Trustees expecting audit cost estimates

The cost of a performance audit depends on the scope.
By DENISE DICK
VINDICATOR STAFF WRITER
BOARDMAN --Members of the state auditor's office performance audit division will present cost estimates for various aspects of a township performance audit to trustees.
Trustees met Tuesday with representatives of the division to talk about performance audits, their scope and costs.
James W. Penning, chief auditor of the division, said that cost is based on the hours of those assigned to the task as well as travel and other expenses. Auditors usually earn about $35 per hour, he said.
The cost depends on the scope involved, Penning said.
A performance audit completed a few years ago in Liberty cost about $70,000 and covered all township operations.
Penning said the office likely would be able to begin a performance audit in Boardman in late summer or early fall. It would take four to six months to complete.
Financial forecasting
Robyn Gallitto, trustees chairwoman, and Trustee Kathy Miller indicated interest in financial forecasting, examining how township finances are expected to weather the future.
"One of our concerns is we're using inheritance tax as general operating fund," Miller said. "How do we continue to function like that?"
Trustee Elaine Mancini said that when the township passed its last levy in 1995, it was expected to last until 2003. It lasted longer than that, with a new levy expected on the ballot in 2008.
Former trustees had agreed to use reserves before asking voters for a levy, she said.
Gallitto said that the influx this year of about $8.3 million in inheritance tax helped but that township officials can't count on similar infusions in the future.
"It's not just a difference of philosophy, it must change by definition because we're running out of it," she said.
Staffing evaluation
Miller said she's also interested in a staffing evaluation being done by the auditor's office.
Gallitto asked Penning how other communities where performance audits have been done how they've dealt with residents who are critical of township officials' spending taxpayer money for such reports.
Penning said that the audits are recognized across Ohio as a measure of accountability in local government.
"You have an obligation to be accountable to the residents for the tax revenue they are providing," he said. "This is a good way to do that."