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Spring Grove board approves transfer to new motor-vehicle fund after state audit flags repeat findings
Summary
Town Clerk-Treasurer Jenney Holthouse told the Spring Grove board the 2021–2024 state audit found repeated deficiencies; the board established a restricted Motor Vehicles Fund and approved moving 50% of Motor Vehicle Excise Tax receipts (totaling $5,892.30 through October) into it, and asked staff to follow up with auditors on contract and reporting requirements.
The Spring Grove Town Board on Nov. 11 approved immediate steps to comply with a completed 2021–2024 state audit, including establishing a restricted Motor Vehicles Fund and transferring half of Motor Vehicle Excise Tax receipts into that account.
Clerk‑Treasurer Jenney Holthouse presented October financials and the audit summary, saying the audit largely repeated findings from the prior 2022 audit. Holthouse told the board the town must establish a separate Motor Vehicles Fund for paving and specified uses (not maintenance) and move 50% of the MVET receipts received through October 2025, totaling $5,892.30, into that fund. She also said half of future MVET receipts will be deposited there.
The board approved the transfer on a motion by Spring Grove board member Zane Carrell, seconded by board member Annemarie Chasteen; the motion passed by voice vote with all in favor.
Holthouse reviewed other audit findings that will require corrective action or clarification: the town must prepare a receipt for every revenue deposit that posts to the bank; independent contractors must have board‑approved contracts before receiving payment; the audit shows internal control training is required (Holthouse and several board members have completed it, which will bring the town into compliance for the next audit but remains a current finding); ARPA receipts and related expenses from 2021 were not included in the Annual Financial Report; and First Merchants certificates of deposit were reported to the state as cash rather than investments.
Holthouse said she has created a receipt form and has begun updating 2025 records per the auditor’s instructions. She also said she will follow up with the auditor to clarify whether ordinance 2024‑02, which allows the planning commission president to approve maintenance under $1,000 without board approval, satisfies the requirement that independent contractors have board‑approved contracts.
Holthouse told the board the audit is complete pending the exit conference scheduled next week and the delivery of the formal report; auditors have sent Teams invites to board members for the exit meeting.
The board did not take separate votes on the other corrective items at the Nov. 11 meeting; Holthouse was directed to continue compliance steps and to seek auditor guidance on unresolved questions. The board also approved routine minutes and several other administrative items during the meeting.
