State Court Clerks. County Government Structure 8/20/18. Voters. Elected/Appointed Officials DUTIES AND RESPONSIBILITIES.

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1 State Court Clerks DUTIES AND RESPONSIBILITIES County Government Structure Voters Electorate Elected/Appointed Officials Mayor CLB Fee Offices Highway Superintendent Property Assessor 1

2 Clerks of Court Chancery Circuit Criminal General Sessions Juvenile T.C.A. Title 18 Clerks of Courts (Duties) Attend court Manage paperwork for cases Administer oaths Parties & witnesses who testify Keep minutes Well-bound/ electronic format Maintain court documents Dockets, receipts, disbursements Indexes of books & dockets 2

3 Court Revenues Fines Courtrelated Taxes Fees Chancery Circuit Criminal General Sessions Investing Funds T.C.A Fiduciary responsibility to invest funds resulting from court actions, usually involving minors 3

4 Delinquent Tax Sales T.C.A Clerk and Master conducts delinquent tax sales of property as ordered by the court Cash Journal 4

5 Annual Clerks of Court Conference Financial Issues Effecting State Court Clerks COOP

6 Private Act 1981/1957 Acts General Law Charter/Metro Legal Authority Feb 1st Apr 1st Budget Timeline Mar 1st Jul 1st 6

7 Letter of Agreement/Salary Suit u Agree with personnel budget? Yes Letter of Agreement No Salary Suit Either must be done within 30 days of the budget s passing. *Newly elected officials have 30 days from taking office (Sept 1) to sign letter of agreement or file a salary suit. Sample Letter of Agreement 7

8 Budget Amendments Document request Present request CLB vote What are Internal Controls? A process that provides reasonable assurance the objectives of an entity will be achieved. 16 8

9 Comply T.C.A (a) Obligations and costs are in compliance with applicable law Safeguard Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or misappropriation; Record Revenues and expenditures are properly recorded and accounted for to permit the preparation of accurate and reliable financial and statistical reports and to maintain accountability over the assets. Law went into effect June 30, 2016! Why Do County Governments Need Internal Controls? u Reduce fraud & waste u Ensure legal, regulatory, & policy compliance u Protect county assets u Promote transparency & accountability 18 9

10 Who is Responsible for Establishing Internal Controls? County Management (elected/appointed officials) are responsible for: design, implementation and maintenance of adequate internal controls over their office/department. Fraud Detection u External auditors (performing routine annual audits) detect less than 5% of identified occupational fraud. u More fraud is identified by accident or through anonymous tips than by the external annual financial and compliance auditors. 10

11 Poor Internal Controls = Opportunity for FRAUD Duties were not segregated adequately Summary of Audit Findings Execution docket trial balances did not reconcile with the general ledger accounts Multiple employees operating from the same cash drawer Deficiencies in accounting records, reconciliations, timely deposits, and audit log reviews 11

12 Control Environment Risk Assessment Control Activities Information & Communication Components & Principles of Internal Controls Monitoring Activities What you are looking for in your Risk assessment u u u Identify specific risks Consider risk factors Understand that the elected official is ultimately responsible u Tone is set at the top Be sure to update your written procedures for any changes you deem needed. 12

13 Audit Findings 2017 u Segregation of Duties u Cash shortages u No preparation of adequate trial balance of execution docket u Failure to comply with deposit law u Multiple employees using same cash drawer What should I do to ensure compliance? u Review your written internal control procedures/assessment and ask yourself 1. Is the written documentation accurate according to my office's current operations? 2. Have I implemented new technology in my office? 3. Have I hired new staff or changed any financial duties of my staff? 4. Have I moved? 5. Have I assumed the responsibility of a new court? 13

14 Once you have reviewed your written procedures/policy u Compare written documentation with office operations u Are you comfortable with the comparison? u Assess staff abilities, particularly management team u Is staff training needed? u Fill in missing documentation What you are looking for in your risk assessment Identify specific risks Consider risk factors Understand that the elected official is ultimately responsible Tone is set at the top Be sure to update your written procedures for any changes you deem needed. 14

15 Reducing Risks to Tolerable Levels u u u Identify factors that may increase risk u Lack of segregation of duties u u Computer passwords taped onto computers Employees operating out of same cash drawer, etc. Determine the significance of risk and likelihood of fraud, waste, abuse and inaccurate financial reporting (think reducing risk vs. cost of control). Develop specific actions to reduce the risk to an acceptable level. A risk matrix is a very useful tool when you can t eliminate risk. Common Internal Control Issues u How to properly review an audit log u Red flags to look for on an audit log u Is there a procedure for supervisors to authorize receipt voids? u Is the receipt voiding procedure being followed? 15

16 Food for thought u Independent auditors determine materiality of deficiencies each year, per single audit standard u A management brainstorming session within the court clerk s office is essential to a good risk assessment/sound internal controls u NO ONE knows your court clerk office better than YOU and your management team! Purchasing Authority Private Act 1981/1957 Acts General Law Charter/Metro 16

17 Purchasing Above Bid Limit If you purchase something above your bid limit you must use one of the below methods: u Competitive Sealed Bids u RFPs u RFQs Purchasing Process Purchase Order Material Receiving Report Requisition 17

18 Wrap Up Congratulations! Welcome to county government! 18