Public Affairs

Contact: Allie Dumski

Press Secretary

614-867-1770

For Immediate Release:                                                      

March 30, 2021                                                                      

 Multiple Findings for Recovery Issued in Village of Octa Audit

Columbus – Auditor of State Keith Faber’s Office released the 2018-2019 financial audit of the Village of Octa in Fayette County. The audit identified overpayments, lack of documentation for expenditures, and late payments which led to multiple findings for recovery worth almost $6,000.

Village Council members are to be paid $150 per meeting and $25 for special meetings, as authorized in the minute records on July 11, 2017. During 2019, Council Members were paid for four special meetings, however minutes were provided for only two special meetings. As a result, Council Members Dianna Anders, Winnie Gregory, Linda Turner, Michael Turner, Amanda Wickline, and Ron Ison were over paid by $50. In addition, Council Member Ron Ison attended ten regular meetings, but was paid $100 more than the authorized amount.

The checks issued to the council members above were authorized by Fiscal Officer Penny Johnson. Ms. Johnson and her bonding company will be secondarily jointly and severally liable in the amount of $400 and in favor of the Village of Octa’s General Fund.

Additionally, the Village did not provide supporting documentation for the following expenditures to substantiate that the payments were for a proper public purpose.

• During 2019, the Village did not provide support to document proper public purpose for one expenditure in the amount of $500. Fiscal Officer Penny Johnson also utilized Village monies to purchase gift cards in the amount of $1,600; however, the Village could not provide any receipts for the subsequent use on these gift cards to substantiate that they were used for a proper public purpose.

• During 2018, the Village did not provide support to document proper public purpose for 24 credit card expenditures totaling $814. Tyler Ison was responsible for credit card charges in the amount of $739, and Penny Johnson was responsible for $75 worth of purchases for which detailed supporting documentation was not maintained to substantiate that payments were for a proper public purpose.

A finding for recovery was issued against Penny Johnson, Fiscal Officer, and her bonding company in the amount of $2,175 in favor of the Village of Octa’s General Fund and against Tyler Ison, in the amount of $739 in favor of the Village of Octa’s Park and Recreation Fund.

The payments for the credit card expenditures that Mr. Ison was responsible for, were authorized by Fiscal Officer Penny Johnson making her and her bonding company secondarily jointly and severally liable in the amount of $739.

Finally, in 2019 and 2018, the Village was assessed penalties and interest charges for late payments of credit card bills, debt, federal taxes, state taxes, unemployment taxes and retirement contributions. The Village also paid sales tax on some credit card transactions.

Late Payments/Sales Tax                                         2019                2018

Visa – Merchants Bank                                              $ -                    $227

Debt- Merchants Bank                                                   -                    160

Internal Revenue Service                                           344                  -

State of Ohio                                                               787                  750

Ohio Job and Family Services – Unemployment       100                  -          

Ohio Public Employees Retirement System              4                      16       

Sales Tax                                                                    69                    53

The payment of late fees and penalties due to the inability of the Fiscal Officer to make timely payment is not a proper public purpose. A finding for recovery was issued against Penny Johnson, Fiscal Officer and her bonding company in the amount of $2,510 in favor of the Village of Octa’s General Fund in the amount of $2,082 and the Park and Recreation Fund in the amount of $428.

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.