State Auditor Mike Harmon released the audit of the 2017 financial statement of Madison County Sheriff Mike Coyle which had two comments to be addressed by the sheriff's office.
This report is the second of two reports done annually, the first being the audit of the sheriff's tax account, the other being an audit of the fee account used to operate the county sheriff's office.
The first comment was the county sheriff's office "does not have adequate segregation of duties for receipts, disbursements and reconciliations."
According to the report, this is a repeat finding and was reported in the prior year's audit as Finding 2016-001.
The sheriff's bookkeeper is responsible for collecting receipts, preparing deposits, preparing daily checkout sheets, posting to ledgers and preforming bank reconciliations.
In the audit, it states, "The sheriff or another employee did not document oversight of bank reconciliations...This lack of segregation of duties is a result of a limited budget, which restricts the number of employees the sheriff can hire and delegate responsibilities to."
It continues to say the deficiency increases the risk of misappropriation of assets, errors and inaccurate reporting to external agencies, such as the Department of Local Government.
According to the document, the sheriff's response to the audit's finding was that receipts, disbursements and reconciliations have now been distributed between six employees to check.
The audit had an additional finding in their 2017 fee audit which stated that the Madison County Sheriff's Office expended funds for unallowable items.
"The sheriff expended fee account funds for items not necessary to the function of the sheriff's office," the audit reads. "The sheriff's office made three disbursements, totaling $264, for flowers and paid for $35 for fuel that did not have any supporting documentation."
Controls were stated to not be in place to ensure that funds were spent only on allowable items and that all purchases were adequately supported. Expending funds on unallowable items result in fewer funds to spend on allowable items.
"We recommend the sheriff ensure all funds spent from the fee account are for allowable expenditures for direct law enforcement purposes and properly supported prior to payment," the audit reads.
The sheriff's office was recommended to reimburse the fee account for a total of $299.
According to the document, the sheriff responded stating the issue had been solved in 2018.
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.
To view the full audit report visit www.auditor.ky.gov.
Reach Taylor Six at 624-6623 or follow her on Twitter @TaylorSixRR.