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

City of Evansville to Offer Fall Festival Lunch Shuttle
(EVANSVILLE, IN) – September 28, 2012 – The City of Evansville will once again offer lunch time shuttle service to the West Side Nut Club Fall Festival for Civic Center employees, downtown workers and other area residents from Monday, October 1, through Friday, October 5. As with all METS services, City employees can ride the shuttle for free. The fare for all other passengers will be only $1.00.
The shuttle will pick up/drop off from the C.K. Newsome Community Center (west side of building by the “back 40” parking lot) and the Civic Center (near the flag poles in front of the building) on the half hour, with the first departure/pick up at 11:00 a.m. and the last arrival/drop off at 2:00 p.m. each day. The shuttle will pick up/drop off at the corner of W. Franklin St. and Wabash Ave. (temporary bus stop) on the quarter hour, with the first arrival/drop off at 11:15 a.m. and the last departure/pick up at 1:45 p.m.
The route for the Fall Festival Lunch Shuttle will be as follows:
Pick up/drop off on the west side of the C.K. Newsome Community Center, proceed to Martin Luther King, Jr. Blvd. (MLK) through the “back 40” parking lot and along Locust St., turn right onto parking area in front of the Civic Center, pick up/drop off near the flag poles in front of the Civic Center, turn right on Sycamore St., turn left on Ninth St., turn left on Vine St., turn right on Second St., turn right on Fulton Ave., turn left on Lloyd Expressway, turn right on Wabash Ave., turn right on W. Franklin St., pick up/drop off at the temporary bus stop on the corner of W. Franklin St. and Wabash Ave., take W. Franklin St. to Fulton Ave., turn right on Fulton Ave., turn left on Second St., turn left on Sycamore St., and turn right on Elsas St. to arrive back at the C.K. Newsome Community Center and the “back 40” parking lot.