Audit finds ex-township secretary overpaid herself
Auditor Steven Cypher advised Independence Township supervisors to “talk to all involved parties” regarding the issuance of extra payroll checks before taking legal action.
David Singer/Observer-Reporter An audit of 2015 data for Independence Township found payroll discrepencies that prompted a vote on another 5-year audit into payroll accounts.
INDEPENDENCE – An audit examining 2015 financial data for Independence Township found the former secretary had written herself $10,340 worth of checks in extra pay.
According to the audit by Cypher and Cypher, Mildred Ostop added $3,240 to her salary of $51,000 in 2015, and a collective $7,100 of checks that were issued as compensation for unused vacation days.
The audit noted that “not only is it an unusual practice (to write checks for unused vacation days) … no other salaried municipal employee had done such.”
Supervisor Lou Brandeburg said in response to an audience question that blank checks were passed around for some administrative staff as the board trusted municipal employees to sign off on their salaries.
“That practice has stopped. It was past practice; it was wrong, and this audit shows why it has had to stop,” Brandenburg said.
Solicitor Gary Sweat said there may be legal action, but the board has to discuss the issue further. Ostop was replaced by Cyndi Cecchini in December. It’s not clear whether Ostop resigned, was fired or forced to resign. The board held a special meeting in April to hire Phillip J. Binotto from the Pittsburgh employment law firm, Steptoe & Johnson, related to an undisclosed personnel matter.
“I advise the board to at least talk to (Ostop and all parties) involved before moving forward,” auditor Steven Cypher said.
Discrepancies in payroll and an unattended account holding $25 that was tied to former supervisors moved Cypher to suggest the township look at the past five years of payroll books. After discussion among Cypher, Sweat and the board of supervisors, the board unanimously approved a strict payroll audit extending back five years. Cypher would be hired at a rate of $90 per hour and said he could complete work in a single day if all documents were gathered beforehand.
The 2015 numbers from Cypher showed the township incurred a debt of $804 going into 2016 after expenses of $492,154 ate away at total revenues of $491,350. The audit also showed variances in budgeting in certain accounts. The board apparently anticipated less revenue, as it came in at $122,000 more than projections. The largest variances were real estate and local taxes, while the largest under-budget variance was roadwork. The general fund actual expenditures were $195,000 under-budgeted.
“Overall, Independence Township is one of the better-run municipalities we’ve looked at,” Cypher said. “The board just has to note what was happening with payroll and inactive accounts.”
Board chairman Tom Jennings said in response to an audience question at the end of the meeting about the debt on the municipal building that the remaining mortgage was $430,000.