‘It needs to get fixed’: Lack of protocols led to tax rebate check fumble

RICHMOND, Va. (WRIC) — Ahead of a city audit planned to look into Richmond's recent rebate check errors, leaders said a lack of standard operating procedures and failed quality control checks led to problems.

In 2024, the City of Richmond approved a four-cent rebate tax program aimed to help Richmonders. During its first rollout intended for March, the city identified several errors that caused thousands of Richmonders to receive the wrong check or not receive one at all.

In recent months, city leaders have identified the errors caught during the process. During a city council meeting on Monday, Chief Administrative Officer, Sabrina Joy-Hogg updated council members on the problems that took place and shared what the finance department is doing to resolve the issue.

"People are frustrated and it's understandable," said Councilmember Kenya Gibson. She went on to say, "we're losing the trust of our residents. And, and it just it needs to get fixed."

The city intended to send tax rebate checks to about 59,000 people -- about 8,300 checks were addressed to the wrong person. The payee listed on the check was Hartshorn Community Council. About 2,000 checks were sent to the wrong address.

These errors prompted city leadership to stop all checks, causing correctly issued checks to bounce.

8News spoke with Councilmember Kenya Gibson and Councilmember Saraha Abubaker about the mix up. Both said they've received concerns from residents in their district about the error. The two have questioned department staffing and culture.

"Why do we have this high turnover in staffing? Why can't we seem to retain talent? We're bringing in a lot of temps. There are a lot of bodies in the department, but they're not necessarily doing the detailed work that needs to be done," Abubaker said.

"The finance department has a high level of turnover. And so, clearly residents are reaping the brunt of that," Gibson said.

The city's auditor's office is now tasked with looking into what went wrong and how the finance department can improve moving forward. During Tuesday's meeting, Joy-Hogg stated that there were no standard operating procedures in place before this process began and quality checks along the way failed.

"We need to get them to them as soon as possible. Accurately. Right. So those are my like chief priorities and holding the administration accountable," Abubaker said.

Richmonders who received a check that was not made out to them is asked to discard that check and not cash the payment. Those who received a correctly issued check and it bounced can still apply for reimbursement by calling 311 or submitting a ticket online. The deadline is May 31.

The city said they are waiting for issued checks to expire on June 16. By June 30, the department says they will have reprinted checks and sent them to the correct individuals.

Councilmembers requested that the department share with the council the updated standard operating procedures that are in place and exactly how many people were impacted.

Councilwoman Ellen Robertson called the errors troubling sharing the following statement with 8News.

"This is very troubling. Policy will be put in place to mandate SOPs and administrative plans in the future by council. The compromise to rebate was done in good faith to address the continual cost burden and increases in real estate taxes instead of decreasing the real estate tax rate. Richmond’s cost of government and  cost of living crisis is a threat to growing a diverse, inclusive population."