Former jail matron arrested

A Portland woman has been arrested on five felony counts stemming from a state audit of county finances.

Rachel A. Bentz, 44, who was a former Jay County Jail matron, was arrested Friday in connection with more than $8,000 missing from the inmate trust account.

She was later released from Jay County Jail on a $10,000 bond.

Jay County Prosecutor Wes Schemenaur filed the charges earlier Friday after an Indiana State Board of Accounts audit detected the missing funds.

State auditors also uncovered more than $4,000 unaccounted for at the Jay County Retirement Center, but Schemenaur said he has not yet reviewed that portion of the report.

Bentz, 4144 S. Boundary Pike, has been charged with theft, official misconduct, and three counts of violation of the depository rule. All are Level 6 felonies. The depository rule is a statute that requires public funds be deposited within one business day.

Following the audit, Indiana State Police conducted an investigation leading to the charges filed Friday.

Auditors found “significant deficiency” in the administration of funds at the jail and “material weakness” in the handling of funds at the retirement center by former superintendent Patty Clevenger.

The sheriff’s office “did not have a proper system of internal control in place over financial transactions and reporting of the Inmate Trust account,” auditors said.

The inmate trust account holds funds on behalf of inmates at the jail.

“It’s money that they have when they come in,” Sheriff Dwane Ford said Friday. “When they leave they get that money back. … The matron has taken care of that money, has for years.”

Among the jail audit findings:

•“On several occasions during 2017, receipts exceeding $500 were received and deposited later than the next business day. Some receipts were not deposited as much as 25 days after receipt.”

•In addition to those late deposits, the jail received funds totaling $8,168.64  in 2016 and 2017 that still had not been deposited as of Friday.

•The sheriff’s office did not reconcile the balance of the inmate trust account with bank statements on a monthly basis.

•The matron “did not generate a detailed report of the inmate trust receipts, disbursements and balances … as required.”

“Funds are still unaccounted for,” said Ford.

The sheriff agreed to a “corrective action plan” that calls for new matron Kristin Coleman to make deposits twice a week and reconcile bank statements monthly. An administrative assistant will review each transaction and the bank statements.

“There’s checks and balances now to that system,” said Ford. “We have followed everything the State Board of Accounts has required us to do.”

Bentz worked at the jail as matron for several years before retiring this spring.

The state audit, which covered the years 2015 through 2017, also found systemic problems at the county retirement center.

Among the audit findings:

•The retirement center issued receipts for a total of $4,521 in 2016 and 2017 which has not yet been accounted for.

•“The county home director opened a donation bank account in September 2015, without the knowledge or approval of the county auditor. Funds were kept in this bank account and not remitted to the county as required. Some donations were kept on hand as a petty cash fund and used to pay for various items and services for individual residents.”

•“Receipts were not properly issued for all monies received. Multiple receipts were pre-written for resident rent payments not yet received by the county home, resulting in numerous voided receipts.”

•“Receipts were not issued on many occasions for money received from the sale of grain and cattle, rent of farm ground and donations.” During the audit period, cattle were sold but the money was not remitted to the county. Instead, it was held in the retirement center’s account then used to purchase additional cattle. It was not until February 2017 that the remaining money from cattle, rent and the sale of corn was turned over to the county.

•Auditors also faulted the retirement center’s management for failing to maintain a general ledger and document such basic things as payments made on behalf of residents and sources of donations. 

Jay County Auditor Anna Culy said commissioners and new retirement center superintendent Amanda Cox have already taken several steps to get the financial system in order.

A number of procedures have been changed, and a new computer has been purchased to allow Cox to create several spreadsheets to track funds under her supervision.

“County commissioners and the superintendent will be working towards establishing effective internal controls within the department,” Culy told state auditors.

“We’re just watching the situation carefully,” Jay County Commissioners president Chuck Huffman said Friday.  “The person we have in place now (Cox) seems more competent on the financial end. I think she understands the bookkeeping concepts. I think we’re getting it worked out.”