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16 <br /> 1 <br /> 2 <br /> 3 Cash Handling —Agreed Upon Procedures <br /> 4 • We are working with each office throughout the County to evaluate the cash receipting <br /> 5 process <br /> 6 • Procedures started and will be wrapping up in early spring 2019 <br /> 7 <br /> 8 Comments, Recommendations, and Other Issues <br /> 9 <br /> 10 Material Weaknesses on Financial Reporting <br /> 11 <br /> 12 Debt Financing Reporting <br /> 13 Misstatements were detected in the reporting of the County's recording for debt <br /> 14 issuances, including the associated balance sheet accounts, revenues, <br /> 15 expenditures, and expenses. During our testing, audit adjustments were required to <br /> 16 properly report the County's debt and related debt service schedules and related <br /> 17 balance sheet account, revenues, and expenditures/expenses. Audit adjustments <br /> 18 totaling approximately $30 million were required to record other financing sources <br /> 19 and other financing uses; and $8.5 million were needed to correct the classification <br /> 20 of the County's accounting and reporting of the debt service activity. We <br /> 21 recommend the County carefully review all financing documents received during the <br /> 22 issuance of the bonds or notes. There are several draft versions, which may <br /> 23 circulate before the final information is available, but all members of the County's <br /> 24 management team should ensure all key members have the necessary schedules to <br /> 25 properly report the issuance, issuance costs, and other disbursements associated <br /> 26 with the issuance. <br /> 27 <br /> 28 Expenditure/Expense Recognition <br /> 29 During our testing, audit adjustments were required to properly report the County's <br /> 30 expenditures/expenses and related balance sheet accounts. During our testing of <br /> 31 subsequent disbursements we identified expenses that were incurred as of June 30, <br /> 32 2018 but were note remitted until subsequent to the fiscal year end. The expenses <br /> 33 of the County Capital Project Fund and the Solid Waste Landfill Fund were <br /> 34 understated by $227,745 and $65,712, respectively. Audit adjustments totaling <br /> 35 approximately$293,450 were needed to correct the County's <br /> 36 expenditures/expenses and related balance sheet accounts. We recommend the <br /> 37 County ensure all expenditures/expenses are properly reported in accordance with <br /> 38 generally accepted accounting principles. <br /> 39 <br /> 40 Equity Reconciliation <br /> 41 During our testing, an audit adjustment was required to adjust the opening net <br /> 42 position of the Solid Waste Landfill Fund. The entry included adjusting balances <br /> 43 incorrectly coded to equity during the current year, as well as to record audit entries <br /> 44 from the prior year, which were not posted to the County's general ledger. An audit <br /> 45 adjustment totaling $806,521 was needed to correct the County's opening net <br /> 46 position as of June 30, 2018. We recommend the County carefully review all <br /> 47 transactions to ensure all year-end closing entries, including those proposed by <br /> 48 the auditors, are recorded in accordance with generally accepted accounting <br /> 49 principles. <br /> 50 <br />