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Auditors Questioned Sheriff's Donations Years Ago

Thousands Given To Private Organizations

POSTED: 2:18 pm EDT June 30, 2010

As more lawmakers call for a review of how Sheriff Frank Anderson is spending money collected at Marion County's jails, records show auditors raised questions about the practice years ago.

An investigation by 6News' Joanna Massee revealed that, so far this year, thousands in commissary money has been used to purchase tables at events or donated to various organizations, all at the sheriff's discretion.

A review performed by the city's Internal Audit Agency in 2008 questioned similar donations of commissary money -- contributed by inmates' friends, families and attorneys to pay for phone calls and purchases behind bars -- to private organizations.

"We looked at the state statute pertaining to commissary funds. It was our opinion that those donations were outside of what was allowed," said former Audit Manager John Crone.

He said auditors discussed the review with representatives of the Sheriff's Department, and told them that they believed such donations should be approved by the county fiscal body, the City-County Council.

Marion County Sheriff's Department Director of Administration Louis Dezelan, who said the audit went well, told Massee that such expenses fall under state statute.

"They gave us their approval. We have a full report on that from them, and we're proud of that," he said.

In a release issued Wednesday night by the Marion County Sheriff's Department, spokesman Julio Fernandez reiterated that auditors believed the practices and procedures used to administer the fund were appropriate.

"However, the auditors felt that disbursements from the fund that supported minority outreach and victim assistance could potentially be subject to approval by the fiscal body," the release read. "Support of 'victim assistance,' as noted in the audit, ended in 2008, as it is a program now offered by the state of Indiana."

Still, at least two members of the City-County Council said they were not aware of how commissary money was being spent.

Councilor Bob Lutz, R-District 13, said he voted against a sex offender registry grant for the Sheriff's Department at Monday's council meeting because he was concerned about the department's spending.

"I wanted to call attention to it so everybody else is looking at it when this comes up for budget review," he said.

Councilor Barbara Malone, a Republican member at-large, told Massee earlier this month that the fund appeared to be what she considered a "slush fund."

After the story aired, Malone said he received a letter from Anderson.

"I was disappointed to see the WRTV newscast in which you referred to the Marion County Jail Commissary as a 'slush fund,'" the letter reads.

Malone, who sits on the council's Administration and Finance Committee, said the issue is in need of review.

More Information:
  • 2009 Marion County Commissary Fund Expenditures
  • 2010 Marion County Commissary Fund Expenditures
  • release issued Wednesday night
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