Investigator: State audit finds Beachwood mayor owes taxpayers

March 25, 2015

Author: Alyssa Holroyd

A state audit has found the state's highest paid public official owes taxpayers nearly $3,000 for compensation he should not have received.

Mayor Merle Gorden has reimbursed the city for payments he received for performing weddings, for overnight stays in Columbus and for two vacation days he took.

Channel 3 news Investigator Tom Meyer first questioned Mayor Gorden's compensation for performing weddings last year. Gorden is the only mayor in Cuyahoga County who accepts what he calls a set gratuity of either $125 for weddings performed during business hours and $250 for weddings conducted after hours.

Most other local mayors donate fees of up to $50 to charity for marriage ceremonies.

City records show Mayor Gorden has pocketed about $9,000 in wedding compensation in a seven-year period ending in 2014.

"There is no authority for the mayor to receive extra compensation for money collected as an unauthorized fee for performing marriage ceremonies. Because the city did not receive any gratuity but instead received unauthorized fees, the mayor was not entitled to be paid as additional compensation the money the city received as a fee for performing marriage ceremonies."

The mayor issued a statement saying under his 20 years of leadership, the city of Beachwood has never before received a single finding for recovery from the state auditor's office. Prior audits have been exceptional, he said.

In this latest audit, three findings for recovery were issued.

Full statement from Mayor Gorden and Beachwood City Council:

picture: pink bridesmaid dresses

The City of Beachwood has been notified by the State Auditor's office that three minor findings for recovery have been issued relating to the City's 2013 state audit. These findings are civil in nature, and there are no allegations of any criminal wrong doing against anyone at the City of Beachwood. The first finding is in the amount of $995.00 paid to Beachwood Mayor Merle Gorden for the performance of weddings in 2013. The second finding is in the amount of $482.00 representing two overnight stays in Columbus following business meetings relevant to the City of Beachwood and two, one-half day, per diem expenses. The third finding is for the amount of $1350.00 which represents two vacation days the State Auditor believes the Mayor should have used following the above mentioned business trips to Columbus.

Mayor Gorden takes the responsibility of providing good stewardship of public funds very seriously. Under Mayor Gorden's 20 years of leadership, the City of Beachwood has never before received a single finding for recovery from the State Auditor's office. Prior Beachwood audits have been exceptional, even award winning. These past audits (performed by the State of Ohio Auditor's office) have looked at these same issues and found no concerns, and made no recommendations for improvement in these areas. The procedures used to reimburse or compensate the Mayor for travel, the performance of weddings and vacations have all been previously approved by Beachwood City Council.

Mayor Gorden recognizes the important work the State Auditor performs. Mayor Gorden also respects Auditor Yost and his staff. The Mayor has stated: "We have always complied with recommendations of the Auditor and Beachwood has always enjoyed a good working relationship with Mr. Yost's office.

Recognizing the important work that lies ahead of Beachwood, Mayor Gorden and City Council have decided not to challenge the findings. Mayor Gorden has submitted payment to the City for the full amount of the findings though our objections have been submitted to the State Auditor. In addition, the Mayor – in another effort to remove a potential point of distraction going forward – supports a proposal that would exclude him in the future from receiving vacation benefits. The Mayor's willingness to resolve and close these matters should not be taken as a concurrence with the State Auditor's opinion.

Beachwood City Council President Fred Goodman said the audit represents closure and should not detract from the progress and tremendous growth that the city has seen under Mayor Gorden.

"Any fair and complete review of Beachwood's performance under Mayor Gorden would shine with impressive statistics," he said. "The city's finances have received the highest ratings possible from New York bond-rating agencies -- offering third-party validation of the city's overall financial performance. Beachwood's municipal services – for residents, businesses and visitors – are second to none. The streets get plowed when it snows, police officers show up quickly when called and the fire department is very highly rated. The city works -- and it has worked well under Mayor Gorden."