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WINONA LAKE – Of the approximately 30 credit card charges that were investigated by the Winona Lake Town Council after a State Board of Accounts audit report, the town was reimbursed for four of those charges, totaling $540.
The remaining charges were deemed legitimate town expenses, except for two that didn’t have proper documentation.
The audit, released July 19, found numerous issues with the town from Jan. 1, 2019, to Dec. 31, 2022, ranging from poor record keeping to misuse of town credit cards and town funds paying for employees’ personal items.
Letters were sent to Town Marshal Joe Hawn and former Deputy Clerk-Treasurer Meghan Lincoln on Aug. 20 in regards to the credit card purchases. In the letters, it listed the charges in question and gave the recipients 14 days to respond to the letter with any written explanation and/or supporting documentation for the council’s review.
For Lincoln, there were 22 credit charges in question, totaling $2,070. The charges were: Freedom Expresss Citgo, $46; Sherman and Lins, $46, $37, $121 and $42; Dunkin - Warsaw, $3; Target - Fort Wayne, $8; McDonalds - Warsaw, $12; Lowes - Warsaw, $99; Alamo Rent-A-Car (Hawaii), $517; Anderson Florist & Greenhouse, $62, $196, $208, $110, $91, $39 and $196; the Village at Winona, $80; Belove Gift Shop, $61; Kroger - Warsaw, $6 and $80; BP Good to Go - Warsaw, $10. The purchases were made between January 2019 and December 2021.
Lincoln’s response to the council stated the charges at Sherman and Lins were for the town hall flowerpots. The charges at Anderson’s were for flowers purchased in recognition of bereavement affecting town employees and their families. The charges at The Village at Winona, BP Good to Go and Belove Gift Shop were for prizes for the Winona Lake Family Festival on Aug. 7, 2021. The charges at Kroger were for supplies for the Winona Lake Family Festival on Aug. 7, 2021, and supplies for the back-to-school lunch for the Winona Lake Police Department Aug. 8, 2022.
She was unable to provide documentation or explanation about the Lowe’s and Freedom Express Citgo charges. Her response stated she couldn’t confirm she was the one to make those charges as it was standard practice at the time to permit others to use their town-issued credit cards.
Lincoln was unable to locate receipts of reimbursement to the town for the four remaining expenditures, including the car rental in Hawaii, totaling $540. Lincoln reimbursed the town for those expenditures through Invoice Cloud on Sept. 29.
In regards to Hawn, there were eight charges in question, totaling $686. They were for Richards Restaurant, $43; Kroger - Warsaw, $102 and $62; the Village at Winona, three $100 charges and one charge of $125; and Agaves Mexican Grill - Fort Wayne, $44. The charges went from June 2019 to October 2022.
In his response, Hawn said the expense at Richards Restaurant was related to the Winona Lake Triathalon to cover a bill overage not covered by a check provided by the Optimist Club who in the past purchased breakfast for all police, fire and EMS personnel who helped during the triathalon. Hawn said he used the police donation account, which he was advised was OK by former Clerk-Treasurer Kent Adams. The Village at Winona charges were for gift cards for DARE awards and for eighth-grade students who completed their lessons at Lakeland Christian Academy.
The Kroger charges were for food during monthly training or department meetings. Both charges used money from the police donation fund. The charge from Agaves Mexican Grill was for lunch for officers as they went to Fort Wayne to purchase new uniforms for a new hire. Hawn’s response states the purchase follows the town of Winona Lake’s per diem policy.
Hawn said he asked the SBOA about purchasing food for department meetings and was told it was an allowable expense if the town had a donation made specifically for these purchases. He said he used a police donation account. The account did not have a specific designation, however, this account is believed to be mostly funded by ordinance violations through the county courts.
“I provided documentation of the request for these monies, and the documentation the town of Winona Lake has received the monies. I have not been able to confirm through the clerk’s office if these monies were placed into this account. However, with the account balance at approximately $15,000, the monies must have been placed into this account,” Hawn said in his response.
On Oct. 28, the Winona Lake Town Council made a statement and passed a resolution stating the town had “been made whole.”
Winona Lake Town Council sent a statement Wednesday to clarify the resolution.
The statement reads the SBOA recommended the town review the expenses noted in the audit report and consider requesting reimbursement from individuals for any expenses that were personal or did not relate to the functions and purposes of the town.
“The SBOA did not require repayment, issue any findings for recovery or make any referral to the attorney general or prosecutor. In fact, the SBOA Charge Committee reviewed this report twice and found no cause in any finding to recommend the matter for further review by the Attorney General’s Office. The responsibility was instead given to the town council to conduct its own review and determine the appropriate action pertaining specifically to credit cards,” the statement says.
The town council followed this directive, according to the statement. The council’s statement said the four purchases totaling $540 were reimbursed in full by Lincoln and the council found the explanations for the remaining items to be reasonable and well-documented from Lincoln and Hawn.
“These purchases occurred during a time when formal standard operating procedures were underdeveloped, they were made in good faith, served legitimate town purposes and were not for personal gain. Based on the documentation provided and guidance of the SBOA, the council concluded that, through both reimbursements and credible explanations, the town has been made whole.
“The council continues to take the audit findings seriously and is committed to restoring and maintaining respect for taxpayer funds while ensuring that all employees are treated with fairness, integrity and professionalism. We also care deeply about transparency and accountability to our constituents, which is why we continue to respond to public concern and provide factual clarity in the face of speculation and misinformation. Our goal is to keep communication open, honest, and respectful as we move forward together,” the statement concludes.
The statement did note in accordance with state law, the town council has authority over town employees and therefore made determinations regarding those expenses related to town departments.
The Park Board, as a separate governing body established under Indiana Code 36-10-3, would review and determine any recommendations related to Park Department employees.
Park Director Holly Hummitch had credit charges that were noted in the report. The Winona Lake Park Board sent a letter to Hummitch in August for explanation and documentation for those charges in its own investigation. According to a News Now Warsaw article, Hummitch is reimbursing the town for $1,336 in charges that were deemed improper.
