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11 <br /> 1 Slide #15 <br /> ]\/ AT <br /> � l Orange County,North Carolina <br /> Audit Findings(Continued) <br /> • 2024-o02 General Ledger Maintenance and Accounting for Fund Balance Using the <br /> County's ERP System <br /> Issue: Failure to ensure the Countyfs 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 fundsto 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 adjustfund <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) <br /> June 30,2024 <br /> 2 <br /> 3 Commissioner McKee said he recalls a similar issue in the past. He asked what efforts <br /> 4 are being made to ensure accurate oversight. <br /> 5 Travis Myren asked Gary Donaldson to address Commissioner McKee's question. <br /> 6 Gary Donaldson said staff looked at gaps from the audit and have implemented additional <br /> 7 controls and process improvements as well as additional oversight from outside of the accounting <br /> 8 office to prevent these issues from happening again. <br /> 9 Commissioner McKee said he appreciates that effort because the money the county must <br /> 10 spend comes from residents directly. <br /> 11 Chair Bedford noted that the full Corrective Action Plan is in the Board's packet. <br /> 12 <br /> 13 <br />