Committee reviews closure of dormant and deficit funds, cites $45,540 tobacco-grant shortfall

At the finance committee meeting, City Controller Celita Green presented CPO 20268, a proposal to close funds that are dormant or show deficit cash balances and to transfer those shortfalls into the general fund where appropriate.

Green spelled out several line items the administration seeks to clear: fund 2308 (social services) shows a deficit of $186.94; fund 2476 (Northwest Indiana Tobacco Grant) shows a deficit of $45,540.33; and several small funds have positive cents balances that staff will transfer into general accounts. "That grant expired in March of last year. It ended with a negative $45,540," Green said, explaining staff believe a payroll-posting transition caused late payroll entries that resulted in the shortfall and that because the grant has been closed the city cannot recoup the funds.

Staff noted that state auditors can flag dormant accounts (no activity for over three years) or negative balances; the transfers are intended to reduce future audit findings. Committee members asked for clarifications about the second-chance grant and its use; Green said she spoke with the judge overseeing the court program, who advised transferring the remaining balance into the alcohol fund for court-related uses tied to alcohol treatment.

The administration reviewed multiple funds and line items and proposed transfers and appropriation adjustments to tidy up dormant or inactive accounts. No formal vote on CPO 20268 is recorded in the transcript; staff said they were working to correct clerical typos in ordinance attachments where necessary.