State auditor cites Niles for inadequate records

By Jordan Cohen

The city auditor says corrective measures are planned.

NILES — The Ohio auditor has cited the city for noncompliance because of inadequate keeping of records on the city’s infrastructure.

City Auditor Charles Nader is not surprised, however.

“These findings are from the audit of our records in 2005 so we knew this was coming,” Nader said. “I expect to have the same results for the audits of 2006 and 2007, but we are trying to do something about it.”

The audit was released later this week even though it pertains to city records from three years ago. The same discrepancies were cited in the 2004 audit released last year and are referred to as “material control weaknesses.”

Nader said that new accounting standards adopted by the state several years ago require cities to have a complete infrastructure inventory. That means a listing of all streets, sewer, water and electric lines and meters, utility poles, bridges and their replacement costs.

Nader said before the standards were adopted, cities were not responsible for infrastructure inventory.

“We will have to contact an evaluation company so they can come in and give us an accounting of everything,” Nader said. He estimated the evaluation costs between $10,000 and $15,000.

In the meantime, Nader expects the same noncompliance citations for the 2006 and 2007 audits, but does not anticipate any other findings or penalties because the city is not yet in compliance.

“Maybe we don’t move as fast as they would like us to, but they know we’re on the right track,” Nader said.

He noted the city is purchasing new accounting software that will tie in with its new computerized meters. “We have historic data on water and sewer lines, but that all has to be updated,” Nader said.

The auditor hopes the inventory to bring the city into compliance with the state audit will be completed sometime in 2009.

“They realize we are trying to get it done, but they know this takes time,” he added.