Medina County Auditor Issues Findings on Insurance Claims and Financial Management
The Ohio Auditor of State’s Office recently completed a comprehensive audit of Medina County’s financial management for 2024, highlighting several deficiencies in internal controls. Despite these issues, the county's financial statements received an overall clean opinion, underscoring effective financial practices amidst challenges.
A primary concern in the audit related to $12,089.16 in insurance premiums and claims processed for former county employees. This was due to the county auditor's office not promptly updating the Guardian Life Insurance Company about changes in employee status. As a result, a Finding for Recovery was issued, but Guardian has fully reimbursed the amount.
The audit uncovered a material weakness regarding the county's financial report on federal American Rescue Plan Act (ARPA) expenditures. Incorrectly recorded data led to a $635,525 overstatement in contracts payable and human services spending in the Local Fiscal Recovery Fund. This error resulted in offsetting mistakes in reporting unearned and intergovernmental revenue. Other errors, ranging from $66,300 to $736,236, were identified but did not result in separate findings.
Medina County plans to address these issues by enhancing its accounting procedures. This includes re-coding invoices and implementing a new contract module in its enterprise resource planning (ERP) system, starting from the 2026 audit cycle, aiming for improved compliance and accuracy.
The audit also revealed a material weakness and noncompliance in using federal transit funds. The county failed to conduct necessary suspension and debarment checks on three vendors, which hindered verification of their federal funding eligibility. Additionally, procurement documentation was found lacking in 24 out of 27 transactions, missing critical information such as pricing rationale and contractor selection, violating federal and county policies.
Consequently, the Federal Transit Cluster did not obtain a clean compliance opinion, although other major federal programs like Social Services, Foster Care, ARPA funding, and Medicaid did. County officials have initiated corrective actions targeted for completion by March 31. Ohio Auditor Keith Faber emphasized collaborative efforts to address the insurance payment discrepancies. Despite the identified weaknesses, the county's financial statements remain materially accurate, and officials are hopeful that ongoing corrective measures will effectively resolve all audit findings.