Jackson Township trustee ordered to repay the township $70,000

JACKSON CO. – The Indiana State Board of Accounts has ordered Jackson Township Trustee Linda Auleman to repay the township and state $54,603.12 in salary overpayments to herself since she took office January 1, 2019.

Auleman also was ordered to pay $4,115.94 for the employer share of extra payroll taxes paid by the township because of the salary overpayments and reimburse the state for $11,756.25 for the cost of the investigation that uncovered the overpayments.

The State Board of Accounts began their investigation when they were notified Auleman was being compensated in amounts larger than the salary set by the township board.

Township trustees cannot pay themselves in excess over what the township salary resolution set by the township advisory board she was also paying herself one to two months in advance of the services performed. She also paid herself for the clerk position in 2019 and clerk and township assistance investigator positions in 2020.

In 2019, Auleman’s salary for being a trustee was approved at $39,097 by the township board with $65,634.90 being paid out. Her 2020 salary was approved for $40,270 with $68,335.22 being the actual amount Auleman was paid.

In 2019, Auleman paid township advisory board members a salary of $3,000 each for the year. According to the salary ordinance, members were to be paid a salary of $1,995 each for the year. Township advisory members were paid in access of $3,135 in a combined total of the three members.

The Indiana State Board of Accounts has requested that Larry Sunbury, Jessica Payne, and Brett Scallara each repay a total of $1,045 each back to Jackson Township.

According to the report, there was no oversight of the township activity on an ongoing basis by another individual.

Due to the lack of segregation of duties, the following occurred and not identified timely:

  • Salary overpayments
  • Additional payroll taxes incured due to the salary overpayments
  • Salary paid in advance of service. The 2020 rent was paid in full in October 2019
  • Payment in advance of crendenza that was never received by the township.

The township trustee and advisory board were bonded to cover any losses with a bond amount of $30,000 and insurance coverage of $1 Million.

According to Aultman, she was not trained properly, receiving only three hours of training by a previous clerk. She claims this is due to the fact the previous clerk was the wife of the previous trustee William Bill Marsh.

Auleman’s response to the audit can be found here along with the complete audit performed by the Indiana State Board of Accounts.

Other township officials throughout Indiana have found themselves overpaying or in misconduct while in office.

Most of the audits and investigations stated that there was no oversight in the financials of the township government with the township trustee or family member in charge of other duties performed for the township.