Schaffer Provides Testimony on Bill Expanding Anti-Fraud Protections

COLUMBUS— State Senator Tim Schaffer (R-Lancaster) today provided testimony before the Senate Government Oversight Committee on Senate Bill 91, which would expand anti-fraud protections over taxpayer funds in the public sector.

"In many cases, individuals committing fraud may have been caught sooner if mandatory reporters were in place and government employees received training on how to spot and report fraud, waste and abuse," said Schaffer, who is the primary sponsor of the bill. "This is an opportunity for the legislature to take an active role to protect public funds and see that taxpayers’ money is protected." 

Senate Bill 91 requires the Auditor of State to create training material detailing Ohio’s fraud-reporting system and requires that the Department of Administrative Services administer this training to all new public employees and public officials within 30 days of employment and every four years for existing public employees and officials.

"By expanding our fraud training efforts and helping public employees identify potential red flags, we expect to head off criminal activity much sooner and better protect Ohio tax dollars," said Auditor Keith Faber, who worked with Senator Schaffer on the bill.

Auditor Faber’s office has secured convictions in office for amounts as high as $1.87 million and restitution resulting in over $5 million. His office has also had findings for recovery totaling more than $18.3 million back to the taxpayers. According to Auditor Faber’s office, a finding for recovery is issued when public property has been misspent or misappropriated.

Just this week, an article published by Cleveland.com detailed a story about a former Vinton County township official who misspent $310,000 of taxpayer dollars to buy a wildebeest, two snow owls, five hot tubs, kayaks, an above-ground swimming pool and several other personal items. This is one of many examples of fraud, waste, and abuse that occur in public offices in the State of Ohio. 

In addition, this legislation creates mandatory reporters in public offices such as elected officials, appointed officials, and those who have a fiduciary duty to a public office. A mandatory reporter is someone who is required by law to report a crime to the proper authorities immediately upon finding out a crime was or may have been committed. Those individuals who are classified as mandatory reporters in the bill must immediately report upon becoming aware of any violation of state or federal statutes, rules, regulations, or misuse of public funds to the Auditor of State’s office or local law enforcement.  

Under the bill, mandatory reporters who recklessly fail to report suspected fraud, waste, and abuse to the Auditor of State’s office could be found in violation of dereliction of duty, which is a second-degree misdemeanor, could face up to 90 days in jail and a $750 fine.

The bill also builds upon whistleblower protections under existing law by expanding the timeline to file an appeal with the State Personnel Board of Review from 30 days to 180 days for someone who believes that they have been subject to disciplinary or retaliatory action for filing a report on fraud, waste, and abuse of public funds.

Hearings on Senate Bill 91 will continue in the Senate Government Oversight Committee.