For Immediate Release:                                                      

December 14, 2021                                                                

                                                                                               

Village of Addyston Report Shows Recordkeeping Train Wreck

 

Columbus – Auditor of State Keith Faber’s Office released the 2018-2019 Village of Addyston (Hamilton County) financial engagement. The report included 42 findings, including multiple finding for recovery.

 

Many of the findings showed a concerning lack of effort into basic record keeping by failing to post receipts, file financial statements and performing reconciliations. Lack of controls contributed to the findings for recovery and payroll issues.

 

“The Village should be ashamed of this audit report,” said Auditor Faber. “To have over 40 findings that show a complete disregard for the law and the financial wellbeing of the community is a disappointment to say the least.”

 

Findings for Recovery

The Village paid the Ohio Public Employees Retirement System (OPERS) penalties and interest in the amount of $300 during 2018 and $162 during 2019. The Village paid the Ohio Police and Fire Retirement System (OP&F) penalties and interest in the amount of $550 during 2018 and $250 during 2019. Village Clerk Margaret Ann Dozier was responsible for making timely payments to the pension systems and thus a Finding for Recovery was issued against her, and her bonding company, Public Entities Pool of Ohio, in the amount of $1,262, and in favor of the Village of Addyston, General Fund.

 

The Village made errors related to OPERS withholdings and had unsupported negative tax offset withholdings which increased gross pay amounts during 2019 as follows:

· The Village failed to withhold a total of $80 of employee contributions from Samuel Hickey's pay for the three pay periods. The Village also had an unsupported negative tax offset withholding of $3 to Mr. Hickey’s pay for the pay period ending December 28, 2019.

· The Village failed to withhold a total of $233 of employee contributions from Ryan Jackson's pay for the three pay periods. The Village also had an unsupported negative tax offset withholding of $1,037 to Mr. Jackson’s pay for the pay period ending December 15, 2019.

· The Village had an unsupported negative tax offset withholding of $313 to Mr. William Nixon's 2019 pay for the pay period ending December 15, 2019.

· The Village failed to withhold a total of $222 of employee contributions from Kaitlin Rager's pay for the nine pay periods. The Village also had an unsupported negative tax offset withholding of $163 to Ms. Rager’s pay for the pay period ending December 15, 2019. The Village Clerk received or collected the money used to make the improper payments.

 

A Finding for Recovery was issued against the Samuel Hickey for $83 (in favor of the General Fund), Ryan Jackson for $1,270 (in favor of the General Fund), William Nixon for $313 (in favor of the Street Construction Maintenance and Repair Fund) and Kaitlin Rager for $385 ( in favor of the General Fund). A Finding for Recovery was also issued against Village Clerk Margaret Ann Dozier, and her bonding company, Public Entities Pool of Ohio, jointly and severally, in the total amount of $2,051 in favor of the Village of Addyston, General Fund in the amount of $1,738 and the Street Construction Maintenance and Repair Fund in the amount of $313.

 

During 2019, the IRS assessed and the Village paid penalties in the amount of $11,180 due to late filing of W-2 forms. The Village Clerk was responsible for timely filing W-2's with the Social Security Department. A Finding for Recovery was issued against Margaret Ann Dozier, Village Clerk, and her bonding company, Public Entities Pool of Ohio, in the amount of $11,180, in favor of the Village of Addyston, General Fund.

 

During 2018, the Village incurred and paid credit card late fees of $241. The Village Clerk, Margaret Ann Dozier, was responsible for making timely payments of credit card balances so a Finding for Recovery was issued against Margaret Ann Dozier, Village Clerk, and her bonding company, Public Entities Pool of Ohio, in the amount of $241, in favor of the Village of Addyston, General Fund.

 

Some of the findings for recovery were repaid such as the $2,368 that was owed to the pension after only .012% was withheld instead of the required 12.25% and payroll overpayments totaling $279.

 

Below is a complete list of findings:

Finding for Recovery Repaid Under Audit/Noncompliance – Pension Payments

Finding for Recovery/Noncompliance – Penalties and Interest Paid to Retirement Systems

Finding for Recovery Repaid Under Audit/Noncompliance – Payroll Overpayments

Finding for Recovery/Noncompliance – OPERS Payment and Negative Tax Offset Withholdings

Finding for Recovery/Noncompliance – Penalties Paid to the IRS

Finding for Recovery/Noncompliance – Credit Card Fees

Internal Control Deficiency – Cash Reconciliations

Internal Control Deficiency – Financial Reporting

Internal Control Deficiency – Controls over Payroll Cycle

Internal Control Deficiency – Leave Balances

Noncompliance – Local Tax Withholdings and Remittances

Noncompliance – State Income Tax Withholdings and Remittances

Noncompliance – Federal Tax Withholdings and Remittances

Noncompliance – OPERS Withholdings and Remittances

Noncompliance – OPERS Remittances

Noncompliance – OP&F Withholdings and Remittances

Noncompliance – Accuracy of W-2 Forms

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

Noncompliance/Internal Control Deficiency – Mayor’s Court

Internal Control Deficiency – Controls over Utility Receipts Cycle and Utility Charges

Internal Control Deficiency – Budgetary Postings

Noncompliance – Social Security Withholdings

Noncompliance – Minutes Records

Noncompliance – Credit Card Policy

Noncompliance – Failure to Properly Encumber

Noncompliance – Annual Appropriation Measure

Noncompliance/Internal Control Deficiency – Allocation of Interest

Noncompliance – Appropriations In Excess of Estimated Resources

Noncompliance – Negative Fund Balances

Noncompliance – Expenditures in Excess Appropriations

Noncompliance – Timely Deposits

Noncompliance – Village Clerk Training

Noncompliance – Village Treasurer Training

Noncompliance – Public Records Training

Noncompliance – Destruction of Records

Noncompliance – Filing of Annual Financial Reports

Internal Control Deficiency – Payroll Cycle

Noncompliance – Law Enforcement Trust Fund

Internal Control Deficiency – Audit Committee

Internal Control Deficiency – Internal Audit Process

Internal Control Deficiency – Information Systems Controls

Internal Control Deficiency – Disaster Recovery Plan

 

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.