State Auditor Mike Harmon released the audit of the 2021 financial statement of Caldwell County Clerk Toni Watson on Tuesday that included two findings with the fee account.
The auditor says the Caldwell County Clerk did not settle excess fees by March 15 as required by statute, and Watson did not present her annual settlement or pay excess fees to fiscal court until May 9, 2022. According to the release, Watson said the annual settlement was not prepared and presented to fiscal court until May due to her busy schedule in preparing for the primary election. Furthermore, excess fees were not paid timely due to numerous bank errors in which the state mistakenly withdrew funds from the wrong account. Because of the bank errors, Watson needed additional time to get the issues resolved so that she could pay the correct amount of excess fees. The auditor stated that because the county clerk did not settle excess fees by March 15, the county clerk is not in compliance with state law. Additionally, the auditor said the fiscal court was denied funds that could have been used to provide necessary services to the county.
The auditor recommended the Caldwell County Clerk strengthen internal controls and comply with state statutes by presenting her annual settlement and paying excess fees to fiscal court by March 15.
In Watson’s response to the finding she stated she had several problems balancing the books in addition to lots of Covid and absenteeism in the office. She also said the election took a lot of time and noted that she will have 2022 completed on time.
The audit also found the Caldwell County Clerk’s fourth quarter financial statement submitted to the Department of Local Government (DLG) was misstated and was inaccurate when compared to the receipts and disbursements ledgers and to the county clerk’s annual settlement for the calendar year 2021. The receipts per the fourth quarter financial statement were reportedly understated by $16,573 and the disbursements were understated by $82,295. According to the auditor report, Watson said the fourth quarter financial statement did not include outstanding receivables or unpaid obligations due to an oversight.
The auditor said because outstanding receivables and unpaid obligations were excluded, the fourth quarter financial statement was misstated and thus the financial information did not reflect an accurate financial account of the county clerk’s office as reported to DLG.
Harmon’s office recommended the Caldwell County Clerk strengthen internal controls to ensure all outstanding receivables and unpaid obligations as of December 31 are accurately reported on the fourth quarter financial statement to ensure the financial information submitted to DLG and other users is accurate and complete.
In Watson’s response to the auditor, she said she will complete in a more timely manner. She also said the misstated figures they included on the yearly statement and there were no fees missing. She also noted the county judge was aware of her lateness.
The county clerk’s responsibilities include collecting certain taxes, issuing licenses, maintaining county records, and providing other services. The clerk’s office is funded through statutory fees collected in conjunction with these duties.
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