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A state audit recommends ways for Youngstown to improve its financial operations
YOUNGSTOWN
The 2015 state audit of Youngstown’s financial operations is quite similar to previous years, but because of changes made by city officials, some of the recommendations may not be included in the next report.
The Ohio Auditor’s Office performs an annual review of the city’s budget. This year, the auditor looked at the budget of about $180 million for the year of 2015.
In the 2015 audit, there were four noncompliance findings and 11 recommendations to improve how city government operates.
In comparison, there were five findings and nine recommendations in the 2014 report, nine findings and 10 recommendations in 2013, and five findings and 16 recommendations in 2012.
Of the 11 recommendations in the 2015 audit, eight of them were listed in the 2014 report.
But Mayor John A. McNally said he expects some of the more serious recommendations to not be included in the 2016 audit because of policies implemented by the city.
The audit states the city had a $1.4 million surplus in 2015 of sanitation revenue that was used to subsidize the general fund. In November 2015, city council passed legislation to create an environmental sanitation enterprise fund – something the state endorses in the audit.
Another ongoing issue in the 2015 audit is the city giving water and wastewater money to private developers for economic development with “no indication the city was reviewing the work done” and “appropriate for the costs being charged.”
The city signed a contract in December 2016 with architect Paul J. Ricciuti to verify the completion of work and that the costs are specifically for water and sewer improvements.
“We monitored it ourselves and decided to have someone else be the eyes and ears on these projects,” McNally said.
The audit again pointed out that the city doesn’t have a formal policy to remove access for former employees to city ID cards, computers and other equipment.
The city recently created a checklist requiring those leaving city jobs to surrender cards and badges, and for the city to change computer passwords, McNally said.
The city is also looking at a state auditor recommendation that it review its finances for “stale dated checks,” described as those that are 90 days old, and have them deposited in a trust fund until claimed by its owner, McNally said. If not claimed within five years, the money goes into the city’s general fund.
The auditor found some unclaimed checks dating back to 2011.
“I’m generally happy with the report,” McNally said. “There continues to be some repeat issues. We’re working to resolve some of these issues.”
McNally said the creation of a committee to meet with state auditors to discuss audits isn’t at the top of his list of things to get done.
“When I was [a Mahoning County commissioner], this was a big thing with the auditor’s office,” he said.
“We set up an audit committee and we met about twice. Just to set up an audit committee isn’t a huge recommendation. We already have board of control members and city council members who speak with auditors. I’m more concerned with other policies.”