I strongly feel that Sarah Peveler is Right On! by starting a petition to ask the current Taboro Town Mayor Rick Page (former Electric Department Director) to step down since he will not do it on his own. Some say this is being the judge and jury. Hell I say it is common sense. The following is not accusations, nor allegations from what I read and comprehend however my ignant ass has been wrong before.
I didn’t make this mess up read it for yourself on The NC Auditor’s Website
FINDINGS AND RECOMMENDATIONS
3. FORMER ELECTRIC DEPARTMENT DIRECTOR (CURRENT MAYOR) MISREPRESENTED HEALTH INSURANCE PAYMENTS
The Town’s former Electric Department Director (Director) inappropriately received $27,770.55 in reimbursements for health insurance payments for his ex-wife after submitting documentation asserting that the health insurance was for him. In addition, payments totaling $16,757.25 did not have taxes withheld as required by law.
Director Misrepresented Documents Submitted for Reimbursement
The Director (current Mayor) received reimbursements from the Town for payments for his ex-wife’s health insurance that he submitted as if it were for his own supplemental health insurance. He originally told investigators that he submitted documentation for payment each month and implied that it was for his health insurance. He later admitted that this documentation was for his ex-wife’s health insurance.
The former Town Manager approved a request from the Director approximately 14 years ago allowing the Director to forgo town-provided health insurance and instead directly receive the amount the Town would have paid for his health insurance premiums. The Director said he already received health insurance coverage as a military retiree and did not need the Town’s coverage. He claimed he intended to use the payment from the Town to purchase a supplemental policy for items that his military insurance did not cover; however, he did not buy a supplemental policy.
Town’s Failure to Withhold Taxes on Health Insurance
The Town failed to withhold taxes on $16,757.25 in payments provided to the Director after his retirement in May 2009. The payments represented the amount the Town would have paid for the Director’s health insurance after retirement if he had accepted the benefit. The Director did not submit reimbursement requests to show he had used the money to purchase health care insurance, meaning the payments should have been reported as income under the rules associated with a so-called non-accountable plan.5
The Town of Tarboro should require the former Electric Director (current Mayor) to repay $27,770.55 in misrepresented reimbursements for his ex-wife’s health insurance.
The Town of Tarboro should implement controls to ensure all benefits paid to employees are accurately recorded and reported in compliance with tax laws.
The Town of Tarboro should require financial arrangements outside of normal procedures to be approved by the Town Council.
5 Non-accountable plan defined—employer’s reimbursement or allowance arrangement that does not meet the following rules (IRS Publication 463):
1. Expenses must have a business connection
2. You must adequately account to your employer for these expenses
Sign The Petition