Money missing at Long Beach Water Department, state audit finds

The State Board of Accounts is seeking repayment of nearly $10,000 in allegedly mishandled money and audit costs from the former water department office manager for the LaPorte County town of Long Beach.

A state audit released Tuesday claims Angela Palmieri failed to deposit $2,500.54 in customer payments and made $875.32 in unapproved billing adjustments between Jan. 3, 2019, and Jan. 10, 2020, when Palmieri resigned her post at the water department.

State auditors also are requesting Palmieri pay $6,293.20 in special audit costs, for a total of $9,669.06.

Under Indiana law, public funds that are misappropriated, diverted or unaccounted for through malfeasance, misfeasance or nonfeasance may become the personal obligation of the responsible official or employee, the audit notes.

Long Beach Clerk-Treasurer William de Funiak said he, the town council and the town's water board all agree with the audit's findings.

They pledged to implement new oversight measures, including two-person review of bank deposits and quarterly reconciliation of water department finances, to ensure nothing similar happens again, according to a statement included in the audit.

The audit also notes the Indiana State Police is conducting its own investigation of the Long Beach Water Department.

In addition, the audit findings have been forwarded to the LaPorte County prosecutor and Indiana attorney general for collection.

Special state audit of Long Beach Water Dept.

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