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Do IT this week: Layering
By Rick Armon
POSTED: 01:06 p.m. EDT, Jul 02, 2009
Beacon Journal staff writer
State auditors today released another scathing financial report on 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 its ''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 today 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, 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 small village of about 2,500 residents, has significant financial problems, Kolomichuk said. The village has lost several businesses and tax revenue, he added.
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.
• And 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.
Beacon Journal staff writer
State auditors today released another scathing financial report on 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 its ''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 today 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, 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 small village of about 2,500 residents, has significant financial problems, Kolomichuk said. The village has lost several businesses and tax revenue, he added.
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.
• And 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.
Comments
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Lakemore, Oh
Posted 01:19 PM, 07/02/2009
With the current Village Council, the current Fiscal Officer, and the current Mayor---I'm confident that the issues of the past will not haunt us into the audits of 2007, 2008, and 2009.
That "good ol' boy" mentality is long gone and buried--which is what put the Village in the state of confusion it was in since years ago.
Time to step into the future with the team we now have and chalk it up to a big learning experience for the Village.
North Canton, OH
Posted 02:01 PM, 07/02/2009
The Second Law of Thermodynamics in Action.
Kent, Oh
Posted 02:55 PM, 07/02/2009
How screwed up does a government need to get before citizens stop paying taxes?
Perrysburg, OH
Posted 03:14 PM, 07/02/2009
Rumor in the village has them unable to make payroll w/in 60 days.
Akron, Oh
Posted 05:12 PM, 07/02/2009
I'm sure the Mayor has his hands full with the current council. They have shown they can't do the job. Most council members are not qualified .. is anyone suprised that things were a mess. I say get rid of the whole council and start over. Give the Mayor someone with half-a-brain and get rid of the dead wood.
Lakemore, Oh
Posted 06:17 PM, 07/02/2009
But this is an entirely new administration than from days gone by. The fiscal nightmare started years ago with an unqualified fiscal officer using non-standard means for accounting. It got worse as time went on until our former mayor was voted out.
Give it time.
It didn't get all screwed up overnight, and its going to take longer than overnight to fix it.
Akron, OH
Posted 07:41 PM, 07/02/2009
Lorie - Who remains on the current council from the past and who is responsible for this mess? Lets see- John Skiper, Pat Fioca, Marlene Hill, Tammy Koontz, Gary Bennitt. In my book thats 5 out of 6. None seem to be able to lead lakemore. None seem to have the ability to understand whats going on let alone get anything done! Former mayor Carter and Bill Bookman robbed the place blind and if they didn't then they were a dumb as a box of rocks - maybe a little of both! Demand those on council be removed on grounds of non-performance and hope like hell you finally get someone on council that has some brains and backbone. The Village is on life support and Mayor Kolomichuck seems to trying everything to save it .. it maybe a little late though but you must give him credit for trying. God bless the village and the Mayor.
Lakemore, Oh
Posted 08:02 PM, 07/02/2009
The previous Council members (and Carter) should move out of the Village in SHAME. They should be personally held responsible for the Village of Lakemore being bankrupt!!! The PRESENT council is all the same but one person. Great! Mayor Mike is trying to SAVE the Village and what is the present council doing? NOTHING Just like before. VOTE in November for new council. Think about it... It took this council SEVEN months to "think" about voting for Mayor's Court. Someone should give a dictionary to each Council Member. Mayor's Court = Money. Money = paying bills. Paying Bills = SAVING THE VILLAGE OF LAKEMORE.
WAKE UP COUNCIL. The Village of Lakemore is watching you. It's for sure the Lakemore Police Department can't .... Oh yeah you got rid of them!!! and...Oh yeah, Council... you are getting rid of the Fire Department, too! Way to go.
Mayor Mike hold expose them for the idiots that they are.
