Pictured, left to right, are Winona Lake Town Council President Ashley McGinnis, Clerk-Treasurer Heather James and Council Vice President Austin Reynolds. Photo by Jackie Gorski, Times-Union.

By Jackie Gorski
Times-Union

WINONA LAKE – Winona Lake Town Council approved Tuesday, Aug. 19, sending letters of explanation to town employees or former employees named in a State Board of Accounts compliance report for alleged misuse of town credit cards.

The Winona Lake Park Board did the same for Park Director Holly Hummitch in a special meeting after the town council meeting. The audit, released on 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.

During the town council meeting, Council President Ashley McGinnis read a statement about the SBOA audit.

“Over the past year, through the shared leadership and teamwork of the clerk-treasurer, the council and the park board, we have already made meaningful progress to address the breakdown in policy and procedures identified in the report. Our credit card policy enforcement has been strengthened, with consistent application across all departments, leading to greater accountability and compliance,” she said.

The statement said Clerk-Treasurer Heather James continues to review and realign the town’s fund accounts to ensure that each fund is being used for its proper and intended purpose. This careful work is already strengthening the town’s financial foundation and will lead to a more accurate, transparent and reflective budget. As the town moves forward in preparing the 2026 budget, the improvements will help ensure that taxpayer dollars are managed with both integrity and efficiency.

The council is also in the final stages of completing an updated employee handbook. Once that’s adopted, the council will update all town job descriptions to ensure clear responsibilities and alignment with best practices. Looking ahead, the council’s top priority will be creating a formal internal control manual. Nearly every audit finding “ties back to the absence of clear, documented internal controls.”

Establishing the manual will help safeguard public funds, ensure consistent procedures and reduce risk in every department, McGinnis read from the statement.

“Our responsibility is twofold – to protect taxpayer funds and to conduct ourselves with fairness and due process,” she said. “As detailed in our previous statements, the recent audit has brought attention to several specific purchases and financial practices that have understandably raised questions in the community. We share the public’s commitment to ensuring that every taxpayer dollar is used for a clear and legitimate public purpose – and we take this responsibility seriously,” she said.

The SBOA recommended in its report the council carefully review the questioned expenses. The council’s statement said they are taking a deliberate, fact-based approach, which includes gathering all records related to the purchases in question – receipts, approvals and correspondence; requesting written explanations and/or supporting documentation from the individuals involved to allow them to provide evidence of a legitimate public purpose; and consulting with the town’s legal counsel to determine whether the purchases meet the legal standard for public fund use.

Pictured, left to right, are Winona Lake Park Board members Callie Chapman and Kristie Maiers and Park Director Holly Hummitch. Photo by Jackie Gorski, Times-Union.

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.”

“We want to be clear: this process is about ensuring our actions are lawful, fair and based on documented facts, not assumptions. This protects not only the integrity of the town but also the rights of every person involved. Our commitment remains the same: to learn from the audit, strengthen our processes and be responsible stewards of taxpayer funds. Progress is being made, and we will keep the public informed as each step is completed,” the statement concluded.

Town Attorney Adam Turner drafted a request letter to be sent to all the individuals that had a list of expenses in the audit. The individuals will be given 14 days to respond to the letter. Council approved the letter and to have the letter sent out.

During the park board meeting, the board approved having the letter sent to Hummitch on behalf of the park board. Board President Kristie Maiers said the letter will be sent certified. Hummitch was also given 14 days to respond to the letter sent on behalf of the park board. Any further action will be discussed at the park board’s meeting on Sept. 22.

During the town council meeting, resident Jerry Nelson brought up some of the people named in the audit that are no longer employed by the town. Turner said those people are going to get the same letter as current town employees.

Nelson asked if there will be any action taken. Turner said that is what the council will review when they get the response and it will be up to the council to pursue any possible reimbursement.

“So the council can blow it off if they decide they don’t want to deal with it?” Nelson asked.

There was no response to that from Turner nor the council.