In anticipation of the 2012 audit being made public on Friday we wanted our readers to have the findings of the 2011 audit available to peruse in advance of learning if the 2011 issues have been corrected and to see if 2012 was a better year for reconciliation and compliance at the Civic Center.
Excerpts Describing deficiencies.
“Fund balances were not reconciled to bank balances for the entire year of 2011. As of July 31, 2012, City officials were still unable to reconcile the ledger to the bank account and were still making adjustments to
the December 31, 2011 fund balances.”
“A materially correct annual report for 2011 was not presented for audit. Also, the City filed their annual report past the deadline.”
“The City’s accounting information system was not equipped to produce the following forms or their equivalent:Â
1. City and Town Form No. 208 – Ledger or Receipts, Disbursements, and Balances
2. City and Town Form No. 209 – Ledger of Appropriations, Encumbrances, Disbursements and Balances
Officials and employees are required to use State Board of Accounts prescribed or approved forms in the manner prescribed.”
“We were unable to obtain records in which the detail matched the control for the year 2011. The City also kept 2011 open through at least July 2012 which caused year end fund balances and total receipts and total disbursements of some funds to materially change. We also noted several instances in the utility funds where accrual entries were being made in the cash basis system.”
“The controls over the receipting, disbursing, recording, and accounting for the financial activities were insufficient for the following reasons:  1. Weaknesses in input controls.  2. Oversight deficiencies in the reconcilement process.”
“As stated in several prior reports, the City entered into a contract with SMG, effective January 1, 2006, to manage Roberts Stadium, Victory Theater, and Mesker Music Theater. The contract required an independent audit of SMG. An addendum to the contract was added on September 5, 2007, amending the contract from requiring an audit to requiring a review. As of July 2012, a review had not been completed for the years 2006, 2007, 2008, 2009, 2010, or 2011. Without the independent review of SMG’s financial records the accuracy of amounts paid to or received from SMG cannot be verified.”
“The cash balance of the General Fund, Purchasing Internal Service Fund, Information Technology Services Fund, Miscellaneous Grant Fund, Sports Non-Reverting Fund, Home Admin Investment Trust Fund, Community Dev Block Grant Fund, Old Post Office Fund, Emergency Shelter Grant Fund, General Obligation Bond 2006 Fund, Park District Bond Refunding 2010 Fund, Redevelopment Bond Retirement Fund, Workers Compensation Fund, Evansville Civil City Payroll Fund, Accounts Receivable Clearing Fund, Electronic Tax Payments Fund, SRFWW – Evansville 09 Fund, SRFWW Evansville 0610 Fund, Sewage 2010B-1 Construction Fund, Water Utility-Operating Fund, and Water Utility – Consumer Meter Deposit Fund were overdrawn in 2011.”
Indeed…. This will be fun!
The Foxes obviously had their “way” in the Hen House,
(AKA Evansville’s Treasury) for some time.
Gee. Fund balances not reconciled for a whole year? I don’t know what to say to that.
WE THE PEOPLE DESERVE BETTER
How do the Civic Center perps show their faces?
I am embarrassed and disappointed in our local governance. It is no wonder that our best and brightest choose to abandon this politically curs-ed City.
Numerous people need to be doing time in a state prison and make all restitutions and then some
my guess this b.s. goes beyond evansville
These findings do not even assert criminal activity. They certainly memorialize ineptness, incompetence, and just down right sloppy management practices. You are right, many cities are governed and managed with similar levels of buffoonery.
Your correct as always ,but generally if I see a dog take a healthy dump I don’t have to go smell it to see if it stinks
I agree. Here is the problem with this sort of ineptness. It creates an atmosphere that breeds more ineptness and makes it difficult detect or prosecute criminals who see rudderless ships as easy marks.
I don’t know if ineptness is the right word or if there is a single word to describe the 2011 audit findings. If those type of findings existed in a private sector business, ignoring for the moment that sometimes things do slip through the cracks. A business operating like that would not be one for long or would be in a whole heap of financial trouble and that’s not addressing the IRS aspect. I don’t expect the 2012 results to be any prettier.
Editor: I luv you guys. You keep getting better and better everyday. Thanks for the recap. If this were not our City government, there would be accountability. Spending too much time on the hotel/convention center(i.e. attacking John Dunn) IUMS, the dogpark, evading infrastructure problems. IMHO, this does not begin and end with Russ Lloyd.
Looks like City Council consultant David Garrett may be correct concerning his projections concerning the upcoming 212 State Audit findings. After all said and done I hope he sues the hell out the local TV stations, Courier and Press, Councilman Weaver, City Controller Russ Lloyd Jr. and the Mayors Chief of Staff for trashing his reputation.
If the 2012 State Audit shows problems with city books the public should force the Mayor to fire City Controller Lloyd.
I agree wit Richard R that that Lloyd should be fired if 2012 audit shows problems.
Did you even read the headline of the article? “2011 City of Evansville Audit Findings”. 2011. This shit has been going on for several years. There should be more heads chopped than that of Lloyd. Just start at the top of the ladder…………..Shit will eventually float to the top.
I’m no CPA. In fact, I never even took a single accounting class. I did, however, have to handle the books for a federally funded program many years back. Our accounts were kept current and accurate to the penny, evey day, because the Feds could walk in unannounced and audit us any time they saw fit.
How the hell could people who spent years studying accounting muck things up so thoroughly, unless they were trying?
I guarantee that the audit won’t be released on Friday! Russ called out the State Examiner about there not being a single CPA on the audit! Last week General Sherman and another Carpetbagger were down here listening to his request for a re-audit! Don’t be surprised when nothing shows up on the website on Friday!
Its been noted in other threads the inability to do the simplest of accounting procedures includes and goes back at least one past administration. Has Evansville ever had balanced books? Or is this just a minor streak of bad luck to have two incompetent administrations in a row? I think we are seeing a systemic flaw with the people Evansville is electing to these positions.
Sure the Mayor is to blame that’s why we elect “leaders” and he should be held fully accountable and in my view some kind of criminal charges should be brought to bear; as well as to those in the other agencies/departments for allow this mess to go as long as it has. But I know what will happen to these people… nothing, aside from the possibility of being voted out. Servants should not be allowed to escape so easily.
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