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Comptroller’s Annual Audit Resulted in Three Findings

The Tennessee Comptroller of the Treasury’s Division of Audit has released its annual report on Perry County government finances. The audit resulted in three findings—two in the office of Director of Schools, and one in the Sheriff’s Office.

In each case, the auditor’s comments and recommendation, as well management’s response and plan of corrective action, are included.

Finding One:

Office of Director of Schools

“Salaries exceeded appropriations in seven of 53 salary line-items in the General Purpose School Fund by amounts ranging from $600 to $7,931. The budget resolution approved by the county commission states that ‘the salary, wages, or remuneration of each officer, employee, or agent of the county shall not be in excess of the amounts…as set forth in the estimate of expenditures which accompanies this resolution. Therefore, the salaries that exceeded lineitem appropriations were expenditures not approved by the county commission.

“Section 5-9- 401, Tennessee Code Annotated, states that ‘All funds from whatever source derived, including, but not limited to, taxes, county aid funds, federal funds, and fines, that are to be used in the operation and respective programs of the various departments, commissions, institutions, boards, offices and agencies of county governments shall be appropriated to such use by the county legislative bodies.

“This deficiency exists because management failed to hold spending to the limits authorized by the county commission, which resulted in unauthorized expenditures.”

Recommendation: “Expenditures should be held within appropriations approved by the county commission.”

Management’s Response: “I concur with this finding.”

In the corrective action plan, Director of Schools Eric Lomax wrote: “Budget shortcomings are due to summer learning program. Will not allow additions to the program after amendments have been prepared and approved.”

 

Finding Two:

Office of Director of Schools

“As part of our audit procedures for determining whether the purchasing process was operating as designed, we selected a sample of 28 disbursements totaling $35,420 from a population of 2,169 vendor checks totaling $7,159,519.

“Our examination revealed that in six instances, invoices were paid without documentation that goods had been received or services had been rendered. This practice weakens controls over the purchasing process and increases the risk of paying for something that was never received. This deficiency resulted from a lack of management oversight.”

Recommendation: “The office should maintain documentation that goods have been received or services have been rendered before invoices are paid.”

Management’s Response: “I concur with this finding.”

In the corrective action plan, Director Lomax wrote: “Ensure all supporting documents are being turned in to the central office on a timely manner.”

 

Finding Three:

Office of Sheriff

“The following deficiencies were noted during………..

 

……………..FOR COMPLETE STORY, PLEASE READ 1/5/22 ISSUE……..

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