1 Audit F indings No nc o mplia nc e Cita tio ns Audite e Re - PDF document

Ohio Complianc e Supple me nt – Imple me ntation Guide , Chapte r s and De te r mining Applic able R e quir e me nts Age nda • Ohio Co mplia nc e Supple me nt I mple me ntatio n Guide • Cha pte r 1 Dire c t L aws • Cha pte r 2 I ndire c t L aws & Sta tuto rily Mandate d T e st • Cha pte r 3 Ste wa rdship 2 Ohio Complianc e Supple me nt Imple me ntation Guide • T his inc lude s: • I ntro duc tio n • Co mplia nc e Risk a nd Co ntro ls • Org a niza tio n o f OCS • Re po rting • Audit F indings • Re fe rra ls to the E thic s Co mmissio n, Othe r Sta te Ag e nc ie s, a nd the I RS • Appe ndixe s • E xhibits • Que stio n a nd Co mme nts 3 1

Audit F indings • No nc o mplia nc e Cita tio ns • Audite e Re spo nse s to F inding s • F inding s fo r Ab use • F inding s fo r Adjustme nt • F inding s fo r Re c o ve ry • Additio na l Po lic ie s fo r F inding s fo r Re c o ve ry fo r Audito r o f Sta te Audits • Sa mple NOT I CE OF (PROPOSE D) F I NDI NG • F inding fo r Re c o ve ry Pro c e dure s fo r I nde pe nde nt Pub lic Ac c o unta nts (I PA) Re fe rring Audit Re po rts 4 Appe ndixe s • APPE NDIX A – Budge tar y and Ce r tain R e late d R e quir e me nts • APPE NDI X A-1 T ra nsfe rs a nd Adva nc e s • APPE NDI X A-2 Dire c t Cha rg e s • T he Ohio Co nstitutio n pro vide s c e rta in lo c a l g o ve rnme nts the po we r to ta x. T he b udg e ta ry pro c e ss is a pla n to c o o rdina te e xpe nditure s a nd re so urc e s. T he Sta te L e g isla ture ha s a do pte d la ws to c o ntro l e xpe nditure s using ta x b udg e ts a nd a ppro pria tio ns. 5 Appe ndixe s • APPE NDIX B – Contr ac ts and E xpe nditur e s • I n a dditio n to using ta x b udg e ts a nd a ppro pria tio ns to c o ntro l e xpe nditure s, the re a re se ve ra l spe c ific la ws c o nc e rning c o ntra c ts a nd the e xpe nditure o f pub lic mo ne y. So me o f the se la ws a re in the Ohio Re v. Co de , while o the rs a re in lo c a l g o ve rnme nts’ c ha rte rs, o rdina nc e s, a nd re so lutio ns. 6 2

Appe ndixe s • APPE NDIX C – De bt • APPE NDI X C-1 T a x a nd Re ve nue Antic ipa tio n No te s • T he po we r o f a ta xing a utho rity to inc ur de b t fo r pub lic purpo se s is a po we r o f lo c a l se lf- g o ve rnme nt pro vide d b y the Ohio Re v. Co de thro ug h Cha pte r 133, the Unifo rm Pub lic Se c uritie s L a w. I n a dditio n, the ta xing a utho rity's c ha rte r, o rdina nc e s a nd re so lutio ns ma y pla c e furthe r re stric tio ns (o r, in the c a se o f a c ha rte r, fe we r re stric tio ns) o n the ta xing a utho rity’ s po we r to inc ur de b t. 7 Appe ndixe s • APPE NDIX D – Re por ting • T he Audito r o f Sta te pre sc rib e s a nd re q uire s b y rule s, tha t c e rta in pub lic o ffic e s pre pa re a nd file a nnua l fina nc ia l re po rts in a c c o rda nc e with g e ne ra lly a c c e pte d a c c o unting princ iple s. Ce rta in pub lic o ffic e s ma y a lso b e re q uire d b y sta tute , rule , o r a g re e me nt to pre pa re a nd file pe rfo rma nc e o r o the r spe c ia l purpo se re po rts. 8 Appe ndixe s • APPE NDIX E – De posits and Inve stme nts • APPE NDI X E -1 F e de ra l Ag e nc ie s • APPE NDI X E -2 GASBNo . 40 • De po sito ry a nd inve stme nt re g ula tio ns fo r po litic a l sub divisio ns fro m Ohio Re v. Co de Cha pte r 135 g e ne ra lly a pply to a ll pub lic o ffic e s, o the r tha n to c ha rte r munic ipa litie s whic h ha ve e xe mpte d the mse lve s b y c ha rte r o r o rdina nc e a nd c o mmunity sc ho o ls. 9 3

E xhibits • E xhib it 1 – Cita tio n F o rma t • E xhib it 2 – Pub lic Offic e rs’ Bo nd • E xhib it 4 – E le c te d Offic ia ls’ Co mpe nsa tio n • E xhibit 5 – L e gal Matr ic e s • E xhibit 6 – E ntitie s Not Inc lude d 10 E xhibits • E xhibit 5 – L e gal Matr ic e s • T his e xhib it c o nta ins thre e ma tric e s. E a c h ma trix ma tc he s the a pplic a b ility o f OCS ste ps to va rio us e ntity type s. T he info rma tio n in the ma tric e s do e s no t ne c e ssa rily e nc o mpa ss e ve ry ite m re q uiring te sting fo r the se e ntitie s. 11 E xhibits • E xhibit 6 – E ntitie s Not Inc lude d • T his e xhib it c o nta ins the e ntity type s whic h ha ve NOT b e e n c o nside re d fo r the a pplic a b ility o f OCS ste ps. 12 4

Chapte r 1 Dir e c t L aws • “Dire c t a nd ma te ria l c o mplia nc e ” re fe rs o nly to laws a g o ve rnme nt’ s info rma tio n syste m (whic h inc lude s its a c c o unting syste m) must “c a pture ” to de te rmine fina nc ia l sta te me nt a mo unts a nd re q uire d disc lo sure s. T he re fo re , we ha ve c la ssifie d a law a s dire c t in this OCS if no nc o mplia nc e has the po te ntial to mate rially misstate the fina nc ia l sta te me nts. • Chapte r 1 o f this c o mplianc e supple me nt inc lude s “dire c t” laws. 13 Chapte r 1 Dir e c t L aws • T his inc lude s “dire c t la ws”: • Budge tar y R e quir e me nts • Annua l a ppro pria tio n me a sure s – c lassific atio n • E stablishing funds and Pe rmissio n to e stablish spe c ial funds • De bt • F o undatio n antic ipatio n no te s • Go ve rnme nts inve sting in the ir o wn se c uritie s • Ac c ounting and R e por ting • Annua l fina nc ial re po rting • Othe r L aws and R e gulations • L iability Se lf I nsuranc e • Allo c ating to wnship truste e and fisc al o ffic e r c o mpe nsatio n • Appe ndix A: Agr ic ultur e Soc ie ty Complianc e Supple me nt 14 Chapte r 2 Indir e c t L aws & Statutor ily Mandate d T e st • Cha pte r 2 inc lude s “indire c t” la ws. Cha pte r 2 a lso inc lude s la ws tha t sta tute s ma nda te a udito rs to te st during a n a udit. • I n a dditio n to the “dire c t,” “indire c t,” a nd “ma nda te d c o mplia nc e te sts” disc usse d a b o ve the Audito r o f Sta te ha s ide ntifie d la ws o f sig nific ant pub lic inte re st due to ste wa rdship c o nside ra tio ns. Citize ns a nd pub lic o ffic ia ls wa nt a nd ne e d to kno w whe the r g o ve rnme nts a re ha ndling the ir funds pro pe rly a nd c o mplying with la ws a nd re g ula tio ns. Pub lic o ffic ials e ntruste d with pub lic re so urc e s a re re spo nsib le fo r c o mplying with tho se la ws a nd re g ula tio ns. Cha pte r 3 inc lude s te sts fo r the se “ste wa rdship” la ws. 15 5

Chapte r 2 Indir e c t L aws & Statutor ily Mandate d T e st • T his inc lude s “indire c t laws”: • Budge tar y R e quir e me nts • Appro pria tio ns limite d by e stimate d re ve nue • Re stric tio ns o n a ppro pria ting a nd e xpe nding mo ne y • Contr ac ts and E xpe nditur e s • I nte rne t- o r c o mpute r-b a se d c o mmunity sc ho o l c anno t c o ntrac t with a no npub lic sc ho o l fo r instruc tio na l fa c ility spa c e • Ac c ounting and R e por ting • Re quire d ac c o unting re c o rds • Ac c o unting fo r manag e me nt c o mpany e xpe nse s 16 Chapte r 2 Indir e c t L aws & Statutor ily Mandate d T e st • De posits and Inve stme nts • E lig ible inve stme nts fo r inte rim mo nie s; inac tive de po sits and maturitie s • Othe r a llo wab le inve stme nts fo r sub divisio ns o the r than c o untie s • Othe r L aws and R e gulations • Spo nso r mo nito ring o f c o mmunity sc ho o l • Dispo sitio n o f fine s and o the r mo ne ys fo r ma yo r’ s c o urt 17 Chapte r 2 Indir e c t L aws & Statutor ily Mandate d T e st • Statutor ily Mandate d T e sts • Contr ac ts and E xpe nditur e s • F o rc e a c c o unts - Co untie s • Ac c ounting and R e por ting • Se c urity c o ntro ls o ve r c o untie s’ e le c tro nic (i.e . inte rne t) transac tio ns • Othe r L aws and R e gulations • Vario us ORC Se c tio ns: F ra ud a nd Abuse ; Co nflic t o f I nte re st; E thic s • Anti-Bullying Pro visio ns 18 6

Chapte r 3 Ste war dship • T his Ohio Co mplia nc e Supple me nt c ha pte r pro vide s a simplifie d pro c e ss fo r a sse ssing the g o ve rnme nt’ s c o mplianc e with the se re q uire me nts. 19 Chapte r 3 Ste war dship • T his inc lude s: • Ge ne r al • De po sits o f public mo ne y • Po litic al ac tivitie s pro hibite d • Community Sc hools • Dro po ut Pre ve ntio n and Re c o ve ry Sc ho o l E lig ibility Re quire me nts • Commissar ie s • E stab lishme nt a nd a c c o unting tre a tme nt fo r c o mmissa rie s • Cour ts • Dispo sitio n o f unc laime d fe e s and c o sts • Munic ipal c o urt re c o rds 20 Chapte r 3 Ste war dship • Countie s and County Hospitals • Mandate s training and c o ntinuing e duc atio n re q uire me nts fo r c o unty a udito rs • F urthe ranc e o f Justic e (F OJ) • T ownships Re imb urse me nt o f insura nc e pre miums • • Countie s, Munic ipalitie s & T ownships • L a w E nfo rc e me nt T rust (L E T ) a nd Drug L a w E nfo rc e me nt F unds 21 7

88 E. Broad St. Columbus, Ohio 43215 Phone: (800) 282-0370 Email: ContactUs@OhioAuditor.gov www.OhioAuditor.gov 8