Sep 17, 2024
ALLEN COUNTY, Ind. (WANE) -- The apparent vanishing act of a $2.4 million check left Leo-Cedarville and Cedar Creek Township officials searching for answers Tuesday during the town's bimonthly Town Council meeting. Allen County Treasurer William Royce told WANE 15 Tuesday that his office did not receive the check from Cedar Creek Township and that "a distribution to Cedar Creek in that amount was made in error and immediately corrected." Despite that, the withdrawal of $2,497,572.08 shows up in Cedar Creek Township's year-end financial report, and the township handles some finances for Leo-Cedarville. The finance report showing the mysterious expenditure. Royce also said the township should be able to provide a bank statement that shows a deposit and withdrawal of that amount, but not while they're being audited by the Indiana State Board of Accounts (SBOA). "My information came from [the] Cedar Creek Township office. My understanding is that they can show proof on their bank statement of an “in” and an “out” in that amount," Royce said. "But I do know, my office did not receive a check in that amount." The issue has left all levels of local government frustrated. “Township trustees are supposed to bring a copy of their checks to the auditor’s office, but that never happened for Cedar Creek, so I cannot verify the check was ever written,” said Allen County Auditor Nick Jordan, who described the whole situation as a "debacle." "In the 14 years I have been around the Auditor's Office, I have never had such an issue with a township." "It does seem like this could be a developing story," said Leo-Cedarville Town Councilman Greg Peck while explaining that the matter is being investigated. The township claims the issue is a mere clerical error, saying the Allen County Treasurer deposited $2,497,572.08 by accident into the township's account, and the withdrawal that started the drama was simply to correct that. "I challenge anyone to show proof of wrongdoing on the Trustee's part. Everyone has been willing to point fingers at the Trustee and the township without listening to what has truly been going on or offering to help fix it," said Cedar Creek Township Trustee Scott Connally. "On May 1, the Allen County Treasurer put $1.4 million in our account and withdrew that amount on May 30. Then on Nov. 1, they deposited $1.02 million and withdrew that on Dec. 2." Whatever the SBOA finds may put the issue to bed, but the drama has awoken a whole new subject. Leo-Cedarville councilmembers and officials with the Northeast Fire Territory claim that Cedar Creek Township is withholding tax money from the fire department. The plan when the town joined the fire protection territory was to pay about $2.6 million by way of the township, but it seems that money never arrived. “The $2.6 million didn’t roll over. I had to take out a loan to get ourselves going for the year. The only things we paid for the first six months were payroll and health insurance, the bare minimum,” Kendra Rivera, fiscal officer for the Northwest Allen County Fire District, said. Despite having to take out a loan from Indiana Bond Bank (and claiming to have tens of thousands of dollars of interest due), Connally does not feel the need to pass along the money. "I challenge anyone to bring forward an ordinance, law, policy, or directive that requires Cedar Creek to give the fire district any money," Connally said. The SBOA confirmed to WANE 15 that it is performing an audit of Cedar Creek Township, but the SBOA has not yet released its findings.
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