1. Lafayette Township Performance Audit NSAA Annual Conference June 15, 2007

2. The Ohio Auditor of States Office Mary Taylor, the 31 st Auditor of State of Ohio, is the chief accounting officer for the State of Ohio and all public entities within the state. Mary Taylor, the 31 st Auditor of State of Ohio, is the chief accounting officer for the State of Ohio and all public entities within the state. With nearly 1,000 employees – more than 700 of whom are auditors – the AOS is one of the largest accounting offices in the nation. With nearly 1,000 employees – more than 700 of whom are auditors – the AOS is one of the largest accounting offices in the nation. Performance Audit Section is currently staffed with 52 employees with diverse backgrounds Performance Audit Section is currently staffed with 52 employees with diverse backgrounds

3. Performance Audit Process Audit was conducted in accordance with GAGAS Audit was conducted in accordance with GAGAS Goal is to assess operations and develop recommendations for improvements Goal is to assess operations and develop recommendations for improvements Used peer townships and relevant industry standards/information for comparisons Used peer townships and relevant industry standards/information for comparisons

4. Lafayette Township Located in Northeast Ohio (Medina County) Located in Northeast Ohio (Medina County) Approximately 5,500 residents Approximately 5,500 residents 23 square miles in size 23 square miles in size 95% of taxes derived from residential property tax 95% of taxes derived from residential property tax

5. Lafayette Township Operations managed by elected Board of Trustees (3 members) Operations managed by elected Board of Trustees (3 members) Finances managed by an elected part-time Clerk Finances managed by an elected part-time Clerk Township provides police, fire, zoning and road maintenance services Township provides police, fire, zoning and road maintenance services Approximately 8 full-time employees Approximately 8 full-time employees

6. Audit Scope Trustees requested audit due to concerns with: Financial management Financial management Economic development Economic development Human resources management Human resources management Police Department operations Police Department operations Long-term financial stability Long-term financial stability Importance of Audit Planning Adjusted the audit scope to best fit the needs of the Township. Adjusted the audit scope to best fit the needs of the Township.

7. Audit Conclusions Financial Management Ineffective internal controls Ineffective internal controls Limited management reporting Limited management reporting Lacked a formal budget process Lacked a formal budget process Inefficient purchasing practices Inefficient purchasing practices Limited economic development activities Limited economic development activities

8. Audit Conclusions Human Resources Inefficient employee benefit management practices Inefficient employee benefit management practices Lacked objective measures for determining staffing & salary levels Lacked objective measures for determining staffing & salary levels

9. Audit Conclusions Police Operations Inefficient vehicle management practices Inefficient vehicle management practices Lacked grants management procedures Lacked grants management procedures Limited capital planning Limited capital planning

10. Audit Conclusions Long-Term Financial Stability General fund projected to achieve positive fund balances the next five years General fund projected to achieve positive fund balances the next five years Police fund projected to experience annual deficits without significant changes Police fund projected to experience annual deficits without significant changes

11. Audit Results Audit identifies 36 recommendations that yield annual savings of $118,300 (nearly 20% of general and police fund budgets) Audit identifies 36 recommendations that yield annual savings of $118,300 (nearly 20% of general and police fund budgets) Although not quantifiable, many recommendations will improve management of existing revenues & expenditures Although not quantifiable, many recommendations will improve management of existing revenues & expenditures