The auditor’s office issued a finding for recovery about $2,100 against Jennifer McCombs, village fiscal officer, and her bonding company, Western Surety Company. The finding is in favor of the village’s general fund and stemmed from penalties that resulted from the late payment of retirement holdings.
Due to insufficient policies and procedures, the village incurred untimely payment penalties and interest charges in the amount of $2,159, according to the auditor finding. McCombs failed to pay the required withholdings to the Ohio Public Employees Retirement System.
“These incurred costs were unnecessary expenditures that did not serve a proper public purpose and could have been avoided had the funds been remitted by the required due dates,” auditors noted.
Other findings
The auditor’s office also listed five other findings related to accurate financial reporting, ARPA funds, timely deposits, accounting records and bank reconciliations, resulting in the village council voting to no longer have Mayor’s Court and to have all court cases be sent to the local municipal court.
For 2021 and 2020, Mayor’s Court activity wasn’t posted in the accounting system and not included in the unaudited financial statements. The auditor recommended the village implement additional control procedures to help prevent, detect and correct potential misstatements in the financial statements before submitting to the auditors, and review the adjustments noted during the audit and incorporate them into future reports. The audited financial statements, note disclosures and village records have been adjusted for the misstatements.
The village couldn’t find various bank statements for their Mayor’s Court or support for various receipts and spending in a timely manner. This information was later found after multiple follow-up inquiries and the support was determined to be sufficient. The auditor recommended the village maintain all required accounting records in a manual or computerized format, in a central location and in an organized manner. Internal controls are being updated to rectify the deficiencies.
The village was unable to provide evidence that timely monthly bank reconciliations to zero unidentified differences were being completed for its Mayor’s Court bank account. The auditor recommended the village to timely reconcile all bank accounts to zero unidentified differences and present the completed bank statements to council on a monthly basis for review and approval.
In the above three findings, the village council voted to no longer have Mayor’s Court.
During 2021, a separate fund for grant activity related to the American Rescue Plan Act (ARPA) wasn’t created and receipts were recorded into the general fund. The auditor recommended the village follow the Ohio Revised Code and create new funds as required. Adjustments were made in the financial statements and note disclosures to properly account for receipts related to ARPA monies, and the correct separate fund has been established for ARPA.
Funds of varying amounts were held longer than the allowable number of business days without depositing them, which resulted in the cash not being available to spend of invest. The auditor recommended the village monitor collections and ensure money is deposited. The village has hired another office staff member, and monies are being deposited in a timely manner.
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