City of Audubon Park bouncing checks, blaming payroll provider
LOUISVILLE, KY (WAVE) - A city clerk says a mistake by its payroll company has left the city of Audubon Park scrambling to pay its bills. Now, it's the regular folks who work for the city of Audubon Park, paying the price.
City Clerk Jannette Mercer is getting an earful.
"You'll probably get more bounced checks," Mercer was overheard telling one city employee by phone. "What you need to do is keep me a running total."
The bounced checks are stacking up for 18 Audubon Park employees and the city itself.
Mercer just found out a $5,877 check to the Jefferson County PVA for providing property tax information didn't clear. Smaller transactions aren't going through either. One police officers debit card was declined at Hometown Pizza when she tried to pay for lunch.
"We were eating lunch together and I was there and I couldn't believe," said Major Mike Minniear who saw what happened. "It was kind of embarrassing for her."
Embarrassment is now giving way to anger at the city's payroll provider, ADP Small Business Services. Mercer said late last month she told ADP the city was switching bank accounts. When payday came, Mercer says ADP cut everyone's checks from the old account, not the new one.
The city had enough money to cover those payments but complained to ADP about the mistake. They say ADP responded by voiding out all the checks they cut from the wrong account. Leaving big holes in bank accounts no one knew about.
"So not only is the city of Audubon Parks checks bouncing," Mercer said, "but all the police and my check and my house payment, everything is bouncing."
After trying for a week to get the situation resolved on her own Mercer called the WAVE 3 News Troubleshooter Department. Tuesday, Audubon Park heard from ADP. ADP emailed each employee a letter which reads: "Due to an ADP communication error, your direct deposit files were inadvertently reversed."
The letter also said that the money has been credited back to everyone account as of Tuesday. ADP also pledged to pay all the overdraft fees employees are getting and overnighted a $200 check to city hall to cover the overdraft fees the city raked up.
Unraveling a payroll mess that left Audubon Park in the red and seeing red.
Multiple calls to ADP seeking comment have not been returned. Audubon Park is currently working with Louisville Metro Government and the Jefferson County PVA to address the overdue bills it now has a result of all of this