The required independent auditor's report on spending by Schuylkill County of monies received from the federal and state government was presented to the county commissioners Friday afternoon. The commissioners held an informational meeting to review the report with L. Samuel Deegan, P.C., who they had hired to make the report.

"Our audit was conducted for the purpose of forming opinions on the financial statements that collectively compromise the county's basic financial statement," he reported. He went into detailed lengths to criticize Controller Melinda Kantner, whose office keeps the financial records.Among the comments made were, "The controller did not record transactions in the proper period; the financial records did not reflect the correct financial activity of the period under the audit which would result in material misstatement of the financial statement; the controller should ensure that internal control procedures over financial reporting are sufficient to identify and record all material adjustments; accruals from revenue from federal and state grants were not recorded in the proper period; certain personnel within the controller's office should receive education and training that will enable appropriate preparation as soon as possible; the controller is required to maintain books in accordance with GAAP (Government Accounting Standard Board) but no effort was made ensure accurate GAAP presentations."The staff the controller has is the same which served the previous controller.Both Commissioner Mantura Gallagher and Frank Staudenmeir, who were commisisoners at that time, agree they had great relationship with the controller's office and received timely reports. "Under the present controller," Gallagher commented, "when we wrote checks we were not sure their were funds to cover it." Staudenmeier said for the 2010 audit report the controller must cooperate in preparation of the audit. Deegan said he holds no bias against the controller and wants to have a good working relationship.The financial highlights in the report shows for the fiscal year 2009 the county's total real estate mileage rate remained the same at 11.95 mills the county had $14,550,000 of general obligation debt outstanding at the end of the year which was decreased by $1,970,000 from the previous years and the general fund unreserved fund balance was $10,497,091 at the end of the year which was an increase of $2,695,757 from the previous year.As to how the county will finish 2010 is still to be calculated but Budget Director Paul Strake, who is involved in preparing the budget for 2011, said next year's budget with be very austere because of the anticipated reduced grants from federal and state government.