Inspector finds Cuyahoga County Sheriff’s Dept. credit card program had $815K in unauthorized spending

CLEVELAND — The Cuyahoga County Sheriff's Department made hundreds of thousands of dollars in unauthorized transactions, wasted thousands of dollars paying sales tax, and lost out on over $8,000 in credit card rewards, according to the county's watchdog agency.

A report obtained by News 5 Investigators shows Cuyahoga County Inspector General Alexa Beeler became aware of the department's credit card program while investigating the commissary's operations, which revealed funds were not being used for their "intended purpose of benefitting the jail's inmates."

Unauthorized credit card spending

The new report's finding of "unauthorized spending" stems from the department's failure to follow state law.

The AIG report found three out of four of the CCSD's credit card accounts were not authorized as required, which led to $815,467 in unauthorized spending during the time period reviewed.

Ohio Revised Code requires Cuyahoga County Council to pass a resolution to "authorize and appropriate the cards."

Out of the four accounts in CCSD's credit card program, only an account for "work-related prisoner extradition expenses" was authorized by a resolution.

Sales tax paid

The waste stems from sales tax paid by CCSD.

Political subdivisions, including Cuyahoga County, are exempt from sales taxes in Ohio.

The AIG found that CCSD paid $5,761.32 in sales tax that was exempt, including $1509.33 to Amazon.

'Forgone rewards'

The AIG also found the four CCSD credit card accounts could be enrolled in a rewards program with Elan Financial Services, which has a $112,500 line of credit with CCSD.

However, when Beeler asked the county employee who manages the cards why CCSD was not enrolled in the rewards program, she said "she did not think" the sheriff's department could enroll and "did not have time to research it."

The report said the total estimated loss was $8,154.67 in rewards that could have been used to reduce the county's bills.

County response

News 5 Investigators reached out to the Cuyahoga County Council for on-camera interviews.

Cuyahoga Council President Pernel Jones Jr. sent us the following statement:

"I appreciate the work of our Inspector General - this is why we created the agency in 2011. I feel confident that the administration and the Sheriff's Department will adhere to the recommendations made in the report."

News 5 Investigators also requested an on-camera interview with Cuyahoga County Sheriff Harold Pretel.

Cuyahoga County Press Secretary Jennifer Ciaccia sent us the following statement:

"The Cuyahoga County Sheriff's Department (CCSD) is aware of the Report of Investigation completed by the Cuyahoga County Agency of Inspector General (AIG). The Sheriff's Department administration is reviewing the report and will provide a written response to the AIG within the requested 30-day timeframe."

Beeler was unavailable for comment on Wednesday.