b'Ohio Auditor of State2021 Annual ReportLetter from the AuditorCombating a global pandemic and restoring Ohios economy has proven to be a challenge this past year. The Auditor of States office (AOS) worked hard to maintain open lines of communication with our local and state partners to ensure that audit requirements were met and our communities could revert to an open and safe environment for our citizens. In the last year, our office released 4,029 reports, including 3,680 financial audits; assisted in 26 convictions; and issued more than $4.8 million in findings for recovery. We also worked to reduce audit costs for our partners by increasing the threshold for Basic Audits and expanding the eligibility for Agreed Upon Procedures engagements, resulting in 80% and 49% in savings respectively. Additionally, performance audits are an important tool for governments to find efficiencies and I am happy to report the performance team experienced a 25% increase in state agency reviews. Working with the General Assembly and stakeholders from across the state, recently enacted legislative initiatives crack down on theft in office and provides for smooth transitions of fiscal officers.This report summarizes some of the initiatives and projects that my team has completed or started in the last year. Highlights include:Successful reviews of AOS operations and financesThe AOS went through several reviews by outside firms to ensure our operations and audits were efficient, effective, and transparent. The office underwent a performance audit conducted by an independent auditor that studied our current operations, including the AOS tools, people, and processes we currently utilize in data analysis for external financial statement audits. Additionally, they advised our office on the emerging technological trends in external audits, including the application of D&A techniques (tools used in the audit industry), possible legislative changes required, and implementation expectations. Overall, the audit team recognized AOS as an exemplary State Auditor organization. In addition to the offices clean financial audit, a peer review of similar organizations (necessary for maintaining our credentials) audited our operations and returned a clean report with high praises for our team.Flagged fraud and customer service concerns with unemploymentSince the start of the COVID-19 pandemic and the subsequent expansion of unemployment benefits, the amount of unemployment fraud and scams has skyrocketed. Ohios unemployment system was not designed to handle the high numbers of claims the pandemic brought. Consequently, fraudsters took advantage of the overwhelmed system.Following the State Single Audit which issued a rare qualified opinion and highlighted the lack of controls that allowed for the fraud to run rampant, the Auditors office launched an audit of the public interest to dig deeper into fraud the state has experienced within the system, Additionally, the Legislature asked our office to complete a performance audit of the Department of Job and Family Services to review customer service concerns. Both audits are expected to release recommendations this fall.Supported local governments during the global pandemicAs more federal relief funds flow to local governments in Ohio, our office has been transparent and accessible to our local government partners, answering their questions pertaining to how this money can be spent. Ever-changing federal guidelines proved challenging, however in addition to the downs of town halls and meetings with hundreds of invited elected officials, we maintained an updated webpage with various information local governments could find helpful.Efficient, effective, transparent effortsNow more than ever, Ohios governments need efficient, effective, and transparent government. We strive to ensure that standard is met in governments across the state which includes our own office. Particularly during the pandemic, we took time to evaluate our footprint across the state and renegotiate leases resulting in hundreds of thousands of dollars in savings. These actions combined with conservative office operations including voluntary budget reductions allowed us to return $1.1 million to the general revenue fund this fiscal year.It is an honor to serve Ohio as the Auditor of State and I am proud of what we have accomplished as a watchdog for taxpayers.Sincerely,Ohio Auditor of StateEfficientlEffectivelTransparentiv'