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Press Release Ohio Auditor of State

Over $1.7 Million in Findings for Recovery Included in South Central Ohio Computer Association Regional Council of Governments Audit

Tuesday, June 15, 2021

For Immediate Release:                                                     

June 15, 2021                                                             

                                                                                               

Over $1.7 Million in Findings for Recovery Included in South Central Ohio Computer Association Regional Council of Governments Audit

 

Columbus – Auditor of State Keith Faber’s Office released the 2015-2016 financial audit of South Central Ohio Computer Association Regional Council of Governments (the Council) in Pike County. The audit included multiple findings of noncompliance and material weakness and findings for recovery totaling $1,718,827. The Auditor’s Special Investigations Unit was involved with the audit to address fraud concerns.

 

The findings for recovery are as follows:

 

FINDING FOR RECOVERY 1

In February 2016, representatives from the Council and the Metropolitan Educational Technology Association (META) Solutions contacted the Auditor of State’s Office regarding fraud concerns at the Council. META entered into a management contract with the Council on January 1, 2016, and soon thereafter irregularities were identified. Council and META representatives identified extensive purchases on Council credit cards, including a large amount of Apple purchases by the former Council Executive Director, Shawn Clemmons. They also discovered capital assets were not being properly tracked. There were additional concerns Mr. Clemmons had used the credit card to pay Council invoices but would not provide documentation for purchases to the Finance Department.

 

During the Period, July 1, 2012 through December 31, 2015, Mr. Clemmons charged $3,871 for personal or other non-Council related transactions on the Council’s US Bank credit card issued in his name. In addition, auditors identified $1,706,387 charged to Mr. Clemmons Council issued US Bank credit card that was not supported by documentation. Approximately $1.15 million of the unsupported charges were to Time Warner Cable for internet and telecommunication services. Due to the lack of documentation maintained by the Council, auditors were unable to determine whether these cable services and other unsupported expenditures were for purposes related to the Council. The remaining $556,320 in unsupported items paid for by the Council included technology, food, hotels and other miscellaneous expenses.

 

Mr. Clemmons also received reimbursement payments for mileage during the Period. Auditors identified two reimbursements totaling $944 that were not supported by a travel reimbursement form; therefore, auditors could not determine where Mr. Clemmons traveled, the exact mileage, and whether the travel was for purposes related to Council operations. In addition, auditors identified 10 reimbursement payments totaling $982 that do not appear to be for purposes related to Council operations.

 

A finding for recovery for public monies illegally expended was issued in the amount of $1,712,184 against Shawn Clemmons in favor of the Council. During the Period, Sandra Benson was the fiscal officer and was responsible for preparing disbursements and maintaining support for expenditures. Accordingly, Ms. Benson and her bonding company, Travelers Casualty and Surety Company of America, are jointly and severally liable in the amount of $1,707,331.

 

FINDING FOR RECOVERY 2

As the fiscal officer for the Council, Ms. Benson was responsible for preparing disbursements and maintaining support for expenditures. Auditors identified three payments totaling $1,316 charged on the Council’s US Bank credit card issued to two Council departments not supported by detailed receipts or invoice documentation and 473 unsupported items purchased, totaling $22,805 on three of the Council’s Walmart and Sam’s Club credit cards.

 

Additionally, auditors identified three payments totaling $9,026 that were not supported by detailed receipts or invoice documentation, prohibiting auditors to determine whether the expenditures were for purposes related to the Council.

 

Ms. Benson also received travel reimbursements from the Council totaling $257 without supporting documentation.

 

A finding for recovery was issued in the amount of $33,404 against Sandra Benson and her bonding company, Travelers Casualty and Surety Company of America, jointly and severally, in favor of the Council.

 

FINDING FOR RECOVERY 3

The following employees received travel reimbursements during the Period that were not properly supported by documentation resulting in additional findings for recovery against the individual employees totaling $1,256 in favor of the Council:

  • Barbara Clemmons: $ 770
  • Justin Brewster: $141
  • James Tuggle: $345

 

During the Period, Sandra Benson was the fiscal officer and was responsible for preparing disbursements and maintaining support for expenditures. Ms. Benson and her bonding company, Travelers Casualty and Surety Company of America, will be jointly and severally liable in the amount of $1,256, and in favor of the Council.

 

FINDING FOR RECOVERY 4

According to Mr. Clemmons’ approved employment contract as Executive Director, he had the option to be reimbursed up to 10 vacation days annually at his daily rate of pay. During the Period, Mr. Clemmons received compensation for 20 vacation days; however, his vacation leave balance was only reduced by 10 days. Upon his separation from employment, Mr. Clemmons was compensated for his accrued and unused vacation leave. Mr. Clemmons received compensation for 33.34 days, totaling $16,670; however, he should only have been compensated for 23.34 days. Mr. Clemmons was over compensated by $4,667.

 

A finding for recovery was issued against Shawn Clemmons in the amount of $4,667 in favor of the Council.

 

Sandra Benson, was responsible for Council payroll disbursements and maintaining and updating leave balances and will be jointly and severally liable with her bonding company, Travelers Casualty and Surety Company of America, in the amount of $4,667, and in favor of the Council.

 

FINDING FOR RECOVERY 5

Sandra Benson was hired as the Council’s fiscal officer, beginning in June 2012, at a rate of $45 per hour. Ms. Benson was also the treasurer of the Chesapeake Union Exempted Village School District (Chesapeake Union) through August 2012. An examination of hours Ms. Benson recorded on her Council timesheet conflicted with hours Ms. Benson recorded on her Chesapeake Union timesheet, resulting in an overpayment of $720.

 

A finding for recovery for public monies illegally expended is hereby issued against Sandra Benson, and her bonding company, Travelers Casualty and Surety Company of America, in the amount of $720 in favor of the Council.

 

Additional findings include:

  • Noncompliance/Material Weakness – Timely Filing of Annual Report
  • Material Weakness – Monthly Bank Reconciliations and Board Monitoring
  • Noncompliance/Material Weakness – Maintaining Documentation
  • Material Weakness – Financial Reporting
  • Material Weakness – Segregation of Duties

 

A full copy of this report is available online.

 

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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.