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Michael D. Pitman reports about Butler County, Ohio, politics, county government, countywide issues and Butler County people just like you for Cox Ohio Publishing (including the Hamilton JournalNews, Middletown Journal and several weekly papers in Butler County). He wants your suggestions and questions for more news stories. Leave a comment for him here or e-mail Michael at Home > Blogs > Butler County News and Issues > Archives > 2011 > July > 16 > Entry
A recap of the workers’ comp missed payment
The late workers’ comp bill that allegedly will cost the county $1 million a year — but nobody can explain how that figure was calculated or if it’s accurate — was apparently a clerical error, according to some documents I gathered.
On Aug. 17, we’ll know if the good faiths attempt to pay the bill — which was apparently sent to the wrong state department — will have any ill effects.
Governmental entities were required to pay their 45 percent annual Ohio Bureau of Workers Compensation payment on May 15 — a payment due the same time each year. However, Butler County’s payment, which was nearly $877,820, wasn’t made until June 9, and thus, according to the bureau, the county is in default.
Since the county participates in the retrospective rating program, a program they’ve been in since 1989, they were eligible for a discount if they make the full payment by May 15 — and if the payment is made by that date, then the county receives a .0005 percent premium rebate for each day it was paid in full before the Sept. 1 due date for the balance of the workers’ compensation payment.
The oversight was confirmed in a June 13 letter to Kathleen Davenport, regional liaison for the Ohio Bureau of Workers’ Compensation, from county Human Resources Director Gary Sheets called the late payment an oversight due to understaffing.
A $1 million impact on the county’s budget, which is $79.2 million for 2011, would likely require an increase of a 1 percent to the percentage of payroll set aside, said Office of Management and Budget Director Pete Landrum said. Each department currently sets aside 2.5 percent of its payroll to cover the county’s 2,500 employees, he said. (2,500 was the number of people the county employed in 2010)
Butler County Auditor Roger Reynolds reiterated assistant county prosecutor Dan Ferguson’s assertions the matter would be resolved and “I expect the issue to be fully resolved without any type of penalty.” But he wouldn’t say how much the default could cost the county and consulted.
If the county’s default appeal is denied, the county can be prevented from being eligible for future discounts, said workers’ compensation bureau spokeswoman Melissa Vince. She said in respects to the retrospective rating program, “an employer agrees to assume a portion of the risk in return for a possible reduction in premiums. The greater assumed risk, the greater the potential reduction in premiums.” She would not say, however, how much the county’s discount is or has been, or actual cost savings. Neither would county officials.
The county was notified by the Bureau of Workers’ Compensation on April 13 when the payment is due and how to report its payroll — which about $94.3 million — and how to submit the payment. Sheets said on Friday via an e-mail that no one in his office recalls seeing that letter.
Sheets said the staff became aware of the issue on June 6, the day before commissioners voted on the payment. County officials supplied the payroll report to the bureau after the commission vote and two days later the payment was made, Sheets and Vince said.
Commission President Chuck Furmon said staff is investigating and doesn’t want to place blame for the late payment.
“Rather than think of fault, we just want to get it corrected and make sure it doesn’t happen again,” he said.
Furmon wouldn’t speculate as to the cost of the county and declined to comment “until we get more details.”
Commissioner Cindy Carpenter heard the same $1 million estimate and said the commissioners were briefed on the issue “that it was overlooked by the auditor’s office. And our fact-finding investigation is under way.”
Reynolds said his office cannot pay a bill until an approved invoice comes to his office, which the workers’ compensation invoice came after the due date.
Thoughts?
Permalink | Comments (11) | Post your comment | Categories: Butler County, County Auditor, County Commission, County budget
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By JR
July 18, 2011 10:11 AM | Link to this
Who’s at fault, the person or persons who have ran off or fired all the experienced employees. Would this have occurred if Doug Duckett was still the Human Resources Director, I think not. Based on this premise I’d say Commissioner Donald Dixon should take the blame.
By Jane
July 18, 2011 11:54 AM | Link to this
Person at fault is none other than our County Auditor Roger Reynolds who pays the bills for the County. There is a reason in County Government Reynolds is known as “Roger the Dodger”!! Oh, and for Chuck Furmon to say “rather than think of who is at fault lets fix it. Well sounds to me like if it cost the County another million dollars that is an inexcusable “fault”..in the real world heads would roll and people would be fired for a lot less. Many of us are waiting on Commissioner Carpenter to tell it like it is after her investigation - we will see!
By had enough
July 18, 2011 2:58 PM | Link to this
Maybe “Mr. Auditor” should pay more attention to the auditor’s office and stop looking for his, “treasure box”.
By Tillie
July 18, 2011 3:19 PM | Link to this
Roger is making Kay Rogers look like an Awarding Winning Auditor.
By firereynolds
July 19, 2011 9:50 PM | Link to this
i guess butler county will need to put a levy on to cover another auditor reynolds mistake. how many is that this year ? w2 errors, health coverage update errors, pay check errors and now a million dollar payment error. why keep covering up all the mistakes reynolds office makes ? reynolds runs his mouth about strengent internal controls and continues to make mistake after mistake, what a bunch of bs out of his mouth. maybe if he would keep his nose out from under others skirts or offices maybe he could fix his own mistakes before they occur. same as the crap we dealt with in liberty township - keep reynolds we are happy in liberty to be rid of his shoddy management.
By question
July 19, 2011 9:56 PM | Link to this
why is ferguson speaking for reynolds ? doesnt his wife work for auditor ? is he covering for reynolds to protect his wife ? reynolds office is a mess, kay rogers had her issues, true, but at least she was not stupid.
By coverup
July 20, 2011 8:18 AM | Link to this
furmon went after kay rogers but now he is covering up for reynolds - wtf chuck ? furmon you are so gone in 2012 and that will mean pug - oh shucks - i mean peg will be gone with you. your boy reynolds and his girl friend will be nixed after that. good riddins ! when dixon and carpenter get combs in there then there will be a group of leaders that can fix the mess you have created furmon. i just wonder if they can get of all your friends and family hires in the water and sewer department ?
By poor excuse
July 20, 2011 7:29 PM | Link to this
reynolds “invoice late” excuse is unacceptable everyone in the finance department is aware of this payment requirement and its due date - reynolds should have been on top of this - they should have been asking for this invoice. where are the strengent internal controls and being proactive that reynolds is always bragging about ? it is nonexistence just like reynolds ability to manage and lead the auditors office or for that matter any office, large or small. reynolds is a joke and his performance as auditor makes him a complete failure.
By Sara
July 21, 2011 4:35 PM | Link to this
Since the commissioners haven’t already placed the blame on someone then it’s for certain the one you fouled up is an elected office holder. Had it been a lowly employee they would have been tossed out into the street.
By to sara
July 21, 2011 5:03 PM | Link to this
sara you are correct office holder auditor reynolds made the error. but in reynolds case he will not take the heat, he will blame one of his staff and guess what he will fire the person. he has already done this to one of his real estate staff for a much more minor mistake. but wait, maybe the young lady that made this mistake is one of his favorite “little hotties” in the office now she will get a break. reynolds is just a big d*shbag. auditor reynolds you should move on either your mistakes, arrogance, ego, libido,… will get you kicked out of office sooner or later.
By audit
July 22, 2011 9:06 AM | Link to this
auditor reynolds is at fault no doubt. this should not surprise anyone on the inside of county government reynolds audits by the state since taking office have been horrible. his work in liberty township as clerk gave no indication that he was capable of taking the next step and his work product at the county level has proven he is an ineffective manager and leader. the county needs new and innovative leaders but reynolds is not the “guy”. Courtney Combs or Nancy Nix would have been a much better selection for the auditor position but then you know what they say about hind sight.