By Dan Spalding
News Now Warsaw
WINONA LAKE — Winona Lake Town Council met Tuesday in anticipation of possible recommendations on how to handle town personnel who improperly spent town money, which were some of the findings highlighted in a critical state audit released in late June.
Longtime town resident Jerry Nelson once again called for action by town leaders at the start of Tuesday’s meeting.
“I’m hoping council has a backbone to stand up,” Nelson said. “The audit was done for a reason. It was completed for a reason. It was directed back to the council for a reason.”
“I think council needs to take reasonable steps to recuperate where they need to recuperate,” he said.
Instead of recommendations, though, the council addressed the issue at the end of the meeting with another lengthy statement in which Town Council President Ashley McGinnis recapped efforts by the town to improve protocols.
The statement outlined steps the council plans to take as it considers trying to recapture money that was used improperly or without authorization.
The first step involves sending letters to current and former employees who were accused in the audit of using town money inappropriately.
“If any purchases are found to be personal in nature or lack the proper documentation to prove otherwise, we will discuss pursuing reimbursement requests and take all appropriate steps to recover the funds,” McGinnis said.
McGinnis said the town’s personnel handbook will soon be updated for the first time since 2011.
“Nearly every audit finding ties back to the absence of clear, documented internal controls. Establishing this manual will help safeguard public funds, ensure consistent procedures, and reduce risk in every department,” McGinnis said.
Town Attorney Adam Turner declined to identify who would receive the letters and said that could be determined by reading the audit.
He said the council would send out two letters on the issue, and a third would be handled by the park board, based on who had oversight of the employees.
Turner also described his work on the matter as “guidance” to the council rather than a recommendation.
Any recommendations, he said, will come from the town council.
Town Manager Craig Allebach was cited in the audit for spending about $110,000 in town money for the installation of 11 residential wells for new residents in a subdivision without gaining formal approval to do so from the town council in a public meeting.
Park Director Holly Hummitch was cited in the report for using a town credit card to cover the cost of phone service for nearly three years. A town credit card was also used for a second phone that could not be adequately explained, the audit said.
Another employee, a former deputy clerk, is accused of using a town credit card to pay for a rental car while on vacation in Hawaii.
Tuesday’s full-page statement was the third since the audit was released. The first seemed to take responsibility for the findings. The second was more defensive in nature, but still pledged to take corrective actions.
Allebach announced last fall plans to retire because of health concerns.
The town recently hired a new town manager, Pamela Howard, and Allebach is expected to step down at the end of the month after helping Howard transition.
McGinnis noted that Tuesday would be Allebach’s final town council meeting and thanked him for his work over the years.
