State auditor releases audit of Montgomery County Sheriff’s Office; includes one finding

FRANKFORT, Ky.—State Auditor Allison Ball has released several audits, including for the Montgomery County Sheriff’s Office.

Specifically, Ball released the 2024 agreed-upon procedures engagement of Montgomery County Sheriff David Charles. State law requires the auditor to annually audit the accounts of each county sheriff. In compliance with this law, the auditor issues two sheriff’s reports each year: one reporting on the audit of the sheriff’s tax account, and the other reporting on the audit of the fee account used to operate the office.

In 2018 the Kentucky General Assembly, following a recommendation by the State Auditor, passed legislation that allows county sheriffs and clerks that met certain criteria to apply for an Agreed-Upon Procedures (AUP) engagement in lieu of an audit of their fee account. The intent of the change, which became effective in July 2018, was to reduce audit costs for sheriffs and clerks that have a history of clean audits, while still maintaining an appropriate level of accountability.

The Montgomery County Sheriff applied for and received approval from the Auditor of Public Accounts (APA) to obtain an AUP engagement for calendar year 2024 in accordance with KRS 43.070(1)(c). AUP reports present the procedures performed and the results of those procedures, called findings. Auditors performed the procedures, which were agreed to by the Montgomery County Sheriff, on receipts and disbursements, excess fees, recordkeeping, and leases, contracts and liabilities for the period Jan. 1, 2024, through Dec. 31, 2024.

There was one finding: Tax commissions are not properly accounted for. A variance of $71,019 was noted, a release said.

Sheriff’s response: The variance listed above was due to the fact that the sheriff’s 11 percent penalties and interest earned on the tax account were both calculated and recorded under tax commissions. The variance amount totaled the sheriff’s penalties and interest. The 2026 budget will reflect the sheriff’s penalties and commissions listed separately.

The sheriff’s responsibilities include collecting property taxes, providing law enforcement and performing services for the county fiscal court and courts of justice. The sheriff’s office is funded through statutory commissions and fees collected in conjunction with these duties.

The audit report can be found on the auditor’s website.