A finance report released by the City of Taft provides more details on the ongoing investigation into an allegation that taxpayer funds were misused and offers a clearer view of the financial challenges the city faces.
Interim Finance Director Lindsay Koskiniemi’s findings reveal that since July 2023, the city has not conducted any bank reconciliations. Reconciliations ensure that all transactions on bank statements are reviewed and verified, reducing the likelihood of errors. Koskiniemi added that this is a matter that “urgently needs to be corrected.”
According to the report, required quarterly tax filings have not been completed or paid since the third quarter of 2023.
Those filings report payroll taxes, including federal income taxes, Social Security, and Medicare taxes withheld from employee’s paychecks, as well as the employer’s share of Social Security and Medicare taxes.
According to the findings, the City of Taft owes approximately $247,000 in payroll taxes since the start of 2024 and will likely incur IRS fines for non-filing and nonpayment, according to Koskiniemi.