Excerpts from Audit: Reconciliation Errors Discussed

36

CITY OF EVANSVILLE
AUDIT RESULTS AND COMMENTS

BANK ACCOUNT RECONCILIATIONS (City, Water Utility, and Wastewater Utility)

City cash and investment fund balances, including Water and Wastewater funds, were not properly
reconciled to bank balances.

Multiple bank reconcilements were presented for audit. Errors noted on the City’s bank reconcilements included:

1. One bank account was not included in the City’s original bank reconcilement.

2. The wrong balances from some of the bank statements were used in the City’s reconcilement.

3. Outstanding checks at December 31, 2012, were overstated.

4. Fund transactions were withdrawn from the incorrect bank account.

5. Random adjustments were added and later deleted from reconcilements presented for audit.

As a result of incomplete and inaccurate reconcilements, improper accounting for cash and investments and incorrect postings s to the records remained undiscovered by the City. When aggregated, the errors
and discrepancies noted on the bank reconcilement resulted in a difference between the record balance and  bank balance that was not considered material.

Indiana Code 5-13-6-1(e) states: “All local investment officers shall reconcile at least monthly the balance of public funds, as disclosed by the records of the local officers, with the balance statements provided by the respective depositories.”
ANNUAL REPORT (City, Water Utility, and Wastewater Utility)

The Annual Report submitted through the Gateway system for 2012 contained material errors.  Several adjustments to the beginning balances, receipts and disbursements were proposed during the audit
and made by the City. A similar comment appeared in prior Report B41037.

 

RELATED ARTICLESMORE FROM AUTHOR

36 COMMENTS

  1. I thought this was interesting!

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    At all times, the manual and/or computerized records, subsidiary ledgers, control ledger, and reconciled
    bank balance should agree. If the reconciled bank balance is less than the subsidiary or control ledgers,
    then the responsible official or employee may be held personally responsible for the amount needed to balance
    the fund. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)

    ————————————————–

  3. In aggregate the errors and discrepancies were not considered material.

    That’s what Winnecke and Friend will hang their hat on.

  4. Clean audit? There were five federal findings several audit results and comments and adverse opinions on GAAP and a federal program.

    Hope that John Friend calls them out on this! This is anything but clean.

    My sources tell me that the administration paid off the Pence administration to get their qualified opinion changed.

    This is a picture of one of them. State Examiner Paul Joyce.

    http://www.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/2/24/Al_Capone-around_1935.jpg&imgrefurl=http://en.wikipedia.org/wiki/Al_Capone&h=275&w=183&tbnid=2YPRlLtTrjQccM:&zoom=1&tbnh=186&tbnw=123&usg=__ZgDourdFlsMpDJ5QCjI8S7jJFwE=&docid=J9RboX8TisiIrM&itg=1&sa=X&ei=dr-IU_3QD8G2yASV24LwCg&sqi=2&ved=0CIUBEPwdMAo

  5. http://www.evansvillegov.org/modules/showdocument.aspx?documentid=15313

    Page 41

    “As of December 31, 2012, 52 of the City’s employees had accrued compensatory leave balances in excess of the maximum allowed by the Federal Labor Standards Act. Of these employees, 1 person was an Emergency Management Agency employee, 4 were police officers, and the remaining 47 were firefighters. The current total liability of compensatory leave in excess of the federal maximum was approximately $1,100,000 as of December 31, 2012.”

    I don’t understand. Why was Greer held accountable but not Connelly?

    • Winnecke can make pages magically appear in reports, why couldn’t he just make them disappear also?

  6. I just want to know how much did we pay outside accounting firms to get this clean audit. we better not see ole big dan at anymore meetings.

    • It is not clean. Start on page 37 and read the findings. The findings of the auditors read very much like the recording that was released last week. With adverse opinions on federal funds management, books that don’t balance, and violations of federal labor laws documented right in the audit, anyone who thinks this is clean is a damn fool. SBR is vindicated by the words of the auditors. Meanwhile back at the civic center the Mayor and Russ look like fools and the CP looks like puppets. I wonder if the departure of that Hooper guy had anything to do with the adverse opinion of the management of the federal funds?

      • I know its not clean, I am sorry they don’t have a sarcasm font. we still better not see ole big Dan.

  7. This reminds me of the John Wayne movie, McClintock when he was laying at the bottom of the stairs with his house keeper on is lap after falling down the steps. With his estranged wife looking down. He said, “are you going to believe what you see, or what I tell you.”

    • I think the Mayor and his pals think we will believe what they tell us, not what we see. Besides, most people are not going to read the report, and its Friday afternoon. They can get the gossip stirred up with the departure of Hooper. Then, their real “ace in the hole” is Tim Ethridge, who clearly will editorialize on whatever they tell him to.

        • Maybe more so, as we stand no chance of voting him out. We just have to wait for the Courier to float belly-up to free us of him. The Courier will die as the oldest part of our population departs the earth. Most of our younger people won’t – or can’t -read it and believe what he writes.

  8. Is it true that John Friend has left town and is refusing to take calls?

    Is it true John Friend is refusing to take questions from reporters?

    Is it true that Councilman Friend was met by reporters at his office and ran to his car and drove off in a huff?

    Is it true that Mayor Winnecke drop kicked a waste basket all the way across his office this afternoon and added a few choice expletives for the CCO and its bloggers??

  9. Pogo made a comment on the other article. This audit was for 2012, the acting mayors first year of office. Was not the problem on 2011 which was on Weineys last year of office when they ran/or didn’t duel software and was never correct.

    I don’t think they went back far enough yet? Could we be wrong?

    • From page 17 Note 8 of the audit:

      For the year ended December 31, 2012, certain changes have been made to some of the beginning balances of the financial statement to more appropriately reflect financial activity of the City.
      The following schedule presents a summary of restated beginning balances.

      The net changes in the 2011 balances to get to the starting point the City was looking for adding all of the 2011 adjustments amounts to over $29 Million. It is just like David Garrett said it would be. The City plugged a new starting number to make 2012 balance. 2011 is now a bigger mess than it was before and these suckers are going to get by with it.

    • clear·ly adverb \ˈklir-lÄ“\

      : in a clear manner : in a way that is easy to see, hear, or understand

      : in a way that is certain : without doubt

      EasyBib

      Full Definition of CLEARLY

      1

      : in a clear manner

      2

      : it is clear

      See Usage Discussion at hopefully

      See clearly defined for English-language learners »

      See clearly defined for kids »

      Examples of CLEARLY

      You should try to speak more clearly.
      The mountain was clearly visible in the distance.
      The problem is very clearly getting worse.
      “A new approach is needed.” “Clearly.”
      “The current method isn’t working.” “Clearly not.”

      First Known Use of CLEARLY

      14th century

      Related to CLEARLY

      Synonyms all right, alright, assuredly, certainly, indeed, definitely, doubtless, easily, forsooth, hands down, inarguably, incontestably, incontrovertibly, indisputably, plainly, really, so, sure, surely, truly, unarguably, undeniably, undoubtedly, unquestionably

      Related Words conceivably, likely, perhaps, possibly, probably; obviously, unmistakably
      more

      Rhymes with CLEARLY

      cheerly, dearly, merely, nearly, queerly, sheerly, yearly

      Learn More About CLEARLY

      Thesaurus: All synonyms and antonyms for “clearly”

      Spanish Central Translation: “clearly” in Spanish

      Browse

      Next Word in the Dictionary: clear obscure
      Previous Word in the Dictionary: clear length
      All Words Near: clearly

      Seen & Heard

      What made you want to look up clearly? Please tell us where you read or heard it (including the quote, if possible). 🙂

      Active Analytics program kicked it to us when we reviewed and ran analytics programs on some written and spoken wording sourcing (included) used by an southwestern Indiana USA. city county governments press releases and “typical local mainstream media propaganda tactical positioning counts” in concern to an triad of extended long overdue/past/due unbalanced “city municipal type public revenue balancing audits” (note: plural} and with additional releases on current overspending forecasts per projectable bonds rates. Subject concerns for cost per/revenue base per the recent/and distant, as much as, 7/1/2006 ad-3/12/14 and forward too date. Thereof to date.

    • The state examiner, deputy examiner, or any field examiner, when engaged in making any examination authorized by law, may issue subpoenas for witnesses to appear before the examiner in person or to produce books, papers, or other records (including records stored in electronic data processing systems) for inspection and examination. The state examiner, deputy examiner, and any field examiner may administer oaths and examine witnesses under oath orally or by interrogatories concerning the matters under investigation and examination. Under the authority of the state examiner, the oral examinations may be transcribed with the reasonable expense paid by the examined person in the same manner as the compensation of the field examiner is paid. The subpoenas shall be served by any person authorized to serve civil process from any court in this state. If a witness duly subpoenaed refuses to attend, refuses to produce information required in the subpoena, or attends and refuses to be sworn or affirmed, or to testify when called upon to do so, the examiner may apply to the circuit court having jurisdiction of the witness for the enforcement of attendance and answers to questions as provided by the law governing the taking of depositions.

  11. Is it true Joe hilarious doesn’t comprehend the meaning of the word ‘hilarious?

    Is it true Joe hilarious washed out of clown school?

    Twice?

  12. IC 5-11-1-11
    Records of money collected; public inspection
    Sec. 11. There shall be kept in the office of each public officer, board, commission, agency, instrumentality, and institution in this state, a record of money collected for the public treasury, the forms and records for which, for each class of offices, shall be devised and formulated by the state board of accounts. Such records as are provided for in this section shall be public records and must be accessible to the public during regular office hours.
    ————————————————–

    The above taking from the link that was posted above by someone else.

    So has anyone tried to walk into Russ’s office and demand to see the city’s books?

    • Yes. Make your request in writing and keep a copy for yourself. Have them time stamp it when you hand it in and write the time on your copy.

      You must know what documents you wish to have a copy of, and there is a charge for copies.

      The agency’s response time is governed by the Indiana Public Access laws. Remember, the wheels of government move slowly.

      Do not be afraid to file a complaint with the public access counselor if you are being abused.

      __

      On a related note: The last (CAFR), Comprehensive Annual Financial Report, that was published for the City of Evansville was in 2003 for the prior year. The Mayor then was none other than Russ LLOYD.

      It seems that when Jonathan Weinzapfel took the reins he decided to do away with the CAFR, and none were produced for his two terms in office.

      Weinzapfel also, in violation of Indiana statute, did not have a single audit or independent review on 6 years of annual contracts between the City of Evansville and SMG for the management of the city’s entertainment facilities. Also in violation of Indiana Statute he handed the City of Evansville over to an incoming Mayor with the city’s financial ledgers in an unreconciled state.

      I could go on, but why bother since none of this seems to bother the citizens or the media of this town, who have been beaten down to their boot tops and obviously no longer expect local government to operate according to statute.

      This goes on because you ALLOW it to go on. Its that simple.

      _

  13. Hold on a second! Wasn’t 2011 disclaimed? If so then the 2012 beginning balances need to be qualified. Everybody that took Auditing knows that. The only way around that is if the State Board did Evansville’s work for them, and I hear that Airhead audits just like that.

  14. Just shove $29M of errors and descrepncies into the prior period( an accounting peice of legerdemain) an extremely irregular practice that would require a restatement of all affected prior periods and a qualified opinion.

    Then stand your ground, put up a bunch of charts about a “clean” opinion. Send out a press release saying everything is clean. The media outlets hand the mayor’s press release to their interns, who then cut and paste it into their websites or story and ‘Viola!!!!

    The Wizard Winnecke is all knowing and omnipotent!!

    All hail the mighty Winnecke!!

    • “Require a restatement of all prior periods and a qualified opinion IN THE PRIVATE SECTOR”

  15. Geppettozapfel turned slyly to Winnocchio and mused:
    “These ignorant hayseeds bought it?
    AND, … they didn’t even flinch!” …

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