Continuously serving Kosciusko County since 1854
BURKET - Indiana State Board of Accounts filed its audit report on the town of Burket for Jan. 1, 2021, to Dec. 31, 2024, and it found numerous issues, including personal expenses on the town’s credit card.
Clerk-treasurers for the town were Glenn Bundy from Jan. 1, 2021, to Nov. 3, 2021; Janet Rayburn from Nov. 4, 2021, to May 31, 2023; and Katina Webb, who has had the position since June 1, 2023.
The council president has been Bill Rayburn since Jan. 1, 2021.
The 14-page supplemental compliance report of the town states there were deficiencies in the internal control system, which resulted in the noncompliance with laws and regulations over internal control standards, annual financial reports, personal expenses, bank account reconciliations; and penalties, interest and other charges.
The report stated the town could not provide supporting documentation the minimum internal control standards had been adopted as required by Indiana code. That code states: “After June 30, 2016, the legislative body of a political subdivision shall ensure that (1) the internal control standards and procedures developed under subsection (e) are adopted by the political subdivision; and (2) personnel receive training concerning the internal control standards and procedures adopted by the political subdivision.”
The town could also not provide supporting documentation that all personnel had received training concerning internal control standards.
The town certified on the Indiana Gateway for Government Units financial reporting system it had adopted the minimum internal control standards as required by Indiana code; however, the town could not provide supporting documentation the town had adopted the minimum internal control standards.
The town certified in Gateway all personnel defined by Indiana code had received training concerning the internal control standards adopted by the town; however, the town could not provide supporting documentation all personnel had received training concerning internal control standards.
There were also issues regarding financial reports.
The town’s annual financial reports (AFR) for 2023 and 2024 were not filed until April 3, 2024, and April 13, 2025, which were 34 days and 41 days past due, respectively. The annual financial report required shall not be filed with the state examiner any later than 60 days after the close of each fiscal year.
The AFR for the years ending in Dec. 31, 2023, and Dec. 31, 2024, contained errors and omissions and did not agree with the financial ledgers used in the bank reconciliations presented for the audit.
During 2023, the Community Crossing Match Grant fund receipts and disbursements, both totaling $201,608, that were included in the ledger were not reported in the AFR. During 2024, only general fund transactions were reported in the AFR and they did not agree with the ledger for 2024. Seven other funds were not included in the AFR for 2024. In total, $36,872 and $27,644 were not reported on the AFR in receipts and disbursement, respectfully, for all funds recorded on the ledger.
The audit also noted personal expenses were made on the town’s credit card.
Cash ATM withdrawals and various personal expenses were paid with the town debit card by Webb between April 2024 and August 2025. The total amount was $1,108.45. The expenses consisted of three ATM withdrawals, two cell phone bills and two payments at a gas station.
According to the audit, Webb reimbursed the town $1,003.69 on Dec. 20, 2025, and $104.76 on Jan. 3, 2026.
Also, penalties and interest totaling $227 were paid to the Indiana Department of Revenue and the Internal Revenue Service for late reporting of income taxes during the audit period.
Lastly, depository reconciliations of the fund balances to the bank account balances contained unidentified variances during the audit period. The unidentified variation on Dec. 31, 2023, had $284 more in the bank. The unidentified variance on Dec. 31, 2024, had $356 more on the ledger.
During Thursday’s Town Council meeting, the council was asked for comment about the results and plans to prevent issues in the future.
Rayburn said a corrective action plan has been submitted and approved for implementation and the town is working towards implementing the plan. He said it has to be completed by August. Rayburn said Webb submitted the corrective action to the state and got letters back saying it was acceptable to continue with the plan.
Rayburn said the council has got some training scheduled as well.
Councilwoman Lena Ball also suggested the council should look over the credit card statements every month.
Rayburn said the council and Webb have to meet and decide what ramifications there will be for the personal expenses on the credit cards.
“The state determined there wasn’t any direct fraud and it was paid back, but it still needs to be justified and verified,” he said.
