QUAKER CITY — Auditor of State Keith Faber recently declared the Village of Quaker City in Guernsey County as "unauditable" for the period Jan. 1, 2017, through Dec. 31, 2019, after auditors determined the condition of the village’s financial records were not adequate to finish the audit.
"For the sake of transparency, local governments must have complete financial records," said Faber. "I recommend the village reach out to our Local Government Services team so we can help reconstruct the village’s accounts."
The village did not have accurate monthly bank reconciliations available for audit.
Original and updated bank reconciliations performed by the village’s fiscal officer contained unexplained reconciling items including:
• The unsupported bank reconciling items in 2017 ranged from $308 in January to a high of $2,739 in May/June before finishing at $1,336 on Dec. 31, 2017.
• The unsupported bank reconciling items in 2018 ranged from $1,336 in January to a high of $2,131 in November before finishing at $2,073 on Dec. 31, 2018.
• During 2019, unsupported adjustments and other adjusting factors to the book balance ranged between $19 to $7,224 and $154 to $382, respectively. Additionally, each month reflected an unsupported adjustment to the bank balance of $1,749.
Consequently, Auditor Faber considers these financial records "unauditable."
Within 90 days of receiving the declaration, the village must revise its financial records and provide the data necessary to complete the audit. Failure to bring accounts, records and reports to an auditable position may result in legal action, including the possibility of the Ohio Attorney General issuing a subpoena to village officials to explain the condition of records.
The Attorney General may also file suit to compel officials to prepare and/or produce the required information.
The Auditor of State’s Local Government Services section is available to the village to assist in bringing records to an auditable condition. The section provides a wide variety of services to local governments, including reconstructing financial records and aid in the reconciliation of books.
The auditor’s office removes an entity from the "unauditable" list once the audit in question is complete and released to the public.