The state’s annual audit of Fentress County revealed two financial deficiencies for the year ending June 30, 2025.
The annual financial report summary detailed issues within the Office of the Finance Director regarding the management of the Special Purpose American Rescue Plan Fund and general ledger payroll liabilities.
The budget and subsequent amendments approved by the county commission resulted in appropriations exceeding estimated available funds by $91,925 in the American Rescue Plan fund. The report said this deficiency exists due to a lack of management oversight. Sound budgetary practices dictate that appropriations be held within estimated available funds, the report said.
The second finding involved general ledger payroll liability accounts that were not reconciled monthly with subsidiary payroll records and payments in the General Purpose School and Central Cafeteria funds. Unidentified balances accumulated in the liability accounts for several payroll deductions as a result.
“The failure to regularly reconcile payroll liability accounts is a significant deficiency that increases the risk that errors will not be discovered and corrected in a timely manner,” the report said.
The report said this deficiency exists due to a lack of management oversight, the failure of management to correct the audit finding from the prior-year audit report, and the failure to implement their corrective action plan. Auditors recommended that general ledger payroll liability accounts should be reconciled monthly with payroll reports and payments.
“I concur with this finding. Action is being taken to reconcile the liability accounts,” Fentress County management said in the report.
Any errors discovered during the reconciliation process should be corrected promptly, the report said.