Details for SC Treasurer Clerk Audit

The Honorable Joe Pat Covington, Scott County Judge/Executive
The Honorable Rebecca Johnson, Scott County Clerk
Members of the Scott County Fiscal Court
Independent Auditor’s Report
Report on the Financial Statement
We have audited the accompanying Statement of Receipts, Disbursements, and Excess Fees - Regulatory Basis of the County Clerk of
Scott County, Kentucky, for the year ended December 31, 2019, and the related notes to the financial statement.
Management’s Responsibility for the Financial Statement
Management is responsible for the preparation and fair presentation of this financial statement in accordance with accounting practices
prescribed or permitted by the laws of Kentucky to demonstrate compliance with the Commonwealth of Kentucky’s regulatory basis of
accounting and budget laws. Management is also responsible for the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of a financial statement that is free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States, and the Audit Guide for County Fee Officials
issued by the Auditor of Public Accounts, Commonwealth of Kentucky. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statement is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statement in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial statement.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statement, the financial statement is prepared by the Scott County Clerk on the basis of the
accounting practices prescribed or permitted by the laws of Kentucky to demonstrate compliance with the Commonwealth of Kentucky’s
regulatory basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States
of America.
The effects on the financial statement of the variances between the regulatory basis of accounting described in Note 1 and accounting
principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted
Accounting Principles paragraph, the financial statement referred to above does not present fairly, in accordance with accounting
principles generally accepted in the United States of America, the financial position of the Scott County Clerk, as of December 31, 2019,
or changes in financial position or cash flows thereof for the year then ended.
Opinion on Regulatory Basis of Accounting
In our opinion, the financial statement referred to above presents fairly, in all material respects, the receipts, disbursements, and excess
fees of the Scott County Clerk for the year ended December 31, 2019, in accordance with the basis of accounting practices prescribed
or permitted by the Commonwealth of Kentucky as described in Note 1.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 17, 2020, on our consideration of the
Scott County Clerk’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Scott County Clerk’s internal control over financial reporting and compliance.
Respectfully submitted,

Mike Harmon
Auditor of Public Accounts
June 17, 2020
State law requires the Auditor of Public Accounts to annually audit fiscal courts, county clerks, and sheriffs; and print the results in a
newspaper having general circulation in the county. The complete audit and any other audit of state agencies, fiscal courts, county
clerks, sheriffs, and property valuation administrators may be viewed in the reports section of the Auditor of Public Accounts’ website
at www.auditor.ky.gov or upon request by calling 1-800-247-9126.

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