Knox County’s $6M ‘Accounting Error’

Knox County’s external auditor says the Trustee’s Office has made what it calls a $6 million accounting error and that the mistake could invite greater scrutiny into office operations, reports Mike Donila.
Washington D.C.-based KPMG, in an email obtained by the News Sentinel and sent earlier this week to Knox County Audit Committee Chairman Joe Carcello, says the firm also is concerned that the error could have implications for Knox County’s annual audit and its “low risk” status.
KPMG partner Jack Reagan in the email said it took too long — four weeks — to compile information that makes up the Trustee’s Office’s portion of the county’s financial statements and that it “was significantly out of balance.” He also wrote that “personnel left town rather than investigate this difference further.” “It is apparent to me that this (Trustee’s) office does not put a high priority on the external financial statement audit,” he wrote.
Carcello said Friday he is not sure what to think. He doesn’t believe money is missing but said “there are more unanswered questions than there are answered ones, so I’m trying to wade through a lot of conflicting stories.”

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