Pictured, left to right, are Winona Lake Town Manager Pam Howard and Town Council Members Ashley McGinnis, Austin Reynolds and Jim Lancaster. Photo by Jackie Gorski, Times-Union.

By Jackie Gorski
Times-Union

WINONA LAKE – Winona Lake Town Council made a statement Tuesday, Oct. 28, saying the town “has been made whole” in regards to a State Board of Accounts audit report on alleged misuse of town credit cards.

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 misusing town credit cards and town funds paying for employees’ personal items. In August, the council approved sending letters of explanation to town employees or former employees named in the SBOA report for alleged misuse of town credit cards.

Council President Ashley McGinnis read a statement at the end of Tuesday’s Winona Lake Town Council meeting, saying, “All certified letters related to the audit have now been received and we have received responses from each individual. Each response included detailed explanations and documentation, and we are pleased to report that the town has been made whole through this process.”

After being asked for clarification about what was meant by the town being made whole, McGinnis said many of the purchases made were related to town purposes or paid back. For the charges in the audit report regarding the recommendation of repayment for credit cards, the issue is now closed. More specific information  was not provided. McGinnis said the town council is going to keep the report in the forefront of their minds as they move forward.

“With this matter resolved, the council will now move forward with our previously outlined goals to continue strengthening transparency, compliance and internal operations,” the statement read.

These goals include adopting the updated employee handbook, developed in partnership with New Focus HR. The new handbook will take effect Jan. 1, 2026. The council will also focus on updating all town job descriptions to ensure responsibilities and expectations are clear, consistent and reflective of best practices. The last goal the council will look at is developing a comprehensive internal control manual, which will establish formal procedures and safeguards to prevent future issues and ensure full compliance with state standards.

“We want to extend our sincere thanks to the taxpayers of Winona Lake for their patience as we have worked through the findings of the audit report,” McGinnis read from the statement. “Throughout this process, the council has sought to act fairly, justly and thoughtfully, ensuring that every action taken protects the integrity of taxpayer funds, is fair to town employees and upholds the trust of our community. We deeply appreciate your continued support as we move forward together, strengthening the town’s operations, restoring confidence and ensuring that Winona Lake remains a community built on accountability, fairness and respect.”

Town Attorney Adam Turner drafted a resolution for the council that stated the town’s statement in a more formal, legal way, McGinnis said. The council approved the resolution.

In other business, the council:

• Approved a bid from Kent’s Excavating & Plumbing for $27,406 for work on a storm drain on Roy Street between the two ponds. Town Manager Pam Howard said the work will be paid from wheel tax money.

• Approved paying $1,160 for the interlocal agreement with the county to share software in 2026.

• Approved hiring Mike Wilson as building commissioner. The position became vacant as Gene Seiman’s last day as building commissioner was Oct. 1.

• Tabled a decision about closing the clerk-treasurer’s office on Dec. 26 to give employees the day after Christmas off. Clerk-Treasurer Heather James said she’d leave it up to the council whether it would be a paid day off or not. Police Chief Joe Hawn asked if the police department would be part of that.

• Approved the petition from Theresa Smith for a vacancy of part of an alley behind 1307 Grace Ave.

• Heard the Farmers Market at Winona will be 8 a.m. to 1 p.m. Saturdays through Nov. 1.