BUTLER TOWNSHIP — A former Butler Township fiscal officer and her bonding company are responsible for repaying the township $22,269 after she failed to submit employee tax withholdings for more than four years, the Ohio Auditor’s Office said Thursday.
“Shirley Baker and her bonding company (Western Surety Company) are jointly and severally liable for the total, which was included in an audit of the township’s finances from Jan. 1, 2020, through Dec. 31, 2021,” state Auditor Keith Faber’s office said in a written press release.
Butler served as the Butler Township fiscal officer from April 2016 through March 2024, according to Faber. The township in northern Richland County has a population of around 1,200.
“During the first half of her time in office, she did not file quarterly remittances or tax forms to the Internal Revenue Service, incurring penalties, late fees and interest,” the auditor said.
“Paying late fees and penalties that could have been avoided by remitting withholdings on time does not qualify as expenditure of funds for a public purpose,” the state auditor said.
According to Faber, Baker didn’t file:
— 941 forms with the IRS for quarterly remittances from the second quarter of 2016 through the fourth quarter of 2020, a total of 19 consecutive quarterly filings.
— W-3 forms for tax years 2016 through 2020.
— W-2 forms for tax years 2016 through 2020.
Employers use Form 941 to report income taxes, Social Security tax or Medicare tax withheld from employee paychecks.
As a result, Faber said, the township incurred and paid $22,269 in penalties, late fees and interest, which Baker and her bonding company are now responsible for repaying.
As a result of the audit, the township and current Fiscal Officer Kathryn Hout took the following corrective actions:
— the township will review the recommended documents and review its procedures for preparing financial statements.
— the township will file tax returns and make remittances on a timely basis.
— the township fiscal officer will submit budgeted receipts and appropriations to the Richland County Auditor’s Office for certification. The fiscal officer will have all appropriations approved before entering them into the uniform accounting network used by the state auditor’s office.
— township trustees and the fiscal officer will compare appropriations and estimated receipts in the UAN to budget documents filed with the county auditor on a regular basis to ensure they agree.