State Auditor, Mike Harmon released an audit report of the Christian County Fiscal Court which highlights instances of inadequate control over financial accounts resulting in noncompliance.
The report found that during the fiscal year of 2023 the fiscal court had internal control deficiencies resulting in noncompliance surrounding their monetary disbursements. Of the 96 invoices that were tested, six were not paid within 30 working days of the receipt, 21 did not have purchase orders issued and 39 had purchase orders after the invoice date.
Along with the invoices, of eight credit card purchases tested, $100 in late fees and finance charges were paid.
Harmon’s report says good internal controls ensures taxpayer funds are being used appropriately. Regarding the invoices, Harmon references a state statute that says, all bills for goods and services must be paid within 30 working days.
In response to the finding, Judge Executive Jerry Gilliam says controls have been implemented addressing the issues found and staff have been reminded of the importance of following the purchase order systems required by local government.
Harmon’s report also finds that fiscal court did not have adequate controls over the procurement, suspension and debarment compliance required for federal expenditures. According to the report, fiscal court failed to produce purchase orders and handle money from the Coronavirus State and Local Fiscal Recovery Funds according to county administrative code.
Without the purchase orders, the report states that money spent from the funds could have exceeded budgetary restrictions, rendering them void.
The report recommends that the fiscal court improve internal controls over federal expenditures to ensure all compliance requirements are followed.
In response, Gilliam says in all of the purchase order information surrounding the fund was included in their invoices, but a purchase order itself was not produced. In the future, Gilliam says the staff will use the purchase order system and controls have already been implemented regarding the recommendations.