CATA is now turning to their lawyers to help them get back the excess amount they have paid for their penalties and interest due to late payroll tax which amounted to around $1.2 million.
The permission of the board members under the agency is required by the leaders of the transit agency so that they can instruct attorneys to study if there is a ground for CATA that will help them regain the money they have lost to their auditor, insurer and even those CATA employees that are involved in the tax issue and had knowledge of the transactions.
The agency is also planning to fire its existing auditing firm and find a new replacement. They are also adamant that the finance operations should undergo comprehensive review of the institutions operations. Baker Tilly, a firm based in Southfield, is currently the auditors of CATA. They have been reached out to for comments but they are yet to send a response.
The said comprehensive review will be another issue and will not be done along with the late payroll tax problem that Plante Moran is currently doing an investigation in.
Officials from CATA have already given a summary regarding their plans during a meeting that was conducted with the media. This is almost one month after the agency announced that they have paid about $1.2 million worth of penalties and interest because of the late payroll tax filings that were done from the year 2014 until 2016.
Officials clarified that they have already suspected a problem back in April last year but they were not able to pinpoint it until November of the same year.
Robert Swanson, chairman of the board, along with Sandy Draggoo, chief executive officer of CATA, are already working hand in hand to regain what they have lost and make sure that the same problem does not happen again.
Swanson said that they are very upset with what happened and it is something that should have been avoided. The problem was because of employees who are not following the proper procedure.
For individuals and businesses that are conducting their tax filings, insurance such as audit shield will be a big help to avoid problems such as the one CATA is currently facing.