BREAKING NEWS: STATE BOARD OF ACCOUNTS CITY OF EVANSVILLE 2014 FINANCIAL COMPLIANCE AUDIT

1. Thanks for the watchful eye and the TRUTH!!
   For all of those who don’t have time to read the whole audit, just read page 50 of the Audit Report and page 11 of the Supplemental Compliance Report. Overdrawn Cash Balances. Just the page title should be a tip-off to the gist of the report.
   I think the time for resignations and apologies, but I am betting there will be neither.

   • If Winneck & Company had reported the City’s Financial Statements in accordance with Generally Accepted Accounting Principles (GAAP) like Indy, Ft. Wayne and South Bend, the General Fund would have been presented in the correct matter. In addition, instead of the General Fund being falsely reported as a positive $307,000 the advance from the water dept of $2,440,000 (which by the way, Friend was the only councilman that discovered the midnight raid on the Utility treasury) and the failure to pay the General Fund portion of the medical bill of $3,700,0000, the General Fund would have properly stated a negative 5.9 mil. But, wait a minute, Russ in addition to the medical bill, failed to pay 5.1 mil in vendor bills as of end of 2014 compared to 2.3 mil at the beginning of the 2014 year. This my friends would have added to the deficit the difference of 2.3 mil. So, the General Fund is actually negative at the beginning of 2015 by 8.1 mil!!!!

     • Most people remember there was someone on the City Council arguing reductions in the General Fund budget of 8-10 million in the last budget cycle???? Is the 8.1 mil a coincidence???

2. http://www.in.gov/sboa/ will take you to the artfully concealed supplemental findings.

3. I don’t know about audits, but don’t think an adverse finding is good. Am I right?

4. As part of obtaining reasonable assurance about whether the City’s financial statement is free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying Schedule of Findings and Questioned Costs as items 2014-001 and 2014-002.

   • To: Paul D. Joyce, CPA.

     I fail to make the distinction between you verbally stating that the City of Evansville was out of compliance with certain provisions of laws, regulations, contracts, and grant agreements, and your work product demonstrating that they were out of compliance. If you think this in any way provides cover for you or them, I can assure you, in the eyes of the taxpayers, you and the City of Evansville, are mistaken.

5. I looked on the Courier site and didn’t see a word about this. Why the hell don’t they say anything about it??

   • Check about 4:45

     • They finally posted it at 1:52. The headline says that the city’s books don’t balance.

6. Now we have confirmation of a number of facts. While John Friend might not have the best communication skills, apparently he was the only one able to read and interpret the city’s balance sheets. Council last year lacked the leadership to mount a thoughtful challenge to Winnecke’s lack of financial acumen. They let the mayor turn the situation into a “bad, bad council hates little ole me” narrative that has continued into Winnecke 2.0, when he can’t stop celebrating the inauguration of his puppets. We suspended belief on a number of fronts, most notable is the DMD czar’s ability to “find” money where those before him had noted depleted accounts. The council could not mount an effort to curtail the over-spending. Comparing them to herding cats would be an insult to cats. Nor could they stop the administration’s transfer between accounts in the doomed shell game. As for Riecken, she was a non-starter. We realize now what a big favor Rick Borries did for us the first time around. And here we are – lacking adult supervision on the third floor of the Civic Center and left to suffer the consequences while we keep paying our spring and fall installments.

7. Wouldn’t you like to be a fly on the wall at the McGinn place? Holy crap, Batman!

   • There was once upon a time great expectations from Mr. McGinn but now only great disappointment!

8. I saw this hanging on a wall in the city controller’s office the other day:

   http://cdn.theawl.com/wp-content/uploads/2010/01/wimpy.jpg

   Explains a lot.

9. Interesting that main body of the audited report omits what the investing public needs to know. Does anyone think that the rating agencies are going to review a supplemental report when the audited financial statements don’t even reference the supplement? Clearly, this must be an attempt to coverup and mislead the investing public. If you were contemplating purchasing Evansville Hotel, Evansville North Main, or Evansville IU bonds, you might like to know that the General Fund, in fact, is over-drafted by 8.1 mil not 5.9 mil and this City’s budget is most certainly out of balance.

   • It would not surprise me in the least if these so called rating agencies looked at only two things: Net Assessed Valuation, and Total Bonded Debt. They could not care less about the results of a state audit.

     • Maybe those who’s name are displayed on the report should consider their responsibility and file a complaint with the SEC and FINRA?????

10. What does Russ Lloyd, Jr and Ted Cruz have in common? To coin a Mr. Trumps response: THEY LIE . . my grandfather once said to me, ” if a person lies to you he will steal from you” then why is it that the report indicates cash shortages over 600k and the only excuse is some 2011 event. So, lie, conceal, and deceive is the order of the day. So, according to the report we have lacking internal controls and bank accounts that have not been properly reconciled. Question: is this or is this not a receipt for misappropriation?

11. After reading the softball article in the Courier and Mr. Lloyd, Jr.’s spin doctor response, my question is this: this Mayor bragged that he received a “CLEAN OPINION” for the State Board of Accounts, but when they properly disclosure that the cash is SHORT be $600k and the books were ‘COOKED” by $6 MILLION RUSS THE HILLIARD STYLE LIAR says the State Board is totally incorrect. MY QUESTION IS IF THE STATE BOARD IS CORRECT ABOUT THE CLEAN OPINION AND WRONG ABOUT THE CASH SHORT AND THE COOKIN MAYBE THEY ARE WRONG ABOUT THE CLEAN OPINION . . .AS WELL!!!!!!

    • My Dear beloved citizens . . . we most certainly have a Snake-Oil Salesman at the helm. When he can not dazzle you with brilliance, he will baffle you with bullshit. And the bullshit is this: he will bankrupt this community and when the money run out he will be on the limited one-way ticket out of here to Tucson, AZ sipping his adult beverage on this Tucson patio. We on the other hand will be up to our asses in debt and lay-offs. Of course, we will still have Russ Lloyd slithering around us saying the books were not cooked.

12. What make me feel so good is that I know that we now have a Council with stills to challenge this Snake-Oil Salesman!!!!

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