TROY TOWNSHIP — A former Troy Township fiscal officer and his bonding companies are responsible for repaying $8,094.43 due to late fees and also sales taxes that should not have been paid.
Findings for recovery totaling that amount were announced Tuesday by Ohio Auditor Keith Faber after an audit of township finances covering Jan. 1, 2022, through Dec. 31, 2023, was completed.
Former fiscal officer Dean Strohminger and his bonding companies are jointly and severally liable for the findings, Faber said.
The full report is available online at ohioauditor.gov/auditsearch/
It’s the second such report from Faber regarding a Richland County township fiscal officer in the last several weeks.
The state auditor announced in April that a former Butler Township fiscal officer and her bonding company were responsible for repaying the township $22,269 after she failed to submit employee tax withholdings for more than four years.
Strohminger served as Troy Township fiscal officer from April 2012 through February 2023, according to Faber.
(Below is a PDF of a letter from Ohio Auditor Keith Faber to Troy Township trustees regarding findings for recovery against former township fiscal officer Dean Strohminger and his bonding companies.)
Between 2019 and 2023, auditors determined late fees, penalties, and interest totaling $7,202.93 were charged to the township due to the late payments of tax, retirement system, and other withholdings; credit card services; and other bills.
Auditors noted, “These late fee charges would have been avoided had the funds been remitted by the required due dates,” Faber said.
According to the state auditor:
- Payroll withholdings were paid late to the Ohio Department of Job and Family Services resulting in late fees in the amount of $903.60 for various quarterly returns during 2019, 2020 and 2021.
- Payroll withholdings were paid incorrectly and/or late to the Internal Revenue Service
resulting in late fees, penalties, and/or interest in the amount of $1,363.55 for various quarterly returns during 2019 and 2022. - Payroll withholdings were paid late to the Ohio Public Employees Retirement System resulting in late fees in the amount of $635.70 for various months during 2020, 2021, 2022 and January 2023.
- A duplicate payment was made to OPERS in November 2022, with the township able to recover all funds from OPERS except for $575.64.
- Payroll withholdings were paid late to the State of Ohio resulting in late fees and penalties in the amount of $1,053.87 for 2019 state income tax, various months during 2022 and January 2023.
- Payroll withholdings were paid late to the Village of Lexington resulting in late fees and penalties in the amount of $811.86 for August 2020, February 2022, July 2022, and January 2023.
- Late fee payments were made to the Ohio Bureau of Worker’s Compensation in the amount of $107 for 2021 and 2022.
- Late fee payments were made to Richland Bank for credit card services in the amount of $178.88 for various months in 2020 and 2021.
- There were various other payments that were determined to not be a proper public purpose for the township in the amount of $1,572.83.
As a result, the township incurred and paid $7,202.93 in penalties, late fees, interest, and other improper payments, according to Faber.
“The failure to pay withholdings and other payments timely is considered gross negligence,” the state auditor said. “Late payment fees, penalties and interest incurred through gross negligence are illegal expenditures which do not serve a proper public purpose.
“These late fee charges would have been avoided had the funds been remitted by the required due dates.”
Additionally, due to internal control deficiencies, the township paid $891.50 in sales taxes on various purchases.
Auditors wrote, “Since the township was not legally required to pay the sales tax on these purchases, these expenditures were not for a valid public purpose.”
Faber said, “Due to deficiencies in the township’s internal controls over compliance, the township paid sales tax totaling $891.50 on various purchases during 2020, 2021, 2022 and 2023. Fiscal Officer Dean Strohminger signed the checks involving the sales tax.
“Since the township was not legally required to pay the sales tax on these purchases, these expenditures were not for a valid public purpose.”
Established in 1814, Troy Township is in southern and western Richland County. Covering 22.3 square miles, it includes the Village of Lexington and is home to approximately 7,000 residents.
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 Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.