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The Richland County commissioners agree with a finding by the Ohio Auditor of State’s Office that the county’s former Job and Family Services director, Sharlene Neumann, must pay back $16,614 she received for hours she did not work.
The board approved a joint statement at its meeting Tuesday in support of the auditor issuing the finding for recovery and that it believes the finding is “in the best interest of preserving and protecting the public trust.”
The findings for recovery were issued July 2, noting that Neumann was paid for more than 350 hours when she was not actually working. A finding for recovery is issued by the state auditor when public property has been misspent or misappropriated.
Commissioners contacted the auditor’s office in October 2022 to report the potential theft of time by Neumann as well as potential conflict of interest violations involving Neumann, former Youth and Family Council Director Teresa Alt and former JFS Business Administrator Carmen Torrence. According to the auditor’s office, Neumann’s husband was identified as connected to two companies with potential relationships with the county, Heartland Academy and The Reach.
A report from the auditor said there were concerns that Neumann used her position and influence at JFS to secure county contracts and potential items of value with the two companies. In addition, it was alleged that Alt and Torrence authorized improper payments , including a payment to Neumann’s daughter-in-law, while Torrence was concurrently the fiscal officer for both Heartland Academy and the Reach.
The special audit findings
The special audit, which covered April 5, 2021, through Aug. 6, 2022, confirmed that Neumann either left early or arrived late, was absent altogether or conducted personal business during working hours without submission of proper leave requests according to county policy that was developed during the COVID-19 pandemic. During a state hearing in July 2023, Neumann admitted not working at times she was logged as absent by the county human resources director but said she did not knowingly fail to take leave and that her assistant failed to request the leave on her behalf as she requested.
The auditor’s report said Neumann’s assistant was interviewed and it was found that she entered all leave requests when advised to do so and that there were no instances in which she failed to file requests on Neumann’s behalf. The report also pointed out that because Neumann retired Nov. 30, 2021, and was rehired Dec. 1, 2021, any leave taken other than sick leave would have been leave without pay.
The auditor’s office, serving as special prosecutor in the case, determined there was insufficient evidence to pursue criminal charges but that findings for recovery were warranted. Neumann and her bonding company are jointly and severally liable for the findings of recovery.
Regarding whether potential items of value were properly executed related to The Reach and Heartland Academy and whether a conflict of interest existed, the auditor’s report said investigators were unable to substantiate whether Neumann, Alt and Torrence used their influence benefit family and a related party.
Officials determined that the county started doing business with The Reach Inc. in 2016 for speech therapy services. Contracts were signed by the Richland County Board of Developmental Disabilities superintendent and the president of The Reach, and Torrence processed payment for the approved services. The report said that while questionable items of value were approved for the benefit of The Reach and Heartland Academy, investigators were unable to identify sufficient evidence of a conflict.
Regarding Alt, officials said she authorized spending $480 in county funds for special t-shirts and cupcakes for a party in October 2021 to celebrate Neumann’s 40 years of service with JFS and the cupcakes purchased from Neumann’s daughter-in-law. State officials pointed out that the activity was not a proper use of county funds.Full details of the allegations and the investigation contained in the report are available at ohioauditor.gov.
Neumann was hired by JFS in 1981 as a social worker and was named agency director in 2005. She voluntarily resigned in August 2022 in lieu of involuntary discharge.
Alt was hired as YFC director in December 2011 while Torrence was hired by the county in July 2001, became business manager and fiscal officer in March 2004 and also was the fiscal officer for YFC and the Workforce Investment Board. Alt and Torrence were involuntarily terminated Nov. 15, 2022, following completion of the investigation into the conflict of interest allegations.
Also on Tuesday, commissioners voted to advertise for the position of JFS fiscal officer to replace Valerie Norris, who resigned last week. She was hired February 17, 2022. Commissioners said she gave no reason for her resignation and was not a tenured employee.
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