Ohio auditor finds no conflicts at JobsOhio

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COLUMBUS, Ohio (AP) — After a high-profile fight foraccess to financial documents, Ohio’s state
auditor on Thursday clearedexecutives at Gov. John Kasich’s embattled private job-creation officeof business
conflicts but scolded JobsOhio for lacking or failing tofollow some internal monitoring procedures.The
compliance auditconducted by Republican Auditor Dave Yost, a former prosecutor, citedthe fledgling economic
development entity for eight proceduralinfractions during its first year of operation. JobsOhio says all
theprocesses have been addressed since then, many of them voluntarilyidentified and remedied.The review did
not look at JobsOhio’s fiscal soundness, a task that was handled earlier by KPMG.Witha subpoena, Yost had
ordered JobsOhio to turn over its private books,as well as its public ones, for the review. The move was
criticized byKasich and fellow Republicans in the Legislature.JobsOhiocomplied under protest in March. At
the same time, it returned $1million in taxpayer startup money in a move possibly aimed at shieldingthe
office from future government scrutiny.JobsOhio President andChief Investment Officer John Minor Jr.
announced the refund in tandemwith answering Yost’s subpoena for access to the private side of theoffice’s
books. JobsOhio, state legislative leaders and the Kasichadministration argue the records aren’t
public.Kasich had blastedYost for an "attempt to re-write the law." Yost took the bold step
ofsubpoenaing the records on March 6 from an office Kasich touts as Ohio’seconomic engine after JobsOhio
failed to volunteer the records.Yostinsisted he had the right to audit both the public and private
fundsflowing through the public-private partnership. He cites a state lawthat says the auditor "may
audit the accounts of private institutions,associations, boards, and corporations receiving public money for
theiruse and may require of them annual reports in such form as the auditorof state
prescribes."Lawmakers have changed state law to clarify the disagreement, shielding future private
spending from the state audit process.JobsOhioreceived $1.5 billion from the sale of bonds backed by 25
years ofstate spirituous liquor profits. Its executives have said the profitsare public money but the bond
proceeds are not.JobsOhio wascreated in 2011 after being spearheaded by Kasich to replace thebureaucracy at
the former Ohio Department of Development and "move atthe speed of business." JobsOhio received $1
million in taxpayer dollarsto start and recently offered $1.5 billion in bonds backed by itslong-term rights
to Ohio’s liquor business.In an independentaudit released Oct. 11, KPMG gave a clean bill of health to
JobsOhio andthe corporation it created with the liquor proceeds. The review ofJobsOhio and JobsOhio Beverage
System covered the fiscal year that endedJune 30.Yost has said he wants to make sure JobsOhio’s money
"isworking for the people of Ohio — creating jobs and growing this economyfor our
families."Copyright 2013 The Associated Press. All rightsreserved. This material may not be published,
broadcast, rewritten orredistributed.

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