COUNTY OF HANCOCKLocal Government

Condition The County departments are comprised of a limited number of employees. The limited number of employees allows for a lack of segregation of duties over accounting transactions. Criteria Accounting duties of authorization, recording, and custodian should be segregated between employees to prevent financial misstatements and the opportunity for fraudulent behavior. Effect With a limited number of employees and a lack of segregation of duties, the County is at a higher risk for errors or misappropriations. Cause The County departments are comprised of a limited number of employees. Recommendation When a lack of segregation of duties exists, management’s and the County Board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Action To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Responsible Parties Mark Menn, County Board Chairman Kris Pilkington, County Treasurer Holly Wilde-Tillman, County Clerk

Condition :The County departments are comprised of a limited number of employees. The limited number of employees allows for a lack of segregation of duties over accounting transactions. Criteria: Accounting duties of authorization, recording, and custodian should be segregated between employees to prevent financial misstatements and the opportunity for fraudulent behavior. Effect: With a limited number of employees and a lack of segregation of duties, the County is at a higher risk for errors or misappropriations. Cause: The County departments are comprised of a limited number of employees. Recommendation: When a lack of segregation of duties exists, management’s and the County Board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Action: To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Responsible Parties: Mark Menn, County Board Chairman; Kris Pilkington, County Treasurer; Holly Wilde-Tillman, County Clerk

Condition :The County departments are comprised of a limited number of employees. The limited number of employees allows for a lack of segregation of duties over accounting transactions. Criteria: Accounting duties of authorization, recording, and custodian should be segregated between employees to prevent financial misstatements and the opportunity for fraudulent behavior. Effect: With a limited number of employees and a lack of segregation of duties, the County is at a higher risk for errors or misappropriations. Cause: The County departments are comprised of a limited number of employees. Recommendation: When a lack of segregation of duties exists, management’s and the County Board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Action: To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Responsible Parties: Mark Menn, County Board Chairman; Kris Pilkington, County Treasurer; Holly Wilde-Tillman, County Clerk

Condition The County departments are comprised of a limited number of employees. The limited number of employees allows for a lack of segregation of duties over accounting transactions. Criteria Accounting duties of authorization, recording, and custodian should be segregated between employees to prevent financial misstatements and the opportunity for fraudulent behavior. Effect With a limited number of employees and a lack of segregation of duties, the County is at a higher risk for errors or misappropriations. Cause The County departments are comprised of a limited number of employees. Recommendation When a lack of segregation of duties exists, management?s and the County Board?s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Action To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Responsible Parties Delbert Kreps, County Board Chairman Kris Pilkington, County Treasurer Holly Wilde-Tillman, County Clerk

Condition The County departments are comprised of a limited number of employees. The limited number of employees allows for a lack of segregation of duties over accounting transactions. Criteria Accounting duties of authorization, recording, and custodian should be segregated between employees to prevent financial misstatements and the opportunity for fraudulent behavior. Effect With a limited number of employees and a lack of segregation of duties, the County is at a higher risk for errors or misappropriations. Cause The County departments are comprised of a limited number of employees. Recommendation When a lack of segregation of duties exists, management?s and the County Board?s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Action To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Responsible Parties Delbert Kreps, County Board Chairman Kris Pilkington, County Treasurer Holly Wilde-Tillman, County Clerk

Finding 2020-001 ? Segregation of Duties Condition The County departments are comprised of a limited number of employees. The limited number of employees allows for a lack of segregation of duties over accounting transactions. Criteria Accounting duties of authorization, recording, and custodian should be segregated between employees to prevent financial misstatements and the opportunity for fraudulent behavior. Effect With a limited number of employees and a lack of segregation of duties, the County is at a higher risk for errors or misappropriations. Cause The County departments are comprised of a limited number of employees. Recommendation When a lack of segregation of duties exists, management?s and the County Board?s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Action To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Responsible Parties Delbert Kreps, County Board Chairman Kris Pilkington, County Treasurer Holly Wilde-Tillman, County Clerk

Finding 2020-002 ? Indirect Cost Allocations Condition The County Health Department did not follow a cost allocation plan when charging indirect costs to the various Health Department programs. Criteria The Uniform Guidance requires a cost allocation plan be used to produce an equitable and consistent distribution of costs. Effect Indirect costs were allocated to various programs with no documentation as to how they were allocated. Cause The County Health Department does not currently have a written cost allocation plan in place. Recommendation The County Health Department should establish a written cost allocation plan that produces an equitable and consistent distribution of costs. The plan should then be followed consistently until revised or replaced. Views of Responsible Officials and Planned Corrective Action Agree, the 2017 cost allocation policy wasn?t used during FY20. The Health Department Administrator will discuss the agency?s 2017 cost allocation policy with the BOH to review that policy and make updated changes to the cost allocation policy to include indirect costs and how those will be allocated. Responsible Parties Amy Hall, County Health Department Administrator Tasha Speer, Finance Director Board of Health

Finding 2020-003 ? Cash Disbursements Condition 1. The County Health Department paid vendors off quotations provided rather than an invoice. In one instance, the County Health Department received quotes from two vendors for products. Both of those quotes were turned in for payment and paid. The products were only received from one vendor. 2. The County paid vendors off a statement and did not have invoices to substantiate the vendor?s statement of account. The statement also included $150 of interest charges. Criteria 1. Cash should only be disbursed based on invoices received from vendors to avoid paying for products or services not received. 2. Cash should only be disbursed for a vendor?s statement after invoices on that statement have been received. Payment on accounts should be made in a timely manner to avoid unnecessary interest charges. Effect 1. The County Health Department paid a vendor ~$4,500 that it did not owe the vendor. 2. The County paid unnecessary interest charges and paid a vendor without having adequate documentation to substantiate the accuracy and legitimacy of the claim. Cause 1. The County Health Department allows the accounting department to pay vendors off quotations. 2. The County did not request invoices from the vendor and did not turn in the claim in a timely manner. Recommendation 1. The County Health Department should not allow the accounting department to pay vendors based off quotations. 2. Claims should not be approved for payment and should not be paid without invoices to substantiate a vendor statement. Claims should be turned in for payment in a timely manner. Views of Responsible Officials and Planned Corrective Action 1. I can understand why we shouldn?t pay off of a quote to a vendor. If we were provided the actual invoice we could have avoided paying a vendor that we didn?t need to pay. We will inform all staff via an email that we will not be paying bills off of quotes and that we need to have an actual invoice before payment is issued to vendors. 2. Circuit Clerk Automation claims come from the Circuit Clerk?s office and are signed by the Judge?s order to pay and given to the Treasurer?s office. The Treasurer?s office was not given the claim in a timely manner but was ordered by the Judge to pay. Vendor has been notified to send invoices to Treasurer?s office and Circuit Clerk?s office. Circuit Clerk has also been notified to not hold invoices. All claims will be accompanied by invoices that match the statement and the judge?s order to pay. Responsible Parties 1. Amy Hall, County Health Department Administrator 2. John Neally, County Circuit Clerk

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