84477I

STATE BOARD OF ACCOUNTS

302 West Washington Street
Room E418
INDIANAPOLIS, INDIANA 46204-2769

SPECIAL INVESTIGATION REPORT

OF

CLARK COUNTY SHERIFF'S DEPARTMENT

JAIL COMMISSARY
CLARK COUNTY, INDIANA

January 1, 2015 to December 31, 2022

FILED 02/15/2024
 TABLE OF CONTENTS

Description Page

Transmittal Letter ............................................................................................................................... 2

Jail Commissary Fund:

Results and Comments:
Background........................................................................................................................... 3-5
Questionable Expenditures from the Jail Commissary Fund ................................................ 5-7
Unsupported Expenditures from the Jail Commissary Fund ................................................ 7-8
Unsupported Expenditures to Hughbanks Enterprises LLC ................................................. 8-12
Payments to Hughbanks Enterprises LLC Not in Accordance with Grant Agreement ......... 13-14
Fictitious Invoice Paid from the Jail Commissary Fund ........................................................ 14-17
Compensation Paid for Work Unrelated to Clark County ..................................................... 17-20
Proceeds of Vehicle Sale Not Deposited .............................................................................. 20-21
Jail Commissary Funds Used to Purchase a Bus Titled by New Chapel Fire and EMS ...... 21-23
Sheriff's Department Vehicle Used as a Trade-In
on a Van Purchased by New Chapel EMS..................................................................... 23
Television Purchased from Jail Commissary Fund Found at Personal Property of Noel ..... 24-25
Loss on Sale of Kawasaki Mule ............................................................................................ 26
Disclosure of Related-Party Transactions............................................................................. 26-28
Special Investigation Costs ................................................................................................... 28
Internal Control Deficiencies ................................................................................................. 28-29
Investigation by Law Enforcement and State Agencies........................................................ 29
Insurance Coverage .............................................................................................................. 30
Exit Conference ........................................................................................................................... 31
Summary of Charges ................................................................................................................... 32

Affidavit............................................................................................................................................... 33

INDIANA STATE BOARD OF ACCOUNTS 1

 STATE OF INDIANA
AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
302 WEST WASHINGTON STREET
ROOM E418
INDIANAPOLIS, INDIANA 46204-2769

Telephone: (317) 232-2513

Fax: (317) 232-4711
Web Site: www.in.gov/sboa

TO: THE OFFICIALS OF CLARK COUNTY, INDIANA

This is a special investigation report for the Clark County Sheriff's Department (Sheriff's
Department), for the period January 1, 2015 to December 31, 2022, and is in addition to any other report
for the County as required under IC 5-11-1. All reports pertaining to the County may be found at
www.in.gov/sboa/.

We performed procedures to determine compliance with applicable Indiana laws and uniform
compliance guidelines established by the Indiana State Board of Accounts and were limited to records
associated with the Sheriff's Department, with a concentration on the jail commissary fund. The Results
and Comments contained herein describe the identified reportable instances of noncompliance found as a
result of these procedures. Our tests were not designed to identify all instances of noncompliance;
therefore, noncompliance may exist that is unidentified.

Any Official Response to the Results and Comments, incorporated within this report, was not
verified for accuracy.

Paul D. Joyce, CPA

State Examiner

February 14, 2024

INDIANA STATE BOARD OF ACCOUNTS 2

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS

BACKGROUND

In July 2023, the Indiana State Police (ISP) referred a matter to the Indiana State Board of Accounts
(SBOA) involving the former Clark County Sheriff (Sheriff), Jamey Noel (Noel). Noel was the Sheriff for two
terms and served for the period January 1, 2015 to December 31, 2022.

Noel was also the president of the domestic nonprofit corporation, Utica Township Volunteer Fire
Fighters Association dba New Chapel Emergency Medical Service (New Chapel EMS), which is organized
as a volunteer fire department but currently operates as an ambulance service provider. New Chapel EMS
received revenue from its contracts for emergency medical services with Clark County and Floyd County
and from billing individual insurance companies.

In addition, Noel was the Fire Chief for Utica Township Fire Department Incorporated dba New
Chapel Fire and Emergency Medical Services, Inc. (New Chapel Fire and EMS), which was created in 2002
as a domestic nonprofit corporation and provides fire protection services. The primary funding received by
New Chapel Fire and EMS was from New Albany Township Fire Protection District and Utica Township Fire
Protection District. Both districts are political subdivisions of the State of Indiana.

The use of multiple business names created a layering effect, in which money or assets was moved
through different businesses or different layers of a business. This process creates difficulty when tracking
funds or assets through the businesses.

The following describes the nature of the allegations referred to the SBOA:

As Sheriff, Noel used sheriff's maintenance employees to work on his personal residence
via the construction of a pole barn on his property as well as other properties associated
with Noel. This work on his property allegedly occurred during normal work hours of the
county employees.

As Sheriff, Noel used the sheriff's maintenance employees to travel on behalf of New
Chapel EMS to pick up vehicles purchased by Noel for New Chapel EMS. This travel
allegedly occurred during normal work hours for the county employees.

As president of New Chapel EMS, Noel purchased multiple vehicles and then sold them at
reduced prices to friends and family.

As Sheriff, Noel oversaw the Jail Commissary Fund established under IC 36-8-10-21. All monies
received from jail commissary sales are to be deposited into the fund's bank account. The statute provides
the criteria of expenditures that can be made from the Jail Commissary Fund. All expenditures meeting the
criteria are at the discretion of the Sheriff without appropriation by the county fiscal body. Other
expenditures not specifically listed must be mutually agreed upon by both the Sheriff and the county fiscal
body.

We examined the Jail Commissary Fund activity to determine compliance with IC 36-8-10-21 which
states:

INDIANA STATE BOARD OF ACCOUNTS 3

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

"(a) This section applies to any county that has a jail commissary that sells merchandise to
inmates.

(b) A jail commissary fund is established, referred to in this section as 'the fund'. The fund is
separate from the general fund, and money in the fund does not revert to the general fund.

(c) The sheriff, or the sheriff's designee, shall deposit all money from commissary sales into
the fund, which the sheriff or the sheriff's designee shall keep in a depository designated under
IC 5-13-8.

(d) The sheriff, or the sheriff's designee, at the sheriff's or the sheriff's designee's discretion
and without appropriation by the county fiscal body, may disburse money from the fund for:

(1) merchandise for resale to inmates through the commissary;

(2) expenses of operating the commissary, including, but not limited to, facilities and
personnel;

(3) special training in law enforcement for employees of the sheriff's department;

(4) equipment installed in the county jail;

(5) equipment, including vehicles and computers, computer software, communication

devices, office machinery and furnishings, cameras and photographic equipment,
animals, animal training, holding and feeding equipment and supplies, or attire used
by an employee of the sheriff's department in the course of the employee's official
duties;

(6) an activity provided to maintain order and discipline among the inmates of the county
jail;

(7) an activity or program of the sheriff's department intended to reduce or prevent

occurrences of criminal activity, including the following:

(A) Substance abuse.

(B) Child abuse.

(C) Domestic violence.

(D) Drinking and driving.

(E) Juvenile delinquency;

(8) expenses related to the establishment, operation, or maintenance of the sex and
violent offender registry web site under IC 36-2-13-5.5; or

INDIANA STATE BOARD OF ACCOUNTS 4

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

(9) any other purpose that benefits the sheriff's department that is mutually agreed upon
by the county fiscal body and the county sheriff.

Money disbursed from the fund under this subsection must be supplemental or in addition to,
rather than a replacement for, regular appropriations made to carry out the purposes listed in
subdivisions (1) through (8).

(e) The sheriff shall maintain a record of the fund's receipts and disbursements. The state
board of accounts shall prescribe the form for this record. The sheriff shall semiannually
provide a copy of this record of receipts and disbursements to the county fiscal body. The
semiannual reports are due on July 1 and December 31 of each year."

The following describes noncompliance with statutes or the Accounting and Uniform Compliance
Guidelines Manual for Counties of Indiana.

QUESTIONABLE EXPENDITURES FROM THE JAIL COMMISSARY FUND

The SBOA reviewed the jail commissary records presented for the periods January 1, 2015 to
December 31, 2017, and January 1, 2019 to December 31, 2022, to determine if expenditures were
compliant with IC 36-8-10-21. Current officials advised the SBOA that the box of 2018 records were missing
from the storage area where the other jail commissary records were stored.

Several expenditures were identified that did not appear to meet the approved expenditures listed
in the Indiana Code or the approved expenditures referenced in two 2018 resolutions. After our initial
review, we provided the list of questionable expenditures to current Sheriff's officials, who were employed
during the period examined, for review.

Upon completion of their review, the SBOA discussed the questionable expenditures with the
current officials. Based on this discussion, the list was modified, and the final list of questionable
expenditures is shown in the schedule below. The current officials indicated they have no knowledge of
these expenditures and are not currently in the possession of any of the items at the Sheriff's Department.

The following schedule contains the list of questionable expenditures from the Jail Commissary
Fund for the periods January 1, 2015 to December 31, 2017, and January 1, 2019 to December 31, 2022:

INDIANA STATE BOARD OF ACCOUNTS 5

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Questionable Purchase Purchase

Expenditures Date Amount

2014 Crash Tested Ford Transit Connect 05-26-15 $ 5,275.00

Alarm, Security, and Detection Equipment 09-14-15 8,824.00
1991 Corn Pro 20+5 7K Trailer 08-23-16 3,000.00
Toolbox Kit for Dodge Ram 06-09-17 620.00

Total: Period: January 1, 2015 to December 31, 2017 $ 17,719.00

Two Skids of Miscellaneous Fire and Rescue Equipment 08-02-19 $ 832.75

Forklift Wrecker #153 09-19-19 2,695.00
WRB WO100279 Lift 02-06-20 3,004.98
Briggs Toolbox and M8827PDP-BL 17 Drawer 88 Inch Workstation Box 08-12-20 12,000.00
Assortment of Tools 08-12-20 7,000.00
Repairs on a 2012 Chevrolet Equinox with VIN# 2GNALDEK5C6361188 10-28-20 3,949.74
One Suihe 203012R and Two Suihe C2040 Storage Buildings 12-23-20 7,550.41
Two New Tires on a 2001 Dodge Caravan 08-09-21 283.90
Stryker Medical PowerCot 09-07-21 6,807.37
Six Black Seldyn Recliners 10-07-21 2,786.22
Two Cardiac Monitors and Lifepack 12 Battery System 11-02-21 3,831.30
Apple Ipad 02-24-22 1,839.93
Cat Walk (Raised Platform) 03-03-22 635.47
Three Milwaukee M18 18-Volt Cordless Rocket Dual Power Tower Drills 03-26-22 959.79
One Milwaukee M18 Fuel 18-Volt Lithium-Ion Brushless .25 Gal Vacuum 04-01-22 319.93
Two Lifepack 15 Monitors-Portable 07-05-22 11,278.58
Two Lifepack 15 Monitors-Portable 07-22-22 10,914.76
Stryker MX-Pro Bariatric Transport Cot 09-29-22 6,765.41
One Milwaukee M18/M12 12/18V Cordless Ratchet and Impact Wrench
and one Milwaukee M18 18V Cordless Grinder. 11-22-22 297.46

Total: Period: January 1, 2019 to December 31, 2022 $ 83,753.00

Grand Total: $ 101,472.00

Public funds may not be used to pay for personal items or for expenses which do not relate to the
functions and purposes of the unit. Any personal expenses paid by the unit may be the personal obligation
of the responsible official or employee. (Accounting and Uniform Compliance Guidelines Manual for
Counties of Indiana, Chapter 1)

INDIANA STATE BOARD OF ACCOUNTS 6

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department Jail Commissary Fund for the questionable
expenditures in the amount of $101,472. (See Summary of Charges, page 32)

UNSUPPORTED EXPENDITURES FROM THE JAIL COMMISSARY FUND

Unsupported payments totaling $356,842.39 were made during the period January 1, 2015 to
December 31, 2022, from the Jail Commissary Fund. No receipts, invoices, contracts, or other public
records were available to determine the validity of these payments. Due to the lack of proper supporting
documentation, the SBOA could not substantiate the payments were proper expenditures from the Jail
Commissary Fund in accordance with IC 36-8-10-21.

Current officials advised the SBOA that the box of 2018 records were missing from the storage
area where the other jail commissary records were stored.

The following schedule summarizes the list of unsupported expenditures from the Jail Commissary
Fund by year:

Unsupported
Expenditures
Year By Year

2015 $ 21,988.51
2016 5,507.23
2017 8,833.50
2018 211,233.31
2019 5,854.63
2020 65,520.99
2021 18,842.51
2022 19,061.71

Total $ 356,842.39

Public funds may not be used to pay for personal items or for expenses which do not relate to the
functions and purposes of the unit. Any personal expenses paid by the unit may be the personal obligation
of the responsible official or employee. (Accounting and Uniform Compliance Guidelines Manual for
Counties of Indiana, Chapter 1)

Supporting documentation such as receipts, canceled checks, tickets, invoices, bills, contracts, and
other public records must be available for examination to provide supporting information for the validity and
accountability of monies disbursed. Payments without supporting documentation may be the personal
obligation of the responsible official or employee. (Accounting and Uniform Compliance Guidelines Manual
for Counties of Indiana, Chapter 1)

INDIANA STATE BOARD OF ACCOUNTS 7

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department Jail Commissary Fund for the unsupported
payments in the amount of $356,842.39. (See Summary of Charges, page 32)

UNSUPPORTED EXPENDITURES TO HUGHBANKS ENTERPRISES LLC

Kenneth Hughbanks (Hughbanks) began his employment at the Clark County Jail as a Correctional
Officer on November 28, 2004. He served in that capacity for two years until he was moved to a separate
division in Clark County's jail services in 2006 where he worked as a maintenance repair person. On
February 15, 2015, Hughbanks resigned from the Clark County Jail to pursue employment in the private
sector. On October 10, 2016, Hughbanks was once again hired by the Clark County Sheriff's Department
and assigned to the Office of Information Technology as an Information Technology Generalist.

Hughbanks was appointed as Scott County Sheriff on April 12, 2018, and served as Sheriff through
December 31, 2018. Hughbanks did not officially leave the Clark County Sheriff's Department when he
became the Scott County Sheriff, but instead was paid a reduced wage by Clark County for the period he
served as the Scott County Sheriff. While still serving as the Scott County Sheriff, Hughbanks was
approved for FMLA leave at Clark County for the period of September 12, 2018 to December 31, 2018.

Hughbanks returned to work full-time at the Clark County Sheriff's Department in January 2019.
Upon returning to the Clark County Sheriff's Department, Hughbanks served as Operations Commander
under Corrections. Hughbanks submitted his resignation from the Clark County Sheriff's Department on
December 8, 2019, and on December 9, 2019, he was appointed as a Special Deputy at the Clark County
Sheriff's Department.

On December 14, 2006, Hughbanks registered Hughbanks Enterprises LLC with the Indiana
Secretary of State. Hughbanks began submitting invoices on behalf of Hughbanks Enterprises LLC for
"consulting services" to the Clark County Sheriff's Department in March 2015. Beginning December 2015
and continuing until October 2022, monthly invoices were submitted by Hughbanks Enterprises LLC.
During this period, these invoices were paid exclusively from the Sheriff's Department Jail Commissary
Fund.

INDIANA STATE BOARD OF ACCOUNTS 8

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

No contract was provided for examination to support the payments to Hughbanks Enterprises LLC.
Instead, general and nondescript invoices were submitted for payment that did not contain any detail as to
the date or services that were performed. The following is an example of an invoice submitted for payment
by Hughbanks Enterprises LLC:

INDIANA STATE BOARD OF ACCOUNTS 9

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Hughbanks Enterprises LLC was paid $1,500-$3,500 per month from the Jail Commissary Fund
during this period. The following schedule summarizes the payments to Hughbanks Enterprises LLC:

Disbursements to Hughbanks Enterprises LLC

Consulting
Year Invoices

2015 $ 11,679.85
2016 26,187.50
2017 27,500.00
2018 39,500.00

Total for Period January 1, 2015

to December 31, 2018 104,867.35

2019 42,000.00
2020 42,000.00
2021 42,200.00
2022 31,500.00

Total for Period January 1, 2019

to December 31, 2022 157,700.00

Grand Total $ 262,567.35

According to IC 36-8-10-21(d)(9), disbursements of Jail Commissary Funds for purposes not listed
in sections 1-8 must be mutually approved by sheriff and the county fiscal body. There was no resolution
or agreement in the records of either the county or the Sheriff's Department establishing that the county
fiscal body reviewed and approved the disbursement of Jail Commissary Fund for these services.

Pursuant to IC 36-8-10-21(e):

"The sheriff shall maintain a record of the fund's receipts and disbursements. The state board
of accounts shall prescribe the form for this record. The sheriff shall semiannually provide a
copy of this record of receipts and disbursements to the county fiscal body. The semiannual
reports are due on July 1 and December 31 of each year."

The SBOA was able to obtain and review the semiannual reports Noel provided to the county fiscal
body for the years 2015-2022. A review of those records indicates that Noel made no attempt to distinguish
between the discretionary spending provisions set forth at IC 36-8-10-21(d)(1-8), for which disbursements
of the Jail Commissary Funds are permitted for the specifically enumerated items set forth therein, and
other items which specifically require mutual approval from the county fiscal body per IC 36-8-10-21(d)(9).

INDIANA STATE BOARD OF ACCOUNTS 10

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

A review of the records for the subject examination years indicates no occasion wherein Noel
sought mutual approval from the county fiscal body on any particular disbursement involving the Jail
Commissary Fund. Further, rather than provide itemized detail of spending on the prescribed form from
the SBOA, Noel simply wrote "see attached" on each form. The "attached" documentation provided by
Noel for each of the examination years was a profit/loss statement for the Jail Commissary Fund, for which
payments to Hughbanks Enterprises LLC were never specifically identified.

On December 9, 2019, through a written "Special Deputy Authorization," Noel appointed

Hughbanks as a Special Deputy of the Sheriff's Department for the period of December 27, 2019 to
December 31, 2022. Per the authorization, the "purpose" of the appointment was for Hughbanks to assist
the Sheriff's Department in the following areas:

Prisoner transports
Movement of fleet vehicles
Oversight and management of the DRMO program
Technical assistance to Commissary and Information Technology programs
Or any other duties or assignments for the Clark County Sheriff's Department
assigned/authorized by the Sheriff or his designee

The authorization makes no mention of Hughbanks' entitlement to compensation for the

performance of his duties. However, Hughbanks continued to submit monthly invoices to the Sheriff's
Department under Hughbanks Enterprises LLC during the period he served as a Special Deputy. No
additional documentation, other than the authorization and the nondescript invoices, was provided for
examination to support the payments to Hughbanks Enterprises LLC, despite requests from the SBOA to
the Sheriff's Department. Furthermore, the invoices provided for Hughbanks Enterprises LLC do not purport
to be for the fulfillment of his responsibilities as a Special Deputy.

Per the written authorization, the purpose of Hughbanks' appointment was to assist in areas that
are not subject to the discretionary spending power of the Sheriff under IC 36-8-10-21(d) (1-8). It was not
adequately established by the written authorization or in the records of the Sheriff's Department that the
payments made were for an expense relating to the operation of the Jail Commissary Fund. As such,
disbursements made that are not associated with the expense of operating the Jail Commissary Fund must
receive mutual approval from the county fiscal body and sheriff, per IC 36-8-10-21(d)(9). In this regard, the
SBOA was not provided with and was unable to locate said approval.

Hughbanks received compensation from the Sheriff's Department as both an employee and as a
consultant through Hughbanks Enterprises LLC during the period of October 10, 2016 to December 8,
2019. During this period Hughbanks Enterprises received $114,000, for which the total is included in the
SBOA's calculation of net expenditures to Hughbanks Enterprises LLC. The SBOA reviewed the records
and determined there was no Conflict of Interest disclosure on file for 2016, 2017, 2018, or 2019 disclosing
his pecuniary interest for these services as contemplated by IC 35-44.1-41-4. Failure to file required
disclosure statements impacts the ability of the SBOA to identify potential risks which may have otherwise
emerged in prior examinations of the unit.

A disclosure in compliance with IC 35-44.1-1-4(d), must meet the following requirements:

"(1) be in writing;

(2) describe the contract or purchase to be made by the governmental entity;

INDIANA STATE BOARD OF ACCOUNTS 11

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

(3) describe the pecuniary interest that the public servant has in the contract or purchase;

(4) be affirmed under penalty of perjury;

(5) be submitted to the governmental entity and be accepted by the governmental entity in a
public meeting of the governmental entity before final action on the contract or purchase;

(6) be filed within fifteen (15) days after final action on the contract or purchase with:

(A) the state board of accounts; and

(B) . . . the clerk of the circuit court in the county where the governmental entity takes final
action on the contract or purchase . . ."

Conflict of interest disclosures must be completed on Gateway. (Accounting and Uniform

Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

The attorney for the unit or a private attorney must be consulted in regard to whether a conflict of
interest disclosure statement must be filed and whether the format of the disclosure is sufficient.
(Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

Payments made or received for contractual services must be supported by a written contract. Each
unit is responsible for complying with the provisions of its contracts. (Accounting and Uniform Compliance
Guidelines Manual for Counties of Indiana, Chapter 1)

Supporting documentation such as receipts, canceled checks, tickets, invoices, bills, contracts, and
other public records must be available for examination to provide supporting information for the validity and
accountability of monies disbursed. Payments without supporting documentation may be the personal
obligation of the responsible official or employee. (Accounting and Uniform Compliance Guidelines Manual
for Counties of Indiana, Chapter 1)

All payments for services must be supported by a written contract. Compensation must be paid in
a manner that will facilitate compliance with state and federal reporting requirements. (Accounting and
Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel and Hughbanks, jointly and severally, reimburse the Sheriff's Department Jail
Commissary Fund for the unsupported payments to Hughbanks Enterprises LLC in the amount of
$262,567.35. (See Summary of Charges, page 32)

INDIANA STATE BOARD OF ACCOUNTS 12

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

PAYMENTS TO HUGHBANKS ENTERPRISES LLC NOT IN

ACCORDANCE WITH GRANT AGREEMENT

In 2017, the Sheriff's Department was awarded funding from the Department of Homeland Security
as part of the Port Security Grant Program. The 2017 Port Security Grant approved funding of the following
projects:

Description of Project Federal Amt Match Amt

Project 1: Collated Marine Dock with Hydro Lifts $ 195,219.75 $ 65,073.25

Project 2: Mobile Data Terminals for the River Patrol Division 58,500.00 19,500.00
Project 3: Portable Radio Units for the River Patrol Division 33,750.00 11,250.00
Project 4: NASBLA boat training courses 55,500.00 N/A
Project 5: Helicopter Flight Time 24,300.00 N/A

According to the grant agreement, the Sheriff's Department was responsible for meeting a 25
percent cost match on the expenditures approved above. Payments for the match portion of the 2017 Port
Security Grant must be made only for items approved in the grant agreement. Budget Detail Worksheets
included in the Port Security Grant Program Investment Justification forms for Projects 1 and 2 state that
funds contributing to the grant match would be paid from the Sheriff's Department Operating Budget.

In 2020, Hughbanks Enterprises LLC received $17,500 for project management services to fulfill
the 2017 Port Security Grant. No contract was provided for examination to validate the appropriateness of
these expenditures. Payments made to Hughbanks Enterprises LLC were recorded as part of the Sheriff's
Department cost match for the grant. These payments were disbursed from the Jail Commissary Fund
instead of the General Operating Budget from which the match payments were reported to be derived.
Furthermore, project management services were not an approved expenditure according to the Grant
Program Investment Justification and payment for these services should not have contributed to the cost
match.

The following schedule details the payments to Hughbanks Enterprises LLC:

Grant Payments to Hughbanks Enterprises LLC

Check Date Check Number Invoice Date Invoice Number Purpose Amount

03-02-20 34907 03-01-20 987 Feb Dock Project Lead $ 2,500

04-06-20 34991 04-01-20 991 Mar Dock Project Lead 2,500
04-30-20 35042 05-01-20 993 Apr Dock Project Lead 2,500
06-04-20 35122 06-01-20 995 May Dock Project Lead 2,500
07-07-20 35206 07-07-20 997 Jun Dock Project Lead 2,500
07-31-20 35235 08-01-20 999 Jul Dock Project Lead 2,500
09-03-20 35312 09-01-20 1001 Aug Dock Project Lead 2,500

Total Grant Payments $ 17,500

INDIANA STATE BOARD OF ACCOUNTS 13

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Units are required to comply with all grant agreements, rules, regulations, bulletins, directives,
letters, letter rulings, court decisions, and filing requirements concerning reports and other procedural
matters of federal and state agencies. Units must file accurate reports required by federal and state
agencies. Noncompliance may require corrective action. (Accounting and Uniform Compliance Guidelines
Manual for Counties of Indiana, Chapter 1)

Sources and uses of funds must be limited to those authorized by the enabling law, ordinance/
resolution, or grant agreement. (Accounting and Uniform Compliance Guidelines Manual for Counties of
Indiana, Chapter 1)

Payments made or received for contractual services must be supported by a written contract. Each
unit is responsible for complying with the provisions of its contracts. (Accounting and Uniform Compliance
Guidelines Manual for Counties of Indiana, Chapter 1)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel and Hughbanks, jointly and severally, reimburse the Sheriff's Department Jail
Commissary Fund for the payments to Hughbanks Enterprises LLC that were not in accordance with the
grant agreement in the amount of $17,500. (See Summary of Charges, page 32)

FICTICIOUS INVOICE PAID FROM JAIL COMMISSARY FUND

On July 21, 2022, check number 36932 was written for $6,539.12 to a vendor for the installation of
a 100,000 btu gas furnace with a 4-ton AC. Inspection of the invoice provided as supporting documentation
showed the "bill to" description was Clark County Sheriff's Department. The location shown for the
installation was 1800 Patrol Rd. This location is not the address for the Sheriff's Department.

The SBOA contacted the vendor to request a copy of the original invoice. Inspection of the original
invoice showed the "bill to" description was New Chapel EMS, 1800 Patrol Rd., Charlestown, IN 47111.
The vendor confirmed the gas furnace was installed at this location.

The first document below is the invoice that was in the jail commissary records and used to support
the payment of the gas furnace from the Jail Commissary Fund. The second document below is the invoice
obtained from the vendor directly. The invoice clearly shows the "bill to" was to New Chapel EMS and not
the Clark County Sheriff's Department.

INDIANA STATE BOARD OF ACCOUNTS 14

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

INDIANA STATE BOARD OF ACCOUNTS 15

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

INDIANA STATE BOARD OF ACCOUNTS 16

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department Jail Commissary Fund for the payment of the
New Chapel EMS expense paid based on a fictitious invoice in the amount of $6,539.12. (See Summary
of Charges, page 32)

COMPENSATION PAID FOR WORK UNRELATED TO CLARK COUNTY

In July of 2023, the SBOA was made aware that Sheriff's Department maintenance employees
performed work on Noel's personal property during scheduled work hours. One of the maintenance workers
(Maintenance Employee 1) provided the ISP with pictures showing the work he and one other maintenance
worker performed at Noel's personal property at Noel's direction. Although there were other maintenance
workers identified, the SBOA was unable to substantiate these claims with the records available. The
pictures provided contained timestamps and the maintenance employee confirmed hours worked for the
days the pictures were taken. The SBOA received timecards for the maintenance employees and validated
the hours worked to timestamps on the pictures.

INDIANA STATE BOARD OF ACCOUNTS 17

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

The following schedule shows wages earned by maintenance employees for work unrelated to
Clark County:

Date Total Hours Rate Gross Pay

08-08-18 11-12-18 11-13-18 07-22-19

Maintenance Employee 2 8.08 8.08 $ 32.71 $ 264.29

Maintenance Employee 1 10.02 10.28 10.2 10.07 40.57 15.13 613.86

Total Wages for Work Unrelated to Clark County $ 878.15

The SBOA was unable to accurately determine hours worked on Noel's personal property for two
of the maintenance employees. Additional costs were incurred by the County for the work performed on
Noel's personal property by the Sheriff's Department maintenance employees, but the SBOA was unable
to accurately determine all additional costs without supporting documentation.

INDIANA STATE BOARD OF ACCOUNTS 18

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Indiana Code 35-44.1-1-3 Ghost Employment:

"(a) A public servant who knowingly or intentionally:

(1) hires an employee for the governmental entity that the public servant serves; and

(2) fails to assign to the employee any duties, or assigns to the employee any duties not
related to the operation of the governmental entity;

commits ghost employment, a Level 6 felony.

(b) A public servant who knowingly or intentionally assigns to an employee under the public
servant's supervision any duties not related to the operation of the governmental entity that
the public servant serves commits ghost employment, a Level 6 felony.

(c) A person employed by a governmental entity who, knowing that the person has not been
assigned any duties to perform for the entity, accepts property from the entity commits ghost
employment, a Level 6 felony.

(d) A person employed by a governmental entity who knowingly or intentionally accepts

property from the entity for the performance of duties not related to the operation of the entity
commits ghost employment, a Level 6 felony.

(e) Any person who accepts property from a governmental entity in violation of this section
and any public servant who permits the payment of property in violation of this section are
jointly and severally liable to the governmental entity for that property. The attorney general
may bring a civil action to recover that property in the county where the governmental entity
is located or the person or public servant resides.

(f) For the purposes of this section, an employee of a governmental entity who voluntarily
performs services:

(1) that do not:

(A) promote religion;

(B) attempt to influence legislation or governmental policy; or

(C) attempt to influence elections to public office;

(2) for the benefit of:

(A) another governmental entity; or

(B) an organization that is exempt from federal income taxation under Section
501(c)(3) of the Internal Revenue Code;

INDIANA STATE BOARD OF ACCOUNTS 19

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

(3) with the approval of the employee's supervisor; and

(4) in compliance with a policy or regulation that:

(A) is in writing;

(B) is issued by the executive officer of the governmental entity; and

(C) contains a limitation on the total time during any calendar year that the employee
may spend performing the services during normal hours of employment;

is considered to be performing duties related to the operation of the governmental entity."

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

The SBOA requests Noel reimburse Clark County the amount of $878.15 for the compensation
paid for work unrelated to Clark County performed at Noel's personal property. (See Summary of Charges,
page 32)

PROCEEDS OF VEHICLE SALE NOT DEPOSITED

A 2008 Chevrolet Tahoe C1500 with VIN 1GNEC030X8R168753 was purchased on May 4, 2017,
and titled on June 8, 2017, by the Sheriff's Department. The purchase was made through an online auction
retailer that specializes in government surplus items for $1,705 using Noel's Jail Commissary credit card.

A vehicle information history request from the Bureau of Motor Vehicles (BMV) showed the vehicle
was sold on August 22, 2017, to an individual for $1,500. The ISP interviewed the individual and revealed
that the vehicle was given in exchange for HVAC services performed at one of Noel's private properties.

A search of the Jail Commissary records did not show any funds paid to or received by the Sheriff's
Department regarding the sale of the 2008 Chevrolet Tahoe C1500.

Indiana Code 5-13-6-1(c) states, in part:

". . . all local officers . . . who collect public funds of their respective political subdivisions, shall
deposit funds not later than the business day following the receipt of funds on business days
of the depository in the depository or depositories selected by the . . . local boards of finance
. . ."

INDIANA STATE BOARD OF ACCOUNTS 20

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Tickets, goods for sale, billings, and other collections, are considered accountable items for which
a corresponding deposit must be made in the bank accounts of the unit. The deposit ticket or attached
documentation must provide a detailed listing of the deposit, which includes at a minimum, check numbers
and corresponding names of the payers. (Accounting and Uniform Compliance Guidelines Manual for
Counties of Indiana, Chapter 1)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department Jail Commissary Fund for the proceeds from
vehicle sale not deposited in the amount of $1,500. (See Summary of Charges, page 32)

JAIL COMMISSARY FUNDS USED TO PURCHASE A BUS TITLED TO NEW CHAPEL FIRE AND EMS

On January 19, 2022, Noel purchased a 2011 Bluebird Bus VIN BABLCPAXBF281928 from the
Government Service Administration Fleet through a third-party auction for $12,000. Noel authorized the
payment out of the Jail Commissary Fund for the purchase of this bus and signed check number 36522.
The bus was first titled in the name of New Chapel Fire and EMS. The bus was not registered to the
Sheriff's Department until December 28, 2022, when Noel transferred it just a few days before his term as
Sheriff ended. The bus was never titled in the name of Clark County. The Sheriff's Department sold the
vehicle at auction on June 24, 2023, and recovered $5,900.

The pictures below demonstrate New Chapel Fire and EMS' purchase of the bus and the payment
from the Sheriff's Department.

INDIANA STATE BOARD OF ACCOUNTS 21

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

The invoice below shows the actual purchaser was New Chapel Fire and EMS:

INDIANA STATE BOARD OF ACCOUNTS 22

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

While expenditures from the Jail Commissary Fund can be used for vehicle and equipment
purchases pursuant to IC 36-8-10-21(d)(5), these purchases are allowable to the extent that equipment and
vehicles are used by an employee of the Sheriff's Department in course of their official duties. As the
vehicle was not immediately titled to the Sheriff's Department and rather titled to New Chapel Fire and EMS,
the expenditure from the Jail Commissary Fund would not fall under the Sheriff's discretionary spending
powers according to IC 36-8-10-21(1-8). Such an expenditure would also need approval by the county
fiscal body pursuant to IC 36-8-10-21(9), which was not obtained here.

Assets purchased must be titled in the name of the unit. In instances where multiple units are
purchasing an asset jointly, the asset must be titled in accordance with an interlocal agreement between
the units. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

Public funds may not be used to pay for personal items or for expenses which do not relate to the
functions and purposes of the unit. Any personal expenses paid by the unit may be the personal obligation
of the responsible official or employee. (Accounting and Uniform Compliance Guidelines Manual for
Counties of Indiana, Chapter 1)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department the amount of $6,100 for the unrecovered
difference on the bus's purchase price. (See Summary of Charges, page 32)

SHERIFF'S DEPARTMENT VEHICLE USED AS A TRADE-IN

ON A VAN PURCHASED BY NEW CHAPEL EMS

On June 26, 2019, Noel, as president New Chapel EMS, authorized a sale of a 2009 Dodge Ram
1500 (VIN 1D3HV13T09J532377) to the Sheriff's Department. Check number 34243 was written and
signed by Noel from the Jail Commissary Fund to pay for the vehicle. The check was deposited into the
New Chapel EMS bank account.

On June 3, 2021, Noel, as president of New Chapel EMS, purchased a 2021 Ram Promaster City
Cargo Van with VIN ZFBHRFAB8M6U04889. The sales agreement for the purchase of the van showed
Noel traded the 2009 Dodge Ram 1500 (VIN 1D3HV13T09J532377) on the van purchased. The sales
agreement showed Noel received a $10,000 trade-in allowance toward the purchase. The 2009 Dodge
Ram 1500 was owned by the Sheriff's Department at that time. A search of the jail commissary records
did not show any funds paid to or received by the Sheriff's Department regarding the trade-in of the 2009
Dodge Ram 1500 for the van purchased.

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department $10,000 for the 2009 Dodge Ram 1500 that
was traded-in on a van purchased by New Chapel EMS. (See Summary of Charges, page 32)

INDIANA STATE BOARD OF ACCOUNTS 23

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

TELEVISION PURCHASED FROM JAIL COMMISSARY

FUND FOUND AT PERSONAL PROPERTY OF NOEL

On January 10, 2020, Noel purchased a Samsung 75" television from a local vendor with Jail
Commissary Funds. The invoice for the purchase showed the original list price of the television to be
$1,997.99 with a discount of 30 percent for a final purchase price of $1,398.59. Additional items were
included in the purchase bringing the total amount on the invoice to $3,957.79. Check number 34758 was
written to the vendor from the Jail Commissary Fund for the total amount of the invoice. The check cleared
the jail commissary bank account on January 14, 2020.

On November 29, 2023, the SBOA attended with the ISP on a search warrant on Noel's personal
pole barn. While inside the pole barn, the SBOA found a Samsung 75" television with a yellow sticker
showing the price of $1,997.99. The box also had the word "Sheriff" written on it. The pictures below were
taken during the search warrant.

INDIANA STATE BOARD OF ACCOUNTS 24

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Public funds may not be used to pay for personal items or for expenses which do not relate to the
functions and purposes of the unit. Any personal expenses paid by the unit may be the personal obligation
of the responsible official or employee. (Accounting and Uniform Compliance Guidelines Manual for
Counties of Indiana, Chapter 1)

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department Jail Commissary Fund for the television found
at Noel's personal property in the amount of $1,398.59. (See Summary of Charges, page 32)

INDIANA STATE BOARD OF ACCOUNTS 25

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

LOSS ON SALE OF KAWASAKI MULE

On May 31, 2017, Noel issued check number 32250 in the amount of $16,698 from the Jail
Commissary Fund to purchase a Kawasaki FXT LE Black Mule (Mule) with serial number
JKBAFSC10HB507294 from a local business. On July 24, 2017, Noel sold the Mule to an employee of the
Sheriff's Department for $10,000. The employee issued a cashier's check with sequence number 63000340
to finalize the purchase. The cashier's check was deposited to the jail commissary bank account on July
24, 2017. The sale of the Mule yielded a net loss to the Jail Commissary Fund of $6,698 within two months
of the original purchase date.

Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or

nonfeasance in office of any official or employee may be the personal obligation of the responsible official
or employee. (Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

We request Noel reimburse the Sheriff's Department for the loss on the sale of the Kawasaki Mule
in the amount of $6,698. (See Summary of Charges, page 32)

DISCLOSURE OF RELATED-PARTY TRANSACTION

An examination of the records at the Sheriff's Department and documents obtained through the
Indiana Bureau of Motor Vehicles (BMV) identified five vehicles transferred from the Sheriff's Department
to New Chapel EMS, for which Noel was the president. Although New Chapel EMS was originally organized
as a volunteer fire department, we were not able to confirm it was operating in that capacity during the
period of examination.

Vehicle 1: 2000 Ford E450 Ambulance VIN 1FDXE45F61HA06789

BMV documents showed on October 10, 2015, the Sheriff's Department purchased a 2000 Ford
E450 Ambulance (ambulance) from the Jail Commissary Fund through the General Services
Administration's Federal Acquisition Service (GSA, FAS) for $24,525. The ambulance was not recorded in
the Sheriff's Department fleet records, nor was it listed on the Clark County Commissioner's insurance
listings. On December 30, 2015, the ambulance was transferred to New Chapel EMS by Noel for $1. No
documentation was presented for examination that justifies the appropriateness of the transfer.

Vehicles 2, 3, and 4:

#2 - 2014 Chevrolet Silverado 1500 VIN 3GCPCPEC6EG116842

#3 - 2014 Chevrolet Silverado 1500 VIN 1GCRCPEHXEZ116444
#4 - 2014 Chevrolet Silverado 1500 VIN 3GCPCPEH5EG366679

According to BMV documents, vehicles 2, 3, and 4 were all purchased through GSA, FAS on May
22, 2015. They were all transferred to New Chapel EMS on December 30, 2015, for $1 each. No
documentation supporting the sale or appropriate transfer of the vehicles was available for examination.
The vehicles were not recorded in either the Sheriff's Department asset listings or the insurance listing kept
and maintained by the office of the Board of County Commissioners.

INDIANA STATE BOARD OF ACCOUNTS 26

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Vehicle 5: 2002 International 4000 4300 VIN HTMMAAM02H533700

According to BMV documents, the Sheriff's Department purchased a 2002 International 4000 4300
truck from a private party on October 7, 2015, for $18,500. This purchase was paid from the Jail
Commissary Fund with check number 32613. On January 28, 2021, the vehicle was transferred to New
Chapel EMS for $1, for which there is no supporting documentation.

Vehicles Transferred to New Chapel EMS:

Purchase Sale/Transfer Receipted in

No. Vehicle Price Price Commissary Fund

1 2000 Ford E450 Ambulance VIN 1FDXE45F61HA06789 $ 24,525 $ 1 NO

2 2014 Chevrolet Silverado 1500 VIN 3GCPCPEC6EG116842 8,100 1 NO
3 2014 Chevrolet Silverado 1500 VIN 1GCRCPEHXEZ116444 6,975 1 NO
4 2014 Chevrolet Silverado 1500 VIN 3GCPCPEH5EG366679 6,756 1 NO
5 2002 International 4000 4300 VIN HTMMAAM02H533700 N/A 1 NO

The transfer of the five vehicles listed above was not accompanied by an agreement between the
Sheriff's Department and New Chapel EMS, nor was there record of payment from New Chapel EMS to
the Jail Commissary Fund. The transfers to the volunteer fire department may have been otherwise
permissible if in accordance with IC 36-1-11-5.7, the disposing agent was not simultaneously the president
of the receiving entity. A conflict of Interest disclosure form was not filed by Noel. Based upon the
circumstances, the SBOA would have expected to receive a conflict of interest disclosure for this related-
party transaction. There was not one on file during the examination period that covered this matter.

A disclosure in compliance with IC 35-44.1-1-4(d), must meet the following requirements:

"(1) be in writing;

(2) describe the contract or purchase to be made by the governmental entity;

(3) describe the pecuniary interest that the public servant has in the contract or purchase;

(4) be affirmed under penalty of perjury;

(5) be submitted to the governmental entity and be accepted by the governmental entity in a
public meeting of the governmental entity before final action on the contract or purchase;

(6) be filed within fifteen (15) days after final action on the contract or purchase with:

(A) the state board of accounts; and

(B) . . . the clerk of the circuit court in the county where the governmental entity takes final
action on thecontract or purchase . . ."

INDIANA STATE BOARD OF ACCOUNTS 27

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Conflict of interest disclosures must be completed on Gateway. (Accounting and Uniform

Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

The attorney for the unit or a private attorney must be consulted in regard to whether a conflict of
interest disclosure statement must be filed and whether the format of the disclosure is sufficient.
(Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana, Chapter 1)

SPECIAL INVESTIGATION COSTS

The State of Indiana incurred additional audit costs due to the special investigation of the Sheriff's
Department funds.

Indiana Code 5-11-1-27(m) states in part:

"If the attorney general institutes civil proceedings related to this section or under IC 5-11-5-1,
the attorney general shall seek, in addition to the recovery of any funds misappropriated,
diverted, or unaccounted for, restitution of:

(1) Costs incurred by the state board of accounts . . ."

We request Noel reimburse the State of Indiana $146,920.93 for special investigation costs. (See
Summary of Charges, page 32)

INTERNAL CONTROL DEFICIENCIES

We noted deficiencies in internal controls which contributed to the misappropriation of the Jail
Commissary Funds, as follows:

Jail Commissary Fund: IC 36-8-10-21 establishes a Jail Commissary Fund to be used by any
County that sells merchandise to inmates. Clark County established such a fund. Section (e) requires that
the Sheriff maintain a record of the receipts and disbursements of the fund and requires that the Sheriff
provide a copy of this record to the county fiscal body semiannually by July 1 and December 1 of each year.
This record was prepared semiannually by the Sheriff's Department during the period January 1, 2015 to
December 31, 2022. The Sheriff's Department forwarded the report to the Auditor's Office.

Per inquiry of members of the county fiscal body, they did not receive or review the semiannual
reports prepared by the Sheriff. This allowed inappropriate receipts to be deposited into and inappropriate
disbursements to be paid from the Jail Commissary Fund, without any oversight. The following are
conditions noted during the examination of the jail commissary:

Auction Sales: The Sheriff's Department held several auctions during the period to dispose of
DRMO property and surplus property of the Sheriff's Department and the County. Very little documentation
was retained at the Sheriff's Department documenting the proceeds from the sales. Without supporting
documentation, we could not determine the validity and accountability of monies received.

INDIANA STATE BOARD OF ACCOUNTS 28

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

Missing Records: Sheriff's Department Jail Commissary Fund records were missing for
2018.

Multiple Positions Held: A Sheriff's Department employee was paid as both an employee and
consultant during the same period and during the time he was appointed Sheriff in a neighboring county.
A record of time worked was not retained for all three positions although required by IC 5-11-9-4(b). In
addition, a 1099 was not issued by either the County Auditor or the Sheriff's Department for the consultant
position.

DRMO Sales: During the period reviewed, the Sheriff's Department obtained approximately $5 to
$7 million of DRMO property. The intention of the DRMO program is for governmental entities to obtain
usable property unused by the federal government. However, Noel held most of the property for the given
time allowed and then either sold the property at auctions or gave it to individuals. Some proceeds from
the auctions were deposited into the jail commissary fund, however because of the lack of documentation
from the sales we could not validate that all sale proceeds were deposited.

Due to the lack of oversight, Noel was able to deposit unapproved funds into the Jail Commissary
Fund and use those funds for improper purchases and to engage in activities with entities he was affiliated
with outside the Sheriff's Department.

The Indiana State Board of Accounts (SBOA) is required under Indiana Code 5-11-1-27(e) to define
the acceptable minimum level of internal control standards. To provide clarifying guidance, the State
Examiner compiled the standards contained in the manual: Uniform Internal Control Standards for Indiana
Political Subdivisions. All political subdivisions subject to examination by SBOA are expected to adhere to
these standards. These standards include adequate control activities. According to this manual:

"Control activities are the actions and tools established through policies and procedures that
help to detect, prevent, or reduce the identified risks that interfere with the achievement of
objectives. Detection activities are designed to identify unfavorable events in a timely manner
whereas prevention activities are designed to deter the occurrence of an unfavorable event.
Examples of these activities include reconciliations, authorizations, approval processes,
performance reviews, and verification processes.

An integral part of the control activity component is segregation of duties. . . .

There is an expectation of segregation of duties. If compensating controls are necessary,

documentation should exist to identify both the areas where segregation of duties are not
feasible or practical and the compensating controls implemented to mitigate the risk. . . ."

INVESTIGATION BY LAW ENFORCEMENT AND STATE AGENCIES

It is our understanding that there are ongoing investigations by the ISP and the Indiana Department
of Revenue. A copy of the filed report has been sent to the local prosecutor's office and to the Office of the
Indiana Attorney General.

INDIANA STATE BOARD OF ACCOUNTS 29

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
RESULTS AND COMMENTS
(Continued)

INSURANCE COVERAGE

The following is information regarding insurance obtained by the County:

Period Amount

01-01-15 to 01-01-16 $ 90,000

01-01-16 to 01-01-17 90,000
12-31-16 to 12-31-17 240,000
12-31-17 to 12-31-18 240,000
12-31-18 to 12-31-19 240,000
12-31-19 to 12-31-20 240,000
12-31-20 to 12-31-21 240,000
12-31-21 to 12-31-22 240,000

INDIANA STATE BOARD OF ACCOUNTS 30

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
EXIT CONFERENCE

The contents of this report were discussed on February 14, 2024, with Scott A Maples Jr., County
Sheriff; Diane Shahroudi, Sheriff's Secretary; Jack Coffman, Commissioner; Bryan Glover, President of the
Board of County Commissioners; Connie Sellers, Commissioner; Barbara Hollis, President of the County
Council; Brian Lenfert, Council member; Kevin Vissing, Council member; John Miller, Council member; R.
Scott Lewis, County Attorney; Danny Yost, County Auditor; Jessica Huffman, Chief Deputy Auditor; Sabrina
Corbin, Commissioner's Administrative Assistant; and Marcy Grube, CPA Contractor for Sheriff's
Department.
.

INDIANA STATE BOARD OF ACCOUNTS 31

 CLARK COUNTY SHERIFF'S DEPARTMENT
JAIL COMMISSARY
SUMMARY OF CHARGES
(Due to Malfeasance, Misfeasance, or Nonfeasance)

Charges Credits Balance Due

Jamey Noel, former Clark County Sheriff:
Questionable Expenditures from the Jail Commissary Fund, pages 5 through 7 $ 101,472.00 $ - $ 101,472.00
Unsupported Expenditures from the Jail Commissary Fund, pages 7 and 8 356,842.39 - 356,842.39
Fictitious Invoice Paid from Jail Commissary Fund, pages 14 through 17 6,539.12 - 6,539.12
Compensation Paid for Work Unrelated to Clark County, pages 17 through 20 878.15 - 878.15
Proceeds of Vehicle Sale Not Deposited, pages 20 and 21 1,500.00 - 1,500.00
Jail Commissary Funds Used to Purchase a Bus Titled by
New Chapel Fire and EMS, pages 21 through 23 6,100.00 - 6,100.00
Sheriff’s Department Vehicle Used as a Trade-In on
a Van Purchased by New Chapel EMS, page 23 10,000.00 - 10,000.00
Television Purchased from Jail Commissary Fund Found
at Personal Property of Noel, pages 24 and 25 1,398.59 - 1,398.59
Loss on Sale of Kawasaki Mule, page 26 6,698.00 - 6,698.00

Jamey Noel, former Clark County Sheriff, and Kenneth Hughbanks, jointly and severally:
Unsupported Expenditures to Hughbanks Enterprises LLC, pages 8 through 12 262,567.35 - 262,567.35
Payments to Hughbanks Enterprises LLC Not in
Accordance with Grant Agreement, pages 13 and 14 17,500.00 - 17,500.00

Special Investigation Costs, page 28 146,920.93 - 146,920.93

Totals $ 918,416.53 $ - $ 918,416.53

This report was forwarded to the Office of the Indiana Attorney General and the local prosecuting attorney.

INDIANA STATE BOARD OF ACCOUNTS 32

INDIANA STATE BOARD OF ACCOUNTS 33