Findings for recovery totaling more than $36,000 issued against former Paint Creek Joint EMS/Fire District fiscal officer James Barrett; District addresses findings

Ohio Auditor of State

COLUMBUS — Findings for recovery totaling more than $36,000 were issued Tuesday against a former fiscal officer for the Paint Creek Joint EMS/Fire District in Highland County over late fees and improper expenditures.

The findings against James Barrett were included in a special audit detailing the criminal investigation into the former fiscal officer and two separate financial audits that outlined a number of findings and management letter issues.

The full reports are available online at ohioauditor.gov/auditsearch/search.aspx.

The Auditor of State’s Special Investigations Unit (SIU) launched an investigation in February 2023 after receiving information alleging questionable purchases by Barrett, who served as fiscal officer from July 2015 until his resignation in September 2022.

SIU determined Barrett used the district credit card for 77 transactions totaling $2,813.05 that were for personal purposes.

Additionally, Barrett failed to timely remit federal, state, and local tax and pension system withholdings, resulting in late fees, penalties, and interest of more than $226,000.

The district requested and received waivers for $193,674.83, leaving $32,906.20 in penalties and interest.

As a result of the SIU investigation, Barrett pleaded guilty to misdemeanor charges of misuse of a credit card and dereliction of duty and was ordered to pay restitution of $35,719.25 as part of his sentence. SIU attorneys served as special prosecutor in the case.

A finding for recovery matching that total was included in the special audit released Tuesday.

Two other financial audits released Tuesday included additional findings for recovery against Barrett totaling $973 for cash prizes that were awarded and candy purchased for Halloween celebrations.

Proper documentation to support the expenditures was not maintained, and there was no document showing the spending was approved by the district’s board of trustees.

Since 2019, the Special Investigations Unit has assisted in 138 convictions resulting in more than $13 million in restitution (see Map of SIU Convictions since January 2019). The team receives hundreds of tips of suspected fraud annually. Tips can be submitted anonymously online or via SIU’s fraud hotline at 866-FRAUD-OH (866-372-8364).

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Paint Creek Joint EMS & Fire District addresses findings, implements corrective actions

The Paint Creek Joint EMS & Fire District Board of Trustees acknowledges the findings of both standard and special audit reports issued by the Ohio Auditor of State, covering financial activities from July 17, 2015 through July 1, 2024, and January 1, 2018 through December 31, 2022.

The audits revealed several areas of concern, including unauthorized credit card transactions, late financial filings resulting in penalties, and a general lack of internal financial oversight during the tenure of the former fiscal officer, James Barrett, who resigned on Sept. 27, 2022.

On March 31, 2025, Barrett pleaded guilty in Highland County Court in Greenfield to Misuse of a Credit Card (Case No. CRB 2400212 A) and Dereliction of Duty (Case No. CRB 2400212 C). A third charge – Failure to Withhold Taxes (Case No. CRB 2400212 B) – was dismissed with prejudice.

Barrett was sentenced to 60 months of supervised probation, 150 hours of community service (to be completed by December 31, 2027), and a $750 fine plus court costs. He was also ordered to pay $35,719.25 in restitution, plus applicable fees, and is barred from holding a government position for four years after restitution is fully paid.

Immediate and Long-Term Corrective Action

Upon learning of irregularities in late 2022, the Board acted quickly by notifying appropriate authorities and fully cooperating with the Ohio Auditor of State’s Special Investigations Unit.

On October 18, 2022, the Board appointed Linda Hopkins as the District’s new Fiscal Officer. Since then, she and the Fire Chief have worked diligently to correct past issues and strengthen the District’s financial systems.

“We take our fiduciary responsibilities seriously,” said Ron Ward, Chair of the Board of Trustees. “The Board is committed to restoring public trust through transparency, oversight, and responsible financial management.”

Key Financial Reforms and Oversight Improvements:

• Audit Compliance & Transparency

Monthly cash reconciliations are now completed and distributed to the Board in advance of meetings.

All funds are established with Board approval and reported to the County Auditor.

Financial reports are submitted to the State Auditor on schedule.

Training and education requirements for fiscal officers are met or properly exempted.

• Controls on Spending

All expenditures align with Board-approved appropriations.

Credit card statements are reviewed monthly by the Board.

Halloween Parade cash prizes have been discontinued and are now handled externally by IAFF Local 4811.

Incoming mail is reviewed by the Fire Chief before reaching the Fiscal Officer.

• Payroll and Tax Accuracy

Payroll systems now include checks by the Administrative Captain, Fiscal Officer, and Fire Chief.

Tax withholdings (federal, Medicare, state, local, and school) are tracked and reconciled with UAN reports.

• EMS Revenue & Contracting

EMS & Fire service contracts now use fixed annual rates instead of property valuations.

EMS billing is accurately tracked using Medicount reports; rates will be reviewed by the Board on May 27, 2025.

• Pension & Grant Accountability

OP&F and OPERS reports are now handled with cross-verification between the Fiscal Officer and Fire Chief.

Grant funds, including FEMA, are properly recorded and tracked with appropriate certifications submitted to the County Auditor.

• Improved Segregation of Duties

Additional oversight measures have been implemented to prevent the recurrence of past issues.

A clear separation of duties now exists across financial reporting, reconciliation, and authorization functions.

• Commitment to Ongoing Improvement

The Board remains fully committed to improving financial policies, enhancing transparency, and ensuring responsible stewardship of public funds.

“We understand the importance of accountability to the communities we serve,” added Ron Ward, Board Chair. “These changes reflect our dedication to maintaining public trust and ensuring operational integrity at every level.”