The DeKalb County Circuit Court Clerk’s Office is under investigation over a cash shortage of $8,501 in General Sessions Court funds.
The shortage was discovered during an annual state audit and is included as a finding in the latest audit report just released.
Circuit Court Clerk Katherine Pack says she has made the District Attorney General’s Office aware of the shortage and the D.A. has requested the TBI investigation. Ms. Pack says the shortage occurred during the period of time when she was out of the office undergoing surgery.
According to the audit report, “A cash shortage of $8,501 existed in the General Sessions Court at June 30th, 2008. This cash shortage resulted from numerous bank deposits for the period April 2008 through June 2008 being less than the amount of deposits posted to the general ledger. We noted the following internal control deficiencies that should have alerted officials of possible irregularities:
A. “The bank reconciliation prepared at June 30th, 2008 did not reconcile with the general ledger by $515. This variance should have been investigated and corrected promptly.”
B. “Deposits for May 22, 28, 29, and June 11 totaling $8,331 were listed as in transit on the June 30th, 2008, bank reconciliation; however, these deposits actually cleared the bank prior to June 30th, 2008; therefore, these deposits could not be in transit.”
C. “Beginning April 11, 2008, several bank deposits were not made intact; i.e., funds collected during a specific period of time were not deposited together. Because the clerk used this method of depositing collections, we could not trace specific collections to specific deposits.”
D. “Of the bank deposits that were not made intact, the difference between the sum of the receipts and the sum of the bank deposit was in cash receipts. This difference indicates that cash was being manipulated.”
“This cash shortage has been reviewed with the district attorney.”
Auditors made the following recommendation:
” The clerk should take steps to liquidate the cash shortage of $8,501. Bank statements should be reconciled with the general ledger monthly, and any differences should be investigated and corrected promptly. Deposits should be made intact.”
In the management response, Ms. Pack states that “I have been in contact with the District Attorney General’s Office and have extended our full cooperation to the district attorney. We have taken steps to improve the deposit and reconciliation process.”
All employees of the Circuit Court Clerk’s office remain on the job, pending the outcome of the investigation.
The annual audit report also reveals accounting and other deficiencies in offices of other county officials. To read the entire audit report, click the following link. (Findings, reccomendations, and management responses contained on pages 176-184 of audit)
http://www.comptroller1.state.tn.us/repository/CA/2008/DeKalb.pdf
Orhttp://www.comptroller1.state.tn.us/RA_CA/CountyAudits.asp?C=21
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