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AAT <br /> 18 <br /> 40w� Orange County, North Carolina <br /> Audit Findings (Continued) <br /> • 2024-002 General Ledger Maintenance and Accounting for Fund Balance Using the <br /> County's ERP System <br /> Issue: Failure to ensure the County's GL matched the final ACFR, as well as issues with former employees (who are <br /> no longer with the County) posting journal entries in error caused beginning equity (fund balance and/or net <br /> position) of several of the County's funds to not properly roll-forward and reconcile with the prior year ACFR. <br /> Cause/Context: During the fiscal year, there were entries made in the accounting system to fund balance by former <br /> employees that are no longer with the County. These entries were made in error and were not identified and <br /> corrected in a timely manner. <br /> Effect: While the fund balance misstatement was identified and corrected during the audit process, the initial error <br /> resulted in delays in financial statement preparation as additional time was required to investigate and adjust fund <br /> balances. In total, we identified approximately $900,000 of differences that were required to be corrected between <br /> the trial balances submitted for audit and the final version used in preparation of the County's financial statements. <br /> County Response: Finance met with software technical team and remediated the issue during the audit <br /> engagement. Finance has updated our Accounting Policies and Procedure Manual to include additional monthly <br /> processes to ensure that financial statements are properly presented in accordance with generally accepted <br /> accounting principles.The new Accounting Manager has reviewed these processes with his new Accountants. <br /> Auditor's Discussion &Analysis (AD&A) Going Further. <br /> June 30, 2024 <br />