LAWRENCE COUNTY Controller defends against accusations

She says allegations are payback for her criticism of Commissioner Fosnaught.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County Commissioner Ed Fosnaught has asked that the county solicitor look into allegations that the county controller is delinquent on real estate taxes and has not filed yearly financial reports for her office.
Fosnaught contends Controller Mary Ann Reiter owes $315 in 2002 real estate taxes for 3109 New Butler Road and was improperly placed on a payment plan for the property. Records show she also owes $1,958.47 on the property for 2003 taxes.
Fosnaught also was critical of Reiter's performance as controller, saying she is not completing annual audits of each county office, something that could have tipped officials off sooner to the fact that Treasurer Gary Felasco was not paying his real estate taxes.
In February, The Vindicator first reported that Felasco had not paid real estate taxes on his Cunningham Avenue home since 2000. Improper court stays were put on the land allowing it to escape the yearly tax sale for delinquent properties.
Felasco had been head of the county tax claim bureau since 2000. That agency is charged with collecting delinquent taxes and selling property of those who have not paid.
Response
Reiter says Fosnaught's allegations are payback for criticism she lodged against the commissioner at a meeting last month.
"He was pointing a finger at me for not notifying them of the investment losses and I said, 'You are right. I should have, but I don't get the statements. I don't talk to [Treasurer] Gary [Felasco] on a daily basis, but you do, and I have the phone records to prove it,'" Reiter said.
Reiter contends that telephone bills from Fosnaught's county-issued cellular telephone show the two speak frequently.
Reiter also noted auditors from Maher Duessel, an outside firm hired to audit the county, told her that yearly financial statements were not a priority, and they wanted the controller's office to work on bank reconciliations. She said bank reconciliations are normally the responsibility of the treasurer.
She assumed eligibility
Reiter added that she paid the balance of her 2002 real estate taxes Thursday morning and was not aware she could not be on a payment plan. While the 2003 taxes are delinquent, they do not expose the property to the yearly county tax sale.
Reiter said she is selling the property to her daughter under an article of agreement and did believe there were stipulations to get on a tax payment plan.
"Anybody can get on a payment plan. If there is a rule, I need to see it. I would have gotten a loan" to pay the taxes, Reiter said.
Fosnaught, however, says even though Reiter paid her tax bill, she was improperly put on a payment plan. He contends she does not live in the house and is not eligible for payments.
Georgann Gall, director of the county tax claim bureau, said state law states that you must live on the property and not be employed to qualify for a tax payment plan.
Payment plan
Reiter was placed on the payment plan when Felasco was in charge of the office.
Felasco could not be reached for comment Thursday.
Reiter disputed Fosnaught's allegations that she was required to audit all offices yearly and could have discovered problems in tax claim earlier. She said the county code changed this year to require a yearly audit; before that there were not regulations. She said she audited offices every five years, and tax claim was due for another audit in 2004.
Fosnaught said he decided to go public with the controller's tax situation because she did not respond to a letter he wrote outlining the problem shortly after Reiter appeared at that July meeting.
"I had been thinking about this for quite a while. You keep hoping people will do their jobs, and you won't have to do this," Fosnaught said.
cioffi@vindy.com