MCDONALD Auditor issues finding for recovery

The village clerk resigned in 2002, citing personal and political reasons.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
McDONALD -- The state auditor's office has issued a finding for recovery of $1,292 against the former village clerk.
The finding against Wendy Kosovec, part-time clerk who resigned in December 2002 citing personal and political reasons, is contained in an audit of village books for 2002 and 2003.
According to the audit released Tuesday, the village maintained a health and welfare fund to account for unspent money collected on a cost-per-employee basis to finance a self-insuring program that has since been terminated.
The money, the audit said, was placed in an interest-bearing checking account at Second National Bank.
On Feb. 15, 2002, according to the audit, a check paid to the order of "cash" was drawn against the health and welfare account for $1,292.
The check was signed and endorsed by Kosovec. The audit found that the check was not posted in the health and welfare fund, or any other fund.
Indictment
Kosovec has been indicted by a Trumbull County grand jury on a charge of theft in office. The case is pending before Judge Peter J. Kontos of Trumbull County Common Pleas Court.
Kosovec did not immediately return a message left at her residence requesting a comment.
Atty. William Roux, village solicitor, said the village will attempt to recover the money from Kosovec.
In addition, the audit said, there were no documents supporting the withdrawal as a valid village transaction.
The finding for recovery is against Kosovec and Ohio Republic Surety Company of Brookfield, Wis., the bonding agent.
The auditor also issued noncompliance citations.
According to the audit, no orders or contracts involving spending money can be made unless a certificate signed by the fiscal officer -- the clerk in this case -- is attached.
The fiscal officer must certify that the money is in the village treasury and has been lawfully appropriated.
To improve controls over the disbursement process and reduce the possibility of overspending a fund, the audit recommended the clerk certify the funds are or will be available.
Treasurer's responsibility
In another noncompliance citation, the audit pointed out that the treasurer is required to keep an accurate account of money received and on which account received.
The audit found the treasurer did maintain a record of money received and disbursed. However, these were not arranged in separate funds and accounts as required by law.
As a result, the treasurer was unable to present for audit a reconciliation between the village's records and its depository cash balances.
The audit was suspended for 90 days to correct the situation.
The audit recommended that the treasurer prepare a monthly reconciliation between the village depositories and the clerk's total fund ledger balance.
yovich@vindy.com