The Indiana State Board of Accounts released an audit of Pike Township covering fiscal years 2024 and 2025. The audit identified several compliance failures, including unauthorized salary increases, missing vehicle mileage logs, and an understatement of Medicaid revenue.
Unauthorized compensation
The auditors discovered that multiple township employees received salary increases totaling $24,000 that were not authorized by the union contract, a salary resolution, or any governing‑body policy. Trustee Annette Johnson, a Democrat, said the township was unaware that the additional compensation required formal approval. In a written response she noted, “Upon becoming aware of this requirement, the Township immediately discontinued the additional compensation for the affected employees until such compensation can be properly approved through the salary resolution process.”
Board President Demetrice Hicks said the township will not require employees to repay the funds and that the board plans to vote on the compensation at its October 28 meeting.
Missing mileage documentation
The audit also found that Pike Township failed to maintain required mileage logs for its vehicles, a violation of Indiana law. Johnson explained that logs were not consistently kept because the vehicles operate as a shared pool rather than being assigned to individual employees. The township has since adopted new protocols requiring mileage logs to be recorded in each vehicle.
Medicaid revenue reporting error
Auditors noted that the township’s annual financial report omitted a portion of medical assistance reimbursements from the Indiana Family and Social Services Administration, resulting in an understatement of about $1 million. Johnson acknowledged the discrepancy, stating that a portion of the revenue was “incorrectly coded and was not identified as federal funding when the annual financial report was prepared.” To remedy the issue, she said the fire department will provide detailed reports from its medical billing system to the township’s external accounting service for review.
Board reaction and next steps
In a strongly worded letter, the all‑Democratic Pike Township Board described the findings as “serious instances of noncompliance” and called for greater internal controls. Board members Hicks, Ashley Hogue, Debra Bluitt, Claudette Peterson, and Kenya Perkins emphasized the importance of proper salary authorization and accurate record‑keeping for taxpayer‑funded vehicles.
Peterson, who previously raised concerns about mileage logs at board meetings, highlighted that the vehicles are fully funded by township taxpayers, making proper logs a critical safeguard.
Political context
The audit adds to an ongoing dispute between Trustee Johnson and the board. Last year, a budget disagreement nearly cost the township millions of dollars for capital improvements. Johnson, first elected in 2018 and running unopposed for re‑election on November 3, has described the unauthorized payments as “stipends” for fire captains, a practice she says predates her tenure. Board President Hicks disputed that characterization, calling the payments illegal because they were not properly approved.
While the audit highlights significant deficiencies, the township’s swift adoption of new mileage‑log protocols and its commitment to correct the Medicaid reporting error demonstrate a willingness to address the board’s concerns and restore compliance with state standards.
Mirror Indy, a nonprofit newsroom, provided the original reporting. For further information, contact Peter Blanchard at [email protected].
Original reporting: Mirror Indy — read the source article.
