MERRILLVILLE | Too many tasks trusted to one set of hands left Merrillville vulnerable to hundreds of thousands of dollars disappearing before anyone got wise, according to a report by state auditors.

Auditors said longtime town bookkeeper Rosemary Barath "wrote receipts, posted all items to the ledger, made all bank deposits, controlled all unused checks and reconciled all of the bank accounts."

The report says if Barath's duties had been divided among office employees, the situation could have been avoided or caught earlier.

The Indiana State Board of Accounts on Tuesday released its investigative report of the clerk-treasurer's office and said it is seeking reimbursement of $296,780.27 from Barath.

Marc LeClere, Valparaiso University assistant professor of accounting, agrees the duties didn't seem to be adequately spread throughout the office.

"The conditions seem to be right for this kind of thing," LeClere said. He said it's ideal for municipalities and businesses to spread out financial duties to ensure checks and balances, but more times than not the duties are left to one person.

LeClere said although the missing money is a serious problem, it is not as uncommon as one might think.

Deputy State Examiner Mike Bozymski said the missing money might have gone unnoticed by the state board because not all deposits are reviewed in regular audits.

The investigative study and past audits said funds weren't deposited in a timely manner and recommended changes be made to relieve the bookkeeper of some of the duties.

Clerk-Treasurer Rose Ann Antich-Carr said she attempted to make those changes when she took office and cross trained employees so everyone could complete the different tasks.

The situation prompted the Town Council on Tuesday to request Town Attorney Stephen Bower look into civil litigation to recoup the loss. The council also asked Bower to see if any insurance claims could be made.