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COLUMBUS – The Crestline Exempted Village School District in Crawford County has been declared “unauditable” for the periods ended July 1, 2021, through June 30, 2022, and July 1, 2022, through June 30, 2023, due to inadequate financial statements and records to complete an audit.

The Auditor of State’s Office informed District Treasurer Alina Nemec and Superintendent James Saxer of the declaration on Friday, Feb. 23, noting:

• The District has entered into a contract with Julian and Grube Inc. for the preparation of the District’s June 30, 2023, financial statements but has not responded to information requests. Therefore, the agreed upon service has not been able to occur. As a result, the District has not filed the June 30, 2023, financial report with the Auditor of State as required by state law.
• The District has not coordinated with Julian and Grube to allow for the audit of the basic financial statements and the Schedule of Expenditures of Federal Awards for each of the years ended June 30, 2022, and June 30, 2023. The District has not been responsive to requests of Julian and Grube or the Auditor of State.

Within 90 days from the date of this letter, the Crestline Exempted Village School District must revise its financial records and provide the data necessary to complete the audit. Failure to bring accounts, records, and reports into an auditable condition within 90 days may result in legal action pursuant to Ohio Rev. Code Section 117.42. This action may result in the Attorney General issuing a subpoena for Nemec and Saxer to explain their failure to bring accounts, records, and reports into an auditable condition. Additionally, the Attorney General may file suit to compel the preparation and/or production of the necessary information to complete an audit.

Should assistance in correcting these deficiencies be needed, the District may contact the Auditor of State’s Local Government Services division or an independent accounting firm to obtain the necessary help. However, the Auditor of State’s Office will not consider a failure to act in a timely manner or the inability to meet auditors’ schedule as a mitigating factor to extend the 90-day period.

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The Auditor of State’s Office, one of five independently elected statewide offices in Ohio is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.