Minor exceptions found in four of 12 procedures in Whitley County PVA audit

A recent report by the Kentucky Auditor of Public Accounts regarding a review of the Whitley County Property Valuation Administrator’s Office found exceptions in four of 12 procedures that were reviewed on things ranging from whether proper forms being filed with the state for days the office was closed to bank reconciliations and deposit procedures.

The audit of PVA Ronnie Moses office was for the period of time from July 1, 2019 through June 30, 2020.

It looked at procedures that were agreed to by the Finance and Administration Cabinet, Department of Revenue, and Whitley County PVA related to the PVA’s compliance with the Fiscal and Personnel Administration Manual for the Office of Property Valuation Administration regarding the accountability for statutory contribution receipts and disbursements including capital outlay disbursements, city government receipts, recordkeeping, and leases and contracts, according to the independent accountant’s report on applying agreed-upon procedures.

Reconciliations

Procedure – Determine if the PVA has a receipts ledger, a disbursements ledger, and reconciles bank records to books each month. Re-perform the year-end bank reconciliation (June 30, 2020), for all bank accounts, to determine if amounts are accurate.

The finding was that the PVA has a receipts and disbursements ledger, and conducts monthly bank reconciliations. However, the June 30, 2020 bank reconciliation was not accurate.

The PVA’s response was that he wasn’t sure what the problem was, and the records indicated it was correct.

Moses said Tuesday that he thinks the difference between the amounts was less than $1.

Moses said he thinks the difference between the two amounts had to do with the date, which his office and the state actually did the reconciliation.

Deposits

Procedure – Select one month (January 2020 – June 2020) and review bank statement(s) to determine if deposits were made weekly at a minimum or if receipts of $250 or more are deposited daily. Choose one week from month selected and determine if pre-numbered receipts were issued.

The finding was that deposits were not made weekly at a minimum, and receipts of $250 or more were not deposited daily. Pre-numbered receipts were not issued.

The PVA’s response was that the amounts were so small that his department’s assumption was their procedures were sufficient.

Moses noted that his office doesn’t deal with a lot of cash, which is why deposits are not made more frequently.

Overspending

Procedure – Compare the PVA’s final budget to actual disbursements to determine if the PVA overspent in any account series.

The finding was that actual disbursements were compared and the PVA overspent in two account series.

“Major computer problems forced us to do what it took to keep databases operating,” the PVA responded.

Moses added that it took hiring two companies to finally get the major computer problem fixed, and he complimented Dean Norton out of Lexington for helping take care of the problem.

“It is good to find companies that will do that,” he added.

Office closings

Procedure – Determine if the PVA’s office was closed any day other than the state’s approved holidays. If so, determine if the proper procedures and forms were completed.

The finding was that the PVA did not follow the proper procedures and complete the appropriate form for the four days that the office was closed other than the state’s approved holidays.

The PVA’s response was that the office closed on days that the courthouse closed.

“We will be sure to submit proper forms in the future,” the PVA responded.

Moses took full responsibility for the mistake Tuesday, and noted that he just forgot to file the paperwork.