Re-Post of Audit Findings

Given the attitude of our Mayor concerning tonight's resolution to have a full investigative audit done, we felt compelled to re-post some information that was contained in the 2004 annual partial audit performed by the State.
As a reminder, the State Board of Accounts Report said:
"...we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements."

This information, along with now having a Federal Investigator in Town from the EPA who is looking into the financials of $44+ million of sewer fund money, should result in nothing less than a full investigative audit.
If there is nothing to hide, then there is nothing to be angry about and no reason to balk at a full audit. If anything, Garner should be anxious to be vindicated by having a full audit reveal no improprieties.

LESSON - HOW NOT TO RUN A CITY

OK. Let's give it a go here on the blog as to why the Stormwater Compliance should NOT include another bureaucratic Board (thank you CM Price), with more money getting sucked into pockets rather than projects. Do we really want to create another way for our City expenses to bulge?
I thought the whole idea was to reduce our spending levels, so at least the often-used & abused excuse of "there's no money" would still hold a little water, while money accumulates and become "unavailable" or "restricted in use" to the tune of about $5 million sitting in 'special funds', to be used for restricted, and 'special' purposes in restricted and special places.
TIF, CDBG, UEZ , EDIT, PERF, IHFA, etc., etc., etc.
There's no money - "IN THAT FUND"... is what they should be saying.
So, where is it, how much is it, and why are they not doing regular monthly reconciliations?
Page 38 of the City of New Albany Audit: Indiana Code 5-13-6-1(e) states "All local investment officers shall reconcile at least monthly the balance of the public funds, as disclosed by the records of the local officers, with the balancesstatements provided by the respective depositories."
"As a result of of undetected errors as of Dec. 31, 2004, the City has $88,947 more in unidentified cash recorded in its records than that being held inits bank accounts." In other words, we're missing almost $90,000 that should be in the bank, but is not.
We've begged them to park the City owned vehicles IN THE CITY. Or at least keep the log books that are required by this pesky little agency called the Internal Revenue Service that keeps personal use separated from work use.
We really can't afford to pay for so much gasoline. We can hardly keep our own tanks full. Make that more like half full.
Another small but important show of trying to help save money would be to please, turn off the cell phone and leave it with the car keys (unless you live in the City), and go home.
We can do better to save the City of New Albany from complete financial ruin. If we don't put a stop to the wasteful spending, and the loose accounting, that's exactly what's going to wind up happening to New Albany.
In the State Board of Accounts' Financial Report to The Officials of New Albany, we found the following as related to compliance for financial reporting:
"The opinion to the financial statements was qualified due to the lack of sufficient documentation of capital assets and inadequate cash reconciliations."
The report also says, "The results of our tests disclosed instances of noncompliance that are required to be reported under Government Auditing Standards and which are described in the accompanying Scedule of Findings and Questioned Costs."
All of this means that the City officials responsible for keeping track of funds and expenses in all the separate departments, boards, and commissions, are not doing their job the way the State says they should be doing it.
It's all been slip-shod management of the public funds, and ultimately, the Citizens trust. The bad decisions need to stop, and we need to get a lid on it real quick.
CM's, you must understand that no plan he has come up with, no approval that you have allowed to go his way, none of it has come out to be a good decision for the City of New Albany. A big part of what he says he'll do, or he'll get back to you with, never happens. Why continue to put our fate in Garner's greedy hands?
So, let's just start with the fact that there is already enough 'bad blood', so to speak, in the Political realm of New Albany about who gets paid on which board, and which Boards pay, and which don't. Hell, they are all different. Furthermore, who's paychecks get paid out of which funds?
That's another one that will confuse most folks around here if you ask them.
Just exactly who IS getting paid with City money, and how much are we paying them? After all, this City money is actually the people's money.
So, isn't this a reasonable thing to be able to ask, and expect an answer from, the people who we elected to spend our money for us? I think so.
Unfortunately, I think there are other people in our City who would rather keep that information solidly under a rock (don't worry, we'll dig it up).
That same State Board of Accounts Report we referred to earlier also states:
"...we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements."
This is a huge statement that is pretty clear about what s going on.
Still, there are considerations to be made about the Mayor sitting on X# of Boards, and getting X# of salaries in return.
We want to know how much is enough for this guy? How much money does he think he can suck out of the citizens of New Albany before somebody crys: "FOUL"
We just can't keep taking the hit, paying the penalties, for the 'fouls' that have been made by the heads of New Albany's past and current administrations.
However, we find it's a weak and spineless person who, when caught with a hand in the cookie jar, would point and say "they did it too" as though that makes it alright. One thing that's real important here to all future New Albany Mayors out there: IT NEVER MAKES IT RIGHT!
Now, what would we start thinking, knowing that more hits are coming... raising Sewer rates, climbing Sanitation costs, along with the "Brand New" Stormwater 'user Fees'???? These are all but guaranteed.
We've been told that all of this is probably going to happen, and we know that when they say probably, that's the warning shot....DUCK!!!!!!!!!!!! .
HOW MUCH DOES IT COST TO LIVE UNDER THE REIGN OF JAMES GARNER?!?!?!?!?!?!?!?
Well, there are other considerations that should be taken into account when assessing our Mayors performance. How he is performing in his duties and responsibilities on the Boards he currently sits on (we don't care about his style, we care about his substance)?
We all know that the first order of business upon his election as Mayor was to immediately appoint himself as Chair of the Wastewater Utility (Sewer Board), and to draw another salary from that.
What did the State Audit have to say about the Sewer fund records?
"The City's capital asset records for wastewater Utility owned capital assets are $18,442,759 less than capital assets reported in these financial statements."
That's about $18.5 million in capital assets that were reported in financial statements to the State, but there are no records to back that up.
Now, we all know that the Sewer Board, which he has been leading for over 2 years now, has done a dismal job of being able to comply with State and Federal EPA and IDEM mandates of the Clean Water Act and the agreed orders of the Courts that were signed by Overton. A situation Garner knew about from the four years he sat on Council prior to his run for Mayor.
(we will be loading copies of financial documents concerning the Sewer Fund)
There should have been no surprises there. He should have been ready to roll up his sleeves and get to work, getting things done to comply, and securing the needed blessings from the EPA for future growth, probably along with a hearty pat on the back from the citizens for a job well done.
Instead, Garner has been advancing a very expensive agenda, including an overpriced and underfinished Firehouse, a $16 million natatorium, a soccer complex, an Assistant Mayor (a broken campaign promise), privatizing Sanitation services (another broken campaign promise), ignoring the sewer issues, and handing out political favors like they were lollypops.
He's been using the Sewer Fund as the City's "slush fund", borrowing huge amounts of money to shore up an assorted number of Departments, programs, and projects, including the General Fund which was depleted below zero.
State Board of Accounts Comments concerning Overdrawn Cash Balances:
"The cash balance of any fund may not be reduced below zero. Routinely overdrawn funds could be an indicator of serious financial problems which should be investigated by the governmental unit." Think they'll do that?
New Albany had 9 funds overdrawn in 2004:
General Fund, Motor Vehicle Highway, Local Road & Street, Law Enforcement Continuing Education, Unsafe Building, Indiana Housing Board Rental Rehabilitation, reserve Liability, TIF Park East Industrial, and the Medical/Drug Fund.
We've only scratched the surface of the findings in the Audit, and there is more to come on the Sewer fiasco, and why we are saying NO to another sewer rate increase.