State Auditor Mike Harmon has released the audits of the financial statements for Caldwell County Fiscal Court for the fiscal years that ended in June 2018 and June 2019.
The reports say that Caldwell County Fiscal Court did not provide adequate documentation for occupational tax receipts and net profit receipts. As a result, auditors say they were unable to obtain sufficient and appropriate audit evidence to conclude that the financial statements for 2018 and 2019 as a whole are free from material misstatement.
Auditor Harmon’s office reports the audit found the Fiscal Court under the former judge-executive had internal control weaknesses and noncompliances over occupational tax and net profit taxes in 2018; and weak internal controls that resulted in the misstatement of capital assets on the county’s schedule, which the auditor noted were both repeat finding.
The former judge-executive’s response said the issues were addressed and new procedures for bookkeeping as well as new occupational tax software was implemented, and the capital assets had been addressed and turned over to a different employee.
In addition, the audit showed the Caldwell County Jail did not have an adequate accounts receivable process in 2018 or adequate segregation of duties. In response, the County’s Jailer said they would correspond with the County Attorney to try to rectify the situation. The County’s Jailer also said the facility has a financial officer and they would make efforts to split up the duties between administration.
The June 30, 2019 audit included the repeat findings that the Fiscal Court had internal control weaknesses and non-compliance over occupational tax and net profit taxes, and the Jail did not have an adequate accounts receivable process.
The Judge-Executive’s response to the 2019 audit finding was the responsibilities have been shifted to other departments, while the Jailer’s response to the finding said they would correspond with the County Attorney to try to rectify the situation.
To view the auditor’s report ending June 30, 2018, click here.
To view the auditor’s report ending June 30, 2018, click here.
