Chris Fyall, Laura Lane and Michael Malik, Herald-Times

Inefficiencies. Family patronage. Incomplete, inconsistent and inaccurate reporting. Money earmarked for the state’s poorest citizens sitting in bank accounts instead of being funneled to the people for whom it is intended.

Evidence of all of this can be seen in townships in every corner of Indiana, exposed now on a statewide basis for the first time, thanks to a new law that took effect in 2009 requiring township trustees to file their annual reports electronically.

Together, the reports seem to confirm widely held beliefs about a peculiar and troubled system that is under renewed assault. In his State of the State speech, Gov. Mitch Daniels said he hopes to eliminate Indiana’s most local form of government.

What is most clear from financial documents filed by the townships is that, as a group, trustees operate largely independent fiefdoms without comprehensive oversight. They use local tax dollars to provide fire service and poor relief, but often offer to the public confusing reports on their activities.

A new analysis by The Herald-Times of records required of the state’s 1,008 townships shows: