The audit reports have been released for the Knox County Sheriff’s 2015-2016 Taxes and 2015-2016 Gas and Oil Taxes with only one minor comment reported for each.
According to Mike Harmon, Kentucky’s Auditor of Public Accounts, both audits report “The sheriff’s financial statement fairly presents the taxes charged, credited, and paid… in conformity with the regulatory basis of accounting.
The auditor’s sole comment for both audits concerned a lack of segregation of duties in the sheriff’s office.
The auditor’s comment reads “The Knox County Sheriff’s Office lacks adequate segregation of duties over receipts, disbursement processes and reconciliations. As a result of a limited budget which restricts the number of employees the sheriff can hire, the sheriff’s bookkeeper’s duties include collecting tax payments from customers, preparing the monthly reports, preparing disbursement checks, and performing the monthly bank reconciliations.”
The concern of a lack of segregated duties is due to possibly “undetected misappropriation of assets and incorrect financial reporting.”
The report contained the sheriff’s response. “Due to a limited budget, additional Administrative Personnel are not possible therefore other existing personnel will be utilized to review disbursement reports and deposits.”
Sheriff Mike Smith echoed his response in a statement to The Mountain Advocate.
“I would like to thank my staff for the hard work they do every day in maintaining accurate accountability to the people of Knox County,” said Sheriff Smith. “Due to our budgetary constraints and being a small office, funding is not available to hire additional administrate staff to segregate all duties.”
In keeping with the letter of the law, Sheriff Smith added “Our office remains vigilant to have honest and transparent accountability.”
For a full copy of the sheriff’s 2015-2016 audits, select below: