The Kentucky Auditor has released the results of an audit of the financial statements for the Christian County Fiscal Court, and there were some notes left by her office.
According to the report, the financial statements that were examined were for the fiscal year that ended on June 30, 2024 and state law requires annual audits to be conducted. The Auditor’s Office states that the Christian Fiscal Court failed to implement effective internal controls over financial reporting, specifically citing non-reported financial obligations for a radio system upgrade, not accounting for the Christian County Animal Shelter’s bank account, omitted grant proceeds and failed to properly record a bond fund.
In a seven-point reply, Christian County Judge-Executive Jerry Gilliam says that some funds were approved at the end of the 2024 fiscal year, but had not yet been received or expended, so they were not reported at that time. He says the account previously held by the Christian County Animal Shelter has since been closed and a new one has been opened under Fiscal Court. As for money received as a grant for industrial development, that was under a different tax ID number and they were instructed by the grantee to not include those funds with the regular funds.
The Auditor’s Office is recommending that Fiscal strengthen internal controls over financial reporting.
Another finding reportedly showed that the Fiscal Court’s Schedule of Expenditures of Federal Awards was materially misstated, with auditors finding it was understated by $1.6 million—the Christian County Treasurer immediately corrected her copy once the misstatement was found.
The final finding reported that the fiscal court had inadequate controls over disbursements, resulting in noncompliance, citing that nearly half of the credit card transactions tested by auditors were not in compliance with the county’s administrative code. A summary of other deficiencies includes $5 million in purchase orders issued after the invoice date.
Judge-Executive Gilliam responded by saying their procedures for issuing all purchase orders meet the Department for Local Government guidelines and were all appropriated for in the County budget.
The Auditor’s Office is recommending the Christian County Fiscal Court strengthen internal controls over disbursements by ensuring that purchase orders are issued prior to all purchases being made to verify that there are sufficient funds and budget to allow for the procurement.