Nov 14, 2024
WAYNE COUNTY, Ind. -- A former Richmond Sanitary District employee is under investigation after allegedly embezzling more than $800,000 over a six-year period. According to an Indiana State Board of Accounts audit, an investigation into Jennifer Wilson was launched after the city's sanitation director contacted SBOA concerning several alleged discrepancies within the district's utility and landfill cash collections between Dec. 7, 2016, and June 28, 2023. The accusations centered on the Richmond Sanitary District receiving more than $800,000 less than it should have from nearly 1,000 deposits. The SBOA report documents how the district director received an anonymous call claiming that Wilson, employed as the Accounts Payable Clerk at the time, was allegedly taking money from the district. The director then conducted an internal audit, which reportedly determined that the deposited cash amount was less than the collected cash. The report said the director spoke with Wilson, who claimed the discrepancies were the result of a "mistake." Wilson was subsequently terminated from her position before the director turned the alleged discrepancies over to the SBOA. SBOA proceeded to carry out a separate investigation into these alleged discrepancies that saw cash receipts from individuals and vendors that utilized the district's services totaling $825,819.74 that were not deposited on the days Wilson allegedly worked. Those services included dumpster rental, wastewater utility usage, stormwater utility usage and landfill usage. Preparing the district's deposits was one of Wilson's primary responsibilities in her role. The SBOA report reviewed the district's deposit tickets, cash-in slips and checks deposited for each deposit as part of its comparison with the amounts deposited by the district. SBOA concluded that the deposit tickets and cash deposited in the bank did "not match the cash amounts credited in the landfill and utility software systems." The report found that 1,220 deposits were filed between Dec. 7, 2016, through June 28, 2023, when Wilson worked. Of that total, SBOA said 994 -- or 82% -- of those transactions deposited less cash than the records initially indicated in the software systems. This left a remaining balance of $825,819.74. The SBOA also reviewed 150 deposits that were made when Wilson used leave time. Of those deposits, 141 -- or 94% -- had no discrepancies. The report went on to state that it found $173,750 had been deposited into Wilson's personal bank account between May 16, 2023, and June 22, 2023. The report included multiple examples showing alleged daily cash deposits that were missing between $280 and $2,700. At the same time, SBOA said examples appeared to show Wilson's personal account on the same days ranged between $200 and $2,000. The SBOA said it requested that Wilson reimburse the City of Richmond a total of $825,819.74 as payback for the alleged discrepancies. Wilson has also been asked to repay $80,548.71 to pay back costs associated with the SBOA investigation, bringing the total to $906,368.45. The report also determined that the Richmond Sanitation District did not have any internal control system "in regard to the preparation of the deposits and daily recap reports." The SBOA concluded that this left the district vulnerable since there was no mechanism to compare the deposited amounts and what was collected. The Wayne County Prosecutor's Office is currently considering if it will move forward with formal charges. The Richmond Sanitary District released the following statement after the SBOA published its findings: "The Richmond Sanitary District is aware of the recently alleged activities relative to one of its prior employees. Upon discovering information pertaining to the misappropriation of funds, the Sanitary District acted quickly, within twenty-four (24) hours, and took appropriate action to rectify the issue. During the immediate internal investigation to gauge the scope of the alleged misappropriation of funds, the City quickly identified the money-handling process being exploited and terminated the suspected employee believed to be responsible. After reviewing the alleged misappropriation of funds, the City has made adjustments to its internal controls in the interest of safeguarding against similar situations from occurring in the future. Additionally, the City is reviewing all of its internal control to ensure adequate protection in all money handling processes." The full SBOA report can be viewed online here.
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