Ability to borrow affected by lack of financial audits

CLEVELAND (AP) — The absence of financial audits because of an ongoing corruption probe in Ohio’s largest county is hurting its ability to borrow money to fund crucial projects, Cuyahoga County’s budget chief said.

Deloitte & Touche, the auditors for the state, halted plans to release a 2007 county financial audit after a sweeping federal investigation of county government became public 13 months ago. FBI agents raided government offices and the homes of Commissioner Jimmy Dimora and Auditor Frank Russo.

“As soon as they [agents] came in, Deloitte said, ‘Hold it, don’t release it,’” said Sandy Turk, the county’s director of budget and management. “They don’t want to issue statements and all of a sudden find out that there’s a misrepresentation.”

Ohio Auditor Mary Taylor hasn’t yet certified the county’s finances for 2007 and 2008.

Without the audits, investors may view the county as a riskier investment and demand higher interest rates on $200 million in bonds the county needs to sell to finance a new juvenile justice center and other projects.