Jeff Davis County’s 2025 audit identified a material weakness in accounting and financial reporting after auditors needed 39 adjusting entries to prepare the county’s books for its annual financial statements.
The audit, released in September, said some internal financial reports generated during fiscal 2025 may have been inaccurate because of the extent of the adjustments.
Singleton, Clark & Company, PC recommended more thorough monthly reviews by the treasurer’s office, a comprehensive year-end review and continued outside accounting assistance.
The finding covered grant accounting, payroll accruals, accounts payable, cash reconciliation and incorrectly posted transactions. Auditors also warned that the extent of their accounting adjustments encroached on the firm’s ability to remain independent.
The problem received a more serious classification than the previous year’s finding. Auditors classified the fiscal 2024 problem as a significant deficiency and the fiscal 2025 problem as a material weakness.
A material weakness means there is a reasonable possibility that a material financial misstatement will not be prevented or corrected promptly.
Auditors nevertheless issued an unmodified opinion on the completed financial statements, concluding they fairly presented the county’s finances in all material respects. That opinion is separate from the finding about weaknesses in the accounting process.
