Milton financial management scrutinized

A recent state audit identified multiple problems with financial management practices in Milton town government during 2023 and 2024. Town officials say they’ve taken corrective action.

Lack of oversight, missing internal controls, insecure computer accounts, insufficient record keeping, and inaccurate balances and financial statements were among the concerns named.

The June 9 report, written by State Board of Accounts examiner Paul Joyce, covers activities in 2023. The report notes that while auditors attempted to review 2024 information, missing or inaccurate reports for the town’s finances from that time meant a 2024 audit could not be completed.

Some of the specific findings include:

• Financial transaction information was not accurate or complete in the town’s ledger, and bank reconciliations had not been performed since December 2023.
• During a payroll review, auditors discovered four employees being paid as town marshals and/or code enforcement officers without any salary or hourly rate approval by town council, and the clerk-treasurer at the time, Terry Craig, had $4,478 of his approved salary paid from a motor vehicle highway fund.
• Reported asset values were inaccurate according to supporting documentation; town-owned land values were underreported by $70,000, building values by $50,000, and machinery and equipment for the water utility by $47,900.
• Accounts payable amounts were overstated by $124,398; accounts receivable by $102,865. There were similar issues with payable and receivable accounts for trash, wastewater, water and stormwater utility accounts.
• Eight of 31 reviewed vendor disbursement transactions did not have adequate supporting documentation.
• The town paid $364 in late fees and interest for credit card payments in 2023.
• The town submitted its 2023 annual financial report to the state 270 days late, and has failed to provide various required files to the state since 2023 through the date of the audit in 2025.

The report notes that auditors discussed its contents with clerk-treasurer Amy Smith, town council member Dwight Smith and council president Phillip Edwards in a May 21 meeting.

In a statement to WWN, town officials said that they have taken action to “correct or improve” deficiencies identified in the report. “The corrective actions are now in place and being monitored by the Town officials to ensure adequate measures are in place to ensure future compliance,” the statement said. Officials also said they would publicly share the required response to SBOA listing individual corrective actions.

“The Town of Milton has undergone several changes in key personnel since the 2023 financial year. The Town Counsel and Town Clerk welcome the feedback provided by the State Board of Accounts to improve the financial fitness of the Town, and ensure transparency and good stewardship of Town resources,” the statement said.

Another issue identified in the report was an inconsistency in how utility service shutoffs were conducted. “The Town has a policy stating that services will be disconnected on the first day of the next month if payment in full for the Utility service is not received. During the testing of compliance for Utility customer accounts, it was determined that Water Utility accounts were not being disconnected until multiple months of nonpayment had occurred,” the report said. Town officials addressed this item in its statement to WWN, noting that it “has tried to provide some leniency in the past since shutting off the water to a home can have significant consequences.” Officials say that moving forward the town will consistently disconnect services on the first day of the month after payment is not received.

The full report is available at audit.sboa.in.gov/WebReports/83987S.pdf.