Material weaknesses noted in county’s comprehensive financial report

FORSYTH COUNTY, Ga. — Chris McKellar of the CPA firm Mauldin and Jenkins presented the FY 2021 Comprehensive Annual Finance Report to the Board of Commissioners Tuesday and despite some noted weaknesses and several recommendations said, the County is to be commended since the reporting “goes above and beyond the information that is required.”

The report shows the County has $2.8 billion in total assets and $722.1 million in liabilities for a net financial position of about $2 billion.

Among the weaknesses reported, the Forsyth County Public Library did not record a reimbursable expenditure of $53,609. The firm recommended that “management establish procedures to review its reimbursable expenditures on a periodic basis to ensure any resulting revenues are recorded.”

McKellar also noted that an audit adjustment of $500,497 was required in the E911 Fund “in order to properly record revenue and receivables as of Dec. 31, 2001.” The firm recommended the County strengthen its internal controls over the revenue and receivables in accordance with General Accepted Accounting Procedures.”

There were also material weaknesses noted relating to the County’s compliance with the US Department of Treasury Emergency Rental Assistance Program and the US Department of Treasury Coronavirus State and Local Fiscal Recovery Fund.

Regarding the Rental Assistance Program, McKellar said the County did not complete and submit a monthly report for August 2021 and none of the monthly reports were submitted in a timely manner.

Regarding the Coronavirus Recovery Fund, he noted the report was prepared and submitted by only one member of the county staff and was not subject to review prior to submission.

McKellar recommended for both material weaknesses that the County take neyecessary steps to ensure those responsible for the program are aware of reporting requirements and have a process in place to ensure that all reports are completed and submitted timely manner.

He stated, “The federal government wanted to get the money  out to local government as quick as possible and their reporting requirements changed several times. Commissioner Cindy Mills said, “The County received the grant money before it received requirements of how to report it.”

There was also a drawdown of $154,638  from the Georgia Environmental Finance Authority grant that was not included. He recommended the County Financial staff implement procedures to ensure that all drawdowns are reported to the grant staff.