Commissioners ask controller to return unapproved funds

Apr. 18—MERCER — Mercer County commissioners have called on county Controller Stephen J. Sherman II to return nearly $6,000 paid to two employees without approval from the county salary board.

The commissioners made the request through a letter dated April 12. At the commissioners' meeting Thursday, Sherman said he is waiting for a response from his employees.

At the April 11 commissioners meeting, Commissioner Tim McGonigle accused Sherman of misappropriating county funds by giving two of his senior salaried employees unapproved pay for extra work.

McGonigle said the additional pay — which came to almost $6,000 over two pay periods — without prior approval by the county Salary Board is not allowed under the federal Fair Labor Standards Act.

At Thursday's meeting, McGonigle asked Sherman if his office has returned the funds to the county yet.

"The money has not been determined to be misappropriated or misspent," Sherman said and repeated the statement when McGonigle asked again.

McGonigle asked Commissioners Chair Ann Coleman if she drew up a letter to Sherman, signed by the three commissioners, requesting that his office return the funds. Coleman said she did.

"I have not responded to the email that was sent last minute on Friday; however, I have informed the employees in question of that email and I'm awaiting their formal response," Sherman said.

McGonigle noted that Sherman told his employees on Monday about the email and it was now Thursday and he works with them every day.

"There is no mode for me to return those funds," Sherman said, adding that he has every intention of complying with the directive.

County resident Diane Syphrit said Thursday that she understands that the two commissioners are new — Republicans Coleman and Bill Finley Jr. joined incumbent Democrat McGonigle on the three-person board in January — but she asked why did they not ask McGonigle, who is more experienced, for his assistance on the matter.

"Commissioner McGonigle was not here at the time," Coleman said.

McGonigle responded that this issue keeps coming up.

"I was not on Mars," McGonigle said. "I have a phone. I have no phone calls and no texts, and I was with you guys for three weeks and nobody mentioned a thing."

Coleman said she appreciates the minority commissioner's commenting on this issue.

"We have had this discussion repeatedly, Mr. McGonigle," Coleman said.

McGonigle said that Coleman's answer to Syphrit's question did not sit well with him.

"I would also note that I was not consulted before public statements were made," Sherman said. "There was no request for me to clarify the situation."

Sherman had said in an email to The Herald last week that having the two employees working extra hours on a software project would save the county from hiring more people for the software project, and it would save the county hundreds of thousands of dollars. The project involves installing software to handle accounting and budgeting.

In that same email to The Herald, Sherman said that he learned March 15 of the need to expedite the software project. He then met with Coleman and Finley, who gave temporary approval but said the salary board would need to ratify the pay increases.

He also said the situation demanded immediate action and that he approved the two employees to work outside normal operating hours starting March 19.

McGonigle said the error was found by the county's human resources department, which came across the information while checking on another record.

When asked why a salary board meeting was not scheduled for Thursday to clear up the matter, County Solicitor William McConnell addressed the question.

"It's now been turned into a criminal matter, and that has slowed it down," McConnell said. "It's up to the commissioners and controller who can schedule a salary board meeting and they could address this situation and correct it by formally approving it."

District Attorney Peter C. Acker said he is investigating the matter, and Coleman assured Syphrit that when he makes a determination, the findings will be shared at a public commissioners meeting.

Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com

Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com