11-7-12 —     State Auditor Adam Edelen has released the audit of the sheriff's  settlement of the 2011 taxes for Wayne County Sheriff Charles L. Boston.

    State law requires the auditor to annually audit the accounts of  each county sheriff. In compliance with this law, the auditor issues  two sheriff's reports each year: one reporting on the audit of the  sheriff's tax account and the other reporting on the audit of the fee  account used to operate the office.

    The audit found that the sheriff's financial statement fairly  

presents the taxes charged, credited and paid for the period of April  16, 2011 through April 16, 2012, in conformity with the modified cash  basis of accounting.

    As part of the audit process, the auditor must comment on non-compliance with laws, regulations, contracts and grants. The auditor  must also comment on material weaknesses involving the internal  control over financial operations and reporting.

    The audit contains the following comment:

    The sheriff's office lacks adequate segregation of duties over  receipts. Segregation of duties over receipts or implementation of  compensating controls, when needed because the number of staff is  limited, is essential for providing protection to employees in the  

normal course of performing their duties and can also help prevent  inaccurate financial reporting and/or misappropriation of assets.

    A lack of segregation of duties existed over the receipt function of  the sheriff's office because of a limited number of employees were  available to properly segregate these job duties. The sheriff's  office employs two deputies who rotate duties. However, both office  deputies open mail, receive cash from customers, prepare the daily  

checkout sheets, post to the receipts ledger and prepare the daily  bank deposit.

    The auditor did note the daily checkout sheets are reviewed by  someone each day. Although this is a compensating control and is  acceptable, it does not offset the lack of adequate segregation of  duties over receipts.

    To adequately protect employees in the normal course of performing  their duties, and/or prevent inaccurate financial reporting or  misappropriation of assets, we note the sheriff should separate the  

duties involving collection of cash, deposit of cash and posting of  receipts.

    If, due to a limited number of staff, that was not feasible, strong  oversight over those areas should have occurred and involved an  employee not currently performing any of those functions. The  

individual providing this oversight could initial the source  

documents as evidence of this review. Additionally, the sheriff could  provide this oversight.

    The audit report can be found on the auditor's website.