When is an American flag purchased with taxpayer money too expensive? When it costs more than $500, according to state auditors.
The Muncie Sanitary District came in for criticism for the flag purchase, among other spending, in the latest audit from the Indiana State Board of Accounts.
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“They did pay too much for that flag,” Bennington added. “That is a correct statement by the board of accounts.”
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Bennington was less agreeable about other issues raised by the state, including criticism that the sanitary district’s spending of $153,000 on Canan Commons sidewalks, trees and plantings didn’t meet the criteria of “sewage works,” and that the district’s sewage rates were not approved by Muncie City Council.
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The audit noted that the building commissioners’ office under both Tyler and McShurley failed to promptly deposit checks for permits. More than $15,000 in checks were not deposited.
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McShurley’s economic development income tax (EDIT) plan for 2011 amounted to $2.8 million. The auditors noted that Muncie City Council did not approve appropriations and the actual amount spent was $3.2 million.
In her last month in office, the mayor gave $100,000 in EDIT funds to the community-based advocacy effort the Muncie Action Plan, But the audit notes that she actually gave the $100,000 to the Muncie Public Library, which in turn passed it along to MAP, which did not yet have non-profit status. The state auditors note there was no contract overseeing the disbursement, a fault cited in other instances in the audit report.
Paving costs exceeded contracts by $145,000, the state said, and $32,423 in compensatory pay was given to department heads without a corresponding policy in place. Muncie City Council didn’t adopt a policy governing such instances until four months after McShurley left office.
Financial records and controls in some city offices were incomplete or insufficient, auditors said. In one case, money was not deposited within a business day and a $12,500 cashiers check was found in a file.
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