The board of the Utilities District of Western Indiana is refusing to release the results of an independent audit commissioned this spring to look into allegations of money mismanagement.
The board says lawyers for the rural electric co-op advised them not to release it and the board unanimously agreed.
The audit is being done in three parts. Section one has to do with personnel. After it was returned, the board decided to terminate CEO Brian Sparks but would only say that he "wasn't fulfilling management expectations."
At Monday night's board meetings, about a dozen co-op ratepayers attended primarily to ask questions about the status of the audit.
"Is the audit complete?" Resident Scott Richards asked.
"Phase one is complete," Board president Ron Thompson said. "No additional details will be released. There is an investigation by the FBI and until that investigation is complete we've decided we aren't going to release any information. Phase one is in and we acted."
Members continued to press the board for answers, but the board would not elaborate.
"We are trying our best to be transparent," board member John Royal said. "And we've made some major steps to be transparent, but you don't want to put all your cards on the table before somebody calls. It's strictly our attorney's advice. I understand, I totally get it. We'd love to put it out there but we're never going to be able to put it all out there."
Thompson says he does expect to be able to release details about phase two and phase three of the audit when those sections are complete.
"Phase two isn't forensic," Thompson said. "It's on policies and procedures and we think that will give you more information on how the co-op has been ran and how the auditors think it should be ran in the future."
Phase three focuses on how to improve the efficiency of the operation.
"I think the general consensus in the community is the board doesn't want to release the results because it [Phase one] may or may not demonstrate negligence on the board in the past," said ratepayer Pete Powers.
When the board members commissioned the audit they said they would make the results available to the members in an effort to increase transparency among ratepayers who are the owners of the co-op.
"When the audit has been completed our members will receive a report on the findings and recommendations which we will make available on our website."
Board treasurer Todd Carpenter introduced a motion to create a policy called "Transparency." Carpenter says he thinks the board needs guidelines for what information it releases and through what channels.
"I would like to have a door to release information," Carpenter said. "It leads to a more accountable board, but the board must also protect its information. I would like to make a motion that the board immediately start to create a brand new policy on transparency."
The board voted unanimously to create a committee to begin drafting the policy.
UDWI serves about 19,000 customers primarily in Greene, Monroe, Lawrence, Owen and Clay counties. During Sparks' tenure, rates soared to the highest in the state and among the highest in the Midwest.
The day-to-day operations of the co-op are being managed by interim CEO Dan Arnold. The board named him to the temporary position last week while it searches for a permanent replacement for Sparks.
"I appreciate the opportunity and the faith you are showing in me. I was pretty much honored to get the call," Arnold said. "I will do the best I can to keep the ship on an even keel while you work to find a CEO. That's the single most important job you have is to find a CEO who shares your vision for the future."
