Dave Yost • Auditor of State
NOTICE OF FINDING – UPDATED
November 13, 2018
The Cincinnati Insurance Companies Elizabeth S. Carely, Superintendent Bond Claims Claims Surety Fidelity PO Box 145496 Cincinnati, OH 45250-5496
Re:
Audit of Northfield Sagamore Hills Fire District Insured – Rosemary Barrett; Bond No. B-0553461
The Auditor of State has conducted an audit of Northfield Sagamore Hills Fire District (Fire District) for the period January 1, 2012 through September 14, 2016 (Period).
Ohio Rev. Code 117.28 requires the Auditor of State to issue a Finding For Recovery when “an audit report sets forth that any public money collected has been illegally expended, or that any public money collected has not been accounted for, or that any public money due has not been collected, or that any public property has been converted or misappropriated…”
A “Finding for Recovery” will be issued against the former fiscal officer Rosemary Barrett. Issuance of a Finding for Recovery constitutes a preliminary determination by the Auditor of State, in accordance with Ohio Rev. Code $117.28, that Ms. Barrett may be liable to a public office for public property converted or misappropriated and public monies illegally expended. It does not constitute a final determination that such legal liability exists and is not an accusation of criminal misconduct. The Finding for Recovery will be against Ms. Barrett in the amount of $24,639 and in favor of the Northfield Sagamore Hills Fire District. As of November 5, 2018, Ms. Barrett has repaid $3,234 to the Fire District. Additionally, her bonding company, The Cincinnati Insurance Company, is jointly and severally liable in the amount of $16,981, covering the period December 5, 2012 through December 31, 2016, the period of time covered by the bond. Therefore, the remaining balance Ms. Barrett owes totals $4,424.
We are issuing this Finding for Recovery for the following reason:
As the Northfield Sagamore Hills Fire District’s (Fire District) fiscal officer, Rosemary Barrett used the Fire District’s First Merit credit card issued in her name and Lowes credit card maintained by the Fire District to make purchases between January 1, 2012 and September 14, 2016 (the Period). Ms. Barrett was responsible for preparing disbursements and maintaining support for the Fire District expenditures. Ms. Barrett made payments for the Fire District’s credit card charges electronically through the Fire District’s bank account.
During the Period, Ms. Barrett charged $12,048 for personal or other non-Fire District related transactions. We also identified $10,639 charged to the Fire District’s credit cards that was not supported by documentation. Due to the lack of documentation, we were unable to determine whether the expenditures were for purposes related to the Fire District. Items charged included purchases for food, equipment, vegetable plants, flowers, garden supplies, and other miscellaneous expenses. The Fire District paid these charges. In addition, we identified $1,952 in late charges and finance fees paid by the Fire District on credit card purchases made during the Period. Timely payment of Fire District bills was the responsibility of the fiscal officer, Ms. Barrett, during the Period.
In accordance with the foregoing facts and pursuant to the Ohio Revised Code Section 117.28, a finding for recovery for public property converted or misappropriated is hereby issued in the amount of $22,687 and a finding for recovery for public money illegal expended is hereby issued in the amount of $1,952 against Rosemary Barrett, in favor of the Northfield Sagamore Hills Fire District. Additionally, Ms. Barrett’s bonding company, The Cincinnati Insurance Company, is jointly and severally liable in the amount of $16,981, covering the period December 5, 2012 through December 31, 2016, the period of time covered by the bond, and in favor of the Northfield Sagamore Hills Fire District.
On January 8, 2018, Ms. Barrett pled guilty to a fourth degree felony charge of theft in office. Ms. Barrett was ordered to make restitution, totaling $10,172, to the Fire District. As of November 5, 2018, Ms. Barrett has repaid $3,234 to the Fire District.
The Auditor of State shall, pursuant to Ohio Rev. Code § 117.28, forward a copy of the audit report containing this Finding For Recovery to the statutorily designated legal counsel for the public office, who then may institute legal proceedings to collect the amount due the public office. In addition, pursuant to Ohio Rev. Code § 117.30, a copy of the audit report will be certified to the Attorney General of the State of Ohio.
If the statutory legal counsel does not collect the amount due or pursue legal proceedings within one hundred and twenty days of receiving a certified copy of the audit report, the Ohio Attorney General may bring legal action to collect. In the event the Ohio Attorney General pursues collection, collection costs, statutory interest and fees may be assessed and added to the total amount of the finding in accordance with Ohio Rev. Code § 131.02. The Ohio Attorney General may assign the matter for collection and may hire special counsel to collect the debt as authorized by Ohio Rev. Code $ 109.08.
Sincerely,
Dave Yost Auditor of State
Melissa Barnett,
CFE Senior Forensic Audit Manager
Public Integrity Assurance Team
88 East Broad St., 9th Floor Columbus, OH 43215
Yost Break Down Report (4 pages)
