Kleberg County finances through 2018 revealed an increase of revenue to the county’s overall budget in an audit report given to the Kleberg County Commissioner’s court on Monday, however the report also showed some concerns with financial reporting from one of the county’s entities.
CPA Raul Hernandez provided the report and said Kleberg County in 2018 had more than $2.6 million in revenue over expenditures.
“Total revenues were $16,180,733, total expenditures were $13,548,248,” Hernandez said. “So for the year, revenues exceeded expenditures by $2,632,485. There were some related transfers out of this bunch to other clients of $318,659. So for the year, have a net change or a net increase of $2,313,826. This is the profit for the year for the general fund.”
Because the county started the year with a fund balance of more than $3.4 million, Hernandez said the county has a total fund balance of $5,744,999.
Kleberg County Judge Rudy Madrid said the effort was all thanks to the work of the county employees.
“In a year that we also gave raises, and we were still able to come up $2.6 million in the positive is amazing, amazing team work,” Madrid said. “And I think our folks, all of our workers need to know that it’s because of them that this was made possible. We’ve worked very, very hard this year. And I remember four years ago when I sat down the desk for the first time and the treasurer came and showed me the checkbook, and I thought, ‘What did I get myself into?’ So our team has done very, very well. We need to congratulate them and let them know that.”
Hernandez did note a problem in reporting finances from Kleberg County Adult Probation.
“This is what happened during the audit; we received your trial balances that were incomplete,” Hernandez said. “Essentially what happened is, Fund 22 was not on your books. For seven months, seven months of accounting transactions were not on your books.”
Hernandez said communications allowed the auditor to “catch up” to the balances and he was satisfied with the outcome.
“It wasn’t done during the year as every other fund was being balanced so it presented a big problem,” Hernandez said. “But while we did not issue a modification on the opinion, we are issuing what we consider a significant and material deficiency. And this is where it’s going to place the county again, in a high-risk auditee classification.
“And here’s the consequence; when you’re a high risk auditee, you will be a high risk auditee for three years. We didn’t see this as a problem that was pervasive where it affected or it was occurring everywhere else, just in one area. That’s another reason that we decided to give you an unmodified opinion. But moving forward, you need to correct this.”
Hernandez said the county is still behind on reports from the same fund six months into this year.
“Now, the consequences there is that (the state) controls what monies they pay you. So they could take certain severe or drastic recourse against the county, as far as those state monies are concerned. I’m not saying it will happen. But it’s just a warning that you need to get the bookkeeping caught up.”