Internal strife within the town of Griffith administration detonated this week over a damning financial audit report issued by the Indiana State Board of Accounts (SBOA) into the town’s finances, operations and governing procedures.
assert a variety of improprieties that has resulted in some serious finger pointing between town officials.The audit report, prepared by Beth Kelly, deputy state examiner for the SBOA, covers the period of January 1, 2021 through December 31, 2022. Members of the audit staff reportedly spent more than a month going through public accounting records within the office of Griffith Clerk-Treasurer Gina Smith.
“However, the proceeds remained an adjusting item on the December 2022 bank reconcilement and were not posted to the ledger until February 1, 2023,” the report stated. “This resulted in the understatement of receipts and ending cash and investment balances. The financial statement was not adjusted for this untimely posting. Furthermore, a Tax Anticipation Loan fund was established without an enabling ordinance authorized by the Town Council as required.
“This resulted in the understatement of the 2022 Ending Principal Balance and Principal Due Within One Year by $11,050,000 and $505,000, respectively,” the report stated. Commenting on the use of the fund, the SBOA said, “However, the Town disbursed $845 for paint and $1068 for asphalt to patch various roadways, which could not be determined if the Town did not use the funds to patch potholes. These disbursements were not for the construction, reconstruction, and preservation of the Town’s roadways.”The SBOA report revealed that the Griffith Board of Sanitary Commissioners did not meet between January 2021 and December 2021, as required by state law.
On May 23, SBOA staff discussed the audit in-person with town officials, according to the report. Those present at the meeting held at Griffith Town Hall were Smith, Town Council President Rick Ryfa, R-3rd, Councilman Jim Marker, R-1st, and deputy clerk-treasurers Jaclyn Kinach and Michelle Sims. “There is simply no excuse to spend beyond appropriations without the Town Council approving additional appropriations at a public meeting.”“After the Town Council directed the clerk to pursue a tax anticipation warrant, the clerk never requested that a public hearing be held and an ordinance be passed in order for the warrant to be issued.”
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