Beech Grove officials are cleaning up the small city’s finances after a state audit found widespread accounting problems.
Mayor Dennis Buckley, a Democrat, requested the audit in March 2012 after uncovering a range of problems, including missing files and delinquent loans in the Main Street program.
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Mayor Dennis Buckley, a Democrat, requested the audit in March 2012 after uncovering a range of problems, including missing files and delinquent loans in the Main Street program.
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The State Board of Accounts reviewed the year 2011. Among the findings, which were announced Monday:
— Former Mayor Joe Wright, who resigned before his term ended in 2011, spent city money on campaign videos. The Beech Grove Republican Candidate Committee refunded $2,487.50 in January.
— Six loans to local businesses made through the Main Street program were in arrears by amounts ranging from $748 to more than $50,000. Buckley has begun collection efforts and has suspended the program.
— The balance on two other loans totaling $60,000 to Rainy Day Investments LLC is lost because the city made no effort to collect before the company filed for bankruptcy protection in 2009.
— The city made a $10,000 loan without documentation.
— The city spent more than was budgeted from several funds, including more than $936,000 from the general fund.
— The city reallocated local income-tax revenue without authorization.
— The city paid miscellaneous general expenses from the sewer utility fund, which should be dedicated to utility operations. The sewer utility also paid partial salaries in the clerk-treasurer’s office but without documentation to justify the contribution.
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Beech Grove, which has a population of about 14,000, had a 2011 budget of $28 million, which it overspent by $609,781.
