YORKVILLE — Two former Yorkville fiscal officers had to repay nearly $30,000 to cover interest and penalties “after they failed to make tax and unemployment compensation payments in a timely manner” as a result of a special audit released Tuesday by the Ohio Auditor of State’s Special Investigations Unit.

The finding for recovery totaled $29,086 against former Yorkville Fiscal Officer Korrene Prince and former Assistant Fiscal Officer Margaret Grady and their bonding agencies — $21,598 of that was issued against Prince and Grady jointly, the other $7,488 levied solely against Grady.

Grady was elected as Yorkville’s clerk-treasurer in 2003 and became assistant fiscal officer in 2018 when Prince was hired as the village’s fiscal officer.

Both were fired from their positions in March 2021.

In June, the SIU reports, Grady repaid her $17,861 share and Prince her $11,225 share. No criminal charges will be filed.

In the final report, however, the SIU said it conducted the criminal investigation and special audit of the village’s finances “predicated on information received” alleging the pair were not paying bills in a timely fashion.

The special audit covered financial activities between Jan. 1, 2016, and Dec. 31, 2021, “during which time late payments, outstanding bills not paid, and unpaid obligations, including the state employee tax withholdings, were identified,” the report stated.

“In February 2021, the village mayor received a letter from the Ohio attorney general indicating a lien would be placed on Village property unless an outstanding state employee tax withholding payment was immediately paid,” the report noted. “(Grady and Prince) indicated they were locked out of the Ohio Department of Taxation’s tax withholding system in 2017 and were not able to remit payments. Additionally, the fiscal officers lacked proper procedures to timely monitor expenditures and process bills, often paying bills only once a month.”

The report identified late fees and interest totaling $29,086 — including $20,431 resulting from late state tax withholdings, $4,028 from late unemployment compensation remittances, $2,177 from late federal tax withholdings, and $2,450 in other late payment penalties.

“The investigation began in March 2021, when SIU was contacted by the village solicitor alleging (Prince and Grady) had not paid the village’s state tax withholdings for at least two years. Additionally, there were concerns bills were not paid timely and the village was paying late penalties and interest. There was also a history of late payments and shut-off notices for utilities being received …” the report stated.

“Based on the special audit procedures and investigation, the auditor of state confirmed the allegation that (Prince and Grady) caused village funds to be illegally expended over a span of five years.”

Current Mayor Sandy Reasbeck said the report resolves a nagging question that’s been hanging over Yorkville for several years, pointing out the process was initiated by the former mayor and her administration.

“I’m glad it’s out, there were lot of people thinking it was just talk, that it wasn’t actually happening,” she said. “They didn’t want to believe it was.”

Reasbeck said the village has issues that will have to be addressed, like water and sewer concerns. They’ve already dealt with a policing issue, though she concedes there are a lot of hard feelings over it, “and we also have a divided council, too, so that makes it even worse-it makes it difficult to try and get anything accomplished.”

Now that the report is out, “I’m hoping people realize it wasn’t faked, that we really were being audited.”

“It took three years,” she said. “The previous mayor got the investigation going, I’m just here to clean it up.”