Ohio Auditor Keith Faber says taxpayers are footing the bill for more than $1.5 million in late fees, interest and penalties run up by local governments that failed to file key financial paperwork and make required payments on time, and he’s moving to make some local officials personally repay what he calls unnecessary “junk fees.”
Statewide late-fee problem
Faber’s office reports that, since 2019, findings for recovery tied specifically to late payments and filings by public entities have climbed past $1.5 million. Those charges stem from missed deadlines on bills, payroll tax withholdings, retirement contributions and other required remittances by public bodies, including municipalities, school districts and libraries.
The auditor said the number of late-fee findings has steadily increased in recent years, calling it an unacceptable use of public money. “There are too many public offices in Ohio paying their bills late, and that’s unacceptable,” Faber said in a recent statement. He has framed the issue as a growing pattern rather than isolated mistakes, noting that many of the cases involve repeat problems over months or years.
Personal liability for “junk fees”
While late-payment charges are often criticized in consumer contexts as “junk fees,” Faber is now applying that language to public offices that, he says, are effectively wasting tax dollars. His office has issued findings for recovery that seek to hold individual fiscal officers and other local officials personally liable for late fees and penalties when their negligence caused the charges.
Findings for recovery are formal orders to repay misspent public funds and are reserved for what the auditor describes as gross negligence, not one-time slips. Faber has said that repeated failures to pay bills on time or remit payroll withholdings properly can rise to the level of “callous disregard” for public money. In several cases since 2019, officials have been ordered to reimburse their own municipalities, townships or districts for thousands of dollars in avoidable late fees.
Impact on local governments and taxpayers
The late-fee findings span a range of public entities, from small townships and villages to larger cities and school districts. Individual assessments have ranged from about $100 to more than $200,000, with most topping $1,000, according to prior summaries from the auditor’s office. Even when the amounts are relatively modest, Faber argues that every dollar spent on penalties is a dollar not available for services such as public safety, classroom instruction or community programs.
Taxpayer advocates have echoed that concern, saying that while private consumers may grudgingly accept credit-card or utility late fees, governments have a higher duty to manage money carefully. The cumulative total—now in excess of $1.5 million—represents multiple years of late charges assessed across dozens of local entities that rely on state and local tax dollars.
Calls for stronger financial diligence
In public statements, Faber has urged local fiscal officers, treasurers and administrators to tighten internal controls and track payment due dates more closely to avoid future penalties. He has emphasized that his office views occasional, promptly corrected errors differently from repeated failures that draw repeated fees.
The auditor’s office regularly highlights clean audits and awards entities that maintain strong records while also flagging those that incur late-fee findings for recovery. As more audit reports are released this year, Faber has signaled he will continue to press for personal accountability where he believes negligence has cost taxpayers money in unnecessary “junk fees.”