Ensuring that taxpayer dollars, fees and grant money are used efficiently and in accordance with laws and regulations is one of the most important responsibilities of county government. But without proper policies and training, local officials may quickly find themselves on the receiving end of a negative audit report.
In conjunction with the office of Kentucky Auditor Allison Ball, the KACo Leadership Institute hosted a webinar to review the top 10 audit findings for counties along with solutions to avoid those issues. The training was led by Jim Royse, Executive Director Executive Director of the Office of Local Government Audits, and Liz Lowe, Quality Assurance Manager.
Click here to view presentation slides.
Click here to watch a video of the Feb. 27, 2025 webinar.
Lowe said audit findings fall into two categories: internal control, which promotes effectiveness and efficiency of operations along with reliable financial reporting, and compliance, which covers legal, regulatory or grant requirements.
The top 10 findings of local government audits are:
- Lack of segregation of duties
- Weak internal controls over expenditures or procurement
- Weak internal controls over payroll
- Weak internal controls over financial reporting
- Failure to maintain appropriate supporting documentation
- Inaccurate financial statement/fourth quarter report
- Failure to follow bid requirements
- Daily deposits not being made
- Purchase orders not used, not used accurately, or not effective
- Inaccurate, timely reporting, and use of forfeiture accounts
The training discussed the need for oversight, clear policies, adequate training and regular reviews as well as the importance of maintaining proper documentation and timely deposits.
Royse encourages county officials to reach out to auditor’s office staff with questions about best practices.
“Over the past year, Auditor Ball has heard from numerous local officials about their desire for additional resources to ensure their audits are successful,” Royse said. “She’s committed to supporting you with the tools and knowledge needed to manage taxpayer dollars effectively and efficiently.”
