March 12 that the State Auditor of Public Accounts' audit for the year ending June 30, 2025, contained a single finding described as a control deficiency related to 19 disbursements totaling approximately $10,590,000, but that the county otherwise complied with Kentucky's regulatory accounting and budget laws.
"The audit contained a single finding of control deficiency regarding 19 disbursements of court approved items totaling approximately $10,590,000," Treasurer Johnson said, summarizing the report. He told the court the finding resulted from a change in the auditor's interpretation of what constitutes adequate documentation showing prior approval for court-approved items. "Beginning with this audit, the state auditor's office now recommends that a purchase order be generated with all relevant information for any such item immediately following court approval to demonstrate prior approval instead of utilizing the court minutes," Johnson said.
Johnson said all 19 highlighted disbursements had been specifically approved by the fiscal court and that the finding did not indicate any misappropriation, inaccurate financial reporting, or cash-flow problems. "This finding is a clerical disagreement only, and I have already modified our procedures to accommodate the recommended practice going forward," he said. The full audit was posted on the county's website in the document center for public review, Johnson added.
The judge and commissioners had no questions during the presentation. The court received the audit report as presented; no formal vote on the acceptance was recorded beyond the court's acknowledgment in the meeting.
Why it matters: The change in documentation practice recommended by the auditor affects how the county will evidence prior approval of contracts, bid awards and similar items. Treasurer Johnson said the county will adopt the purchase-order practice to align with the State Auditor's guidance and avoid the finding in future audits.
