AUDIT

AUDIT

Youngstown

The Ohio Auditor’s office issued a report of Youngstown’s financial statements for 2006. The audit includes one finding for recovery, nine noncompliance citations or findings, and 21 recommendations to improve its financial operations. Here are some of the more notable issues.

A majority of city departments don’t have a formal written policy on city-owned credit cards.

A $3,341.16 finding against Carmen S. Conglose Jr., the city’s ex-deputy director of public works. Conglose had a fake college degree in his personnel file at the city’s finance department. He received $3,341.16 in education bonuses of which he wasn’t entitled. Conglose repaid the money to the city. He was found guilty June 13 of soliciting or receiving improper compensation, a first-degree misdemeanor, and was sentenced to 30 days of house arrest. The city has since toughened its education bonus policy.

The city failed to conduct an independent audit of the Chevrolet Centre’s operations under International Coliseums Co., which managed the facility from October 2005 to October 2007. Instead, the city had an accounting firm examine certain procedures. The city also failed to require ICC to update its business plan. Those two failures don’t violate the law, but are required under a contract the city had with ICC at the time.

The no-interest loans given by the city to businesses, backed by an irrevocable letter of credit from an accredited bank, was “incorrectly” classified as “cash” rather than “loans receivable,” the audit states. By counting the loans as “cash,” it made the city’s general fund appear to have a $472,064 surplus as of Dec. 31, 2006. The auditor’s office says the city actually had a $3.96 million deficit.

Finance Director David Bozanich has not completed required continuing education programs provided by the Ohio treasurer.

The city spent more money in six funds than it had appropriated.

The city failed to stamp “received” on 57 percent of the vouchers randomly checked by the auditor’s office.

City council and the city court system need to adopt formal written policy for city-owned cellular telephone use. The city administration has a formal policy.

A $3,341.16 finding against Carmen S. Conglose Jr., the city’s ex-deputy director of public works. Conglose had a fake college degree in his personnel file at the city’s finance department. He received $3,341.16 in education bonuses of which he wasn’t entitled. Conglose repaid the money to the city. He was found guilty June 13 of soliciting or receiving improper compensation, a first-degree misdemeanor, and was sentenced to 30 days of house arrest. The city has since toughened its education bonus policy.

Sources: Ohio Auditor’s office and Youngstown city officials