The audit reports have been released for the Knox County Sheriff’s 2016 Tax Settlement with only one comment from the state auditor.
According to Mike Harmon, Kentucky’s Auditor of Public Accounts, the audit reports “The sheriff’s financial statement fairly presents the taxes charged, credited and paid for the period April 16, 2016 through April 17, 2017 in conformity with the regulatory basis of accounting.”
The auditor’s sole comment for both audits concerned a lack of segregation of duties in the sheriff’s office. Noting it was a repeated incident, the auditor had the following to say: “This is a repeat finding and was included in the prior year audit report as Finding 2015-001. The sheriff’s office lacks adequate segregation of duties over receipts, disbursements, and reconciliations. The sheriff’s office manager collects tax payments from customers, prepares the monthly reports, prepares disbursement checks, and posts transactions to the ledgers. The part-time bookkeeper collects tax receipts and performs the monthly bank reconciliations. The sheriff has instituted the compensating control of not allowing the individual who prepares disbursements to authorize them.”
In past responses to this finding, Sheriff Mike Smith told The Mountain Advocate “I would like to thank my staff for the hard work they do every day in maintaining accurate accountability to the people of Knox County. Due to our budgetary constraints and being a small office, funding is not available to hire additional administrate staff to segregate all duties.”
In keeping with the letter of the law, Sheriff Smith added “Our office remains vigilant to have honest and transparent accountability.”
For a full copy of the Sheriff’s 2016 Tax Settlement audit, see this story on mountainadvocate.com.