While the audit of Monroe County finances resulted in a “clean” opinion, serious concerns were raised about the accounting practices at Oak Hill, the county-owned senior living and rehabilitation center in Waterloo.

James Schmersahl of Columbia accounting firm Schmersahl, Treloar & Co. delivered his opinion during Monday’s meeting of the Monroe County Board.

While Schmersahl voiced no concerns with the county departments’ book and had no issues with a  separate audit of the Monroe County Circuit Clerk’s Office, he began his review of the Oak Hill audit by describing the accounting practices of the facility as “substandard.”

Schmersahl clarified there was “no malfeasance” and all “bills were paid on time,” but added there were a large amount of adjustments needed and the situation required “12 large journal entries” to document the irregularities.

Schmersahl said there were $3.3 million in debits and credits which had been “misrecorded,” and that adjustments were needed on $750,000 worth of private-pay transactions and $450,000 of payroll tax entries. 

In addition to many of the accounts not being properly reconciled, Schmersahl noted the amount of time needed to sort through the discrepancies “delayed the audit.”

Schmersahl continued by saying the accounting was “not as it should be.”

He suggested acting administrator Alicia Emmerich “did her best, but it is clear that she was not prepared for that position.”

Schmersahl concluded that “significant changes” are needed in Oak Hill’s administrative practices for him to “feel comfortable approving” future audits of the senior care facility, adding there needs to be better “controls over the assets.”

Monroe County Clerk Jonathan McLean stated for the record that Oak Hill has its own internal management system, noting the county has “no fiscal oversight” of Oak Hill business.

Emmerich was chosen to lead Oak Hill following the ouster of former administrator Shari Kruep. 

Kruep was terminated Sept. 20 for failure to report “alleged abuse or neglect of residents” to the Illinois Department of Public Health. 

With Emmerich assuming Kruep’s duties, she became the fourth organizational leader of Oak Hill in the past five years.

Brian Koontz took over administration at Oak Hill in 2020, allowing longtime administrator Kim Keckritz to enter semi-retirement.

Keckritz had planned on moving to a part-time role in 2019, but was forced to delay the transition following administrator-in-waiting Rachel Giffhorn’s sudden decision to take back her acceptance of the position in order to “spend more time with family.”

Keckritz returned to the administrator position once again in September 2021 following Koontz’s abrupt and unexplained resignation. 

His resignation coincided with the firing of Oak Hill nursing director Susan Nordhaus, which led to a wrongful termination lawsuit which was settled in 2023.

Jennifer Morgan, the assistant director of nursing at the time, filed a suit against Monroe County alleging Oak Hill terminated her employment in November 2021 as retaliation for reporting alleged sexual harassment against Koontz during his time as administrator.

Kruep then took over in early 2022, but Keckritz began full-time retirement in late 2023, leading to Emmerich’s appointment to acting administrator late last year.

Emmerich was Oak Hill’s chief financial officer under Kruep, although she has never been officially announced as the administrator since taking over those duties. 

The matter was not discussed apart from the audit. 

Operations at Oak Hill were under the direction of an independent management firm through the mid-2000s while still being owned by the county.

During Keckritz’s tenure, which began in 2001, the county dropped the management company in favor of internal management, and the facility was a consistent source of county revenue even with  the issuance of $20 million in bonds in 2004 to finance a new facility.

The facility has faced employee shortages and COVID-related challenges in the recent past, leading to a $1.1 million “operating” loss during fiscal year 2023.

With Oak Hill’s construction bond set to be paid off, Schmersahl was asked his opinion about the future of Oak Hill during last year’s audit. 

He said it was ultimately the decision of the commissioners, and replied with a hypothetical question.

“Does the county want to be in the business of providing nursing home services, and what is the benefit to the residents and the cost to the residents?” Schmersahl asked. “The alternative, presumably, would be to sell the nursing home to some other third party.” 

The comment brought a show of support from the community at the next meeting, with several public comments expressing strong support in keeping Oak Hill as a county-owned entity.

Highlights from the rest of the audit included a glowing report about the county’s pension liability.

Schmersahl noted the “plan is over-funded,” and said it is “the closest thing to nirvana” a local government can experience. 

“Not many counties can say that,” Schmersahl continued, adding it should be a “source of pride” and called it “good stewardship” for the commissioners’ successors.

In other money matters, Monroe County Treasurer Kevin Koenigstein reported that most property tax bills payable in 2025 should have arrived in county residents’ mailboxes. 

He advised anyone who has not yet received a bill to contact the treasurer’s office by phone at 618-939-8681.

Tax bills may also be viewed and paid at payments.municipay.com/il_monroe/search.

Koenigstein reminded taxpayers that tax bills may be paid in full or in installments through the website or in person. 

Those using the website are advised to use an “e-check” direct debit payment, which carries a $2 charge, rather than a credit card payment, which carries a fee of 2.35 percent of the total tax bill.  

The first installment is due Sept. 19, and the second installment is due Nov. 14.

Koenigstein also urged senior citizens ages 65 and older to call his office to apply for the senior homestead exemption. 

There is also an “assessment freeze” available to senior citizens who have a maximum total household income of $65,000.

More information may be obtained at monroecountyil.gov/departments/treasurers-office/tax-savings-programs.

In other business, construction of a driveway off Rogers Street in Waterloo took one step closer to becoming a reality.

Property owner Steve Wilke attended a recent board meeting to find a solution to an ordinance limiting new ingress/egress points on Rogers Street specifically. 

Wilke has faced challenges constructing a driveway to a multi-acre property due to an ordinance designed to prevent the number of driveways and street intersections which now exist on Hamacher Street from Rogers Street east to the city limits.

Commissioners approved a zoning amendment which would allow a single access point to parcels zoned A1 or A2 agricultural if the lots are a minimum of five acres with at least 330 feet of frontage along Rogers Street. 

Any such ingress/egress would be required to allow for “turnabout” within the property to prevent “backing out” onto Rogers Street.

The motion was unanimously approved pending addition of language stating the access point would be reserved for the “sole and exclusive use of that property.”

Wilke will now be required to present any plans to the City of Waterloo even though it is not within city limits because Waterloo has jurisdiction over Rogers Street. 

Read about more topics discussed in the July 7 county board meeting in next week’s paper.