Auditor calls for sheriff’s bank accounts to be closed

The county’s auditors are calling for the closure of two bank accounts maintained by the Grady County Sheriff’s Office.
County Auditor Tom E. Carmichael, Jr. of the Tifton firm of Bowen, Phillips & Carmichael, wrote to commissioners in a letter dated October 8, that two bank accounts maintained by Sheriff Harry Young’s office had not been reported to the county’s finance director and had not been audited and included in the county’s annual audit for the year ended Dec. 31, 2007.
Commissioners several weeks ago requested the auditor look into the matter and most recently County Attorney Kevin S. Cauley was asked to review the auditor’s findings and report back to the board.
Tuesday night Cauley told the board he would like to discuss the matter with County Administrator Rusty Moye, who was absent Tuesday night, and then make a recommendation regarding further action if any.
Auditor Carmichael said the two accounts in question are both at Capital City Bank. One is in the name of Grady County Sheriff’s Office – FAD Account and the second is in the name of Grady County Jail Uniform Account.
As part of their examination the auditors talked with Moye, requested information from Capital City Bank, discussed the matter with sheriff’s office personnel, obtained bank statements from January 2007 through December 2007 and summarized their findings.
In his letter the auditor stated, “ Based on the results of our investigation, it is our conclusion that the impact on Grady County’s financial statements as of December 31, 2007, as a result of the omission of these accounts, is not material and would not affect our audit report dated June 24, 2008.”
Carmichael goes on to write, “We do, however, believe that the omission of these accounts does constitute a deficiency in internal control over financial reporting that we consider to be a significant deficiency.”
The auditor explains that a control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.
The auditor suggested the county seek additional information regarding the accounts in order to determine if any additional research or investigation is warranted.
Information the auditors suggested the county gather includes when the accounts were opened and by whom; what federal ID number are the accounts listed under; who has signature authority; support for the source of deposits; vendor invoices or other support for disbursements; and physical location of equipment purchased.
The auditor’s summaries of financial activity in both accounts during 2007 shows that in the FAD Squad account a total of $18,681.00 was deposited into the account and $16,892.74 was written on the account leaving a balance at the end of the year of $3,470.34.
The uniform account had about half the amount of activity with $9,019.77 in deposits and $8975.92 in disbursements leaving a year end balance of $43.85.
Commissioners have previously requested invoices and other records regarding the expenditure of budget funds for uniforms from the sheriff’s office.

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