Orange County NC Website
10 <br /> 1 Slide #13 <br /> T <br /> Orange County,North Carolina <br /> Required Communications{Continued] <br /> Audit Adjustments <br /> Several adj ustments were required during the conduct of the audit;these adjustments have been provided to <br /> management and they have provided us with representations that the adjustments have been posted to the <br /> Cou nVs general ledger. <br /> We did not have any passed audit adjustments. <br /> Financial Statement Disclosures <br /> The footnote disclosures to the financial statements are also an integral part of the financial statements and the <br /> process used by management to accumulate the information Included In the disclosures was the same process <br /> used in accumulating the statements. The overall neutrality, consistency,and clarity of the disclosures was <br /> considered as part of our audit. <br /> • Information in Documents Containing Audited Financial Statements <br /> Our responsibility for other information in documents containing the County's basic financial statements and our <br /> report thereon does not extend beyond the information identified in our report.If you intend to publish or <br /> otherwise reproduce the financkal statements and make reference to our firm,we must be provided with printers' <br /> proof for our review and appproval before printing. You must also provide us with a copy of the final reproduced <br /> material for our approval before is is distributed- <br /> Auditor independence <br /> In accordance with AtCPA professional s[andards.M&J is independent with regard to the County,its component <br /> unit,and its respective financial reporting processes. <br /> AuoGtor's Oiseussron&Analysis(AD&A) <br /> 2 June 30,2024 <br /> 3 <br /> 4 Slide #14 <br /> >4f <br /> Orange County,North Carolina <br /> Audit Findings <br /> • 2024-001 Accounting for Cash Transactions and Reconciliation of Bank Accounts <br /> Using the County's Enterprise Resource Planning(ERP)System <br /> Issue: We noted the County's main operating bank account was not reconciled properly in a timely manner. <br /> Internaf controls were not sufficient to detect material misstatements in the reporting of cash balances. <br /> CausefContext The issues noted appear to result from system generated entries that were created in error during <br /> a period of turnover in key positions at the beginning of the fiscal year under audit,internal controls were not <br /> sufficlentto identify and correct these errors in a timely manner. <br /> County Response: Finance met with the Enterprise Resource Planning software technical team and remedlated the <br /> issue du ring the a udit engagement. Finance has updated our Accounting Policies and Procedure Manual to include <br /> additional monthly processes to ensure that financial statements are properly presented in accordance with <br /> generally accepted accounting principles.The new Accounting Manager has reviewed these processes with his new <br /> Accountants. <br /> Aadifws Viscussron&Analysis{AD&A] <br /> June 30.2024 <br /> 5 <br /> 6 Commissioner Portie-Ascott asked what was happening with the reconciliation issue. <br /> 7 LeAnn Bagasala said there was a system issue resulting in one-sided entries and county <br /> 8 staff was unable to tell that the entries were not being recorded. She said this issue has been <br /> 9 corrected and steps have been taken to ensure it does not happen again in the future. <br />