STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR_part5 ppt

41 PIKE COUNTY SCHEDULE OF FINDINGS For the Year Ended September 30, 1997 Findings - Independent Auditor's Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of the General-Purpose Financial Statements Performed in Accordance With Government Auditing Standards REPORTABLE CONDITIONS Chancery Clerk. 97.1 Finding Section 7-7-211, Miss. Code Ann. (1972), gives the Office of the State Auditor the authority to prescribe accounting systems. The Mississippi County Financial Accounting Manual states that funds should be centralized in the county=s accounting records to make certain that money will be expended for appropriate purposes. The Civil Defense Fund was not accounted for in the county=s centralized accounting records. Recommendation The Chancery Clerk should comply with the accounting system prescribed in the manual. A failure to include funds in the county=s centralized records could result in misappropriation or loss of public funds. Chancery Clerk=s Response Effective January 1, 1998, all bookkeeping, payroll, revenues and expenses for the Pike County Civil Defense Office will be handled by the Board of Supervisors= Business Office. Service Organization – Delta Computer Systems, Inc. 97.2 Finding Several systems supplied by Delta allow edit and deletion of critical records. Land redemption, purchasing, homestead exemption, along with other systems require an unaltered numbered original to ensure adequate internal control. Delta software packages can be used with or without prenumbered original documents. Recommendation Processes that require original unaltered documents with a sequential preassigned number should be modified to allow voiding but not edit or deletion. The counties using these systems should use prenumbered originals. Service Organization’s Response The application software is incapable of determining what type of paper is being used by the customer, thus incapable of assuring the use of prenumbered forms. The use of prenumbered forms should be directed to the county, not Delta. As you note, Delta supports prenumbered forms. There is no more we can do. If deletion of a critical record is allowed or occurs, the event is recorded in a log file for most releases of the software and will be in full effect upon year 2000 upgrades. . Financial Statements Performed in Accordance With Government Auditing Standards REPORTABLE CONDITIONS Chancery Clerk. 97.1 Finding Section 7-7-211, Miss. Code Ann. (1972), gives the Office of the State. all bookkeeping, payroll, revenues and expenses for the Pike County Civil Defense Office will be handled by the Board of Supervisors= Business Office. Service Organization – Delta Computer Systems,. deletion. The counties using these systems should use prenumbered originals. Service Organization’s Response The application software is incapable of determining what type of paper is being used by the