DANE FUELLING
WZBD.com
The saga between the township advisory board in Union Township in Adams County and Township Trustee Nathan Mihm has taken a new twist after an extensive investigation by the State Board of Accounts revealed a wide range of unethical payments, falsified invoices and ignored regulations in a 40-page report released Wednesday to WZBD.
The SBOA’s summary of the report orders Mihm to repay the township over $250,000 for unauthorized payments, payments made that violate conflict of interest statutes, and payments that do not have the requisite authorization.
In addition to those charges, Mihm is, according to the report, ordered to repay the township for a $10,000 payment he received with township funds that went to a business account of his for new mowing equipment.
Additionally, Mihm is charged with violating ordinances and rules regarding reimbursement of government officials, with the charges amounting to over $16,000.
Much of the state’s reports revolve around a series of invoices involving Mihm, his own company (The Mihm Company, LLC), and Kiess Electric. The investigation’s costs of over $36,000 have also been charged to Mihm, with the final tab officially being listed at $294,959.07.
The report goes into deep detail regarding the arrangement between Mihm, in his role as trustee, and work performed by Kiess Electric, which is operated by local electrician Sam Smitley. Through months of filing through invoices and returned checks, the report indicates that Smitley did perform work on numerous electric projects in the township (mostly at the Union Township Hall), but that a large percentage of the work invoiced to the township was not actually invoiced by Smitley himself, but rather on a set of invoices that appeared to be issued by Kiess Electric.
The report looked at all records and invoices from January 1, 2015 through March 31st of this year. The report was filed on Wednesday, August 14th and made available to WZBD. The 2015 date coincides with Mihm taking office as Union Township Trustee
Mihm and Smitley were interviewed over the course of several months and the report goes into detail about the arrangement Mihm used to contract work in the township to Kiess Electric, who then sub-contracted the work back to Mihm’s company, Mihm Company, LLC.
On January 7, 2015, just seven days after Mihm initially took office, and on January 1, 2016, 2017,
2021, 2022, and 2023, Mihm and the Township Board contracted with Kiess Electric for custodial services
for the Union Township Meeting and Recreation Hall (Community Center); cemetery care (mowing) for
“Alpha Cemetery,” also known as “Hickory Grove Cemetery,” and Clarks Chapel Cemetery; lawn care for
the grounds (mowing) at the Community Center; and snow removal at the Community Center.-SBOA Report, Page 5
According to the report, no bids were taken for the work done in the township.
In an interview with Smitley early in the investigation, the report noted that Smitley confirmed his electrical work for the township, but he also confirmed that he did not have any employees and performed no work of a management nature, nor did he perform any mowing or grounds work.
The state report provided the following graphic to describe the reported relationship and nature of payments:
The SBOA report notes that it appears that Mihm never revealed the nature of the arrangement between himself and Kiess Electric to the township board.
Mihm noted in an interview that there was not always a written contract between the two parties. Mihm noted that his stepmother had cleaned for the township from 2015 until 2019 or 2020. Mihm then stated he paid his girlfriend to clean after that.
Mihm confirmed that
The Mihm Company, LLC did the work. Mihm stated, “that is how it is done cause the Township can’t pay my company.”-SBOA Report, Page 7
The report detailed a total of 116 invoices collected by employees of the investigation that seemed to be from Kiess Electric.
Smitley identified just 16 that were appropriate for work he undertook for the township. The 100 other invoices were apparently not prepared by Smitley. He pointed out that his invoices always include his company letterhead and an invoice using a number which included the year, the month and the date for the work.
The 16 invoices claimed by Smitley for work actually performed by Kiess Electric totaled just over $26,000.
Smitley told the state that the other 100 invoices were not prepared by him. Those invoices totaled over $240,000. The state noted that the 100 invoices were not consistent with the 16 that Smitley claimed he had prepared, with differences noted in the invoice numbers and the “Attention” line.
All 116 invoices involved were paid by Mihm from township funds from 2015 to 2023.
The report notes that Mihm did not disclose to other township officials that money being paid to Kiess Electric was flowing back to him.
Throughout the State Board’s account, examples of state code, along with affidavits signed by Mihm acknowledging his knowledge of the various codes and regulations, are provided as part of the report.
SHEFFIELD payment also questioned
One particular payment was reviewed in great detail by the board. On December 5, 2021, Mihm issued a payment from township funds for $10,000. The check, a copy of which is included in the report, was made out simply to “SHEFFIELD.” The memo line of the check displayed the word “mower.”
Mihm reported to the investigation that he could not find the invoice for the payment. The SBOA then issued a subpoena to Sheffield Financial, which eventually delivered details of a business account for Mihm. The company produced a record which showed that in October of 2011, Mihm purchased two Wright mowers and various accessories. A payment of $10,000 was made on his account, which matched the check from township funds.
In an April 2024 interview with Mihm, the trustee stated that the township did not own any mowers or equipment of that type, indicating that the mowers purchased with the loan from Sheffield were Mihm’s.
Payment to spouse also questioned
The state’s report also alleges that Mihm paid his spouse, Brittney Mihm, without disclosing to the township her position as “assistant.” Brittney Mihm received compensation of $5400 in 2023, which exceeds the amount of $5000 for nepotism statutes.
The report, therefore, ordered Mihm to repay the township the excess of the $400 over the statute limit.
State officials also noted a discrepancy in pay in regards to Mihm’s first wife, Whitney Mihm, and her salary. At some point in 2018, the regular payments to Whitney Mihm changed and the “assistant” salary began to go to Nathan Mihm himself.
Trustee ordered to pay for costs of investigation
As part of their investigation, the state ordered Nathan Mihm to pay for its costs of handling the work, amounting to $36,642.07.
Rainy Day Fund drained
One of the final segments of the report alleges that Mihm knowingly depleted the Rainy Day Fund with his invoices and subsequent payments back to himself, with over 50% of the fund being used in some years.
Additionally, the report showed that 92% of the money allotted for the township’s assistance fund was funneled into the Rainy Day Fund.
The report cites the following appropriate examples of expenditures from the assistance fund:
Indiana Code 12-7-2-20.5 states:
“‘Basic necessities’, for purposes of IC 12-20, includes those services or items essential to
meet the minimum standards of health, safety, and decency, including the following:
(1) Medical care described in IC 12-20-16-2.(2) Clothing and footwear.
(3) Food.
(4) Shelter.
(5) Transportation to seek and accept employment on a reasonable basis.
(6) Household essentials.
(7) Essential utility services.
(8) Other services or items the township trustee determines are necessities.”
The report also noted that while he did provide the appropriate tax forms to Kiess Electric in 2015, 2016 and 2023, he failed to file the required 1099s for the years 2017-2022.
The entire report was discussed with members of the township board at the end of July 2024 and the entire report was submitted to the Office of the Indiana Attorney General and the Adams County Prosecutor’s Office Wednesday.
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