Audit: Ex-official owes town $22,000

State says former Hebron clerk-treasurer should pay fees, penalties on taxes

Hebron’s former clerk-treasurer owes the town more than $22,000 in tax penalties and fees because, according to a state audit, he did not always file taxes in 2017 and 2018.

Alan Kirkpatrick owes $21,904.85 in federal tax penalties, late fees and interest and another $323.01 in state sales tax for the month of July 2018, according to an audit from the State Board of Accounts filed Friday.

“Officials and employees have a duty to pay claims and remit taxes in a timely fashion,” the audit states. “Failure to pay claims or remit taxes in a timely manner could be an indicator of serious financial problems which should be investigated by the unit.”

A 2018 audit assessed Kirkpatrick more than $7,000 in accumulated fees for not paying employment and sales taxes in a timely manner and said he paid fines that he was legally responsible for with town funds. The audit noted that he was responsible for subsequent penalties as well.

Kirkpatrick, a Democrat, was appointed to the post through a caucus in 2017 when the previous clerk-treasurer stepped aside due to illness. He lost a bid for a full term in office in the 2019 primary to Jamie Uzelac, who was uncontested in the general election.

Town officials said in March 2019 that penalties, fines and interest from unpaid taxes in 2017 and 2018 totaled more than

$22,200 and that Kirkpatrick paid for them with town funds, rather than out of his own pocket.

“I was new, and I should’ve known better, and I didn’t know better, and I do know better,” Kirkpatrick said then. “This is an unforgiving world.”

Reached by phone Wednesday, Kirkpatrick noted the 2018 audit.

“It was all the same thing and I corrected what I could but I couldn’t correct what I’d done,” he said, adding he didn’t know yet how he would address the new penalties because of recent health issues.

Kirkpatrick did not file a response to the state board in the most recent audit but in a response to the 2018 audit, he asked for the state agency’s patience.

“I am asking that you give me some additional time to address these matters. I walked into office with no knowledge of day-to-day operations, with no formal controls in place, and with little or no help from the former Clerk-Treasurer or Deputy,” he wrote.

“I believe emails were deleted, and I was left with trying to hit the ground running, when I really did not know what I was doing or even what questions to ask. I should have asked for assistance in a timely manner and now realize my error in not doing so.”

Kirkpatrick and Hebron officials were at odds two years ago over whether he had the proper bond to hold office after his bond expired and was declined a renewal because of a claim against it for IRS fines. Town officials demanded then that he stay away from the office, a request he wouldn’t comply with, and not do any work because of potential legal and financial liability.

Hebron officials have said the town paid almost $67,000 out of its budget line item for professional services to assist Kirkpatrick with his job between January 2018 and March 2019.

The most recent audit, which covered Jan. 1, 2018, through Dec. 31, 2019, has been forwarded on to the Indiana Attorney General’s Office.