YOUNGSTOWN State auditor to review contracts of vendor that over-billed city

The city declined to release the records despite the state auditor's direction.
By DAVID SKOLNICK
VINDICATOR POLITICS WRITER
YOUNGSTOWN -- Ohio Auditor Betty Montgomery said her office will review the city's five most recent years' worth of documents related to a cleaning-supply vendor that over-billed Youngstown by at least $25,000, and then see if a further investigation is warranted.
"It's like doing test bores," Montgomery told The Vindicator. "We will go back five years, and if there are any indications of problems, we'll go back further and broaden the investigation."
The company in question has sold cleaning supplies to the city for the past 15 years, and had a contract of about $90,000 annually with the city during the past four years, Montgomery said.
A routine review of contracts with the unidentified vendor from the previous four years by city Finance Director David Bozanich showed an over-billing of about $25,000 to $27,000.
"The vendor paid pretty promptly" once the over-billing was discovered, Montgomery said. "The city very wisely asked us to take a look. We don't know if it's an error or a pattern of practice."
If the audit determines the over-billings were attempts at fraud, the city will pursue legal action, Mayor George M. McKelvey said.
Reason for audit
Concerns about the possibility of more over-billings led to the city asking Montgomery's staff to conduct a special audit, McKelvey said.
Montgomery said state law prohibits the auditor's office from disclosing the name of the vendor in a situation such as this. But a special audit doesn't preclude the city from releasing records related to the vendor, though a final decision on that is in the hands of the city law director, she said. State audit officials relayed that information to the city Thursday.
The Vindicator filed a records request with the city Thursday regarding the vendor.
Law Director John McNally IV declined to immediately release the records.
McNally said McKelvey wants clarification from the state auditor's office despite the direction given Thursday.
The city's letter to the state's chief deputy auditor, David Varda, says the city wants to be careful of any improper release "of investigatory work product," which might hurt the special audit.
Another purpose
Montgomery said besides determining if there was a pattern of over-billing by the vendor that extended beyond the past four years and double-checking Bozanich's findings, the special audit will also look to see if the city has the appropriate checks and balances system in place to find other problems with vendor contracts, and make suggestions for improvement.
The special audit will take several months to complete, Montgomery said.
Montgomery also said this vendor hasn't done any business in Trumbull County. A grand jury in that county is hearing evidence about county maintenance department purchasing practices, including excessive buying and sloppy bookkeeping.
skolnick@vindy.com