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Do IT this week: Layering
State faults village officials for mismanagement and 'pattern of sloppiness' for not approving a formal budget and for late payment fines, penalties
By Rick Armon
Beacon Journal staff writer
Published on Friday, Jul 03, 2009
LAKEMORE: State auditors Thursday released another scathing financial report about Lakemore, less than two years after declaring village finances a mess because of missing, incomplete and inaccurate paperwork.
Auditors have been able to piece together enough records from 2005 and 2006 to remove the village from the state's ''inauditable'' list — a group of communities doing such a poor job of record keeping that the state cannot conduct a complete audit.
But the report issued Thursday criticizes Lakemore officials for severe mismanagement and cites an ''overall pattern of sloppiness,'' said Steve Faulkner, a spokesman for state Auditor Mary Taylor.
The problems include Village Council not passing a formal budget, the village incurring penalties and fines for late payments, and workers being paid more than they should have been. Auditors did not find any criminal activity, however, Faulkner said.
The report came as no surprise to Mayor Mike Kolomichuk, who was elected in 2007.
''First of all, it's pretty evident that this village was about as screwed up as it possibly could get,'' he said. ''There were no checks and balances. You had people doing whatever the hell they wanted to do and nobody questioned what they did.''
He said the issues have been corrected.
But Faulkner said the problems have persisted.
''It is my understanding that these issues are continuing to exist as we attempt to conduct their audit for the next fiscal years,'' he said. ''It is our hope that village officials are able to correct the situations they have.''
Lakemore, a village of about 2,500 residents, has significant financial problems, Kolomichuk said. The village has lost several businesses and tax revenue, he said.
Earlier this year, the village opted to disband its police department because of money problems and contract with Springfield Township. The village and township are working on a separate agreement dealing with the fire department.
''The lack of fiscal oversight could contribute to Lakemore's current budget shortfalls,'' Taylor said in a prepared statement. ''The residents of Lakemore deserve to know exactly how their tax dollars are being spent and I strongly encourage village officials to improve the oversight and accountability of financial record keeping and decision making.''
The audits — one for 2005 and another for 2006 — show:
• Disorganization in the utility department and a lack of records documenting water-meter readings.
• Mismanagement of employee compensation. For example, the village incurred $3,445 in penalties for underpayment and late payments in 2005 for the police portion of the Ohio Police & Fire Pension Fund.
The utility clerk also was overpaid by $2,660 in 2005 and $3,836 in 2006. The clerk had been paid at a higher per hour rate than approved by the council. Council members said they had intended for the clerk to make the higher rate but had not formally approved it, the audit says.
• Failure to approve routine financial reports. For example, Village Council didn't receive or approve financial reports.
The Village Council also failed to pass a formal budget in 2005 and approved an insufficient budget the next year.
The full audits are available online at http://www.auditor.state.oh.us.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
LAKEMORE: State auditors Thursday released another scathing financial report about Lakemore, less than two years after declaring village finances a mess because of missing, incomplete and inaccurate paperwork.
Get the full article here.
Comments
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mogadore, oh
Posted 11:02 AM, 07/03/2009
So let's get this right, it sounds like Springfield taxpayers are going to pick up the tab for Lakemore's problems. The Young and Mealy show has already started to break Springfield's budget without adding Lakemore's problems to the mess. It is going to be a good election year!
Akron, OH
Posted 01:24 PM, 07/03/2009
Right now as I read the article, I could hear the theme song from the "Ringling Brothers and Barnum & Bailey Circus" blasting through my home!
Trapeze artists flying without a net!
