AP audit uncovers Indiana town treasurer’s financial mismanagement

The treasurer of Roseland, Indiana, recently resigned after an accounts payable audit revealed inconsistent management of the town's finances, according to WSBT-TV.

Susan Hammons was found to have misplaced receipts, placed funds into the wrong accounts, and filed inaccurate reimbursement reports – including one that billed the town for 89 more miles' worth of gas than it should have taken her to travel to and from a conference.

"There may have been expenses reimbursed in excess of what was authorized or lack of documentation … but it seems most of the errors were honest mistakes," Roseland town attorney Peter Agostino told the news source. He noted that the 89 extra miles may have been accrued as the result of a wrong turn, for example.

Agostino acknowledged that legal action against Hammons is "a possibility" but officials are remaining open-minded until a recovery audit determines whether the errors were embezzlement-related or good faith mistakes.

Regular AP audits, such as the one the state conducted into Roseland's finances, can identify misappropriation of funds caused by both mistakes and fraud. 

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