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11 <br /> Slide#13 <br /> _N/FT <br /> Orange County,North Carolina <br /> Required Communications(Continued) <br /> Audit Adjustments <br /> Several adjustments 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 /> County s 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 financial statements and make reference to our firm,we must be provided with printers' <br /> proof for our review and approval before printing. You must also provide us with a copy of the final reproduced <br /> material for our approval before it is distributed. <br /> Auditor Independence <br /> In accordance with AICPA professional standards,M&J is independent with regard to the County,its component <br /> unit,and its respective financial reporting processes. <br /> Auditor's Discussion&Analysis(AD&A) <br /> June 30,2024 <br /> Slide #14 <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 /> Internal controls were not sufficientto detect material misstatements in the reporting of cash balances. <br /> Cause/Context: 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 /> sufficientto identify and correct these errors in a timely manner. <br /> County Response: Finance met with the Enterprise Resource Planning software technical team and remediated the <br /> issue during the audit 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 /> Auditor's Discussion&Analysis(AD&A) <br /> June 30,2024 <br /> Commissioner Portie-Ascott asked what was happening with the reconciliation issue. <br /> LeAnn Bagasala said there was a system issue resulting in one-sided entries and county <br /> staff was unable to tell that the entries were not being recorded. She said this issue has been <br /> corrected and steps have been taken to ensure it does not happen again in the future. <br />