Walworth board rescinds investigation motion, directs police chief to seek outside review of clerk’s office

The Village of Walworth Board on May 18 rescinded a previously approved motion to initiate an investigation of the Clerk’s Office after the village attorney said the earlier motion had not been properly noticed. President Louise Czaja moved to rescind the motion; Trustee Bob Ball seconded, and the motion carried unanimously.

The action capped a roughly hour-long special meeting dominated by discussion of a financial/audit report prepared by consultant Renee Nutt dated May 12, 2026. Trustees discussed potential overpayments and underpayments flagged in the report, unpaid biweekly payroll payments to the IRS from 2022, and quarterly payroll tax reports for 2021–2025 that had not been filed — items that Town staff warned could lead to penalties if not resolved. Financial Consultant Renee Nutt said, "I have not done a forensic audit, but I am pretty diligent on verifying the incoming and outgoing financials of the Village," and stated that her review since 2023 would likely have detected fraud during that period.

Village Attorney Brad Lochowicz told the board that because the earlier motion was not properly noticed it should be rescinded rather than enforced. Lochowicz also said the board could pursue breach-of-contract claims if a contracted firm failed to perform duties; the board discussed the prior use of an outside firm for bank reconciliations and whether CliftonLarsonAllen or other contractors might bear responsibility for errors or omissions.

President Czaja recommended the board consider reinstating a village ordinance that once required the Clerk to carry a fidelity bond to protect the municipality against errors or misconduct by fiscal officers. The board also noted it has received a draft 2022 audit and discussed waiting for completed audits before initiating a forensic audit.

Police Chief Ryan Milligan told the board he had raised concerns in 2022 with the Clerk and the Village President about payroll and benefits issues that were not resolved. The board then approved a motion (moved by Trustee Ken Ellerth; seconded by Trustee Steve Hovestol) delegating the police chief to contact an outside agency to investigate the Clerk‑Treasurer’s Office and designating Trustee Ellerth as the board’s contact for that inquiry; the motion carried unanimously.

Trustees discussed governance changes, including hiring a village administrator to centralize oversight of operations and whether the full board should play a larger role in Finance Committee oversight. Trustee Ellerth said he lacked detailed financial knowledge and urged wider board involvement in finance matters. The board adjourned at 5:14 p.m.

Votes at a glance: "Motion to rescind prior investigation" (moved by President Louise Czaja; second Bob Ball) — carried unanimously. "Motion to delegate police chief to contact outside agency to investigate Clerk‑Treasurer’s Office" (moved by Trustee Ken Ellerth; second Steve Hovestol) — carried unanimously. "Motion to adjourn" (moved by President Louise Czaja; second Bob Ball) — carried unanimously.

Next steps: the board will consider ordinance language for a clerk fidelity bond and is expected to address governance changes and any recommended follow-up after the outstanding audit work is completed.