Audit Finds Instances Of Noncompliance At Etna Township
February 8, 2020 at 2:35 a.m.
By Jackie [email protected]
According to the compliance report sent to the Times-Union by Etna Township Trustee Rita Anglin, several issues were found during this time frame, when Gary Sponseller was trustee. He resigned July 20, 2019.
The first issue is in regards to $1,028.85 Anglin says Sponseller owes back to the township.
According to the compliance report regarding the audit, “penalties and interest charges in the total amount of $709.74 and $59.68, respectively, were paid by the township to the Indiana Department of Revenue for delinquent payroll taxes.”
The compliance report also said a collection fee was paid to Premiere Credit for a late principal and interest payment in the amount of $259.53. Anglin said this was in regards to money owed to the Indiana Department of Revenue.
Anglin stated that the delinquent payroll penalties happened during Sponseller’s time as trustee and affected him as trustee and the clerk.
“We have found that this happened throughout his time serving as trustee,” Anglin said.
The money was paid from the township fund, Anglin said. “Townships are not to pay penalties, late charges and interest when it was the trustee’s responsibility to pay taxes and bills on time.”
As to date, Anglin said the audit information was sent to him, but so far Sponseller is refusing to pay the money back.
“We sent him the audit report so he could read it. He knows it’s his obligation to pay the township back,” she said. As far as repercussions, “The State Board of Accounts has only put it in the audit report but don’t seem to be going after the money for some reason. The auditor doesn’t understand why not either.”
Another issue that was found was two late submissions of annual financial reports.
The township’s annual financial report for 2015 was not filed electronically until April 4, 2016, 35 days after the due date; and the 2018 report was filed March 23, 2019, 22 days after the due date, according to the compliance report.
“(Sponseller) filed his reports late and didn’t even advertise the 2018 annual report that we can find. There is no penalty for not filing on time other than getting written up for it in audit,” Anglin said.
Indiana Code 5-11-1-4(a) states, “The state examiner shall require from every municipality and every state or local governmental unit, entity or instrumentality financial reports covering the full period or each fiscal year. These reports shall be prepared, verified and filed with the state examiner not later than 60 days after the close of each fiscal year. The reports must be in the form and content prescribed by the state examiner and filed electronically in the manner prescribed under IC 5-14-3.8-7.”
The compliance report did state two of the four years that were filed in the audit were submittedly timely. “For the two years not submitted timely, the number of days past the due date were not excessive.”
The third noncompliance issue had to deal with compensation and benefits. According to the compliance report, “an approved salary ordinance, or other appropriate documentation, listing hourly and part-time employee compensation was not made available for audit for 2015 and 2016.”
All compensation and benefits to officials and employees must be included in a labor contract, salary ordinance, resolution or salary schedule adopted by the governing body, unless stated otherwise by law, according to the compliance report.
According to the report, the township adopted a salary ordinance for 2017, 2018 and 2019.
The last two issues had to do with internal controls standards.
During the 2015-18 audit period, the compliance report states Etna Township did not provide required training for its personnel, whose “official duties include receiving, processing, depositing, disbursing or otherwise having access to funds that belong to the governmental entity.” However, the report did state all required personnel received training subsequent to the audit period.
Anglin said there were no repercussions due to this “but we did, when I became trustee, do the internal control standards and had the (Etna Township) Board plus myself do the online training required.”
The report also found during the audit period, the township didn’t adopt the minimum level of internal control standards as defined by the State Board of Accounts, which it states has subsequently done.
Sponseller did not comment about what is in the report, but did say he is working with the state to clear everything up.
According to the compliance report sent to the Times-Union by Etna Township Trustee Rita Anglin, several issues were found during this time frame, when Gary Sponseller was trustee. He resigned July 20, 2019.
The first issue is in regards to $1,028.85 Anglin says Sponseller owes back to the township.
According to the compliance report regarding the audit, “penalties and interest charges in the total amount of $709.74 and $59.68, respectively, were paid by the township to the Indiana Department of Revenue for delinquent payroll taxes.”
The compliance report also said a collection fee was paid to Premiere Credit for a late principal and interest payment in the amount of $259.53. Anglin said this was in regards to money owed to the Indiana Department of Revenue.
Anglin stated that the delinquent payroll penalties happened during Sponseller’s time as trustee and affected him as trustee and the clerk.
“We have found that this happened throughout his time serving as trustee,” Anglin said.
The money was paid from the township fund, Anglin said. “Townships are not to pay penalties, late charges and interest when it was the trustee’s responsibility to pay taxes and bills on time.”
As to date, Anglin said the audit information was sent to him, but so far Sponseller is refusing to pay the money back.
“We sent him the audit report so he could read it. He knows it’s his obligation to pay the township back,” she said. As far as repercussions, “The State Board of Accounts has only put it in the audit report but don’t seem to be going after the money for some reason. The auditor doesn’t understand why not either.”
Another issue that was found was two late submissions of annual financial reports.
The township’s annual financial report for 2015 was not filed electronically until April 4, 2016, 35 days after the due date; and the 2018 report was filed March 23, 2019, 22 days after the due date, according to the compliance report.
“(Sponseller) filed his reports late and didn’t even advertise the 2018 annual report that we can find. There is no penalty for not filing on time other than getting written up for it in audit,” Anglin said.
Indiana Code 5-11-1-4(a) states, “The state examiner shall require from every municipality and every state or local governmental unit, entity or instrumentality financial reports covering the full period or each fiscal year. These reports shall be prepared, verified and filed with the state examiner not later than 60 days after the close of each fiscal year. The reports must be in the form and content prescribed by the state examiner and filed electronically in the manner prescribed under IC 5-14-3.8-7.”
The compliance report did state two of the four years that were filed in the audit were submittedly timely. “For the two years not submitted timely, the number of days past the due date were not excessive.”
The third noncompliance issue had to deal with compensation and benefits. According to the compliance report, “an approved salary ordinance, or other appropriate documentation, listing hourly and part-time employee compensation was not made available for audit for 2015 and 2016.”
All compensation and benefits to officials and employees must be included in a labor contract, salary ordinance, resolution or salary schedule adopted by the governing body, unless stated otherwise by law, according to the compliance report.
According to the report, the township adopted a salary ordinance for 2017, 2018 and 2019.
The last two issues had to do with internal controls standards.
During the 2015-18 audit period, the compliance report states Etna Township did not provide required training for its personnel, whose “official duties include receiving, processing, depositing, disbursing or otherwise having access to funds that belong to the governmental entity.” However, the report did state all required personnel received training subsequent to the audit period.
Anglin said there were no repercussions due to this “but we did, when I became trustee, do the internal control standards and had the (Etna Township) Board plus myself do the online training required.”
The report also found during the audit period, the township didn’t adopt the minimum level of internal control standards as defined by the State Board of Accounts, which it states has subsequently done.
Sponseller did not comment about what is in the report, but did say he is working with the state to clear everything up.
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