Lack of documentation cited in Highland County Family & Children First Council Audit

COLUMBUS – A lack of documentation for gift cards purchased by the Highland County Family & Children First Council resulted in a $575 finding for recovery, according to an audit released this week by Auditor of State Dave Yost.

“Every piece of supporting documentation is a pixel in the financial picture,” Auditor Yost said.

“Without the necessary paperwork, it’s impossible to get a complete picture of how tax dollars were spent.”

The council purchased $3,000 in Walmart gift cards during 2013 and 2014 to pay parent representatives for attending Family & Children First Council and Early Childhood Collaborative Committee meetings.

The council distributed the gift cards as payment to avoid having to issue tax forms 1099, according to the report.

Auditors noted one instance where the council did not maintain a receipt for the purchase of gift cards.

In addition, auditors identified $575 in gift cards that were unaccounted for.

Auditors learned through discussion with Council Coordinator Danielle Ratcliff that on some occasions, she would personally purchase gift cards when needed, and then reimburse herself from the council’s next bulk purchase of gift cards without generating any supporting documentation.

As the council’s coordinator, Ratcliff was responsible for the safekeeping of the gift cards.

A finding for recovery in the amount of $575 was issued against Ratcliff.

Additionally, the council did not issue tax forms 1099 for gift cards distributed in excess of $600. This matter will be referred to the Internal Revenue Service (IRS).

A full copy of this report may be accessed online at https://ohioauditor.gov/auditsearch/Reports/2016/Highland_FCFC_14_13-Highland.pdf.