New Lebanon improperly issued $25K in incentive pay under previous administration, mayor says

Ohio Auditor of State currently conducting audit of village financials for period between Jan. 1, 2023, through Dec. 31, 2024.
A water tower stands on the west side of New Lebanon near Dixie High School. BRYANT BILLING / STAFF

Credit: Bryant Billing

Credit: Bryant Billing

A water tower stands on the west side of New Lebanon near Dixie High School. BRYANT BILLING / STAFF

Preliminary findings for recovery by the Auditor of State indicate the village of New Lebanon improperly issued around $25,000 in education incentive payments to multiple employees in fiscal years 2022 through 2024, according to Mayor David Nickerson.

The Ohio Auditor of State’s Office is currently conducting an audit of the village for the period of Jan. 1, 2023, through Dec. 31, 2024.

The proposed $25,000 in findings for recovery is not a final ruling, as the audit is still ongoing and pending rights of appeal for the involved parties, Nickerson said in a recent press release on the issue.

He said the village’s chief financial officer is responsible for authorizing these payments. The CFO in place during the period in question was Phillip Hinson.

Hinson was one of eight village employees fired in early 2024 as part of an investigation into alleged misconduct within the village administration.

Nickerson said approval of the payments would have been in violation of the village municipal code. He did not name the individuals who allegedly received these improper payments in the press release.

“The municipal code provides that only full-time employees who obtain or complete an academic degree while employed by the village are eligible for incentive pay of 1.75% for an associate’s degree or 3% for a bachelor’s degree, payable annually,” Nickerson said in the release. “The audit has determined that these incentive payments were improperly issued to multiple employees who had earned their degrees prior to their employment with the village.”

A spokesperson for the Ohio Auditor of State’s Office declined to confirm the preliminary findings.

“This audit is still in progress, so we have no updates to share right now,” the spokesperson said via email.

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