Now that the "unaccounted for" $195,000
of Platte County taxpayer money has been traced,
what steps can be taken to avoid similar problems
in the future?
That's what county commissioners asked of external
auditor Mike Groszek of the firm Troutt, Beeman
and Co. of Harrisonville.
Here are recommendations made by Groszek:
1. The county should not set up future construction
funds as they did with parks. Bond monies with
a trustee should be set up in their own fund so
that when the projects are completed, the fund
can be closed.
2. Bond monies with a trustee should not be recorded
in the same general ledger account as the main
checking account. Separate ledger accounts should
be set up for the bond trustee accounts, and they
should have a separate general ledger number from
the main county checking account.
3. The activity in these bond trustee accounts
should be recorded on a monthly basis and then
reconciled to the general ledger. If they have
their own unique accounts, as recommended in number
2 above, then this reconciliation can be performed.
4. The treasurer's office should compile a master
list of what bank accounts are recorded in what
fund and the corresponding general ledger number.
This would help to determine what cash account
to hit when coding disbursements.
5. All checks from the county's main checking
account need to be recorded to general ledger
account 1001 and not to a bond trustee construction
fund general ledger account, even though the checking
account will ultimately be reimbursed from the
bond trustee construction funds.
6. The county's main checking account reconciliation
format should not attempt to include other funds
and accounts. The county has approximately 70
to 80 funds which participate in this checking
account and it is complicated enough without trying
to include other accounts.
7. Journal entries. There have been operating
difficulties between the auditor's office and
the treasurer's office over journal entries. The
county should consider implementing an operating
procedure requiring the auditor's office and the
treasurer's office to both sign off on journal
entries impacting cash. If nothing else, it will
improve the communication and inform the treasurer's
office whenever a journal entry hits cash.
8. Journal entries. The auditor's office should
implement an operating procedure requiring two
signatures on all journal entries. Sometimes having
two sets of eyes to review an entry may catch
errors before they are posted.
9. When the treasurer's office completes the
monthly bank reconciliation it should be forwarded
and signed off by the auditor's office. This will
help ensure that any reconciliation difficulties
will be communicated in a timely manner.