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Fiscal officer reports payroll fraud and lingering 2017 IRS tax issues
Summary
The township fiscal officer reported a payroll ACH fraud that resulted in an erroneous $285.01 payment and duplicate check, leaving a settlement accounting issue. The board is also working to resolve prolonged 2017 tax problems with accruing penalties and interest; staff reached out to Representative Warren Davidson's office for assistance.
The Crosby Township fiscal officer described two separate financial problems the board is addressing.
First, earlier in the year the township accepted a fraudulent ACH account for an employee and issued $285.01 to that bad account; because a duplicate check also was issued to the employee the township now must account for an extra $285.01 that cannot be booked to payroll. The fiscal officer said the bank (Fifth Third) determined the township bears responsibility; staff are researching proper accounting treatment and may refund the amount from a general fund if recovery is not possible.
Second, the township continues to incur penalties and interest related to unresolved 2017 tax filings. The fiscal officer circulated transcripts and recent invoices from the IRS and said the cost of not resolving the matter is mounting. Staff have contacted Representative Warren Davidson's office to seek help navigating federal bureaucracy; the officer said they will continue to negotiate with the IRS and may recommend paying to stop interest accrual if necessary. The township also has unfinished audits for 2024 and earlier recommendations dating back to 2006 that staff will review and document for trustee action.
