County but all of the letters from their group contain these items.
Mr. Smith said on page 4-5 the description of those responsible as the
approvers of transactions, which effectively roll up to the Director of Finance
and Purchasing; the list includes the Director of Purchasing, Deputy Director
of Accounting, Treasurer and Assistant Treasurer. He said there is no
mention of the County Legislature or the Legislative Auditor. Mr. Smith
asked the auditor's opinion about having all the authority for procurement
and payment vested in one management person, he asked if this is normally
a sufficient internal control or best practice for the segregation of duties
perspective. Mr. Holst responded he does not know if it is right or wrong. He
said their focus is on the process that has been approved by the body and
are the employees following it. Mr. Smith responded that the process has
not been approved by the County Legislature.
He said, in fact, efforts by the Legislative Auditor to gain transparency have
been thwarted. Mr. Smith asked if the auditors spoke to members of the
Legislative Auditor's staff as part of their annual comprehensive audit. Mr.
Holst said they did. Mr. Smith asked if staff expressed any concerns to the
auditors. Mr. Holst said the conversations are typically confidential but if they
do have concerns they follow up on the issues. Mr. Smith asked Mr. Holst as
part of his follow up to provide dates and times his team spoke with the
Legislative Auditor's staff. Mr. Holst said he is not sure if he can. Mr. Smith
said Mr. Holst's response is interesting. Mr. Smith said with regards to the
quality of this work product (ACFR), mid page 4 under "Internal Control
Matters" it refers to the client (Jackson County, Missouri) as a "city", and this
is not the first time in the report. In addition, it specifies our fiscal year ends
September 30, 2024, both statements are erroneous. Mr. Smith said it
appears Allen, Gibbs & Houlik took a letter from another client and put
Jackson County's name on the top with a couple other modifications. He
said this is an extreme concern for him and he wants to emphasize this to
other members of the County Legislature. Sean E. Smith said he wants to
dive deeper into the activities taken by this auditing team to complete the
(ACFR).
Mr. Smith said he sees on page 3 under the County's responsibilities,
changes in reporting in compliance and oversight, which goes to his
questions of if and when they spoke with the Legislative Auditor, including
any disclosure that took place that would need to be brought to the attention
of the County Legislature. Under the section of the report where they
describe new affiliates, directors, officers and persons, Mr. Smith asked
them to provide a list of who that is in Jackson County, Missouri so he can
understand how deeply they dug into the County's business practices as
opposed to the client that this letter was first drafted. He asked Mr. Holst and
Mr. Nibarger to follow up with information to address his questions and
concerns.
Megan L. Smith, County Legislator, referred to page 3 where Jackson
County elected to use current year expenses versus adjustments, she asked