County Continues Monitoring Of ACH Processes
June 8, 2022 at 1:50 a.m.
By David [email protected]
“This morning I wanted to give you all an update on our ACH (Automated Clearing House) process and the internal controls associated with our ACH process,” she said.
The theft of $313,951 came in the form of a fraudulent ACH request in which the perpetrator imitated a vendor (J & K Communications) for Kosciusko County government seeing payment of invoices. An ACH transfer is the electronic movement of money between banks through the ACH network.
The scam began April 7 when the county administrator’s office received a request for payment using ACH, but with a different routing number. The auditor’s office then included the request among other ACHs being issued at the same time. The bills were sent on April 26, and officials realized there was a problem three days later. The county’s insurance carrier and police were notified. New rules were put into place to safeguard from any potential future scam.
Puckett, on Tuesday, said, “So, over the past several weeks, we have utilized every resource that we have access to, to come together and really add additional safeguards in our process. We have at least three separate verification processes now that were implemented immediately to verify all the information for vendors initially and account numbers as well.”
She said they have put the safeguards in place.
“There was a time we were holding ACHs until this was finalized. We had several people review the process. This will be a living, breathing document. We will review it periodically - probably quarterly - so as we receive other information and feedback from individuals, we can update our current processes,” Puckett said.
Commissioner Cary Groninger said multiple jurisdictions - state and federal - are involved in the ongoing investigation into the scam. Once those findings are complete, Groninger said they will be released to the public.
In other business, the Commissioners:
• Approved an ordinance to create a Hoosier Enduring Legacy Program (HELP) fund to accept donations to the county program, as presented by county attorney Ed Ormsby.
Reading from the ordinance, he said Kosciusko County was one of three communities selected by the Indiana Office of Community and Rural Affairs (OCRA) to participate in the first cohort of the HELP. HELP “encourages communities to develop strategic investment plans focused on four pathways: advancing econnectivity, enhancing quality of life, promoting community wellness and strengthening local economies.”
For private citizens to contribute to the HELP fund, Ormsby said it was necessary, by way of ordinance, to create a special fund for them to make contributions.
• Heard seven budget presentations from local nonprofits.
For 2022, Kosciusko County 4-H Council was approved for $44,347 and is requesting $45,233 for 2023; Cardinal Services, approved for $104,980 in 2022, requesting $108,129 in 2023; Kosciusko Home Health Care & Hospice, approved for $48,087 in 2022, requesting $50,000 in 2023; Kosciusko County Historical Society, approved for $22,337 in 2022, requesting $25,000 in 2023; Beaman Home, approved for $32,139 in 2022, requesting $50,000 for 2023; Kosciusko County Senior Services, approved for $32,139 in 2022, requesting $40,000 in 2023; and St. Joe River Basin, approved for $3,705 in 2022, requesting $3,705 in 2023.
All seven nonprofits were approved for a total of $287,734 in 2022 and are seeking a total of $322,067 in 2023.
• Approved the service agreement between the county clerk’s office and Maximus Consulting, as requested by County Clerk Ann Torpy.
“They are the ones that prepare our child support incentive claims to the state to receive federal money back,” she said. “The funds that pay this contract is paid through that back, so it’s not county controlled.”
She said there’s a lot with federal grants to monitor and Maximus is there to help the clerk’s office through all of that. The office has been using Maximus since 2009.
• Approved for Emergency Management Agency Director Ed Rock to submit a letter of intent to update the county’s multi-hazard mitigation plan in order to apply for a $27,000 BRIC (Building Resilient Infrastructure and Communities) grant to update the county’s hazard mitigation plan.
Rock said this is the third time the county has had to renew the plan since he started as director.
“It’s an integral part of our flood plain management plan. We have to have this in place. It’s one of the prerequisites for it. The other thing it does - once we have this approved by FEMA, we are available then to apply for multi-hazard mitigation money for other grants, projects that are listed in the plan,” he said.
It is a reimburseable grant, but there is a 25% required match. In the past, the county used the hours that people from around the community put in for this as part of the match. The match has to be cash or in-kind.
• Approved a letter of support for Kosciusko Economic Development Corporation’s (KEDCO) grant application for its MedTech Implant Investment Initiative.
• Announced the next commissioners meeting is at 9 a.m. June 21.
“This morning I wanted to give you all an update on our ACH (Automated Clearing House) process and the internal controls associated with our ACH process,” she said.
The theft of $313,951 came in the form of a fraudulent ACH request in which the perpetrator imitated a vendor (J & K Communications) for Kosciusko County government seeing payment of invoices. An ACH transfer is the electronic movement of money between banks through the ACH network.
The scam began April 7 when the county administrator’s office received a request for payment using ACH, but with a different routing number. The auditor’s office then included the request among other ACHs being issued at the same time. The bills were sent on April 26, and officials realized there was a problem three days later. The county’s insurance carrier and police were notified. New rules were put into place to safeguard from any potential future scam.
Puckett, on Tuesday, said, “So, over the past several weeks, we have utilized every resource that we have access to, to come together and really add additional safeguards in our process. We have at least three separate verification processes now that were implemented immediately to verify all the information for vendors initially and account numbers as well.”
She said they have put the safeguards in place.
“There was a time we were holding ACHs until this was finalized. We had several people review the process. This will be a living, breathing document. We will review it periodically - probably quarterly - so as we receive other information and feedback from individuals, we can update our current processes,” Puckett said.
Commissioner Cary Groninger said multiple jurisdictions - state and federal - are involved in the ongoing investigation into the scam. Once those findings are complete, Groninger said they will be released to the public.
In other business, the Commissioners:
• Approved an ordinance to create a Hoosier Enduring Legacy Program (HELP) fund to accept donations to the county program, as presented by county attorney Ed Ormsby.
Reading from the ordinance, he said Kosciusko County was one of three communities selected by the Indiana Office of Community and Rural Affairs (OCRA) to participate in the first cohort of the HELP. HELP “encourages communities to develop strategic investment plans focused on four pathways: advancing econnectivity, enhancing quality of life, promoting community wellness and strengthening local economies.”
For private citizens to contribute to the HELP fund, Ormsby said it was necessary, by way of ordinance, to create a special fund for them to make contributions.
• Heard seven budget presentations from local nonprofits.
For 2022, Kosciusko County 4-H Council was approved for $44,347 and is requesting $45,233 for 2023; Cardinal Services, approved for $104,980 in 2022, requesting $108,129 in 2023; Kosciusko Home Health Care & Hospice, approved for $48,087 in 2022, requesting $50,000 in 2023; Kosciusko County Historical Society, approved for $22,337 in 2022, requesting $25,000 in 2023; Beaman Home, approved for $32,139 in 2022, requesting $50,000 for 2023; Kosciusko County Senior Services, approved for $32,139 in 2022, requesting $40,000 in 2023; and St. Joe River Basin, approved for $3,705 in 2022, requesting $3,705 in 2023.
All seven nonprofits were approved for a total of $287,734 in 2022 and are seeking a total of $322,067 in 2023.
• Approved the service agreement between the county clerk’s office and Maximus Consulting, as requested by County Clerk Ann Torpy.
“They are the ones that prepare our child support incentive claims to the state to receive federal money back,” she said. “The funds that pay this contract is paid through that back, so it’s not county controlled.”
She said there’s a lot with federal grants to monitor and Maximus is there to help the clerk’s office through all of that. The office has been using Maximus since 2009.
• Approved for Emergency Management Agency Director Ed Rock to submit a letter of intent to update the county’s multi-hazard mitigation plan in order to apply for a $27,000 BRIC (Building Resilient Infrastructure and Communities) grant to update the county’s hazard mitigation plan.
Rock said this is the third time the county has had to renew the plan since he started as director.
“It’s an integral part of our flood plain management plan. We have to have this in place. It’s one of the prerequisites for it. The other thing it does - once we have this approved by FEMA, we are available then to apply for multi-hazard mitigation money for other grants, projects that are listed in the plan,” he said.
It is a reimburseable grant, but there is a 25% required match. In the past, the county used the hours that people from around the community put in for this as part of the match. The match has to be cash or in-kind.
• Approved a letter of support for Kosciusko Economic Development Corporation’s (KEDCO) grant application for its MedTech Implant Investment Initiative.
• Announced the next commissioners meeting is at 9 a.m. June 21.
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