Sep 14, 2004 By Patty Shultz 5 min read

CONNELLSVILLE TWP. – Fayette County District Attorney Nancy Vernon has turned over the township’s 2003 audit to state police at Uniontown. Vernon couldn’t be reached for comment on her decision, however, it comes on the heels of the audit being turned over to her on the recommendation of attorney Carmine V. Molinaro Jr., who was hired by the township auditors to review their findings.

“There were items in the audit that did not balance,” said Molinaro in explaining why the document was turned over to Vernon. “It will be up to the district attorney’s office, in consultation with the state police, to determine if any legal action is to be taken in the matter.”

At a meeting last Thursday of the township supervisors, township solicitor, John Cupp, said auditors had uncovered areas of concern in their annual audit of the township’s financial records.

“I was given a list of questionable transactions and a list of transactions or expenditures in which the (auditing) board examined and problems were found,” Cupp said.

Within the nearly 40-page audit, auditors Pat Graham, John Malone and Marlene Grenell documented that checks totaling $32,567.99 were made payable to Tammy Mader, a former township supervisor and secretary/treasurer for the municipality, and to her late husband, Rick Mader, who served as the township zoning officer until his death in October 2003.

Tammy Mader was appointed as a supervisor in 2002 and retained her position as township secretary/treasurer, a post she had held for several years. She failed in her bid for election to the supervisor position in 2003. In January, current supervisors Donald Hann and Charles Basinger declined to reappoint her as secretary/treasurer for the municipality.

According to the audit, checks totaling $18,400 were documented for insurance payments and made payable to Tammy Mader; a total of $2,642.46 for rent made payable to Tammy and Rick Mader individually; $930.50 to Rick Mader as the zoning officer; $2,412.78 coded as a pension contribution and made payable to Tammy Mader; $763.37 coded as sewage enforcement and made payable to Tammy Mader; $6,910.59 in various payroll checks made payable to Tammy Mader; and $508.29 for reimbursement for telephones made payable to both Tammy and Rick Mader.

“It was difficult to determine if any of these expenditures were actually approved by the Board of Supervisors due to the following facts (that) township meeting minutes from 2003 were not found or never taken,” states the audit. “There is proof that many checks were pre-signed by the second township supervisor (Donald Hann), therefore, it cannot be determined if (Hann) actually knew or approved any specific expenditures due to lack of internal controls.”

According to the audit, many of the transactions questioned by the auditors also had canceled checks that were missing from the township records.

The audit further said that Tammy Mader signed numerous checks as a supervisor and as the township’s secretary/treasurer, which according to the audit, is in violation of the Corporate Bank Resolution, which requires two signatures, one each from two separate townships officials.

Additionally, the audit said the checks written as additional payroll amounts and insurance payments to Tammy Mader were not authorized by the township auditors.

“The auditors are required to set the salary for any working supervisor, including the secretary, and this would include any employee benefits or any additional income,” said the auditors. “The township auditors did not approve any additional pay increase or benefits to be paid directly to (Tammy Mader) in 2003.”

According to the audit, the additional salary was not recorded on the payroll register or properly turned in to the Internal Revenue Service on a W-2 form. Additionally, the insurance and pension payments were not reported to the IRS, the audit states

“Per the township code, the auditors are required to set the salary for any working supervisor, including the secretary,” states the audit. “This would include any employee benefits or any additional income.

“The township auditors did not approve any additional pay increase or benefits to be paid directly to the secretary/supervisor in 2003.”

Also, states the audit, there was no documentation to support that a salary was to be paid to Rick Mader as the zoning officer or that the couple was to be paid for rent they charged for storage of township files.

The audit noted that the collected amounts were not reported to the IRS.

The audit also details other concerns identified by the auditors, including overpayments and late payments of township invoices, checks that were signed in advance of being written for payment, and unemployment paperwork that was not filed.

Molinaro said the questions prompted the auditors to contact him to review the case.

“We believe these potential irregularities are material and serious enough that we have hired an attorney, in accordance with the township code, to pursue these allegations and issue surcharges against the individual or individuals that are alleged to have created loses to the township, if necessary,” stated the audit.

Grenell said that Tammy Mader was bonded by an insurance agency during her tenure in office.

When reached for comment, Tammy Mader declined to discuss the matter.

“I’m not going to say anything at this time,” she said.