Treasurer’s Failure to Pay Employee Taxes Leads to $15,907 in Penalties, Interest

Tuesday, April 11, 2017

Columbus – The Mahoning Valley Regional Council of Government (Mahoning County) was charged $15,907 in late fees, penalties and interest for failing to pay withheld income taxes and pension contributions during 2014 and 2015, state auditors found.

“Taxpayers should never have to pay a cent for a government’s late fees or penalties,” Auditor Yost said. “The payments for these easily-avoidable charges provided zero return on investment for taxpayers.”

The audit released today determined that Treasurer Blaise Karlovic withheld required employee contributions but did not submit the funds to the state, federal government and State Teachers Retirement System (STRS).

As a result, the council of government was charged and paid the following amounts in late fees, penalties and interest:

  • Federal Government: $13,565
  • STRS: $2,018
  • State of Ohio: $324

Auditors issued a $15,907 finding for recovery against Karlovic. The full amount of the finding was repaid on March 22, 2017. 

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 5,900 state and local government agencies.  Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Beth Gianforcaro
Press Secretary