Audit reveals fixed asset accounting error
April 27, 2012
A fixed asset
accounting error recently came to light involving a historic home in the town of McConnells, South Carolina, the Lake Wylie Pilot reports.
In a March 22 letter to investigators, State Representative Ralph Norman highlighted the findings of a Culture and Heritage Commission audit. The commission was found to have more than $1 million on its books related to fixed asset improvements on the county-owned Hightower Hill property, a renovation that was jointly funded by the county and the commission.
According to county finance director Beth Latham, the $1 million invested by the commission should not have been counted as an asset by museum staff and rather claimed by the county as an asset on its financial statements.
Latham said the error is an accounting oversight that doesn't have an impact on the cash flows of the commission. However, Norman pointed out in a letter to the attorney general as quoted by the news source that the asset "comes with very little detailed documentation on where the money was spent and where the capital asset is currently located."
Elsewhere in the state, Bamberg County received an adverse opinion on one part of its 2010-2011 audit earlier this year because it had not performed a valuation of its fixed assets
, the Times and Democrat reports.