UPDATE | State auditor says Austintown's financial records are a mess

COLUMBUS

Incomplete reconciliations prompted Auditor of State Dave Yost to place Austintown Township on the “unauditable” list.

“Poorly maintained records create a lack of accountability,” Auditor Yost said. “Austintown Township must bring its records back to an auditable condition to complete the audit.”

As part of the regular audit of Austintown Township for the period January 1, 2013 through December 31, 2014, auditors determined that the condition of the township’s financial records is not adequate to finish the audit. In a letter to the township, the Auditor of State’s office notified officials the reconciliations were required to complete the audit.

Austintown Township administrator and road superintendent Mike Dockry explained that "it's simply an accounting balance that we need to reconcile."

He said there is $96 more in the bank account from January 2013, the first month of the state audit, than what the accounting system shows. Once that first discrepancy is reconciled, Austintown officials can then go to the next month of financials.

"It is simply needing to explain a difference between the bank account statements and the balance in the computer system," Dockry said.

In regard to having to reconcile the situation within 90 days for the state, Dockry said, "I would expect that we would have this thing way resolved before then."

Within 90 days of the date of the letter, the township must revise its financial records and provide the necessary data. Failure to bring accounts, records, and reports to an auditable condition may result in legal action, including the possibility of the attorney general issuing a subpoena to township officials to explain the condition of records. The attorney general may also file suit to compel the officials to prepare and/or produce the required information.

The Auditor of State’s Local Government Section (LGS) is available to township officials to assist in bringing records to an auditable condition. LGS provides a wide variety of services to local governments, including reconstructing financial records and aid in the reconciliation of books.

An entity is removed from the “unauditable” list once the audit is completed and released to the public.

This is a breaking story. Read MORE in Wednesday's Vindicator.