Russell Township Fiscal Officer Karen Walder called for a third-party investigation during a special meeting March 30, following Trustee Amy Heutmaker publicly questioning her budgeting practices and requesting an audit review.
Russell Township Fiscal Officer Karen Walder called for a third-party investigation during a special meeting March 30, following Trustee Amy Heutmaker publicly questioning her budgeting practices and requesting an audit review.
At the March 19 trustees meeting, Heutmaker requested Charles E. Harris & Associates, Inc., of Independence — which audits the township’s books — review all intrafund transfers from 2024 through 2026.
She also questioned the methodology used in past budgets, how assumptions were incorporated into police levy projections and what specifically caused the $4.8 million excess carryover for 2025 compared with the levy justifications.
Walder was not present during that meeting due to a personal matter. She said in a March 30 statement she has received a dozen requests for information from Heutmaker over an 18-day-period.
“Over the past several days, I’ve received numerous requests for information, explanations and data from Trustee Heutmaker, including repeated requests for materials that have already been provided to trustees,” Walder said. “These communications have also included specific written allegations against me in my capacity as fiscal officer, that are untrue and unfounded.”
The situation has impacted her ability to perform her duties, she said.
“These allegations have been shared with township employees, the auditing firm conducting the 24-25 biennial audit and the public,” Walder said. “As a result, the situation has become a significant distraction in my ability to effectively carry out my statutory responsibilities, and (has raised) concerns about my professional standing and professional and public reputation.
“The specific allegations include that I have made or caused to be made interfund and/or intrafund transfers in violation of the Ohio compliance supplement and the Ohio Revised Code, resulting in excessive cash carryover for 2025,” she continued. “And, number two, that I’ve made material discrepancies between the township’s end-of-year fund balances and the 2026 budget starting balances, also allegedly contributing to excessive cash carryover for 2025.”
Walder said these assertions are without merit and reflect a misunderstanding of government fund accounting principles.
“More importantly, they divert attention from the township’s need to address legitimate concerns regarding cash carryover and to pursue responsible budgetary reforms in service to our taxpayers,” she added.
Walder then requested the board pursue an independent review from outside counsel to examine the allegations.
“Such action is necessary (and) essential to ensure transparency,” she said. “I am fully prepared to cooperate with an independent and objective third-party review that is free from bias, emotion or personal grievance, and will provide all necessary documentation to facilitate a prompt and thorough resolution.”
Following Walder’s statement, Trustee Chris Hare addressed the events of the March 19 meeting.
“What I would ask from the board is, especially in regards to the last regular meeting of the board of trustees, if there ever is a concern, especially in regards to budgeting process, that, firstly, we’re speaking with our fiscal office to understand any discrepancies coming in there,” he said. “I have no doubt that we do our best efforts to exhaust understanding the budget, as complicated as it may be, but to be rather careful in regards to any allegations, without contacting perhaps our (assistant prosecuting attorney) for clarification or understanding on what any misunderstanding might be.”
Assistant prosecuting attorney Susan Wieland also commented on the matter during the meeting.
“The fiscal office and the board of trustees are separate elected offices working together,” she added. “The records that are provided by the fiscal office are all public and are there, but it’s not the duty of the fiscal office or the fiscal officer to explain the budget or the appropriations. They’re there. I hope that everybody can work together, but it’s not the duty of the fiscal office to explain or educate on the budget or appropriations.”
After Walder recommended seeking outside counsel, Trustee Kristina Port proposed leaving a placeholder for legal fees in the permanent appropriations trustees planned to approve that evening.
“We’ve always had a line item, at least years and years ago, that we put $20,000 towards legal fees, and I’m suggesting — I see an item here for legal (for) $1,500. I think we need to increase that amount of money,” Port said.
Initially concerned that leaving placeholders for potential legal fees would increase carryover, Heutmaker later agreed some legal fees should be set aside.
“I think, based on what we were presented this evening from the fiscal office, I would be inclined to put the $20,000 into legal counsel for this year,” Heutmaker said. “I think that would be wise of us.”
The board unanimously approved the 2026 permanent appropriations, including an amendment reserving $20,000 for legal fees instead of the previously budgeted $1,500.
Heutmaker then suggested that a lawsuit could be forthcoming.
“In my opinion, when we start to get an overview and items listed as exhibits, I would imagine lawsuits (will) soon come,” she said. “I’m not saying one is coming, but I would imagine that we need to seek counsel.”
Walder also provided a packet with recommended steps for the board to address these issues.
“One, re-establish clear adherence to statutory roles and responsibilities. Two, ensure that all vendor communications and requests for additional work are authorized through formal board action,” the packet said. “Three, streamline information requests through established processes to avoid duplication and disruption. Four, maintain professional and measured communication standards among all elected officials. Five, focus collectively on improving the Township’s budgeting accuracy and execution.”
In a follow-up email, Heutmaker said she is trying to better understand the budgeting processes.
“Over the past month, I’ve been working to better understand how our budget, carryover balances and investment practices all connect,” she said. “Based on the township’s financial reports, our funds have remained strong. I’m now focused on making sure I fully understand the process before making supplemental appropriation decisions as we were discussing last night as they relate to active funds in dedicated funds, such as our general, road, police and fire funds and inactive funds in our investment funds.”
The next Russell Township Trustees meeting is scheduled for 2:30 p.m. April 2 in the Community Room at 8501 Kinsman Road.
