Indiana State Board of Accounts filed its compliance engagement report of Plain Township for Jan. 1, 2019, to Dec. 31, 2022, on July 31, finding five instances of non-compliance.
Officials of Plain Township during that four-year time period were Tyler Huffer, trustee, and Rob Bishop, Township Board chair. The current township trustee is Craig Charlton, with Bishop serving as board chair. Huffer is currently the county coroner.
In the report, Beth Kelley, deputy state examiner, indicates in a letter to the Plain Township officials that the “objective of this engagement was to determine compliance with applicable Indiana laws, regulations and uniform compliance guidelines established by the Indiana State Board of Accounts. ... The objective of this engagement is not to opine on compliance or financial activity of the township.”
Kelley states that the SBA fulfilled its responsibility using procedures that verified the appropriate accounting for and reporting of cash, receipts and disbursements; and the appropriate sources and uses of funds in accordance with application Indiana laws, regulations and guidelines.
Their procedures were not designed to identify all instances of noncompliance so noncompliance may exist that is unidentified, she stated.
The first non-compliance was on internal controls, where the report found “internal control deficiencies resulted in noncompliance over condition of records, compensation and benefits, capital assets and training and certification on internal controls.”
On condition of records, the report states, “Due to the lack of internal controls during the engagement period, the township posted local distributions received from Kosciusko County to incorrect funds in its accounting records. Fund balances for 2020 and 2022 were misstated in its accounting records.”
On compensation and benefits, the report states, “Due to the lack of internal controls, the township could not provide documentation that it adopted a salary ordinance, resolution or salary schedule for any year of the engagement period. Township officials indicated that the 2018 salary ordinance was in effect for all years of the engagement period. Additionally, salaries paid to township personnel during the engagement period did not exceed the salaries set in its 2018 salary ordinance. However, the township board minutes, nor any documentation, indicated that the township’s 2018 salary ordinance was still in effect during the engagement period.”
Regarding capital assets, the report states, “Due to the lack of internal controls, the township did not maintain a complete detailed listing of all capital assets owned which reflects their acquisition value. The township provided a capital asset list from its insurance company reflecting replacement costs for each asset rather than the acquisition value. On its annual financial report for Dec. 31, 2022, total assets of $2,981,637 were reported on the township’s schedule of capital assets.”
On training and certification on internal control standards, the report states “the township could not provide documentation that employees whose official duties included receiving, processing, depositing, disbursing or otherwise having access to funds that belonged to the township during the engagement period, had received training over internal control standards developed or approved” by the Indiana SBA.
It also states, “due to a lack of internal controls, the township certified on the Indiana Gateway for Government Units financial reporting system that appropriate personnel were trained on the internal control standards. However, evidence was not provided that appropriate township personnel received internal control training.”
A chart in the report indicates that the cash and investments as of Jan. 1, 2019, for all funds for Plain Township totaled $1,378,091. During 2019, receipts for all funds totaled $347,134 with disbursements of $200,238, leaving cash and investments on Dec. 31, 2019, totaling $1,524,987 for all funds.
For 2020, receipts for all funds totaled $460,349; disbursements, $360,104; leaving cash and investments for all funds as of Dec. 31, 2020, as $1,625,232.
As of Jan. 1, 2021, cash and investments for all funds totaled $1,625,498. Receipts during 2021 for all funds totaled $526,506, with disbursements totaling $412,599, leaving a total for cash and investments for all funds as of Dec. 31, 2021, at $1,739,405.
Receipts for all funds in 2022 totaled $479,993, with disbursements totaling $342,673. Cash and investments for all funds on Dec. 31, 2022, totaled $1,876,725.