The state may start its own investigation into a Gary Fire Department fund, which has invited scrutiny due to funds being used to pay unrelated expenses.
City officials have worked with Whitaker & Associates, Inc., based in Merrillville, to study the 224 Fund, a city fund that is intended to cover EMS expenses. But officials say that money from the fund has been transferred to other portions of the city budget to cover unrelated expenses since at least 2015.
City officials have discussed the matter with the Indiana State Board of Accounts, and Mayor Karen Freeman-Wilson said she hopes to know by the end of June. The fund was intended to cover costs related to Emergency Medical Service program. Such transfers are acceptable if they are individually reviewed and approved by the Common Council and mayor. But officials say some $4.5 million in money had been transferred without prior approvals.
Whitaker & Associates officials said they’re continuing to review older records to see how far back the practice has occurred.
City officials previously said many of the transfers were made by the city’s Deputy Controller Michelle Roby, who was put on administrative leave from her position when the issue became publicly known in April, and who was terminated on May 29, Freeman-Wilson said. Former City Controller Celita Green lost a $17,000 consulting contract last month. She retired from her full-time job at the end of February.
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The mayor said city officials intend to hold several hearings in coming months on the extent of the problem. One of those hearings will be open to the public, although a place and date for it to be held has yet to be determined.
There also will be six other hearings intended for employees of the Fire Department in order to accommodate their schedules.
Gregory Tejeda is a freelance reporter for the Post-Tribune.