City of East Liverpool Financial Records “Unauditable”

Friday, August 21, 2015

Columbus - Inaccurate bank reconciliations prompted Auditor of State Dave Yost to place the City of East Liverpool (Columbiana County) on the “unauditable” list.

“Poorly kept records create a lack of accountability,” Auditor Yost said. “The City of East Liverpool must bring its records back to an auditable condition to complete the audit.”

During the course of the regular financial audit of the City of East Liverpool for the period January 1, 2014 through December 31, 2014, the Independent Public Accounting firm Rea & Associates, Inc. noted inaccurate bank reconciliations. As a result, the Auditor of State’s office determined that the condition of the city’s financial records was not adequate to complete the audit. In a letter to the city, the Auditor of State’s office notified officials the bank reconciliations were required to complete the audit.

Within 90 days of the date of the letter, the city 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 city 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 city 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.



The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,800 state and local government agencies.  Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Brittany Halpin
Press Secretary