Franklin Township’s financial records “unauditable”

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The Ohio State Auditor sent a warning notice to Franklin Township saying they are “unauditable” and need to get their records together for their audit or face possible legal action.

Ohio State Auditor Dave Yost reported on Monday that as a result of inadequate financial records, Franklin Township in Jackson County, had been placed on the “unauditable” list.


“Poor records lead to poor service for taxpayers,” Auditor Yost said. “Auditable records must be provided to complete the audit and ensure accountability,” he added

In a release, Yost reports that during the course of the regular financial audit of Franklin Township for the period January 1, 2011 through December 31, 2012, the Auditor of State’s office determined that the condition of the township’s financial records were not adequate to complete the audit.

In a letter to the Township’s Fiscal Officer Michael Rhea and Franklin Township’s Board of Trustees President Jack Webb, the State Auditor’s Office contracted representative had made several attempts to obtain the Township’s financial records to perform the audit.

“We have been unable to obtain the financial records necessary to perform the audit, including the following information:

• Monthly bank reconciliations for the period January 1, 2011 through December 31, 2012.

• Annual financial report for the years ended December 31, 2011 and December 31, 2012

• Year-end fund balances as of December 31, 2011 and December 31, 2012.

• Receipts and ledgers, appropriations ledgers, payroll ledgers and cash journal for the years ended December 31, 2011 and December 31, 2012.

• All relevant supporting documentation.

Consequently, we consider the financial records unauditable pursuant to Ohio Rev. Code Section 117.41,” wrote State of Ohio Chief Auditor for the Southeast Region, Charles Barga, CPA.

Within 90 days of the date of the letter, Franklin Township must revise its financial records and provide the necessary data. The Township was sent their letter on October 9.

Webb explained on Monday that he had been in contact with the Auditor’s office in regards to the situation and said that Rhea had been working on the paperwork and believes that if Rhea had not already given the State the requested reports, he would before the 90 days expired. Webb added that the Auditor’s office does not suspect foul play, they just want to be able to perform the audit.

Attempts were made to contact Rhea for comment, however he was unable to be reached by press time.

Failure to bring records to an auditable condition may result in legal action, including the possibility of the Attorney General issuing a subpoena to township officials to explain the condition of records. The Attorney General may also file suit to compel the officials to prepare and/or produce the required information.

An entity is removed from the “unauditable” list once the audit is completed and released to the public.

The Auditor of State’s office is responsible for auditing more than 5,800 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.