Indiana State Board of Accounts found several concerns during its audit of Centerville’s 2025 finances, including a data breach that led to stolen funds and an unapproved child support payment for a town employee.
Centerville had a data breach in May 2026 involving unauthorized access to the town’s computer systems, bank accounts and other related financial operations information, the report said.
Two unauthorized electronic bank payments were made that month for $8,751 and $32,473.
The town notified its bank about the improper payments and the bank restored the funds to the town’s accounts, but the breach and financial loss weren’t reported to SBOA as required.
In another incident identified in the report, Clerk-Treasurer Sarah Rice issued a check dated Dec. 26, 2025, for $680 with herself as payee and signed it without town council approval. She cashed it at a local bank and took the proceeds to the county clerk’s office to pay a town employee’s child support arrearage.
The town didn’t recoup the funds because of his separation from employment before any child support withholdings were made.
Other concerns identified include:
- Overdrawn cash balances in eight funds, ranging from $171 to $241,236.
- Some receipts from the State Revolving Fund Water Project weren’t recorded in a timely manner, nor were 19 debt payments made in 2025.
- Thirty-seven gift cards totaling $925 were purchased with town funds as year-end employee bonuses but weren’t in the salary ordinance or in employees’ W-2 wage records.
- The town paid $389 in late fees, penalties and interest in 2025.
- Auditors found material weaknesses in the town’s internal controls. Material weaknesses are defined as one or more deficiencies in which there’s a reasonable possibility that a material misstatement of the town’s financial statement won’t be prevented, or detected and corrected, on a timely basis.
- Two grants totaling more than $13,000 were omitted, and the State Revolving Fund Drinking Water was overstated by $1,287,940.
- In 2025, the general fund’s total disbursements were $42,379 more than budgeted.
- The town’s bank reconciliation as of Dec. 31, 2025, didn’t reconcile with the town’s financial data on Indiana Gateway for Government Units financial reporting system, which was the source of the town’s financial statement.
In a written response, town officials say they concur with the findings and are working to prevent issues in the future.
Three SBOA reports related to the audit became available through the agency’s website Sept. 2. At town council’s Sept. 8 meeting, President Dan Wandersee encouraged councilors to review the reports.
Before the reports were published, SBOA officials conducted an exit conference with town officials in August.
The report includes Rice’s explanations of what led to some of the concerns, which she said will be avoided in the future as she has additional job experience. She also plans to consult the town’s municipal adviser, Indianapolis-based Baker Tilly, when help is needed.
Rice indicated she was behind on or didn’t understand some matters in her first year on the job in 2024 that had to be caught up in 2025. Rice said she wasn’t aware of some of the bonds that needed to be paid, or that all federal grants had to be reported, but she now knows what is due and has a good system. The bond payments missed in 2024 were paid in 2025, and she said they’ll be paid and reported in the correct year in the future.
To address internal controls, a second person will review receipts and disbursements.
She said she learned that two years of grant funding shouldn’t be combined into the town’s annual financial report.
Rice also said she would work with Wandersee to develop a policy on how to use federal funding with clear guidance on what charges are direct and indirect.
“Continuing to work with Baker Tilly will help ensure I’m on the right track, and I will make sure to reach out when necessary,” she wrote.
When contacted by WWN, Rice declined to comment on the findings beyond the report.
A version of this article will appear in the September 16 2026 print edition of the Western Wayne News.
