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Source: US State of Ohio

 

Public Affairs

Contact: Allie Dumski

Press Secretary

614-644-1111

 

 

 

For Immediate Release:                                                      

October 6, 2020                                                                     

Messy Village of Addyston Audit Highlights Many Issues

 

Columbus – Auditor of State Keith Faber’s Office today released the 2016-2017 financial audit of the Village of Addyston in Hamilton County. The report included 45 findings and comments.

The Findings for Recovery and Adjustment are as follows:

-001: Finding for Recovery – Repaid Under Audit – Pension Payments

From May 2017 through December 2017, the Village withheld 1.98% of former Police Chief Dorian LaCourse’s gross pensionable salary, or $866, for the employee share of the Ohio Police and Fire Pension (OP&F) withholding. The required share was 12.25% per the Ohio Revised Code, or $5,337.

The Village paid $5,337 to OP&F on behalf of former Police Chief Dorian LaCourse. Because the Village paid $5,337 to OP&F on behalf of former Police Chief Dorian LaCourse, but only withheld $866, former Police Chief Dorian LaCourse was overpaid by $4,471 from the General Fund.

A Finding for Recovery was issued against former Police Chief Dorian LaCourse in the amount of $4,471 in favor of the Village of Addyston General Fund. On June 18, 2020, Dorian LaCourse repaid his finding for recovery in full.

-002: Finding for Recovery – Penalties & Interest Paid to Retirement Systems

The Village Clerk was responsible for making timely payments to the pension systems.

During 2017, the Ohio Public Employees Retirement System (OPERS) made assessments of penalties and interest to the Village which totaled $187 and $29, respectively and OP&F assessed penalties totaling $250. During 2016, OPERS also made assessments of penalties and interest to the Village which totaled $124 and $3, respectively and another $50 of penalties assessed by OP&F.

Late fees, penalties, and interest are not proper public purposes to use tax payer dollars.

A Finding for Recovery was  issued against Margaret Dozier, Village Clerk, and her bonding company, Public Entities Pool of Ohio, in the amount of $643, in favor of the Village of Addyston, General Fund.

-003: Finding for Recovery – Partially Repaid Payroll Overpayments

The Village overpaid certain individuals during 2017 and 2016 as follows:

Individual                  Overpayment/ Finding for Recovery                      In Favor of Fund

Eric Winhusen            $1,220                                                             Water Operating Fund

Bernard Thomas         $2,600 (repaid $1200)                                    Water Operating Fund

Phillip Bovard             $50                                                                  General Fund

Dan Dalton                 $50                                                                  General Fund

Margaret Dozier         $50                                                                  Water Operating Fund

Lisa Mear                   $50                                                                  General Fund

Natalie Thomas          $50                                                                  General Fund

Robert Bast                 $134                                                                General Fund

Donald McWhorter    $192                                                                General Fund

Jackie Buchert            $177                                                                Water Operating Fund

Jerome Brinkman       $345                                                                Street Construction, Maint., Repair

Angela Byers              $54                                                                  General Fund

Total                           $4,972 ($3,772 after repayment by Mr. Thomas)

A Finding for Recovery was issued against the individuals listed above for the amounts of their overpayment and in favor of the corresponding fund.

Under Ohio law, any public official who either authorizes an illegal expenditure of public funds or supervises the accounts of a public office from which an illegal expenditure is discovered, is strictly liable for the amount of the expenditure. Village Clerk Margaret Dozier authorized the warrants and direct deposits resulting in the improper payments, therefore Village Clerk Margaret Dozier and her bonding company, Public Entities Pool of Ohio, are jointly and severally liable in the amounts of $3,722 and $3,772, respectively.

-004: Finding for Recovery – Credit Card Late Fees

Governmental entities may not make expenditures of public monies unless they are for a valid public purpose. During 2017 and 2016, the Village incurred and paid credit card late fees of $453 and $150, respectively. The Village Clerk was responsible for making timely payments of credit card balances.

A Finding for Recovery was issued against Margaret Dozier, Village Clerk, and her bonding company, Public Entities Pool of Ohio, in the amount of $603, in favor of the Village of Addyston, General Fund..

-006: Internal Control Deficiency/Noncompliance – Finding for Adjustment – Financial Reporting

Auditors identified the following conditions related to the Village’s financial statements for the year ended December 31, 2017:

General Fund

· The Village improperly recorded Capital Outlay disbursements in the amount of $28,957 as General Government disbursements.

· The Village improperly recorded $740 of Intergovernmental receipts as Property and Other Local Taxes receipts.

· The Village improperly recorded $597 of General fund Intergovernmental receipts as Charges for Services receipts in the Water Operating fund.

· The Village improperly recorded $8,290 of Fines, Licenses, and Permits receipts belonging to the General fund to Charges for Services receipts in the Sewer Operating fund.

· The Village improperly recorded Principal Retirement payments in the amount of $22,197 and Interest payments in the amount of $837 to General Government disbursements.

· The Village improperly recorded Principal Retirement payments in the amount of $5,995 and Interest payments in the amount of $1,325 to General Government disbursements in the amount of $7,320.

· The Village improperly recorded General fund Intergovernmental receipts in the amount of $3,614 to Property and Other Local Taxes receipts in the amount of $1,780 and Municipal Income Tax receipts in the amount of $1,834.

· The Village improperly recorded Intergovernmental receipts in the amount of $2,622 belonging to the Fire fund ($1,933), Sewer Operating fund ($168), and Water Operating fund ($521) to Property and Other Local Taxes receipts in the General fund.

 · The Village failed to record General fund Property and Other Local Taxes receipts gross of related fees in the amount of $2,138, resulting in an understatement of Property and Other Local Taxes receipts in the amount of $2,138 and an understatement of General Government disbursements in the amount of $2,138.

· The Village improperly recorded General fund Intergovernmental receipts in the amount of $872 as Charges for Services receipts in the Debt Service ABPA Loan fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $740 as Property and Other Local Taxes receipts.

Permissive Motor Vehicle License Tax Fund

· The Village improperly recorded Intergovernmental receipts in the amount of $18,201 belonging to the Street Construction Maintenance and Repair fund ($16,836) and to the State Highway fund ($1,365) as Property and Other Local Tax receipts in the Permissive Motor Vehicle License Tax fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $1,862 to Property and Other Local Taxes receipts.

· The Village improperly recorded Intergovernmental receipts in the amount of $478 belonging to the Permissive Motor Vehicle License Tax fund in the Sewer Operating fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $776 belonging to the State Highway fund to Property and Other Local Taxes receipts in the Permissive Motor Vehicle License Tax fund.

· The Village improperly recorded Intergovernmental receipts (county levied permissive taxes) in the amount of $1,862 as Property and Other Local Taxes receipts.

Street Construction Maintenance and Repair Fund

· The Village improperly recorded a receipt of Property and Other Local Taxes in the amount of $610 twice, resulting in a $610 overstatement of the fund cash balance at December 31, 2017.

· The Village improperly recorded Intergovernmental receipts in the amount of $610 to Property and Other Local Taxes receipts.

· The Village improperly recorded Intergovernmental receipts in the amount of $16,836 belonging to the Street Construction Maintenance and Repair fund to Property and Other Local Taxes receipts in the Permissive Motor Vehicle License Tax fund.

· The Village improperly recorded $8,113 of Intergovernmental receipts to Property and Other Local Taxes receipts.

State Highway Fund

· The Village improperly recorded Property and Other Local Taxes receipts in the amount of $49 twice, resulting in a $49 overstatement of the State Highway fund cash balance at December 31, 2017.

· The Village improperly recorded Intergovernmental receipts in the amount of $49 to Property and Other Local Taxes receipts.

· The Village improperly recorded Intergovernmental receipts in the amount of $1,365 belonging to the State Highway fund to Property and Other Local Taxes receipts in the Permissive Motor Vehicle License Tax fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $59 belonging to the State Highway fund to Charges for Services receipts in the Sewer Operating fund.

· The Village improperly recorded $776 of Intergovernmental receipts belonging to the State Highway fund to Property and Other Local Taxes receipts in the Permissive Motor Vehicle License Tax fund.

· The Village improperly recorded $662 of Intergovernmental receipts to Property and Other Local Taxes receipts.

Fire Fund

· The Village failed to record Fire fund Property and Other Local Taxes receipts gross of related fees in the amount of $515 resulting in an understatement of Property and Other Local Taxes receipts in the amount of $515 and an understatement of General Government disbursements in the amount of $515.

· The Village improperly recorded Intergovernmental receipts in the amount of $1,933 belonging to the Fire fund to Property and Other Local Taxes receipts in the General fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $968 belonging to the Fire fund to Property and Other Local Taxes receipts in the General fund.

Hamilton County SCIP Road Fund

· The Village improperly recorded Intergovernmental receipts in the amount of $70,440 to Miscellaneous receipts in the Hamilton County SCIP Road Fund.

Water Operating Fund

· The Village improperly recorded Miscellaneous receipts in the amount of $1,382 as Charges for Services receipts.

· The Village improperly recorded Intergovernmental receipts in the amount of $597 belonging to the General fund in the Water Operating fund.

· The Village improperly recorded Charges for Services receipts in the amount of $55,621 and Other Financing Sources in the amount of $25,310, both belonging to the Water Operating fund, as Charges for Services receipts in the amount of $80,931 in the ABPA Debt Service Loan fund.

 · The Village improperly recorded Intergovernmental receipts in the amount of $521 belonging to the Water Operating fund to Property and Other Local Taxes receipts in the General fund.

· The Village improperly recorded Miscellaneous receipts in the amount of $98 to Charges for Services receipts.

· The Village improperly recorded Capital Outlay disbursements in the amount of $25,310 belonging to the Water Operating fund to Capital Outlay disbursements in the ABPA Debt Service Loan fund.

Sewer Operating Fund

· The Village improperly recorded Contractual Services disbursements in the amount of $112,948 as Other disbursements.

· The Village improperly recorded Intergovernmental receipts in the amount of $478 belonging to the Permissive Motor Vehicle License Tax fund as Charges for Services receipts in the Sewer Operating fund.

· The Village improperly recorded Fines, Licenses, and Permits receipts in the amount of $8,290 belonging to the General fund as Charges for Services receipts in the Sewer Operating fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $59 belonging to the State Highway fund as Charges for Services receipts in the Sewer Operating fund.

 · The Village improperly recorded Intergovernmental receipts in the amount of $168 belonging to the Sewer Operating fund to Intergovernmental receipts in the Fire fund.

ABPA Debt Service Loan Fund

· The Village improperly recorded Capital Outlay disbursements in the amount of $22,246 as Interest Payments.

· The Village improperly recorded Charges for Services receipts in the amount of $55,621 and Other Financing Sources in the amount of $25,310, both belonging to the Water Operating fund, to Charges for Services receipts in the ABPA Loan fund.

· The Village improperly recorded Interest Payments in the amount of $17,189 and Capital Outlay disbursements in the amount of $7,681, both belonging to the Water Operating fund, to the ABPA Debt Service Loan fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $872 belonging to the General fund to Charges for Services receipts.

· The Village improperly recorded Capital Outlay disbursements in the amount of $25,310 belonging to the Water Operating fund to the ABPA Debt Service Loan fund.

 · The Village classified the ABPA Debt Service Loan fund as a governmental fund; however it should have been classified as an enterprise fund.

Mayor’s Court Agency Fund (also noted in Finding 2017-008)

· The Village failed to record Mayor’s Court activity for 2017 in an Agency Fund in the Uniform Accounting Network (UAN) system. The beginning fund cash balance at January 1, 2017 was $19,193; 2017 receipts (Other Financing Sources – Non-Operating Receipts) were $121,889; 2017 disbursements (Other Financing Uses – Non-Operating Disbursements) were $112,144, and the December 31, 2017 cash fund balance was $28,938.

Internal Service Funds

· The Village’s Christmas fund and We Thrive fund were improperly classified as internal service funds; these funds should have been reported as special revenue funds.

Auditors identified the following conditions related to the Village’s financial statements for the year ended December 31, 2016:

General Fund

· The Village improperly recorded General fund Intergovernmental receipts in the amount of $931 as Charges for Services receipts in the Water Operating fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $596 belonging to the General fund as Charges for Services receipts in the Sewer Operating fund.

· The Village improperly recorded Proceeds of a Line of Credit in the amount of $100,000 to Charges for Services receipts.

· The Village failed to record Property and Other Local Taxes receipts at gross of related fees in the amount of $2,592, resulting in an understatement of Property and Other Local Taxes receipts in the amount of $2,592 and an understatement of General Government disbursements in the amount of $2,592.

· The Village improperly recorded Intergovernmental receipts in the amount of $1,781 as Property and Other Local Taxes receipts.

· The Village failed to record a Principal payment on a line of credit in the amount of $6,299 and an Interest payment on a line of credit in the amount of $788, resulting in a $7,087 overstatement of the General fund cash balance at December 31, 2016.

· The Village improperly recorded Intergovernmental receipts in the amount of $1,313 belonging to the Fire fund ($968), Sewer Operating fund ($84), and Water Operating fund ($261) as Property and Other Local Taxes receipts in the General fund.

Permissive Motor Vehicle License Tax Fund

· The Village improperly recorded Intergovernmental receipts in the amount of $18,016 belonging to the Street Construction Maintenance and Repair fund ($16,665) and the State Highway fund ($1,351) to Property and Other Local Taxes receipts in the Permissive Motor Vehicle License Tax fund.

· The Village improperly recorded Miscellaneous receipts in the amount of $2,520 as Property and Other Local Taxes receipts.

· The Village improperly recorded Intergovernmental receipts in the amount of $1,929 as Property and Other Local Taxes receipts.

Street Construction Maintenance and Repair Fund

· The Village improperly recorded Intergovernmental receipts in the amount of $16,665 belonging to the Street Construction Maintenance and Repair fund as Property and Other Local Taxes receipts in the General fund.

 · The Village improperly recorded Intergovernmental receipts in the amount of $7,967 as Property and Other Local Taxes receipts.

· The Village improperly recorded Miscellaneous receipts in the amount of $266 as Property and Other Local Taxes receipts.

State Highway Fund

· The Village improperly recorded Intergovernmental receipts in the amount of $1,351 belonging to the State Highway fund as Property and Other Local Taxes receipts in the Permissive Motor Vehicle License Tax fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $66 belonging to the State Highway fund as Charges for Services receipts in the Sewer Operating fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $644 as Property and Other Local Taxes receipts.

Fire Fund

· The Village failed to record Property and Other Local Taxes receipts at gross of related fees in the amount of $375, resulting in an understatement of Property and Other Local Taxes receipts in the amount of $375 and an understatement of General Government disbursements in the amount of $375.

· The Village improperly recorded Intergovernmental receipts in the amount of $968 belonging to the Fire fund as Property and Other Local Taxes receipts in the General fund.

Hamilton County Block Grant Fund

· The Village improperly recorded $280 of Miscellaneous receipts as Property and Other Local Taxes receipts.

Water Operating Fund

 · The Village improperly recorded Charges for Services receipts in the amount of $1,102 as Property and Other Local Taxes receipts.

· The Village improperly recorded Miscellaneous receipts in the amount of $236 as Charges for Services receipts.

· The Village improperly recorded Intergovernmental receipts in the amount of $931 belonging to the General fund as Charges for Services receipts in the Water Operating fund.

· The Village improperly recorded Charges for Services receipts in the amount of $32,095 belonging to the Water Operating fund as Charges for Services receipts in the ABPA Debt Service Loan fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $261 belonging to the Water Operating fund as Property and Other Local Taxes receipts in the General fund.

· The Village improperly recorded Miscellaneous receipts in the amount of $266 to Charges for Services receipts.

Sewer Operating Fund

· The Village improperly recorded Intergovernmental receipts in the amount of $596 belonging to the General fund in the Sewer Operating fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $84 belonging to the Sewer Operating fund as Property and Other Local Taxes receipts in the General fund.

· The Village improperly recorded Intergovernmental receipts in the amount of $66 belonging to the State Highway fund as Charges for Services receipts in the Sewer Operating fund.

· The Village improperly recorded Miscellaneous receipts in the amount of $266 as Charges for Services receipts.

ABPA Debt Service Loan Fund

· The Village improperly recorded Charges for Services receipts in the amount of $32,095 belonging to the Water Operating fund to the ABPA Debt Service Loan fund.

· The Village improperly recorded Principal payments on Ohio Public Works Commission (OPWC) loans in the amount of $12,607 and Interest payments on OPWC loans in the amount of $1,954 as Capital Outlay disbursements.

· The Village improperly recorded Principal payments on Ohio Water Development Authority (OWDA) loans in the amount of $2,196 and Interest payments on OWDA loans in the amount of $854 as Capital Outlay disbursements.

· The Village classified the ABPA Debt Service Loan fund as a governmental fund; however it should have been classified as an enterprise fund.

Mayor’s Court Agency Fund

· The Village failed to record Mayor’s Court activity for 2016 in an Agency Fund in the Uniform Accounting Network (UAN) system. The beginning fund cash balance at January 1, 2016 was $9,928; 2016 receipts (Other Financing Sources – Non-Operating Receipts) were $131,933, 2016 disbursements (Other Financing Uses – Non-Operating Disbursements) were $122,668, and the December 31, 2016 cash fund balance was $19,193.

Internal Service Funds

· The Village’s Christmas fund and We Thrive fund were improperly classified as internal service funds; these funds should have been reported as special revenue funds.

The Village’s financial statements and ledgers were not corrected for the errors noted above.

In accordance with the foregoing facts, the Auditor of State issued a Finding for Adjustment against the following funds in the following amounts: Permissive Motor Vehicle License Tax Fund, $36,515; APBA Debt Service Loan Fund, $22,164; and the Sewer Operating Fund, $8,304, and in favor of the following funds in the following amounts: General Fund, $7,068; Street Construction Maintenance and Repair Fund, $33,501; State Highway Fund, $3,617; Fire Revenue Fund, $2,901; Water Operating Fund, $19,300; and the Water County Fund, $596.

-036: Finding for Recovery/Repaid Under Audit – Village Clerk Credit Card Payment

Village Clerk Margaret Dozier made a $276 personal charge to the Village’s PNC credit card account in 2017.

A Finding for Recovery was issued against Margaret Dozier, Village Clerk, in the amount of $276 and in favor of the Village of Addyston, General Fund. 

Ms. Dozier reimbursed the Village $276 on October 31, 2019 after auditors informed her of the personal charge to the Village credit card.

Other findings were identified in the following areas:

-005: Noncompliance – Mayor’s Court Collections

-007: Internal Control Deficiency – Reconciliations

-008: Internal Control Deficiency – Mayor’s Court Bank Reconciliations and Accounting for Mayor’s Court Activity

-009: Noncompliance – Filing of Annual Financial Reports

-010: Internal Control Deficiency – Payroll Cycle Disbursements

-011: Internal Control Deficiency – Payroll Cycle

-012: Noncompliance – Local Tax Withholdings and Remittances

-013: Noncompliance – State Tax Withholdings and Remittances

-014: Noncompliance – Federal Tax Withholdings and Remittances

-015: Noncompliance – Ohio Police and Fire Withholdings and Remittances

-016: Noncompliance – Ohio Public Employees Retirement System Withholdings and Remittances

-017: Noncompliance – Form 1099’s

-018: Internal Control Deficiency – Budgetary Postings

-019:  Internal Control Deficiency – Leave Balances

-020: Noncompliance – Timely Deposits

-021: Noncompliance/ Internal Control Deficiency – Allocation of Interest

-022: Noncompliance – Village Treasurer Training

-023: Noncompliance – Records Retention Schedule

-024: Noncompliance – Law Enforcement Trust Fund

-025: Internal Control Deficiency – Employee Personnel Files

-026: Internal Control Deficiency – Internal Audit Process

-027: Internal Control Deficiency – Audit Committee

-028: Noncompliance – Expenditures in Excess of Appropriations

-029: Noncompliance – Accuracy of W-2 Forms

-030: Noncompliance – Failure to Properly Encumber

-031: Noncompliance – Destruction of Records

-032: Noncompliance – Village Clerk Training

-033: Noncompliance – Negative Fund Balance

-034: Noncompliance – Public Records Training

-035: Internal Control Deficiency – Governmental Fund Balance Classifications

-037: Internal Control Deficiency – Credit Card Policy

-038: Noncompliance/ Internal Control Deficiency – Mayor’s Court

-039: Noncompliance – Minute Records

-040: Internal Control Deficiency – Disaster Recovery Plan

-041: Internal Control Deficiency – Controls Over Utility Receipts and Utility Charges

-042: Noncompliance – Social Security Exemption

-043: Noncompliance – Compensation of the Board of Public Affairs

-044: Internal Control Deficiency – Collection of Mayor’s Court Fines

-045: Internal Control Deficiency – Information System Controls

A full copy of this report is available online.

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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 6,000 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.

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