IS IT TRUE APRIL 13, 2015 SBOA Water and Sewer Audit

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IS IT TRUE we have attached a report dated 2-13-15 from the State Board of Accounts that clearly indicates that the Evansville Utility Department has $395,176 dollars of Cash unaccounted for as of December 31, 2013? …this report was seemly delayed by SBOA from going public until February 13, 2015? …we wonder why it took SBOA over 14 plus months from the discovery date to make this information public?

IS IT TRUE a report posted on the State Board of Accounts website on 2-13-15 concerning the Evansville Water and Sewer Utilities bank account? …SBOA Department Examination Result and Comment section made the following reference on the Evansville Water and Sewer Utilities Bank Account Reconciliations posted below?

WATER AND WASTEWATER UTILITIES

CITY OF EVANSVILLE

EXAMINATION RESULT AND COMMENT

BANK ACCOUNT RECONCILIATIONS

Water and Wastewater cash and investment fund balances, including City funds, were not properly reconciled to bank balances. The difference between the reconciled bank balance reported by the Utilities and City combined and the fund ledger balance was $395,157 cash short at December 31, 2013.

Errors noted on the Utilities’ and City’s combined reconcilement included:

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

2. The wrong balances from some of the bank statements were used in the City’s reconcilement. In some cases, the December 31, 2013 bank balance was not used for reconcilement.

3. Transactions were not posted or were not posted properly to the fund.

As a result of incomplete and inaccurate reconcilements, improper accounting for cash and investments and incorrect postings to the records remained undiscovered.

In addition, prior to 2012, most cash and investments of the Water and Wastewater Utilities were accounted for in the City’s bank account. During 2012, separate bank accounts were established; however, the exact cash and investment balance of each Utility was not transferred to the new bank accounts at that time. Some of the cash and investment balances were transferred to the new bank accounts during 2013, but there still was an amount remaining to be transferred as of the date of this report. The City should determine the exact amount due to each Utility and transfer the balances to the appropriate bank accounts.

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.”

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)

IS IT TRUE we can’t wait to see  what kind of political spin the Mayor and his Controller will use concerning this SBOA Question Cost issue?

IS IT TRUE we can’t wait to see how the Main Stream Media will followup on this issue?

IS IT TRUE we are hearing that the Evansville Water and Sewer Utilities are now talking about asking City Council to approve another rate increase in the near future?

PLEASE TAKE TIME TO READ OUR READERS POLL QUESTION AND CAST YOUR VOTE ACCORDINGLY.

RELATED ARTICLESMORE FROM AUTHOR

56 COMMENTS

  1. As Russ “If I weren’t Mayor I’d be making big bucks working as a CPA” Lloyd, Jr. would say, “Piddlywinks, why that’s just pocket change. Wait until you see our City General Fund ledger.”

    • One blogger–who sounded a lot like J. Friend–pointed out that the ‘materiality level’ (the dollar point at which the State Board has to examine an item) was RAISED by a factor of 5X for the 2012 audit; so things like this “small change” $ 395K can be swept under the rug and the SBOA has no requirement to examine further . . . .

      Say it ain’t so, Shoeless John !

        • Only one answer: The State. The party being audited can’t dicatate materiality. It is a formula . . . but apparently a formula with a revision for 2012 (take prior calculation and multiply by 5 !).

    • It was said tonight the February General Fund balance was in the RED by $12.2 million and we will not be collecting any money from the Water Utitliy because Russ cabbaged up on the 2015 revenue in Dec of 2014…and can you believe that Allen Mount said this evening that there was NEVER a meeting on December 29th to approve the mid-night raid on the Sewer’s money….and, surprise, surprise, surprise, one mole indicates that SantaLloyd a/k/a/ Winnecke will be requesting from the council to raise sewer rate…just around the corner…

  2. …………
    You can’t put up a sign at your lunch counter that says “Whites Only”
    because it is your personal or religious belief that the races should be separate.
    …………

    • ……………………
      post has no remote connection to todays IIT.
      ……………………

      • Today’s first attempt to lead the conversation away from a vital issue that needs to be addressed. I am sure there will be more to come.

        • This is an excellent comment. Not accurate, but I admire it’s effectiveness. Sorry, this audit conversation is zzzzzzzz. All administrations play financial footsy. Gail Riecken will do that too if elected. All of the previous Dem administrations did it too. Not saying Winnecke is to be admired for this, but this is NOT a unique behavior of the current administration.

        • Probably not your stupid conclusion , Everyone knows Armstrongre’s hits the floor before the sunshine’s on the eastern side of the barn roof. Thus the adage “the early bird catches the worm.” 4: 45am upstairs at the old Indiana farmers place was like military Reveille . Bacons on, how many eggs? there’s plenty fresh churned butter and biscuits, ham and red eye gravy and lots sliced bread toast.

          Grandpa’s reveille, first thing in the morning, Us, the young helpers just prayed it wasn’t raining. If that was the case the breakfast call was the same time only he’d call out “leave the hard shoes off boys its raining get the rubber shin boots of the summer porch! ” We’re cleaning the milk barn today! Eat up boys…………..

          https://www.youtube.com/watch?v=Ft2WqkvIhXY

        • Cowboy, did not to wake you this morning with a cock-a-doodle-doo. I figured you were dreaming with visions of balanced city bookkeeping, from your long springtime nap!

      • Agreed amstrongres 100%. That particular policy (staying on topic) is probably one of the most difficult task the CCO editors have. Monitoring the blog feed in real time is virtually impossible.

        Editors, if you see this, consider this please. I am guessing you are using a WordPress template as the engine and platform for the CCO. There are several tools for helping the public to send you notices of “posts” that are objectionable. And I will add that the ones I am referring to are FAR superior to the method on C&P. I have mentioned to Timmy a couple of times, and he just ignores the suggestions.

        One of the tools I like on some news sites are where the public can report the post, and the box allows them to pick a reason for why the post should be removed. That single feature alone would put you way above the poor method used by C&P, where you just get to send something with no text or reasoning, just that you think a post should be removed. Using the method I described, you could ramp-up the methods people tell you about (for example) off-topic posts and threads, and that means you would not have to try and read thru the comments constantly. You could use several “reasons” in the tool (off-topic, obscene, etc.), and those tools would allow you to be alerted to any public “comments or complaints”

        I will be glad to send a list of the tools if you like. It will be easier than my project on the Terms of Service/Comment Posting Policy project I agreed to.

        Just tell me where to send it

    • You better hope they don’t put up a sign that states We reserve the right to not serve Stupid People. Because if they do you will be going hungry.

  3. IIT that current accounting practices of city government of at least these past two administration are about as accurate as those residents that used to live on that monkey ship at Mesker Zoo could accidently do?

    IIT that the new computer system used for city bookkeeping which appears not being used correctly, may have actually exposed fraudulent accounting practices of past administrations accountability which seemed legit at the time?

    IIT that according to Indiana Code 5-13-6-1(e), that the mayor, and his appointees responsible should be facing
    the court judge with “their” wallets and purses” open to pay the lost funds?

    IIT that any increase in water/sewer billings will be skimmed into the “PILOT” program where it will be used to prop the general fund account?

  4. simply depressing. There are no effective checks and balances on the way the Mayor and his pinions spend the tax payers money. Why is someone not in jail right now for all this mess. They can’t even reconcile the books well. Simply amazing. This is what we get when the people get separated from the Civic Center and the Mayor. This is what happens when people don’t even get out to vote. As long as the people have some beer and drugs and get to go to the Fraud Arena and see a few fights during the hockey games they are at peace. The Roman’s taught us that much. Give them the Coliseum and the gladiator fights and they will be satisfied and not be interested in how we tax or spend the tax money. The upper class has always figured out how to control and tax the lower classes. Only once in a blue moon to the lower classes figure out what’s happening and revolt. Then the process repeats itself for eons.

    • Simply speaking, if the citizens do not through out the dumps…Winnecke on down, then we desire what we get!!!

  5. CCO: you need to rewrite this bit:

    IS IT TRUE we can’t wait other what kind of political spin the Mayor and his Controller will use concerning this SBOA Question Cost issue?

    To provide an Answer before you rewrite the Question:

    NONE–the Mayor and Controller will simply act like it doesn’t exist. There will be no press conference, it will never hit the C & P. This will be treated similarly to the S & P attaching a ‘negative trend’ to the Waterworks bonds–it never saw the light of day.

  6. The most appalling revelation of this ongoing obfuscation of the Truth and the Taxpayer’s Money , coupled with, and apparently abetted by, State Board of Accounts collusion,– should outrage every Hoosier in this State.
    The question begs,–just how Crooked are Politics in Indiana? —–maybe,–just maybe,-(sarcasm intended)—VERY!
    Pence and Company cannot be depended upon. ——The Feds need to investigate just what the Hell is going on.

  7. PREPARING FOR THE ELECTION – The Reality
    Christians make up about 80 percent of all Americans. A pretty muscular group of dedicated, hardworking Americans who vote and care about their community.

    Politically, a small subset of that group claims to represent all Christians, but in reality they are only a tiny number of far right conservatives who are prone to an austere interpretation of the faith. This small but vocal minority complains of being embattled, discriminated against or put upon when it comes to the free practice of their religion. But it is all paper tiger talk.

    And the Republican Party has taken their chair away from the table.

    This post hasn’t nothing to with todays IIT. If you continue to do so I shall be forced to take down any future off message post.

    Signed
    Editor

    • Whoa EDITOR! UNPRECEDENTED.

      I do not believe what I am reading……!

      EDITOR….You do what you choose to do. This is YOUR marble game after all. And at ALL times that means that you can pick up all of your marbles and go home.

      But the City County Observer as ALWAYS tried to present a reputation that it is a better alternative than the Courier & Press.

      AND IN THE ENTIRE STORIED HISTORY OF THE COURIER & PRESS….

      ….not ONCE….have I EVER seen the Courier & Press CENSOR comments from readers based on Editor’s judgement the comment IS OFF TOPIC !!!!

      • Editor…..I can see Joe Biden is posting dangerously today too….by YOUR standards.

        Go ahead. Exercise your authority.

        THAT is a DANGEROUS game Editor.

        Quark
        I don’t know what you mean by your Dangerous Game comment. I hope this isn’t a threat on my being.

        I put the same message on Biden just now.

        Let’s all stop the games please. Stay on message because todays IIT is extremely serious post that every Water and Sewer rates payers should be extremely upset about.

        Editor

        • Don’t even go there Editor. Censoring comments is far more dangerous than most anything. You are trying to INVERT.

          Editor. The bad guys use questionable tactics like censorship.

          You don’t have to do that Editor.

          The good guys win BECAUSE THEIR IDEAS ARE BETTER.

  8. You are apparently in the wrong room Quark,– today’s IIT concerns the State Board of Accounts and Audits,
    —go beat your Drum some other place or some other time where/when it is topical.

    • ….but it IS relevant to everything discussed here. The issues here are voted on. (And Joe Biden puts in two cents on the most off the wall stuff everyday regardless of the editor’s comments…)

      I do agree that some of Joe Biden posts are off message and I intend to request he also stays on message.

      Editor

      • Quark, with the middle east in chaos and the barbaric hordes of ISIS committing serial atrocities in name of Allah, the Community Organizer-in-Chief is on another apology tour. This time to Cuba, to bask in Castro’s personal flattery after listening to Castro absolve Obama of fault for U.S.’ ‘imperialist aggression’:

        “All (of the previous U.S. presidents) are indebted to us, but not President Obama,” who is an “honest man … with a manner about him that speaks to his humble origins,” the Cuban leader said.

        Castro also described as a “positive step” Obama’s recent statement indicating he will soon make a decision on Cuba’s presence on a U.S. list of state sponsors of terrorism.”

        http://latino.foxnews.com/latino/politics/2015/04/11/castro-absolves-obama-fault-for-us-imperialist-aggression/

        Biden

        Please stay on message. I you continue I shall be also forced to take you down.

        Thanks
        Editor

        • Joe Biden…..when I read about the AUDIT’s today taking place in the current administration……it reminds me that the business between the United States and Cuba can proliferate with some changes. That increased business is GREAT for US jobs and US business….and THAT is something both Republicans AND Democrats want. You are on the wrong side of the needed changes in Cuban policy if you think isolation is better for business than trade Joe. Even Jeb Bush will implement open trade with Cuba.

      • Cowboy…seriously….if the precedence for Editor censoring comments based on a judgement the comment is off topic is exercised here……it will open a gap of mistrust of the City County Observer that cannot be closed.

        Quark

        This in my last attempt to ask you to stop playing games. Stay on message. If you don’t I shall take your future posts down. Also If you don’t like whats going on with the CCO just stop reading it!

        Editor

  9. The conversation between Quark Donohue who claims to be the editor and Quark Donahue who is being warned by Quark Donohue the Editor for posting off topic is just confusing. Is Quark threatening to censor his/her self?

    • @Joe Wallace: Who knows ,but this clearly shows how some subject matter automatically becomes a diversion fest/fiasco for those sitting on the days chair tack application.

      squirm

      verb
      gerund or present participle: squirming
      wriggle or twist the body from side to side, especially as a result of nervousness or discomfort.
      “all efforts to squirm out of the connection were useless”

      synonyms: wriggle, wiggle, writhe, twist, slide, slither, turn, shift, fidget, jiggle, twitch, thresh, flounder, flail, toss and turn
      “I tried to squirm away”
      show or feel embarrassment or shame.

      synonyms: wince, shudder, feel embarrassed, feel ashamed
      “he squirmed as everyone read the books”

    • Every time we start to have a serious discussion about LOCAL problems Mr Bidon an quark come along an change the subject. I wonder if they are not the opposition diverting our attention.

      • Stone, Serious discussion ? Come on it’s called the daily bashing of the mayor and his appointees.

        • OK I agree serious discussion is to much to ask or even civil. The mayor an his appointees deserve bashing in at least one forum in this town. The C&P an the other local media seem to think we are still in the everybody boosts everybody wins era.

  10. I regularly read these posts and never post but some of you are being really rude any more. Why?? Can you not just read the information and stay on que. Why is that so hard? This is not a public forum to degrade people, it is informative, helpful information to the tax payers in this community. I hope some of you are banned from the site and don’t get to come back.

    • what an extraordinary statement ec advocating banning people based on their speech thats just messed up

  11. I second that Emma. Thanks CCO for providing information to the community and taxpayers. Has anyone really read what is posted in the feature article and digest it? Every rate payer that gets city water should be irate. Thank you for sharing since the mainstream media, has refused to do this.

  12. Does the voting public realize that PILOT is merely a Snegal way to raise our taxes?

    The state exemption is intended to eliminate government overspending.

      • PILOT = payment in lieu of taxes is double talk. State law exemlts certain property from taxation. Local government sees that as a pile of value that they want revenue from. Government budgets a PILOT to collect revenue from these entities.

        Consider a scenario in your household budget with a shortfall. The budgeter adds an envelope to the stack of allocations and calls it overspending.

        Governmentt does this to HIDE some of their spending instead of reducing budget line items.

        This looks as if the query came from Lloyd or Rusty so they can appear to be operating with restraint.

  13. Rate Increase by Utilities ?

    What about that flood of greenbacks from the Johnson Controls project / remotely read water meters, won’t that gusher take care of all of our problems (that is what was promised . . . .) ?

  14. Logjam, the city will pay $45.3 million in real money to Johnson Controls (down from Weinzapfel’s requested $57 million) and the City claims this $45.3 million expenditure will pay for itself from 12% more “accurate” water meters. It is hard to believe that every single water meter was giving the taxpayer a 12% lower than accurate water reading:

    “The plan — dubbed Smart City 2.0 — was first conceived during former Mayor Jonathan Weinzapfel’s administration with Johnson Controls, Inc. in 2011, and was originally slated to cost $57 million.”
    …
    “The $45.3 million project will not be funded through rate increase, rather it will be funded through the money generated from having water meters that provide more accurate customer readings.

    While not a rate increase, water bills will likely be higher since the current meters are on average 88 percent accurate, meaning the average customer may not be paying for 12 percent of the water actually used, Mounts said.”
    …
    http://www.courierpress.com/news/local-news/48pt-hed1-15-inches-of-story_20140611104947131

      • Cowboy, let’s go into business and offer the City to pay us $5 million and we’ll put LED bulbs in the Civic Center Complex and City might save enough in electrical bills over the next 25 years to cover their upfront payment to us.

        • That isn’t nothing we have a viable plan to clear-up the EPA combined sewers mandate. Our stuff works, theirs really doesn’t. They’ll continue to fight by “shirking responsibility” and kicking the can down the road, its all they know. Those events must be stopped right now, no acceptable excuses.
          Things have changed, the new overhead destroys every excuse that load can generate.

          “Lux deserit umbra, umbrae quandoque potentia.”

          “Ædificate climate*”

        • Joe, Electrical contractors used to have a program where they would go to a school and offer to update fixtures and bulbs and guarantee a savings more than cost. I believe that is what Johnson did for Mt. Vernon’s water meters. Any idea how that worked out ?

    • Joe Biden,

      Your source (C & P) is full of CSO ! On the residential meters, the accuracy was 98.6 % BEFORE the changeout.
      The Johnson Controls meter “guarantees” 99.4 % accuracy AFTER. That’s a .008 (8 tenths of 1 %) accuracy increase.

      Oh, the Johnson Controls meters for residential will be tested ONCE over 5 years. JCI gets to do the testing. And their formula for determining the savings requires an enlightened financial being from the planet Uranus to decipher how much money we’re guaranteed to get . . . .

      Residential meters are a mere rounding error in this massive hoax. The 400 or so large diameter meters are all of the action, and should have been put on a separate project. FUBAR x a factor of 12 !

      • Twister, at a .8% increase in meter efficiency (presuming all error had benefited the customer) it may take hundreds-thousands of years (?) to recoup the $45.3 million investment without factoring in interest. Maybe Pressanykey can run the math. If the meter efficiency info supplied to the City for the project is off, “Whoa Nelly” as Keith Jackson famously said. It is nearly impossible to believe the claim the old meters were only 88% accurate as quoted in the above Courier & Pravda article.

    • It appears that neither Allen Mounts nor “JoeBiden” have a reasonable grasp of statistics.

      Some meters may be low by 50 percent, while others by only 14 percent. Some may even be high. Like most statistics, percentages are made up of a combination of factors. I was taught many years ago to avoid such absolutes as all, every and never because they will tend to lead you and others to a wrong conclusion.

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