Lafayette Township Performance Lafayette Township Performance AuditAudit

NSAA Annual ConferenceNSAA Annual Conference

June 15, 2007June 15, 2007

The Ohio Auditor of State’s The Ohio Auditor of State’s OfficeOffice

Mary Taylor, the 31Mary Taylor, the 31stst Auditor of State of Ohio, is the Auditor of State of Ohio, is the chief accounting officer for the State of Ohio and all chief accounting officer for the State of Ohio and all public entities within the state.public entities within the state.

With nearly 1,000 employees – more than 700 of With nearly 1,000 employees – more than 700 of whom are auditors – the AOS is one of the largest whom are auditors – the AOS is one of the largest accounting offices in the nation.accounting offices in the nation.

Performance Audit Section is currently staffed with Performance Audit Section is currently staffed with 52 employees with diverse backgrounds52 employees with diverse backgrounds

Performance Audit ProcessPerformance Audit Process

Audit was conducted in accordance Audit was conducted in accordance with GAGASwith GAGAS

Goal is to assess operations and Goal is to assess operations and develop recommendations for develop recommendations for improvementsimprovements

Used peer townships and relevant Used peer townships and relevant industry standards/information for industry standards/information for comparisonscomparisons

Lafayette TownshipLafayette Township Located in Northeast Ohio (Medina Located in Northeast Ohio (Medina

County)County)

Approximately 5,500 residentsApproximately 5,500 residents

23 square miles in size23 square miles in size

95% of taxes derived from residential 95% of taxes derived from residential property taxproperty tax

Lafayette TownshipLafayette Township

Operations managed by elected Board of Operations managed by elected Board of Trustees (3 members)Trustees (3 members)

Finances managed by an elected part-time Finances managed by an elected part-time ClerkClerk

Township provides police, fire, zoning and Township provides police, fire, zoning and road maintenance servicesroad maintenance services

Approximately 8 full-time employeesApproximately 8 full-time employees

Audit ScopeAudit ScopeTrustees requested audit due to concerns Trustees requested audit due to concerns

with:with:• Financial managementFinancial management• Economic developmentEconomic development• Human resources managementHuman resources management• Police Department operationsPolice Department operations• Long-term financial stabilityLong-term financial stability

Importance of Audit Planning Importance of Audit Planning • Adjusted the audit scope to best fit the Adjusted the audit scope to best fit the

needs of the Township.needs of the Township.

Audit ConclusionsAudit Conclusions

Financial ManagementFinancial Management• Ineffective internal controlsIneffective internal controls• Limited management reportingLimited management reporting• Lacked a formal budget processLacked a formal budget process• Inefficient purchasing practicesInefficient purchasing practices• Limited economic development Limited economic development

activitiesactivities

Audit ConclusionsAudit Conclusions

Human ResourcesHuman Resources• Inefficient employee benefit Inefficient employee benefit

management practicesmanagement practices

• Lacked objective measures for Lacked objective measures for determining staffing & salary levelsdetermining staffing & salary levels

Audit ConclusionsAudit Conclusions

Police OperationsPolice Operations• Inefficient vehicle management Inefficient vehicle management

practices practices

• Lacked grants management Lacked grants management proceduresprocedures

• Limited capital planningLimited capital planning

Audit ConclusionsAudit Conclusions

Long-Term Financial StabilityLong-Term Financial Stability• General fund projected to achieve General fund projected to achieve

positive fund balances the next five positive fund balances the next five yearsyears

• Police fund projected to experience Police fund projected to experience annual deficits without significant annual deficits without significant changeschanges

Audit ResultsAudit Results

• Audit identifies 36 recommendations Audit identifies 36 recommendations that yield annual savings of that yield annual savings of $118,300 (nearly 20% of general and $118,300 (nearly 20% of general and police fund budgets)police fund budgets)

• Although not quantifiable, many Although not quantifiable, many recommendations will improve recommendations will improve management of existing revenues & management of existing revenues & expendituresexpenditures