Nearly 90 percent of Americans would face higher taxes next year if Congress permits the nation to hurtle over the “fiscal cliff,” the year-end precipice of tax hikes and spending cuts that threatens to throw the nation back into recession.

A study published Monday by the nonpartisan Tax Policy Center finds that taxes would go up by a collective $536 billion next year, or about $3,500 per household, reducing after-tax income by about 6.2 percent.

For most taxpayers, the bulk of the increase would be triggered by the scheduled expiration of tax cuts enacted in 2001 and 2003 during the George W. Bush administration. The expiration of President Obama’s payroll tax holiday, which shaves 2 percentage points off payments to Social Security, comes in a close second.

But the lowest earners would be hardest hit by the expiration of tax breaks enacted as part of Obama’s 2009 economic stimulus package, the study found. Those losses would include an expansion of the earned income tax credit and the child tax credit for working families, as well as a $2,500 credit for college tuition, which would shrink to $1,800 and be available for only two years instead of the current four.

New taxes in Obama’s health-care initiative, levies that are set to take effect for the first time, such as a new 3.8 percent tax on capital gains for high-income households will bring the hit up to $412 for low income earners, to $2,000 per middle class household to $120,000 per household for the so called top 1%.

It was recently calculated that confiscation of all of the income (100%) from the top 1% of earners would only run the government for about a month.

VANDERBURGH COUNTY FELONY CHARGES

This feature is sponsored by Chris Walsh For Vanderburgh County Clerk. Chris Walsh is a veteran county administrator that strongly supports our local law enforcement professionals . Chris Walsh is a candidate that possess a non-partisan attitude with a consumer friendly demeanor. Chris also stands against unification of city and county governments.
This ad paid for by the committiee to elect Walsh Clerk.

VANDERBURGH COUNTY FELONY CHARGES

Evansville, IN – Below is a list of felony cases that were filed by the Vanderburgh County Prosecutor’s Office on Friday, September 28, 2012.

Gary Cartwright, Sr. Possession of Paraphernalia – Class A Misdemeanor
(Enhanced to a Class D Felony due to Prior Convictions)
Public Intoxication – Class B Misdemeanor

Donald Mosher, Sr. Operating a Vehicle After Forfeiture of License for Life – Class C Felony

Divarious Rockmore Operating a Vehicle After Forfeiture of License for Life – Class C Felony

Patrick McFadden Criminal Recklessness – Class D Felony (Two Counts)

Russell Summers Theft –Class D Felony

For further information on the cases listed above, or any pending case, please contact Carly Settles at 812.435.5688 or via e-mail at csettles@vanderburghgov.org.

Under Indiana law, all criminal defendants are considered to be innocent until proven guilty by a court of law.
SENTENCE CHART

Class Range
Murder 45-65 Years
Class A Felony 20-50 Years
Class B Felony 6-20 Years
Class C Felony 2-8 Years
Class D Felony ½ – 3 Years
Class A Misdemeanor 0-1 Year
Class B Misdemeanor 0-180 Days
Class C Misdemeanor 0-60 Days

If it wasn’t for the auditors at the SBOA, who requested a meeting with me in July, I wouldn’t have know the problems existing. I immediately emailed our Council President concerning the issues. The severity of the situation did NOT come from the Administration, but, from the auditor. This same auditor has performed our City’s audit for over 20 years. She has never, while I have been on the Council, contacted me concerning any issues during those audits. She told me what is amazing while in the Civic Center performing the 2010 audit, during April and May of 2011, the controller NEVER indicated to her the problem with reconciling the funds. She also indicated that Harding Shymanski CPA’s were engaged to attempt to reconcile and was unable to do so. They NEVER contacted any Council Member. In addition, the auditor indicated that the Utility was in the same condition. At that time in July, I met with the CFO of the utility together with Allen Mounts, the Director to determine the level of issues. Again, it was the stated “Software Conversion Failure.” I was informed, Umbaugh & Associates, CPA’s were also engaged during 2011. During the SBOA exit conference, the supervisor of SBOA stated “you (Administration) were not forthcoming as to the conditions of your records.” This was the SBOA response to the Administration’s request for additional time to reconcile and reconvene the audit. They (auditors) indicated “if you would have been forthcoming, we would have rescheduled to give you the time to correct.” This conference was conducted on August 23, 2012 at 4 p.m. All of the attendees were strictly instructed by the SBOA NOT to publicize the findings until the report is released under regulations. Finally, I refer you to the final paragraph of my correspondence to Dr Adams and copied to all Council Members.

City Councilman John Friend, CPA

Per your email concerning SBOA findings, the Board has broad authority in regards to who performs GASB audits (133-A, yellow book) and is the authority in granting outside CPA firms which, in my opinion, would cost the City and Utility upwards of $250k, and, when asked, during the exit conference, out of hand, rejected the request.

In regards to the comment that the City Council should have over-sighted the process is expected and normal under the separation of powers doctrine. Congress over-sights the executive branch, but, they have the GAO at their disposal and, of course, subpoena power. Up to now, no other City Administration has given the City Council funds to perform their apparent responsibilities. Per my request, in July, before this unfortunate situation was exposed to any member on council, including me, my request for Council City funding was honored; thus, we now can be expected to do our separation of powers responsibility. During the salary debate, you probably remember that the City has an internal auditor which reports to the Mayor and the controller office. Surprisingly, the SBOA does not mention the failure in reporting this disturbing state of affairs, maybe she did, but, regardless, nothing was done, no request for any additional appropriations from the Mayor to help with the exit of the only CPA due to underpay, no qualified replacement, and, obviously, lack of planning and over-sighting by Tyler and our contracted IT vendors. Thus, my three year concern of the IT situation and the requested assessment went un regarded by the past administration. You and Missy both supported my IT concerns over those years. During our meeting with Mark Rolley, weeks ago, you, Jonathan Weaver, and I heard the issues, seemingly uncontrolled acquisitions of software and peripherals and lack of involvement of IT in the process, among other issues.

What corrective actions by the Council, in my opinion, should be suggested? Well, first of all, the internal auditor needs to report to the council, not the executive branch. In corporate American, the IA reports, generally, to the board of directors, we should be the board of directors in the public since. If she had knowledge, and should have, her failure of reporting the condition of the accounting reporting system would have repercussions? Obviously, this smacks of either a cover-up or incompetence, neither one not inviting. If she properly would have informed us, would her job be in jeopardy? Second, as an ordinance, a required IT Assessment every three years including the establishment of a central authoritative committee concerning IT, and finally, our own over-sight coordinator, which I have nominated David Garrett. He is a CPA, former CFO of Pacific-Press, has IT project credentials, (Keller-Schraeder), probably should be on the short list for the CIO position.

We were all elected to oversee the affairs of the City, to appropriate funding were critically necessary, in safety and the supporting functions, etc. To execute those functions, it is the purview of the Mayor. For any one of us to perform those duties is not in the separation of powers doctrine. For instance, you are a cardiovascular surgeon, so, if our employee healthcare issues drive our costs upwards, our you responsible? Or, as we all are aware, this City has from time to time, entered into unfavorable contracts, would Dan McGinn, Connor O’Daniel, and Stephanie Brinkerhoff-Riley who are all attorneys, be held responsible? and likewise, as a CPA, would I be held responsible for the controller’s office failures. We all happen to be ordinary citizens elected to see to it that our community is a good place to call home and where we see the necessity for corrective action, we will respond. With this said, I strongly urge you and our colleagues to consider the aforementioned corrective actions. If you and others have additional recommendations, please bring forth.

Thanks, John

POSTED BY THE CITY COUNTY OBSERVER WITHOUT OPINION, BIAS OR EDITING! POSTED WITH PERMISSION OF 5TH WARD AND BUDGET CHAIRMEN AND CITY COUNCILMAN, JOHN FRIEND, CPA.

September 28, 2012

In response to the State Board of Accounts 2011 audit filing for the City of Evansville, Mayor Lloyd Winnecke released the following statement:

“First off, I would like to be clear regarding city finances. The City of Evansville maintains a balanced budget with a surplus. The city’s fiscal health is strong and affirmed by the bond rating of ‘AA-’ assigned by Standards & Poor’s. The ‘AA-’ rating means the city has a ‘very strong capacity to meet financial commitments.’

For background purposes, the State Board of Accounts (SBOA) conducts annual audits of municipal and county governments statewide. Currently, the SBOA is completing audits for the year 2011.

Shortly after taking office in January of 2012, our administration became aware of long-standing difficulties with the conversion to a new financial software package that was installed in late 2010. The city converted from a 25-year-old financial system to a new windows-based real-time operating system that facilitates thousands of monthly transactions.

I directed City Controller Russ Lloyd, Jr., and his team to review the issues and implement a corrective plan of action to ensure confidence in the city’s finances. While the state was considering the city’s request for an extension, the city’s financial team diligently completed the 2011 reconciliation process.
As a result, it has been concluded that the difficulties revolve around a mismanaged conversion to new software, deficient training of city personnel using the new software and insufficient oversight and project management. While the conversion was the main reason for the difficulties, the delay in complying with the SBOA’s audit requests was directly linked to the lack of monthly reconciliation of the city’s bank accounts in 2011.

The good news that I would like to emphasize to taxpayers is that the accounts have now been reconciled for 2011, and the city has requested the SBOA return to conduct a final review.

As part of our process, city personnel have received updated training in the new technology overseen directly by the software vendor. The vendor continues to be onsite to provide additional training and process improvements.

Our administration has spent significant time and staff resources to address this past problem and is confident in our financial management practices going forward.”

Mayor Lloyd W. Winnecke