Unauthorized salary increases. Missing mileage logs. Inaccurate grant information.
Those were the findings of an audit of Pike Township finances by the State Board of Accounts released in late September. The state agency routinely audits state and local units of government to determine whether they are compliant with state standards.
The audit, which covered the years 2024 and 2025, found multiple employees received salary increases totaling $24,000 that “were not authorized by the union contract, salary resolution, or any governing body policy.”
In a written response to the state board, Pike Township Trustee Annette Johnson, a Democrat, said township officials were unaware that the additional compensation needed to be formally authorized.
“Upon becoming aware of this requirement, the Township immediately discontinued the additional compensation for the affected employees until such compensation can be properly approved through the salary resolution process,” Johnson wrote.
The township board sent the state board a letter with their concerns about the findings. Board President Demetrice Hicks said the employees won’t have to give the pay back and the compensation is expected to be voted on at the Oct. 28 board meeting.
The audit also found the township did not have documentation indicating that a mileage log had been maintained for township vehicles, a requirement under Indiana law.
In her written response to the state board, Johnson said that mileage logs were not “consistently maintained” because the vehicles were used “as a shared vehicle pool” and not assigned to specific employees. The township has since adopted protocols requiring mileage logs be kept in each township vehicle, Johnson said.
Auditors also found the township omitted a portion of medical assistance reimbursements from the Indiana Family and Social Services Administration in its annual financial report to the state, resulting in an understatement of about $1 million.
Johnson wrote the township “acknowledges the discrepancy between the annual financial report and the actual amount of Medicaid revenue received.” She said a portion of that revenue was “incorrectly coded and was not identified as federal funding when the annual financial report was prepared.”
To address the issue, she said the fire department “will prepare and provide detailed reports from its medical billing system to the township’s external accounting service review.”
Johnson says township passed audit ‘wonderfully’
In an interview with Mirror Indy, Johnson said the salary increases were “stipends” given to fire captains, a practice she said began sometime before she entered office. Johnson was elected trustee in 2018. She’s running unopposed for reelection Nov. 3.
“The money is there. We just did not identify in the right category,” Johnson said.
Regarding the missing mileage logs for township vehicles, Johnson again said she was continuing a practice started by her predecessor.
“We passed our audit wonderfully. There’s no issues with anything,” Johnson said. “Of course, there are some things that we can bring some attention to.”
Johnson’s predecessor, Democrat Lula Patton, could not be reached for comment Oct. 9.
Township board seeks ‘accountability’
In a strongly worded letter in response to the findings, the Pike Township Board said the findings were “serious instances of noncompliance” by Johnson.
The board, all Democrats, includes Hicks, Ashley Hogue, Debra Bluitt, Claudette Peterson, and Kenya Perkins.
“Taken together, these findings demonstrate significant deficiencies involving the authorization of employee compensation, administration of public funds, maintenance of legally required records, financial reporting, and the internal controls necessary to ensure compliance with Indiana law,” the board wrote.
Peterson had repeatedly raised the issue of missing mileage logs in board meetings, the board wrote in its letter.
“This finding involves vehicles fully funded by Pike Township taxpayers,” the board wrote. “The requirement to maintain a mileage log is therefore an important safeguard over the use of public property and public funds.”
In an interview with Mirror Indy, Hicks said the board is seeking “accountability” from Johnson. He also disputed Johnson’s claim that the unauthorized payments for captains were “stipends.”
“The board has to be the ones to determine all salaries and base salaries, so this became an illegal payment because it was not properly approved or submitted for review before the board,” Hicks said. “However you try to dress it up, it is not a stipend.”
This isn’t the first time that Johnson and the board have been at odds.
The township nearly lost millions of dollars for capital improvements last year due to a dispute between Johnson and the board. Johnson blamed the board for missing a budget meeting, while board members said Johnson didn’t have the budget ready on time.
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Peter Blanchard covers local government. Reach him by phone or Signal at 317-605-4836 or peter.blanchard@mirrorindy.org. Follow him on X @peterlblanchard.
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