News

For Immediate Release:                                                      

March 19, 2021                                                                                 

Auditor Faber Declares the Paint Creek Joint Emergency Management Services/Fire District “Unauditable”

Columbus – Auditor of State Keith Faber this week declared the Paint Creek Joint Emergency Management Services/Fire District (Highland County) “unauditable” for the period January 1, 2018 through December 31, 2019 after auditors determined the condition of the District’s financial records were not adequate to finish the audit.

Auditors identified the following issues:

• The District has not provided required items as of March 3, 2021 needed for audit to their independent public accounting firm Balestra, Harr & Scherer (BHM). This information is required to support District assertions related to cash balances, receipts, payroll and non-payroll disbursements, budgeting and formation actions taken by district officials.
• The Auditor of State contacted the District Fiscal Officer and Trustees on January 29, 2021 regarding the lack of records provided for audit and filing of a complete set of financial statements (including footnotes). On February 4, 2021, the Fiscal Officer indicated the footnote preparation was in process with BHM CPA group.
• The Auditor of State contacted the District Fiscal Officer and Trustees on March 3, 2021 regarding documents not provided to BHM to start the audit and that engagement letters have not been returned to BHM.

Consequently, Auditor Faber considers these financial records “unauditable.”

Within 90 days of receiving the “unauditable” declaration, the District must revise their 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 Attorney General issuing a subpoena to the Fiscal Officer and President of the Board 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 District to assist in bringing records to an auditable condition. Local Government Services provides a wide variety of services to local governments, including reconstructing financial records and aid in the reconciling 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.

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The Auditor of State’s office, one of five independently elected statewide offices in Ohio is responsible for auditing more than 6,000 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.

Contact:

Allie Dumski

Press Secretary

(614) 644-1111