Greater Cleveland Regional Transit Authority

Internal Audit Department

GCRTA Board Member Benefits Investigation

1994?2003

Human Resources is responsible for billing and

collecting payments from Board Members for health collecting payments from Board Members for health

insurance premiums.



Timeline of Key Events 1994-2018

2004?2014

Accounting assumes responsibility for billing and

insurance premiums.

Cumulative Balance Owed for Premiums





 

:19 
Apr 1994: Board Policy 1994?35 permits Board
members to enroll in health insurance plan; Dixon
enrolls

1996-2001: HR sends 17 noti?cations of past due
to George Dixon

1997-1999: Coverage cancelled and reinstated
three times due to non-payment of premiums

May/Sep 2003: Public records request for Dixon
Records

Jul 2003: Payment plan is setup with Dixon for
outstanding premium balance

Nov 2003: Statement from J. Calabrese to stake-
holders re: news story about Dixon healthcare pre-
miums

ub??%qo\ 0;





Jan 2004: Accounting assumes billing and col-
lection responsibility for Dixon?s premiums

 

2 01 5?2 01 8
HR resumes billing and collection activities; Account-
ing sets up Accounts Receivable for George Dixon
and sends invoicesJun-Jul 2015: 3 letters to Dixon indicating cover-
age is being cancelled (coverage continues)

2005: Accounts Receivable established for Dixon; 2 20152017? HR sends 9 noti?cations 0f past due to

invoices created and closed (untraced)

2004-2014: Human Resources continues to send
annual letter to Dixon with enrollment con?rmation
and premium owed

Dixon's healthcare coverage continues uninterrupt-
ed throughout this period, per Medical Mutual of
Ohio

Balance of premiums owed grows from $10,006.85
to $114,360.47.

Lack of records for this period

Other Board Members on plan in this period:
Anderson, Campbell, Serrano, Weir?all paid pre~
miums.

George Dixon

Dec 2015: Accounting establishes new Accounts
Receivable for Dixon: $62,796.02

Jan 2016: Notification of past due to Dixon but
coverage continues

Feb 2017: Cancellation initiated due to non?
payment but rescinded per HR

Dec 2017: Cancellation due to non-payment

Dec 2017: Dixon contacts Benefits Manager direct-

ly, delivers checks for 2 months' premiums (later
found to be NSF)

Jan-Feb 2018: Coverage is reinstated

Feb-Mar 2018: Internal Audit, Board of
Trustees informed of outstanding balance

April 2018