State Auditor Adam Edelen has released the audit of the 2013 tax
settlement for Wayne County Sheriff Charles 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.
Recent changes in auditing standards require the auditor's letter to
communicate whether the sheriff's settlement presents fairly the
taxes charged, credited and paid of the Wayne County Sheriff in
accordance with generally accepted accounting principles.
The sheriff's settlement is prepared on the regulatory basis, which
is described in the auditor's opinion letter. Regulatory basis
reporting for the sheriff's settlement is an acceptable reporting
methodology, and this reporting methodology is followed for all 120
sheriff settlements in Kentucky.
The audit found that the sheriff's financial statement fairly
presents the taxes charged, credited and paid for the period April
16, 2013 through April 15, 2014 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 lack adequate segregation of duties over
receipts. 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.
Lack of segregation of duties increases the risk of misappropriation
of assets, errors and inaccurate financial reporting. To adequately
protect employees in the normal course of performing their duties and/or prevent inaccurate financial reporting or misappropriations of
assets, 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 should initial the source
documents as evidence of this review. The sheriff could provide this
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
The audit report can be viewed on the auditor's website.