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STATE BOARD OF ACCOUNTS 302 West Washington Street Room E418 INDIANAPOLIS, INDIANA 46204-2769 SUPPLEMENTAL COMPLIANCE REPORT OF ALLEN COUNTY, INDIANA January 1, 2019 to December 31, 2019 FILED 09/28/2020 B55853 ---PAGE BREAK--- ---PAGE BREAK--- TABLE OF CONTENTS Description Page Schedule of Officials 2 Transmittal Letter 3 Board of County Commissioners: Audit Result and Comment: Training on Internal Control Standards 6 Exit Conference 7 County Auditor: Audit Results and Comments: Certification on Internal Control Standards 10 MVH Restricted Fund 10 Exit Conference 11 INDIANA STATE BOARD OF ACCOUNTS 1 ---PAGE BREAK--- SCHEDULE OF OFFICIALS Office Official Term County Auditor Nicholas D. Jordan 01-01-19 to 12-31-20 County Treasurer William F. Royce 01-01-19 to 12-31-20 Clerk of the Circuit Court Christopher M. Nancarrow 01-01-19 to 12-31-20 County Sheriff David J. Gladieux 01-01-19 to 12-31-20 County Recorder Anita A. Mather 01-01-19 to 12-31-20 President of the Board of County Commissioners F. Nelson Peters 01-01-19 to 12-31-19 Therese M. Brown 01-01-20 to 12-31-20 President of the County Council Thomas A. Harris 01-01-19 to 12-31-19 Joel M. Benz 01-01-20 to 12-31-20 INDIANA STATE BOARD OF ACCOUNTS 2 ---PAGE BREAK--- STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS, INDIANA 46204-2769 Telephone: (317) 232-2513 Fax: (317) 232-4711 Web Site: www.in.gov/sboa TO: THE OFFICIALS OF ALLEN COUNTY, INDIANA This report is supplemental to our audit report of Allen County (County), for the period from January 1, 2019 to December 31, 2019. It has been provided as a separate report so that the reader may easily identify any Audit Results and Comments that pertain to the County. It should be read in conjunction with our Financial Statements Audit Report of the County, which provides our opinions on the County's financial statements. This report may be found at www.in.gov/sboa/. As authorized under Indiana Code 5-11-1, we performed procedures to determine compliance with applicable Indiana laws and uniform compliance guidelines established by the Indiana State Board of Accounts. The Audit Results and Comments contained herein describe the identified reportable instances of noncompliance found as a result of these procedures. Our tests were not designed to identify all instances of noncompliance; therefore, noncompliance may exist that is unidentified. Any Official Response to the Audit Results and Comments, incorporated within this report, was not verified for accuracy. Paul D. Joyce, CPA State Examiner September 16, 2020 INDIANA STATE BOARD OF ACCOUNTS 3 ---PAGE BREAK--- (This page intentionally left blank.) INDIANA STATE BOARD OF ACCOUNTS 4 ---PAGE BREAK--- BOARD OF COUNTY COMMISSIONERS ALLEN COUNTY INDIANA STATE BOARD OF ACCOUNTS 5 ---PAGE BREAK--- BOARD OF COUNTY COMMISSIONERS ALLEN COUNTY AUDIT RESULT AND COMMENT TRAINING ON INTERNAL CONTROL STANDARDS The same comment also appeared in prior Report B53338. Condition and Context Newly hired County employees had not completed the required internal control standards training. The last reported completion of the training was in March 2017. Criteria Indiana Code 5-11-1-27(g) states in part: "After June 30, 2016, the legislative body of a political subdivision shall ensure that: . . . personnel receive training concerning the internal control standards and procedures adopted by the political subdivision." INDIANA STATE BOARD OF ACCOUNTS 6 ---PAGE BREAK--- BOARD OF COUNTY COMMISSIONERS ALLEN COUNTY EXIT CONFERENCE The contents of this report were discussed on September 16, 2020, with Nicholas D. Jordan, County Auditor; Jackie Scheuman, Finance and Budget Director; Therese M. Brown, President of the Board of County Commissioners; Richard E. Beck, County Commissioner; Joel M. Benz, President of the County Council; and Kyle Kerley, County Council member. INDIANA STATE BOARD OF ACCOUNTS 7 ---PAGE BREAK--- (This page intentionally left blank.) INDIANA STATE BOARD OF ACCOUNTS 8 ---PAGE BREAK--- COUNTY AUDITOR ALLEN COUNTY INDIANA STATE BOARD OF ACCOUNTS 9 ---PAGE BREAK--- COUNTY AUDITOR ALLEN COUNTY AUDIT RESULTS AND COMMENTS CERTIFICATION ON INTERNAL CONTROL STANDARDS Condition and Context The County Auditor certified in the 2019 Annual Financial Report that County personnel, as defined by Indiana Code 5-11-1-27(c), received the required training. However, personnel hired after March 2017 did not received the training; therefore, the certification was incorrect. Criteria Indiana Code 5-11-1-4(a) states: "The state examiner shall require from every municipality and every state or local governmental unit, entity, or instrumentality financial reports covering the full period of each fiscal year. These reports shall be prepared, verified, and filed with the state examiner not later than sixty (60) days after the close of each fiscal year. The reports must be in the form and content prescribed by the state examiner and filed electronically in the manner prescribed under IC 5-14-3.8-7." MVH RESTRICTED FUND Condition and Context The County did not use the appropriate fund numbers when implementing the new MVH Restricted Fund. The MVH Fund (County Highway) and the MVH Restricted Funds were not shown separately on the Annual Financial Report. Criteria On the chart of accounts, the MVH Fund and MVH Restricted sub-fund shall be shown as follows: Counties Fund 1176 MVH Fund 1173 MVH Restricted . . . Together, MVH and MVH Restricted shall constitute the total MVH Fund. MVH and MVH Restricted will be shown separately on the Annual Financial Report and Annual Operational Report. (State Examiner Directive 2018-2) INDIANA STATE BOARD OF ACCOUNTS 10 ---PAGE BREAK--- COUNTY AUDITOR ALLEN COUNTY EXIT CONFERENCE The contents of this report were discussed on September 16, 2020, with Nicholas D. Jordan, County Auditor; Jackie Scheuman, Finance and Budget Director; Therese M. Brown, President of the Board of County Commissioners; Richard E. Beck, County Commissioner; Joel M. Benz, President of the County Council; and Kyle Kerley, County Council member. INDIANA STATE BOARD OF ACCOUNTS 11