FRANKFORT, Ky. – State Auditor Mike Harmon today released the audit of the 2015 financial statement of Lawrence County Sheriff Garrett Roberts. 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.
Auditing standards require the auditor’s letter to communicate whether the financial statement presents fairly the receipts, disbursements, and excess fees of the Lawrence County Sheriff in accordance with accounting principles generally accepted in the United States of America.
The sheriff’s financial statement did not follow this format. However, the sheriff’s financial statement is fairly presented in conformity with the regulatory basis of accounting, which is an acceptable reporting methodology. This reporting methodology is followed for all 120 sheriff audits in Kentucky.
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 Lawrence County Sheriff’s Office lacks adequate segregation of duties. The sheriff’s bookkeeper collects payments from customers, records transactions in the ledgers, prepares deposits, and reconciles the bank account. Inadequate segregation of duties allows for one person to have a significant role in processing and recording receipts and disbursements, which increases the risk of misappropriation of assets and inaccurate financial reporting. Internal control duties should be segregated to decrease the risk of misappropriation of assets, errors, and inaccurate financial reporting to external agencies. Compensating controls such as comparing the daily checkout sheet to the receipts ledger and the bank deposit can be implemented to decrease the risk present in the absence of proper segregation of duties, but they do not eliminate the lack of adequate segregation of duties. We recommend the same person not perform multiple accounting functions. If duties cannot be segregated, then strong oversight over the employee’s work should be provided and documented.
Sheriff’s Response: Ok.
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.
The audit report can be found on the auditor’s website.
