Nevada County Grand Jury • 2001-2002

Nevada County Financial Accounting and Reporting Reason for Investigation Governmental Accounting Standards Board,*

Published: June 30, 2003 15 pages

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⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

Findings and Recommendations 13 findings

Nevada County government has been slow in addressing the acquisition of a new accounting/reporting system to support the requirements of GASB 34.

No recommendations for this finding

One year of financial reporting is required before the effective date of June 30, 2003.

No recommendations for this finding

The new GASB 34 reporting requirements will provide detailed tracking of county assets and expenditures reflecting the net cost of government services.

No recommendations for this finding

The comprehensive change from the existing format will require a significant reallocation of work force resources.

Related Recommendations (2)

The county should develop a sufficient work force to assist with the conversion of financial records to the new operating system.

The county should provide an appropriate training program for personnel whose responsibilities will change due to the implementation of the new operating system.

The Nevada County Management Report for the year ending June 30, 2001, prepared by the outside auditors states that: "Inadequate planning on the part of the County could result in work scheduling problems, increased accounting costs and or qualified opinion on audited financial statements." "We recommend that the County create a Project Task Force to begin the process of planning for implementation of GASB 34."

No recommendations for this finding

In response to finding number 5, the Auditor/Controller's office provided the following statement: "Our GASB 34 task force was formed in June 2000. Meetings have been sporadic, but productive. We have been working with the County Administrator's office, Department of Transportation and Sanitation and others. Unfortunately, during the last six months little has been done to move forward with this massive accounting change. This was due to staff changes and an inadequate staffing level in our office to take on this complex standard. We recently received approval for temporary help to assist with the additional workload requirements. We expect to be back on schedule with the implementation plan shortly."

Related Recommendations (2)

Adequate personnel should be made available to assure that the county meets the GASB 34 implementation deadline.

The county should develop a sufficient work force to assist with the conversion of financial records to the new operating system.

The office of Auditor/Controller has approval to hire one temporary employee to assist in the implementation of GASB 34. By county regulation, a temporary employee may not work more than 1000 hours per fiscal year.

Related Recommendations (2)

Adequate personnel should be made available to assure that the county meets the GASB 34 implementation deadline.

The county should develop a sufficient work force to assist with the conversion of financial records to the new operating system.

Nevada County's present financial operating system is approximately 15 years old. This system is obsolete with no expansion capabilities that would support the new requirements of GASB 34.

Related Recommendations (1)

Before the end of this fiscal year, the Board of Supervisors should authorize the issuance of a purchase order to acquire the operating system needed to support the new accounting and reporting requirements as defined by GASB 34.

The county's lack of a financial operating system, capable of supporting the new accounting standards, will require approximately 50 per cent of the data entry be done manually.

Related Recommendations (1)

F10

In November 2000, the Board of Supervisors (BOS) accepted the county's Enterprise Information Technology Strategic Plan 2001 (EITSP2001). This plan outlines the direction and focus of information technology for Nevada County over the next five years.

No recommendations for this finding

F11

A financial accounting system for Nevada County is the number one priority of EITSP2001.

No recommendations for this finding

F12

Five hundred thousand dollars has been budgeted toward the purchase of a new financial operating system for the county. The county will continue to budget annually to meet the goals of EITSP2001.

No recommendations for this finding

F13

The Internal Services Committee, representing various departments in Nevada County, is in the process of evaluating vendor proposals for the new operating system. _ CONCLUSIONS

No recommendations for this finding

Conclusions 3

CL1

Nevada County government has been slow in addressing the acquisition of a new accounting/reporting system to support the requirements of GASB 34.
CL2

Not meeting the GASB 34 implementation date may cause the county to receive a qualified opinion by the outside auditors for the fiscal year ending June 30, 2003. A qualified opinion would create a lack of confidence in the credibility and integrity of the county's accounting and financial reporting. This would have far-reaching financial implications for the county.
CL3

When the project is complete, the new operating system will generate detailed tracking of county's assets and expenditures. Such reporting will allow the county better management of their operating costs.

No Responses Found 1

Government entities assigned to respond to this report. No response documents have been linked in our database.

Nevada County County

* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.