Cordray Scores in One Venue, and Commits a Personal Foul in Another

Ohio Treasurer Richard Cordray scores (second item at link):

Ohio is owed more than $470,000 on its state bank accounts due to fee errors and earnings credits never applied, a review by the state treasurer found.

Ohio Treasurer Richard Cordray released the findings last week, after a review of bank contracts the state had in place in 2006 and the accompanying records. The analysis followed the discovery in March of similar accounting errors in the state’s main bank account.

The amounts expected to be credited to the state include: $173,587 from Fifth Third Bank; $125,599.07 from National City; $104,893.19 from JPMorgan Chase; $54,928.53 from Huntington Bank; $10,733.42 from KeyBank; $452.86 from PNC; and $11.20 from Charter One.

The variances were found in banking records going back to 2004.

Assuming that Cordray is correct, has given the banks time to respond, and that the banks agree (that is not at all clear from the article), this is a good thing. Again if my assumptions are correct, and given the time frames involved, what Cordray has found reflects poorly on the management of predecessors Jennette Bradley and Joe Deters (sorry guys, you don’t get passes around here just because you have an “R” by your name).

I would think that businesses and other entities with significant amounts of money on deposit or in sweep accounts with the first five banks mentioned ought to be combing their records for possible similar errors.

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But Cordray has also committed a personal foul.

Before this year, Ohio drivers made checks for Drivers License renewal fees and other Bureau of Motor Vehicle (BMV) services to the specific location’s manager (the locations have typically been managed by private parties until recently, and I believe they still are).

Sometime during 2007, that changed. Now all checks at all locations have to be made out to “Ohio Treasurer, Richard Cordray.”

No doubt it’s a shrewd political move, as every driver in the state, most of whom are of course potential voters, will be exposed to Cordray’s name at least annually, giving him priceless name recognition for the next election. But it appears to have no other legitimate purpose.

There may very well be cash-flow savings that offset the conversion costs (hundreds of new desk signs, other physical items, and paperwork) of going to a common payee. But many of these costs will have to be incurred again, once the next treasurer takes office four or eight years from now, thanks only to the presence of Cordray’s name.

If Cordray had just wanted a common statewide payee for Ohio BMV transactions, he could have told drivers to make checks payable to “Ohio Treasurer of State,” as has been the case on Ohio income and other tax forms for decades, and there would be no additional costs when he is succeeded.

If Richard Cordray inserts his name onto the 2007 IT-1040 form, I’m calling a flagrant foul — and I don’t care what other state treasurers do.