Audit shows Fennville missed $22K in employee benefit contributions

FENNVILLE — The Fennville City Commission made a move to correct an error in employee benefit contributions during its meeting Monday, Dec. 5.

More:Audit shows Fennville re-purchased a parking lot it already owned, among other errors

An ongoing audit of the city’s finances revealed a handful of missing health insurance and retirement contributions and an error in paid time off hours being taken from an employee. During its meeting Monday, the commission approved payments to fix the errors.

The Fennville City Commission made a move to correct an error in employee benefit contributions during its meeting Monday, Dec. 5.
The Fennville City Commission made a move to correct an error in employee benefit contributions during its meeting Monday, Dec. 5.

The total amount approved Monday came to $21,927, covering five current city employees.

Fire Chief Paul Hapke will receive $4,411.05 after not receiving retirement contributions in 2020 and 2021 and being shorted in 2019. He also didn't receive a $1,000 employer contribution to his health insurance plan.

Iron Removal Plant Operator Andy Cook also didn't receive the $1,000 contribution and was shorted $73.57 on retirement contributions. Cook overpaid by $8.05 for health insurance. The city will pay Cook a total of $1,008.05.

Administrator Katie Beemer will receive $1,081.62 for a missed $1,000 contribution to her health insurance and an overpayment. Treasurer Camille Clark also didn't receive the $1,000 employee contribution and overpaid for insurance, garnering a refund of $1,034.08.

City employee Toby Carpenter lost 734.5 hours of paid time off when the city changed its PTO rules and maximum accrual amounts in 2019. Using his pay rate from 2019, the city owed Carpenter $13,470.73.

In addition to the current employees listed, the audit found former city employees Amanda Sleigh and Austin Hammond didn't receive retirement contributions for work earlier this year.

Mayor Dan Rastall informed the commission the city’s lawyer said there's no legal obligation to pay the former employees, which would have totaled $936.79. Commissioners didn't include the former employees in their repayment motion, which passed 6-0.

Fennville began an in-depth audit process earlier this year. Several mistakes have been discovered since, including that the city already owned the parking lot adjacent to city hall when it purchased the building in 2019, plus incorrect grant reimbursements and funds that needed to be reconciled.

The mistakes are believed to be human error with no evidence of criminal wrongdoing.

Police chief update

There have been 14 applicants for Fennville’s open police chief position, Beemer said during the meeting. Rastall shared he’s reached out to four of the candidates thus far and has heard back from two of them.

The next step in the process is setting up interviews with candidates, Rastall said. He hopes to have the city’s part-time officers, who would work under the new chief, participate.

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The city is looking to replace Greg Rekucki, who is resigning effective Dec. 31. Fennville’s police department consists of the full-time chief and two part-time officers. The department was established in 2013, prior to which the city was served by the Allegan County Sheriff’s Office.

— Contact reporter Mitchell Boatman at mboatman@hollandsentinel.com. Follow him on Twitter @SentinelMitch.

This article originally appeared on The Holland Sentinel: Audit shows Fennville missed $22K in employee benefit contributions