September 24, 2009
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News: Akron Audit Finds Fault In CC Documentation
Ohio state auditors say Akron city officials including Mayor Don Plusquellic used city issued credit cards for over $15,000 in possible unauthorized transactions. The potential misuse of credit cards had numerous transactions that were not supported by proper documentation. State Auditor Mary Taylor conducted an audit covering 2008 records and reported the potential misuse in a letter to city officials after completing the audit. Taylor recommended that the city require all "officials and employees submit itemized receipts" for all credit card charges in order to determine if transactions are for legitimate city business. Additionally, Taylor criticized the city's budgeting methods. Akron received an "unqualified" opinion and did not ask for further action.
The state's audit did not look into what credit card and other expenditures the city spent their funds on. The primary concern was whether or not the city complied with state regulations to properly document expenditures. It appears that the city has been maintaining credit card statements to act as receipts and documentation rather than holding on to the original receipt. Akron officials have also requiring those with city cards to sign an affidavit once a year attesting to the expenses incurred by them as necessary in fulfilling their responsibilities. Diane Miller-Dawson, Finance Director, maintained that the card statements and affidavits were all that was necessary for state audits. However, Steve Faulkner, a representative of Taylor's office said statements are not sufficient documentation that proves the expenses are city related.
The audit of 2008 does not pertain to those budgeting problems that are being faced by the city in 2009. It is reported that Akron is facing an $8 million deficit this year. Over half of the city's employees have been laid off including numerous police officers and fire fighters. The debate remains as to whether or not the city is adequately meeting the state requirements regarding proper credit card documentation. Taylor expects the city will correct their procedures so that they properly meet requirements for the 2009 audit.