NATCHEZ — An audit report of the Adams County’s last year’s financial statements identified four problems with the county’s books or money management.

The report said the three of the “significant deficiencies” related to the presentation of financial statements and one problem related to money management.

Norman McCloud worked on the county’s audit as an auditor for the company Windham and Lacey, PLLC, which performed the independent audit that was completed this August for the cost of approximately $28,000.

McCloud said the first problem identified was caused by the county’s lack of a county administrator at time the audit was performed.

The report said the county “did not have personnel that possess the necessary expertise to prepare financial statements.”

“This year the county administrator resigned when we were doing audit, and there was not anybody in the county (staff) that had expertise to review the draft report,” McCloud said

McCloud said the problem will be fixed when an administrator is hired.

The report also pointed to problems with the justice court clerk.

The report said the justice court clerk should implement a system in which a second person besides the clerk reviews the financial records. In the 2009, only the clerk saw the financial records.

“Somebody else (other than the justice court clerk) should review cash receipts and make sure deposits actually made it to the bank statement. It should just be more than one person,” McCloud said.

McCloud said during the time the audit was performed, the justice court hired a new clerk. The new clerk was supposed to have worked with the former clerk to set up a check and balance system as requested by the auditors — but it did not happen.

The Justice Court Clerk, Audrey Bailey, said in the audit report that she will comply with the recommendation to set up an internal control system.

McCloud said “internal control” refers to a check and balance system.

In another finding, the county received an “adverse opinion” on its method of financial reporting for certain components that are affiliated with the county government — but legally separate from it.

McCloud said the county failed to include the budgets of certain legally separate components within its primary governmental budget. The components whose budgets were excluded from the main budget include the Adams County Port Commission, Natchez Regional Medical Center and the Natchez-Adams County Development Authority.

“The board of supervisors provides funding to and appoints members to the board (of those components). In government accounting standards, (those components) should be included in financial statements of the county,” McCloud explained. He said excluding components in the primary statement could cause confusion and result in improper financial records.

The Adams County Board of Supervisors responded to the finding that it should include the above-listed components in its main budget that they will take the matter under advisement and take the necessary steps to correct the problem. The supervisors also said each of county’s component units is audited on an annual basis by a CPA firm.

The last finding listed in the audit report related to the way specific projects’ financial records are kept.

McCloud said two of the funds in the budget operate on their own monetary schedule due to the nature of a certain federal program. The report said Temporary Assistance to Needy Families and The United States Department of Health and Human Services, (which is passed through the Mississippi Department of Health and Human Services), should open and close based on when the federal government distributes the money — not on the county’s fiscal year.

The audit found that the county’s current method could result in problematic reporting of expenditures.

However, the auditors did examine those programs’ expenditures and found them to be accounted for in the proper place.

Chancery Clerk Tommy O’Beirne said the county contracted out Windham and Lacey, PLLC, because the state auditor generally cannot handle its caseload and takes too long to complete an audit report. The county also has to pay the state auditor for its services. An audit of the county government is an annual, legal requirement.