SOUTH WHITLEY – Town council members Tony Starkey, Bill Boggs and Steve Smith gave clerk-treasurer Bob Gould 30 days to reconcile the accounts during a special meeting Friday. Gould presented two reports dated Friday. The fund report shows cash balances. The appropriations report is supposed to show budgeted amounts for each fund and the expenditures from the funds. The fund report shows a current total balance of $1,722,220.76. The appropriations report shows a current total balance of $767,188. It’s a difference of $955,032.76 the town didn’t budget to spend, yet has on hand. The council hasn’t known how much money is available for expenditures after nine months in office. They rejected a reconciliation resolution presented by Gould at the Sept. 25 council meeting. Money is deposited into the town's bank account from the state and county tax levies and utility revenues. The money is assigned to an appropriations category, per fund, and is supposed to be spent as budgeted, especially for the funds paid with state and county money. Council President Starkey began by asking Gould why there were negative amounts in the fund report and the cash-on-hand report. The motor vehicle highway fund, for example, shows the current balance as –$4,367.81. And Gould said MVH was one account used, in part, to pay street department employee Jason Keim, his clothing allowance, insurance, operating supplies and various street materials. The MVH appropriations report, however, shows the unexpended balance as $11,110.51. Gould said money received in September and October haven't been added to the reports. Starkey pointed out another set of confusing numbers: the sanitation fund. Towns with their own utilities have a bit more leeway in how utility money is expended. However, the appropriations report should still adhere to budgeted amounts. The appropriations report for this fund, with 15 categories for expenditures, shows zero amounts forwarded, a zero amount for current balances, transfers, adjustments and encumbrances. There were a few month-to-date and year-to-date expenditures shown resulting in an unexpended balance given as –$69,814.05. The fund report for sanitation shows the current balance as $21,566.84. “How are all these categories zero?” Starkey asked. “I want to understand how to read these reports. In cumulative capital development, what’s the $7,275.54 that’s been used? That is for improvements, I thought.” Gould held a sheaf of papers in one hand saying the notes on the papers indicated how money could be spent in each fund. The cumulative capital development current balance on the fund report was $7,224.27; the appropriations report had an unexpended balance for CCD as $17,682.46. Starkey moved on to another fund, the county economic development income tax. “I thought it was for economic development,” he said. “Should we use that for roads?” The current CEDIT balance is $122,618.13, according to the fund report. The appropriations report shows the current balance as -$2,962.05 with expenditures for legal and professional services and office and administration expenses. “We’re working on a comprehensive plan,” Starkey said. “The accounts must agree. They must balance. We’re not able to do any banking or receive grant funding with records like this. These are unreadable. I need to be able to look at the appropriations report in June and be half way. We have a lot of things that need to be done and we can't read this. We’re flying in the dark here.” Gould defended himself by saying the former clerk set up the accounts this way. “It’s been messed up for a long time and we were notified for a long time,” Gould said, "according to George Helton." Helton is an auditor with the State Board of Local Government Financing. “Well, the former board might not have felt comfortable spending money. But we have got to get some control. Go to Umbaugh,” Starkey said, indicating the accounting firm Umbaugh and Associates in Plymouth. “You’ve got 30 days. Get them to reconcile these accounts. We have to get these reconciled. We’re hamstrung and we’ll do whatever it takes. It will be a simple task for them.” Councilman Steve Smith also advised Gould to make sure any reconciliation resolution was accurate when presented to the council again. “Read it, read it and read it again and pay Umbaugh to read it. We can’t put ourselves in a bad position. We want the accounts to be reconciled by the first meeting of November,” he said.
