Taylor Releases 2008 State of Ohio Single Audit

Tuesday, October 13, 2009

Columbus -

Auditor of State Mary Taylor today released the 2008 State of Ohio Single Audit containing 55 findings relating to 10 state agencies and questioned costs totaling $3,714,099.

“After finally receiving the 2008 financial statements on June 30, 2009, our state region auditors worked diligently to ensure that this audit was completed as quickly as possible,” Taylor said.  “The financial statements are independently reviewed by my office and are available for Ohio citizens to review.”

With regards to the delay in receiving financial statements from the Office of Budget and Management, Taylor notes, “The audit released today specifically recommends that the state overcome impediments to financial reporting, which have delayed this audit.  It is vital that the state have accrual basis financial statements prepared in a timely manner so that state government is both transparent and accountable for the public dollars it spends.”

Audit findings are conclusions related to compliance and accountability requirements or practices of an organization that are supported by information gained during the audit process.  Additionally, questioned costs are expenditures of federal funds that lack appropriate or sufficient documentation to support the expenditures, violate a federal law or have been determined to be an unreasonable expense.

The audit findings are summarized in the table below:

State Agency


Questioned Costs

Office of Budget and Management



Ohio Administrative Knowledge System



Ohio Department of Development



Ohio Department of Education



Ohio Department of Health



Ohio Department of Job and Family Services



Ohio Department of Mental Health



Ohio Department of Public Safety



Ohio Department of Transportation



Rehabilitation Services Commission



The audit report points out two material weaknesses or significant internal control issues that could negatively impact the accuracy of the financial statements if not corrected.  One material weakness revealed concerns regarding security of the Ohio Administrative Knowledge System (OAKS).  The audit recommends that OAKS management update policies and procedures and strengthen internal controls related to the monitoring, security and storage of OAKS programs and data.

The second material weakness notes that the OAKS system did not have specific controls in place needed to reconcile the subsidiary ledgers and transaction totals to the general ledger totals.  The auditors recommend that OAKS management implement controls to assist with completing proper reconciliations in a timely manner.

This is the first time material weaknesses have been noted in the State of Ohio Single Audit since 2003.

A copy of the full audit is available online at http://www.auditor.state.oh.us/AuditSearch/detail.aspx?ReportID=77550.