Los Osos penalized for under reporting wages

April 17, 2016

Money toiletBy KAREN VELIE

The Los Osos Community Services District owes fines and interest for under-reporting almost $100,000 in wages during the past two years. The penalties are a result of “quarterly and annual payroll reports not being filed or being filed incorrectly,” according to a district staff report.

In a March 18 letter, the Social Security Administration informed the district that the amount of wages the district reported to Social Security differs by $94,000 from what the district filed with the Internal Revenue Service. If the district does not fix the discrepancies within 45 days, the IRS may charge a penalty, according to the letter.

In addition, the California Employment Development Department sent the district several notices of assessment for failing to properly report wages and pay for unemployment and disability insurances. In just penalties and interest, the district has been charged more than $10,000 in the past six months.

Kathy Kivley

Kathy Kivley

Last year, CalCoastNews analyzed former General Manager Kathy Kivley’s personal payroll and found that she had overcompensated herself by approximately $6,000 during her two year term. Following a district funded two- month investigation into the financial irregularities, Kivley retired in January.

In February, the district hired Peter Kampa to serve as its interim general manager. Shortly afterwards, Kampa announced Michael Doyel was no longer employed as the district’s accountant. Before he left, Doyle claimed that the district’s monthly reports were finished and in order.

However, in an April staff report, Kampa said that Doyle left the district with nine months of incomplete financial reports and that a significant amount of work would be necessary to determine if the information given to the board since the beginning of the fiscal year in July is accurate.

“We refuse to give you those (financial statements) unless they are grounded in fact,” Kampa said explaining while staff reports no longer include financial statements.

Kampa is currently working with three consultants — Warmerdam CPA Group, James & Company, CPA, and the district’s previous accountant, Dale Flynn – to remedy the delinquent notices received from the Employment Development Department, Internal Revenue Services and the Social Security Administration.



  1. isoslo says:

    This is one of many wars being waged in the world these days. The government just does’t care, it’s not their money. Yes there are many who work in government and try to get it right but more and more every day just don’t give a hoot if things are done correctly or not. Why because there are no repercussions. people need to be fired, retirement benefits need to be forfeited, penalties need to be assessed, not on the taxpayers but on the incompetent.

    (16) 20 Total Votes - 18 up - 2 down
  2. Jorge Estrada says:

    With a sales tax increase, voted in by the smart voters, they can afford to pay for their stupidity.

    (13) 23 Total Votes - 18 up - 5 down
  3. shelworth says:

    OK, to sum this up, WE get fined, and they get to keep the money they stole. Is that about it? Wataworld!

    (23) 33 Total Votes - 28 up - 5 down
  4. Pelican1 says:

    Watching the goings on of the LOCSD since 2005 has been like watching the Doo Dah Parade complete with all the now infamous characters. From bankruptcy bimbos to wrecklamator wacko’s…and thieving clowns….it seems to never end.
    It’s time to flush the CSD once and for all.

    (25) 33 Total Votes - 29 up - 4 down

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