Delaware County, Indiana

Criteria: Management is responsible for establishing and maintaining effective internal control over financial reporting to provide reasonable assurance that transactions are properly authorized, recorded, processed, and reported in accordance with accounting principles generally accepted in the United States of America. Internal controls should be designed and operating effectively to prevent, detect, and correct material misstatements on a timely basis.

Condition: The County’s internal control environment over financial reporting did not detect unauthorized payroll payments.

Cause: The County’s internal control environment did not identify these unauthorized payments as there were not routine secondary approvals in place in all departments throughout the County.

Effect or Potential Effect: Misstatements in the financial statements and misappropriations of County funds.

Recommendation: The County should continue to establish and maintain an effective process whereby payroll is being reviewed and approved prior to payments.

Views of Responsible Officials and Planned Corrective Actions: For the views of responsible officials, refer to the Corrective Action Plan.