MANAGEMENT LETTER

Butler County Port Authority Butler County 315 High Street Hamilton, Ohio 45011 To the Members of the Board: We have audited the financial statements of Butler County Port Authority, Butler County, Ohio (the Port Authority), in accordance with Government Auditing Standards, as of and for the years ended December 31, 2011 and 2010, and have issued our report thereon dated May 31, 2012. Government Auditing Standards require us to report significant internal control deficiencies, fraud, and illegal acts (including noncompliance with laws and regulations), and also abuse and noncompliance with contracts and grant agreements that could directly and materially affect the determination of financial statement amounts. We have issued the required report dated May 31, 2012, for the year ended December 31, 2011 and 2010. We are also submitting the following comments for your consideration regarding the Port Authoritys compliance with applicable laws and regulations. These comments reflect matters that do not require inclusion in the report Government Auditing Standards require. Nevertheless, these comments represent matters for which we believe improvements in compliance might be achieved. Due to the limited nature of our audit, we have not fully assessed the cost-benefit relationship of implementing these recommendations. However, these comments reflect our continuing desire to assist your government. If you have questions or concerns regarding these comments please contact your regional Auditor of State office. COMPLIANCE Ohio Rev. Code, Section 9.38, states that "Public money must be deposited with the treasurer of the public office or to a designated depository on the business day following the day of receipt. Public money collected for other public offices must be deposited by the first business day following the date of receipt." The Port Authority did not date stamp receipt supporting documentation when it was received, and did not maintain the validated deposit slips. Although we could trace receipts posted to the accounting system to bank statement deposits, we were unable to determine if the Port Authority deposited pubic money collected by the first business day following the receipt. We recommend that the Port Authority maintain validated deposit slips and date stamp receipt documentation to provide documentation for management to monitor compliance with Ohio law regarding the timely deposit of public money.

CorporateCentreofBlueAsh,11117KenwoodRoad,BlueAsh,Ohio45242 Phone:5133618550or8003687419Fax:5133618577 www.auditor.state.oh.us

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We intend this report for the information and use of the governing board and management.

Dave Yost Auditor of State

May 31, 2012