An Indiana State Board of Accounts investigation into the Muncie Sanitary District says the utility incorrectly paid MSD’s former administrator for time off while she was suspended, after being arrested on federal corruption charges.  As IPR’s Stephanie Wiechmann reports, the state board wants $65,000 to be paid back.

In the 25-page report, the State Board of Accounts says the special investigation found the Muncie Sanitary District ignored state law or its own personnel handbook in the accumulating and paying out of leave time.

Read the State Board of Accounts Report

Former Administrator’s Leave Time While On Suspension

Nikki Grigsby (Photo: Muncie Sanitary District)

The report spends most of its time talking about leave time paid to Nikki Grigsby, the MSD’s former administrator.  In July 2019, she was arrested by the FBI on federal corruption charges. According to the MSD, she was put on unpaid administrative leave.  But the SBOA says she was continuing to be paid through the use of sick and leave time, paid holidays, and the Family Medical Leave Act through late April 2020.

The report says Grigsby didn’t meet the requirements to qualify for FMLA leave, she didn’t have any sick or leave hours banked to use, and the MSD personnel handbook says she shouldn’t have been paid for any holidays while she was on suspension.

Read More: Muncie Asks Sanitary District When Former Administrator Became “Former”

The SBOA says Grigsby should pay back more than $59,000 in wrongly paid-out hours while she was on suspension, health insurance premiums covered while she was on suspension, and to reimburse the cost of the special investigation.

Muncie Sanitary District Board Members: Are They Full-Time?

The SBOA also says Muncie Sanitary District board members don’t meet the definition of full-time employees, so they can’t legally accumulate leave time.  One board member, Joseph Evans, donated the leave time the SBOA says he shouldn’t get to an MSD employee, Angelica Nichols.  The state says about $5,900 should be paid back.

Read More: Muncie Sanitary District Names Longtime Employee As New Administrator

(List of Charges from the State Board of Accounts report)

In official responses to the report, Muncie Mayor Dan Ridenour’s administration agreed with the findings and promises to set new standards.  However, a letter from attorneys for the MSD does not.  Among its rebuttals are that board members are full-time employees and previous SBOA audits have never before challenged this issue.  It also says nothing in the MSD handbook prevented Grigsby being paid for her accumulated leave and holiday time.

The SBOA says the report was forwarded to the Indiana Attorney General and the local prosecuting attorney.