CNHI
11-24-10 — State Auditor Crit Luallen has released the audit of the Sheriff’s
Settlement—2009 Taxes for Wayne County Sheriff, Charles Boston, for the period June 13, 2009 through April 15, 2010.
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 June 13, 2009 through April 15, 2010, 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 comments:
The Sheriff’s office lacks adequate segregation of duties. This occurs when only one person has control over various elements of a single account, e.g., deposits and payments.
The report recognizes that due to the diversity of operations, small size, and budget restrictions, the Sheriff has limited options for establishing a segregation of duties.
However, the audit provides the Sheriff with specific recommendations for improvement of procedures.
The Sheriff’s office should strengthen internal controls over the computerized accounting system.
During the review of internal controls over receipts and disbursements auditors noted the following control deficiencies with regard to the Sheriff’s computerized accounting software. Auditors consider the control deficiencies to be significant deficiencies in internal control over financial reporting:
• The Sheriff’s office does not have a computer policy and procedures manual available to all computer operators.
• Computer passwords are not changed at regular intervals.
• Computer modem is not logically turned off or physically disconnected when not in use in order to prevent unauthorized access.
The audit recommends the Sheriff’s office strengthen internal controls over their computerized accounting system in order to prevent unauthorized access.
The Sheriff’s responsibilities include collecting property taxes, providing law enforcement and performing services for the county fiscal court and courts of justice.
The Sheriff’s office is funded through statutory commissions and fees collected in conjunction with these duties.
This report, in its entirety, can be accessed at www.auditor.ky.gov.