Independent audits over the past several years show Jeff Davis County has struggled repeatedly with basic financial management tasks, including accurate bookkeeping, budget compliance, and timely reconciliation of bank accounts.
According to audit reports for 2020, 2021, 2022, and 2023, the county’s accounting problems have been persistent, with significant deficiencies and even material weaknesses noted in multiple years.
2020: Major Accounting Problems Identified
The county’s issues first appeared formally in the audit for the year ending December 31, 2020, conducted by Singleton, Clark & Company, PC. That audit identified a significant deficiency in internal controls — specifically a failure to perform timely bank reconciliations and properly monitor accounting transactions.
Auditors found that numerous audit adjustments were needed to correct errors and prepare financial statements in accordance with generally accepted accounting principles (GAAP). The problems were so severe that they jeopardized the auditor’s ability to remain independent — a serious concern under professional standards.
A corrective action plan submitted by Treasurer Dawn Kitts at the time promised to implement monthly reviews of accounts and require department heads to certify invoices. The target completion date was set for July 1, 2022.
2021: Problems Persist Despite Promises
The 2021 audit report revealed that the problems identified in 2020 were not fixed. A material weakness was again reported, with auditors noting a “significant number of audit adjusting entries” and continued difficulties reconciling bank accounts.
The audit explicitly cited the county’s switch to new accounting software in 2021 as an additional challenge, but emphasized that basic internal controls were still lacking. Once again, auditors urged the Treasurer’s Office to implement monthly close processes, including reconciling bank accounts and verifying internal balances.
The county’s corrective action response acknowledged ongoing struggles and again promised improvement — but did not set a clear timeline for full resolution.
2022: Some Improvement, But Problems Remain
By 2022, auditors noted that the issues had improved slightly — upgrading the classification from a “material weakness” to a significant deficiency — but problems persisted.
Jeff Davis County still required a large number of audit adjustments to clean up its financial books for external reporting. Auditors specifically pointed out that accounts payable, payroll accruals, and accounts receivable entries were not properly handled at year-end.
Additionally, the county failed to comply with Texas purchasing laws during the year, bypassing required bidding procedures for vehicle purchases. Budget non-compliance issues were also found, with several departments exceeding their authorized spending without proper amendments.
2023: Continued Struggles with Financial Reporting
The latest audit, covering the fiscal year ending September 30, 2023, showed continued issues, including:
- Significant deficiencies in accounting and financial reporting.
- Budget overruns in general government and capital outlay accounts.
- Ongoing recommendations for the Treasurer’s Office to improve basic accounting functions such as reconciling bank accounts monthly and monitoring department spending against approved budgets.
Auditors noted some incremental progress but continued to recommend regular outside accounting help and formal monthly close procedures to prevent the recurring deficiencies.
A Pattern of Persistent Financial Control Problems
Despite years of audit warnings, official corrective action plans, and repeated promises of improvement, Jeff Davis County has struggled to consistently meet basic financial management standards required under Texas law and national accounting principles.
While the problems identified do not necessarily imply fraud or theft, they do indicate long-standing governance and administrative weaknesses — and leave the county vulnerable to future financial misstatements or costly compliance failures if not fully addressed.
The county has not responded publicly to the latest audit findings as of press time.
