Columbus – Four noncompliance citations and four recommendations were issued in the JobsOhio audit released today by Auditor of State Dave Yost.  The audit findings addressed strengthening internal controls, potential conflicts of interest and maintaining adequate documentation. 

“Organizations at every level have areas where improvements can be made,” Auditor Yost said.  “I’m all for job creation in our great state, and I anticipate our recommendations will help strengthen JobsOhio’s operations.”

The compliance and internal control audit covered certain provisions of laws, regulations, contracts, and grant agreements applicable to JobsOhio, as outlined in Ohio Revised Code Chapter 187 and Section 1702.04.  It also reviewed policies and procedures in place during the period of July 5, 2011 through June 30, 2012.  

Auditors tested non-payroll expenditure transactions and found that 113 items totaling $68,744 purchased by JobsOhio and the JobsOhio Beverage System (JOBS) did not provide supporting documentation to verify the payments were accurate and consistent with JobsOhio’s statutory purpose.  In addition, the audit found five instances where evidence of reimbursement of personal expenses to JobsOhio could not be produced.  Another five instances were cited where JobsOhio paid for lunches for state employees, which is in contradiction to their policy.  It is recommended that JobsOhio implement processes to strengthen its internal controls on expenditures.

The audit also reviewed 28 project files for potential conflicts of interest.  Three potential conflicts of interest were identified.  JobsOhio has since provided further information, which demonstrated the potential conflicts were resolved or within the de minimis category.  However, during the audit period, JobsOhio had no clear formal procedure to screen for potential conflicts of interest, and it is recommended that a formal policy be developed.  

The audit provided additional recommendations to JobsOhio to strengthen its internal controls, including ensuring that board meeting minutes are adequately documented and contain sufficient detail.  It is also recommended that JOBS maintain copies of the Restricted Gift and Acceptance forms when contributions are made.

An agreed-upon procedure report also was released today in response to a request from the Ohio Development Services Agency (DSA).  This engagement was performed to assist DSA in evaluating the flow of money and documentation between the agency and JobsOhio and JOBS.  The report recommends the agency strengthen and consistently apply its internal controls.

Full copies of the JobsOhio and the Ohio Development Services Agency reports may be accessed online.

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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 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.

Contact:
Carrie Bartunek
Press Secretary
614-644-1111