County controller accused of misappropriating county funds
Apr. 11—MERCER — Mercer County Commissioner Tim McGonigle on Thursday accused county Controller Stephen J. Sherman II of misappropriating county funds by giving two employees unapproved bonuses for extra work.
"Mr. Sherman decided to increase the compensation of two of his senior salaried employees without authorization from the salary board and without even a discussion with me," McGonigle said Thursday during the county commissioners' meeting.
McGonigle said the total misappropriation was close to $6,000 over two pay periods.
McGonigle said that two employees receiving bonuses for overtime work without prior approval by the county Salary Board is not allowed under the federal Fair Labor Standards Act.
"This is precisely their job," McGonigle said of the controller's office. "They're monitoring this for the county."
McGonigle said the county never gives an increase or decrease in salary unless it goes before the Salary Board, which is comprised of the three commissioners, the county controller and any row officer whose staff would be affected by the decision.
"I want to be clear — it's not a mistake, because that office knows exactly how this county's payroll system works," McGonigle said.
McGonigle explained that there was a discussion at the time with the other two commissioners, and they approved it not knowing that it needed to go before the salary board.
"But I can't believe that our controller's office didn't know that," McGonigle said.
McGonigle said that he contacted District Attorney Peter C. Acker with the allegations. Acker, who attended the commissioners meeting, said he would look into the matter.
"We take all such allegations seriously," Acker said. "We remember that they are just allegations.
"If I conclude that there is substance to the allegations, then I will refer the matter to the Pennsylvania Office of the Attorney General for whatever investigation or action they deem appropriate," Acker said.
Commissioners Chair Ann Coleman explained that the increase in salary of the two employees was to help advance a county project.
"We were looking into assigning people to a special project," Coleman said. "I've only been here for three months and now that it's been brought to my attention that it should have been addressed differently, we will be doing that."
Coleman and Bill Finley Jr. joined incumbent McGonigle on the three-person board of commissioners in January. Sherman has been controller since January 2022.
Sherman said with the two employees working overtime, it would save the county from hiring more people for the software project, and it would save the county hundreds and thousands of dollars. The project involves installing software to handle accounting and budgeting.
Finley vowed that the commissioners would fully cooperate with any investigation.
McGonigle said Mercer County's Human Resources office caught the discrepancy.
"I want to thank our HR department, which came across this information while checking on another record," McGonigle said.
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
