STARKE CO. — Starke County officials answered questions Friday about what happened to more than $800,000 in "Major Moves" money. County Council President Mark Smith said the news conference was a way to clear the air.

"The money was never missing," Smith said. "It was, in fact, received, deposited and appropriated into the Starke County MVH Fund. This was in direct compliance with the laws and rules set forth by the State of Indiana."

Smith said part of the confusion was the state put the Major Moves money in the regular highway fund. Commissioners had thought the Major Moves money was in a separate, special fund, as it is in St. Joseph County. They wanted to use it for road projects.

Taxpayers had raised questions about the money. The news conference eased some of their fears.

"I feel a lot better, sure," Bill Wallace said. "I'm sure there's probably other issues with the county highway, but you know, at least we know the money wasn't lost; it was spent."

The former highway superintendent committed suicide in February, making it more difficult to find out the money was spent. The department has cut back on its spending, until an audit is complete. During the controversy, employees have had to deal with rumors and speculation.

"That makes it a little rough for the people that do care, that still want to do a good job and hope that things turn out for the best in the end," said Susan Himes, clerk for the highway department. "They're trying to do all that they can to keep things going with the budget they have right now."

Himes said an inventory of equipment that was bought with the money should be completed soon. Meanwhile, the State Board of Accounts is performing an audit of county finances, which should be completed in a few months.