Boardman fixes accounting issues

One trustees calls the fund transfer a technical error.

STAFF Report

BOARDMAN — The state auditor’s office found two accounting issues in its regular audit covering 2005 and 2006, but neither involves a finding for recovery against the township.

The audit released this week pointed out what auditors called a “significant deficiency” in a way funds were transferred.

Larry Moliterno, trustees chairman, who wasn’t in office at the time, called it a technical error.

“As I understand it, this was the Issue 2 project, the retention pond on Indianola and Southern,” he said. “It was a reimbursement program and we had to pay up front. The money was done through a transfer instead of an advance.”

In 2005, the township transferred $231,012 from the East/West Parkside and Indianola/Southern Boulevard funds to the general fund, the audit says.

“In reviewing the circumstances surrounding these transfers, it was noted that the township’s intent was to advance these monies to the permanent improvement funds rather than make a transfer,” the audit reads.

The township passed a resolution correcting the language, categorizing it as an advancement of money instead of a transfer of money.

“There’s not going to be any further action taken on that,” Moliterno said. “There were no findings for recovery.”

All of the money was transferred to the general fund as a reimbursement of general fund dollars previously spent.

The other citation deals with a township trust fund established with a transfer of $490,000 from the general fund. Ohio Revised Code allows subdivisions to establish non-expendable trust funds to receive donations or contributions that the contributor requires be maintained intact. The township’s trust fund, however, was established by trustees with a transfer from the general fund, not with donations or contributions, the audit says.

The township has made the required adjustments to address the issue.