LAWRENCE COUNTY Tax-notice mistakes puzzle officials

The county treasurer contends computer errors are at fault.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County officials are still scratching their heads over why the payments of about four dozen people aren't showing up in the county computer system.
Tax Claim Bureau Director Georgann Gall said she started getting calls last week after sending out about 6,500 notices of delinquent taxes.
So far, about 45 people have called the office -- with half already producing canceled checks -- contending they paid their real estate taxes last year.
Lawrence County Commissioners questioned Gall and Phenton Schuffert, director of data processing, about the matter at Tuesday's meeting.
Schuffert said the county computer system is designed to act as a check to the daily receipts collected by the county treasurer's office and that the two should balance each day. She can't understand how personal checks were processed without corresponding tax bills being put into the system.
Bar-code system
Schuffert said each county tax statement has a bar code that is scanned when payments are made. The county has used the bar-code system for about four years. A daily tally of scanned bills and actual bank checks or cash should balance, she said.
County Controller Mary Ann Reiter said her office compares bank receipts and reports for the treasurer's office monthly. She said those numbers have balanced.
Reiter said printouts from the bar-code machine are now being pulled for the days listed on canceled checks of people who paid their taxes and received statements contending they were delinquent.
A random check of three receipts did not match up with the bar-code reports, she said.
Commissioner Dan Vogler said commissioners have told Packer Thomas, a forensic auditing firm, to look into the matter.
Placing blame
Commissioner Steve Craig said he thinks the problem is in the treasurer's office.
"The technology is only as good as the people who work it. But the wheels have come off the wagon here," he said.
County Treasurer Gary Felasco contends it's a computer error and not the fault of his office -- which is charged with collecting county taxes.
"The computer system is more than 20 years old, and clearly there is a problem in the transference of records to the county and some of the municipalities as well," he said.
Felasco pointed out that some of those receiving statements for delinquent taxes were for school or municipal taxes, not just county taxes.
"Out of 55,000 parcels, it's typical to have a few" delinquent tax statements that go out to those who paid, he said. "This year is certainly more than we've ever had before."
Gall said the majority of the incorrect delinquent notices are for county taxes.
Under investigation
Felasco contends his office is being blamed because of other problems stemming from his office and personal life.
Felasco was removed as the county tax claim bureau director in March after it was revealed that he had not paid real estate taxes on his Cunningham Avenue home since 2000. A "court stay" was put on the property, allowing it to escape the yearly tax sale.
The Pennsylvania State Police are investigating that matter as well as Felasco's use of county cellular telephones.
The Pennsylvania Auditor General is also investigating Felasco's handling of state liquid-fuel funding. Felasco deposited some of the money into the county general fund last year to cover year-end bills. The money is derived from state gasoline taxes and is to be used only for road and bridge projects.
cioffi@vindy.com