Scope
We have
audited the general purpose financial statements and the combining. individual fund, and account group financial statements of Houston County as of and for the year ended June 30, 1999.Audit Highlights
Comprehensive Annual
Financial ReportHouston County, Tennessee
For the Year
The following
are summaries Of the audit findings:OFFICE OF COUNTY
EXCUTIVEResults
Our report on Houston County’s financial statements
was qualified because the statements did not include a General Fixed As sets account group and did not include two component units whose financial statements were not available at the date of this report.Office of County Executive
• The office did not issue Purchase orders for all applicable purchases.
• The office had deficiencies in Its budget operations. Expenditures exceeded appropriations by $331,691 in
the Ambulance/Emergency Medical Services major appropriation category of the General Fund and by $76,500 in the Education Capital Projects major appropriation of the General Dept Service Fund. Also, the county legislative body did not adopt a budget for the Drug Control Fund, as required by state statute, and budgets and amendments posted to the ac counting records did not agree with amounts approved by the County Commision
• Accounting records in the office had deficiencies. General ledger payroll liability accounts were not reconciled with payroll reports, deposits of payroll taxes, and payments of insurance premiums Cash balances of various funds were not reconciled with the county trustee’s balances. An excessive number of general journal entries were made to adjust the accounting records of the General Fund. Receivables and pay ables were not properly established and recorded on the accounting records of funds Numerous errors were made in posting revenues and expenditures to various funds. Furthermore, accounting records were not kept on a current basis.
• Federal income and social security taxes were not remitted to the Internal Revenue Service on time for the
last two quarters of 1998, resulting in penalty and in Interest charges of $3,086.
• The office inappropriately used General Debt Service Funds for the purchase of land and a feasibility study
for a new school site. These expenditures should have been paid from a Capital Projects Fund or other more appropriate fund.
OFFICE OF COUNTY EXECUTIVE (Cont.)
• Time and attendance records were not maintained and filed with the county executive, as required by the personnel policy of Houston County. In addition, no records were maintained to document each employee’s sick and vacation hours
earned, hours used, and balances.
OFFICE OF ROAD SUPERINTENDENT:
• General ledger payroll deduction accounts were not reconciled with subsidiary payroll records on a monthly basis. Also, employees and managers did not sign employees’ time and attendance records.
OFFICE OF COUNTY CLERK:
• The county clerk did not deposit collections ‘Intact"; i.e., funds collected during a specific period of time were not deposited together.
• Several businesses were delinquent in paying their business taxes, and the county derk had not issued distress warrants to collect these delinquent taxes, as required by state statute.
OTHER FINDINGS:
• Duties were not segregated adequately among officials and employees in the Offices of Trustee; County Clerk; Circuit, General Sessions, and Juvenile Courts Clerk; Clerk and Master; Register; and Sheriff.
• The county did not maintain adequate property records and did not establish a self-balancing group of accounts for General Fixed Assets in accordance with generally accepted accounting principles.
• County officials had not adopted a central system of accounting, budgeting, and purchasing.