Final Audit of Village of Smithfield Includes Findings for Recovery

Tuesday, November 17, 2020





For Immediate Release:                                                      

November 17, 2020                                                               


Final Audit of Village of Smithfield Includes Findings for Recovery


Columbus – Auditor of State Keith Faber’s Office released the final audit of the Village of Smithfield in Jefferson County covering years 2018-2019, which included a finding for recovery against the Village.


Public employees who are members of the Ohio Public Employees Retirement System (OPERS) were required to contribute 10% of their salary in 2019 and 2018 to the OPERS employees' fund. The fiscal officer of each local authority is responsible for deducting the contribution, as well as a Medicaid deduction, from each member on every payroll period. The employing government is also required to withhold state income taxes and report and remit those tax matters to the appropriate tax authorities and to the recipients.


 The Village failed to meet these responsibilities resulting in a finding for recovery against the Village of Smithfield, and McBane Insurance and Financial Services, their insurance company, jointly and severally, for $2,702 in the favor of the OPERS. On October 2, 2020, the Village of Smithfield issued a check for that amount made payable to the OPERS.


Another finding for recovery was issued against George Vudrogovic, Fiscal Officer, for a variance in the hours worked versus hours paid, totaling $84. On October 11, 2020, Mr. Vudrogovic issued a money order for that amount made payable to the Village of Smithfield.


On October 2, 2014, the Village was placed in Fiscal Caution by the Auditor of State and was subsequently declared to be in a state of fiscal emergency on February 19, 2015.


On November 5, 2019, the residents of the Village of Smithfield voted to surrender the Village’s corporate powers. The election results were certified by the Jefferson County Board of Elections on November 20, 2019, at which time the Village’s corporate powers were officially surrendered and a financial report, ending November 20, 2019, was completed.


The Village of Smithfield and Smithfield Township entered into a transition agreement that sets forth the services to be provided to Village residents that includes police protection and street maintenance and repairs. Additionally, the transition agreement set forth the process for the transfer of real estate and other assets from the Village to the Township. Subsequent to the completion of a final transition audit, the transition period will end and Smithfield Township will then provide all services to the residents.


This final audit conducted by state auditors closes that transition period and the Village is dissolved.


A full copy of this report is available online.



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.