Sworn Affidavits Seek Removal of Marion City Auditor as Millions in Fiscal Chaos are ExposedReading Mode

On January 13, 2026, a significant escalation in the oversight of Marion’s finances occurred as three City Council members filed sworn affidavits with the Ohio Auditor of State (AOS). These filings allege systemic accounting failures and improper financial conduct by City Auditor Miranda Meginness, supported by independent consultant findings of a $2.4–$2.5 million cross-fund discrepancy that has brought the city’s mandatory auditing process to a standstill. These legal filings underscore a legacy of dysfunction that MarionWatch has officially documented since 2019, with evidence of severe software and operational issues tracking dating back as far as 2016. Following admissions in official council minutes, the MarionWatch team—alongside external IT, financial, and other relevant experts—now insists on a comprehensive forensic IT audit of the New World system, retroactive to its initial installation.

Examples of Justification for a Full Forensic IT Audit: While the affidavits address legal and statutory violations, the technical failure of the city’s infrastructure requires a separate, specialized forensic investigation. Based on industry-standard IT practices and MarionWatch investigative reports, a full forensic IT audit is required and considered non-negotiable to address the following:

• Systemic Data Corruption vs. Human Intervention: Investigative reports highlight the need to determine if the $2.5 million discrepancy is a result of “ghost” entries or manual overrides within the New World environment. This investigation is necessary to verify adherence to the standard IT principle of Data Integrity.
• Audit Trail Reconstruction: Standard forensic practice requires the recovery of deleted or altered transaction logs to identify the “chain of custody” for unauthorized payments. This technical recovery is essential to determine if the “hidden” payments mentioned in council testimony were facilitated through intentional system manipulations or database backdoors.
• Validation of the New World Implementation: Reports suggest the system was never properly configured or reconciled from its 2016 launch. Industry standards, such as the COBIT or NIST frameworks, dictate that any system producing unauditable reports for over five years must undergo a forensic “post-mortem” to identify structural database failures and configuration errors.
• ADP Integration & Payroll Discrepancies: Forensic specialists are calling for a deep-dive into the application programming interface (API) and data transfer layers between ADP and New World. This is the only technical way to identify where thousands of dollars in tax penalties and interest originated and to ensure that “knowledge gaps” are not being used as a cover for electronic misappropriation.
• Administrative Privilege and Password Sharing: A forensic audit must investigate reports of insecure administrative practices, including the sharing of passwords and “Superuser” credentials among staff to bypass standard internal controls. Such actions represent a critical failure of the system’s logical access controls and a direct violation of the Principle of Least Privilege (PoLP).

Looking Closer at the Most Recent Revelations: The Complete List of Statutory Allegations

The formal complaint was initiated by Councilmembers Shawn Barr, Twila Laing (Finance Committee Chair), and Ralph W. Smith. Their affidavits accuse Auditor Meginness of “purposely, knowingly, or recklessly” failing to perform fiscal duties expressly imposed by the Ohio Revised Code (ORC) or committing prohibited acts.

Based on the sworn affidavits and supporting documentation, the complete list of grievances includes:

• Total Reconciliation Failure: No complete monthly or yearly bank-to-ledger reconciliations have been performed since December 21, 2019.
• Audit Deficiencies: Failure to provide sufficient appropriate audit evidence to support end-of-year cash financial positions, leading to “qualified opinions” on nearly all major city funds (General, Police, Fire, Sewer, etc.).
• Accumulated Penalties: Significant fines and interest charges from the IRS, OPERS, and OPFPF due to failure to remit payroll taxes and retirement contributions in a timely manner.
• Concealed/Unauthorized Disbursements: Allegations that the Auditor disbursed funds without proper council appropriation and intentionally miscoded expenses (such as coding a late tax penalty as “interest”) to hide payments for which she was personally liable.
• New World/ADP Failures: A failure to properly manage and reconcile the city’s New World accounting software, resulting in a $2.4–$2.5 million discrepancy between cross-fund and cash reports.
• Fiscal Integrity Act Violations: Failure to complete the mandatory continuing education requirements (9.375 hours) by the December 31, 2023, deadline.
• Misleading Statements: Providing false or inaccurate information to Council regarding the purchase/lease of a fire truck, which resulted in an estimated $54,000 in unnecessary interest.
• Loss of Revenue: Failure to properly manage utility department billing, causing unknown losses in sanitation and sewer fees.
• Financial Instability: The city’s placement into “Fiscal Caution” on November 25, 2025, which has led to a lost bond rating and the suspension of critical infrastructure projects.

Documentary Basis and Independent Corroboration

The investigation is grounded in findings presented by Veritas, an independent consulting firm. During a January 22, 2024, council meeting, Veritas representative Greg Blate reported that the city’s records were not auditable because the reports generated by the software did not match the physical bank deposits. Blate noted that this was a result of “knowledge gaps” and potential software misuse rather than simple glitches.

The record of proceedings shows that Auditor Meginness admitted it was not “honest” to code late fines as “interest” within the New World system. These documented failures have directly led the State Auditor to maintain the city’s “Fiscal Caution” status.

What Happens Next: The Legal Removal Process

The submission of these documents triggers a strict statutory timeline under Ohio law:

1. AOS Determination (30 Days): The Auditor of State has 30 days from receipt (Jan. 15, 2026) to determine if “clear and convincing evidence” exists to support the allegations.
2. Attorney General Review: If the AOS finds the evidence sufficient, the case is forwarded to the Ohio Attorney General, who has 10 business days to review and potentially initiate a lawsuit for removal from office.
3. Judicial Proceedings: Any legal action for removal would be filed in the Marion County Court of Common Pleas.
4. Operational Oversight: Continued failure to produce auditable records may see Marion’s status upgraded from “Fiscal Caution” to “Fiscal Watch” or “Fiscal Emergency”, potentially resulting in a state-appointed commission taking control of city spending.