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Washington County Council approves $37,500 for independent review after audit flags BO project irregularities
Summary
After a presentation summarizing an Indiana State Board of Accounts audit that identified potential procurement and payment irregularities tied to a $4.8 million Build‑Operate project, the Washington County Council voted unanimously to approve a $37,500 emergency appropriation for an independent inspection, preliminary audit and legal review.
The Washington County Council on the evening meeting unanimously approved a $37,500 emergency appropriation to hire independent counsel and technical reviewers to examine a Build‑Operate (BO) highway project after an audit identified potential accounting and procurement irregularities.
A letter read to the council summarized findings from a 2025 spot audit by the Indiana State Board of Accounts and said the audit identified payments and contract changes that were not applied against the project's stated $4.8 million cost. According to the material presented to the council, the audit noted $113,238 paid directly to a subcontractor and advanced payments that the presenter said may violate state procurement rules; $181,486 paid for stone that the presenter said was not applied to the BO total; $312,968 of American Rescue Plan (ARP) funds alleged to have been spent for fuel tanks without following proper letting procedures; and approximately $1.79 million of loan proceeds described as mismanaged during calendar year 2025.
Council members repeatedly asked how the proposed review would interact with the commissioners' authority over project acceptance. The county attorney advised that the council could not necessarily stop the commissioners from taking possession of the project but that an independent inspection and legal review could provide information useful to the commissioners and the public and identify possible avenues to recover funds if warranted.
Members of the public urged the council to pursue either criminal or administrative remedies; speakers differed over whether the initial expenditure should be targeted solely at criminal investigation or start with an administrative inspection and legal review. One attendee noted the audit report states certain costs could be charged back to responsible individuals; council members said that assessment would be part of any independent review.
After debate, the council voted by raised hands to add the item to the agenda and then to approve the emergency appropriation for an independent inspection, a preliminary audit and legal fees. The council identified two members (Karen Preston and Preston) to lead the initial effort to retain counsel and technical reviewers and to report back at the next council meeting.
The council did not specify a vendor or investigator at the meeting. The appropriation vote was limited to authorizing the funds; any subsequent contracts, detailed scopes of work or referrals for potential criminal investigation would be handled through the counsel and review process the council launches and, where required, through subsequent public meetings and procurement steps.
Next steps: the two council members charged with the effort will seek recommendations for independent counsel and inspectors, return with a proposed scope and vendor recommendations, and provide an update at the council's next scheduled meeting.
