County flagged engineering inventory discrepancies that could lead to audit finding

County finance staff reported inventory certification discrepancies in the Engineering department that may affect audited financial statements.

Kevin Nelson, Assistant Budget and Fiscal Officer, told the Board that most departments had certified inventory held as of June 30 within the required two-month window, but Engineering had not provided an accurate certification. Nelson described discrepancies involving 25 assets, some of which were capitalized items over $5,000 that reportedly had been disposed of years earlier but remained listed as active — a condition that could have caused previously reported depreciation to be overstated and could result in an audit finding.

Because Engineering's certification remained unresolved, its inventory certification will not appear on the consent agenda and staff said they will continue to work to reconcile records before the next meeting. Chair Yoakum asked about consequences for incomplete reporting; Nelson said the primary concern is the impact on audited financial statements, not a specified statutory penalty.