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Nearly $6,000 in Insurance Overpayment at Clark Township

Tuesday, May 15, 2012

Columbus – An audit of Clark Township (Coshocton County) released today by Auditor of State Dave Yost found $5,889 in overpayments for employee health insurance reimbursements to two employees.

Townships that elect not to provide health insurance to employees may, under Ohio law, reimburse employees who obtain insurance elsewhere for actual out-of-pocket costs. Clark Township followed proper procedures in establishing its health care reimbursement practices, but failed to document actual out-of-pocket costs.

Trustee Ty Myers obtained health insurance through his spouse at a cost of $6,936 for 2010 and 2011, while road employee Jeffrey Butler obtained alternative health insurance at a cost of $3,975 for the same period.

As required by law, the township adopted a resolution setting forth the policy of reimbursing employees, establishing covered expenses, and setting a maximum amount of reimbursement—in this instance in the amount of $350 monthly.

However, the township failed to properly document actual out-of-pocket expenditures and instead paid the full monthly reimbursement of $350. The result was an overpayment of $1,464 to trustee Myers and $4,425 to road employee Butler.

Both overpayments have been reimbursed to the township.

The audit recommended the township establish improved accounting controls to confirm actual expenses eligible for reimbursement and prevent similar overpayments.

A full copy of this audit may be accessed 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 5,600 state and local government agencies.  Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Contact:
Carrie Bartunek
Press Secretary
614-644-1111