New Castle News


March 26, 2014

Audit shows more than overtime issues

NEW CASTLE — A forensic audit of the Lawrence County Career and Technical Center finances turned up more than alleged unauthorized overtime pay.

The audit also showed apparent problems in accounting of the school’s finances while Andrew J. Tommelleo was director and business manager and Chastity Williams was assistant business manager.

The audit, conducted by Zelenkofske-Axelrod of Wexford, covered March 1, 2010, through Aug. 31, 2013.

In addition to alleged unauthorized overtime pay to Williams, the auditors found:

•Time sheets for April through June 2013 for hours Williams had billed to Jake’s Wellness fitness program. Some work was noted to have been completed during the school’s normal hours and traced to invoices via computer.

•Federal and state payroll taxes had not been timely filed.

•Reconciliations had not been done for any of the school’s nine bank accounts, including general fund checking and payroll.

•In August 2012, state withholding taxes had been overpaid by $27,830 because of duplicate remittances.

•The school had received a notice from the Internal Revenue Service dated Oct. 8, 2012, for the underpayment of federal withholding, Social Security, Medicare and payroll taxes totaling $39,042. The notice indicated penalty and interest on the underpayment of $6,136. A total of $45,178 was paid to the IRS Oct. 12, 2012.

•The center had been using the wrong IRS mileage reimbursement rate since 2008.

•Files did not contain current information regarding employees’ current salary and wages, based on discussions with center personnel.

In their report, the auditors also prescribed remedies for the school to take to eliminate such issues in the future.


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