State Finds Record-Keeping Problems in South Whitley
July 28, 2016 at 4:25 p.m.
By Teresa Smith-
The biannual audit covered the records from January 1, 2011, to December 31, 2012, during the last year of Mitch Winger’s term and the first year Bob Gould held the office.
A preliminary report indicates council members are ultimately responsible for discrepancies, too, and the report advises that they should know as much about financial procedures as the clerk. Between receipt of the preliminary report and now, councilmen Tony Starkey, Bill Boggs and Steve Smith have asked that procedures be established to prevent future discrepancies.
At its meeting Tuesday council received an appropriations report for August 2012, with negative balances because transfers into various accounts were not shown.
Gould blamed the state-approved and recently updated Gateway software, saying there’s a glitch in the system and the programming simply won’t take what he inputs. He indicated that the report was accurate within “500 bucks” but that some of his checks are still getting lost.
Starkey asked why the park board’s account showed negative balances and Gould said he hadn’t added the additional appropriation yet in the amount of $12,144 and change.
The park board’s additional appropriation of $14,211 was approved by the council several months ago.
Starkey also pointed out other negative funds in the wastewater principal and interest accounts and Gould said he would transfer some of the money from wastewater operations into that account.
“We’re paying debt reduction from operations?” Starkey said, “and we didn’t appropriate for it in the wastewater budget? That’s why it started at zero?
“I can put it in there,” Gould said.
Town manager Dave Wilkinson said it’s traditional to set aside an assumed amount at the first of the year. “That way it shouldn’t show negative numbers. I’m not sure how the computer differs on the appropriations side.”
Steve Smith said, “When I see this report and I see a negative in a column it’s a red flag to me. Just take two minutes to transfer the money before you write the check.”.
“It’s hard for us to read,” Starkey said and “we have to start understanding it.”
Starkey asked Gould if he had read the final audit report received September 20, dated September 19, from the State Board of Accounts and Gould said it was the same as the preliminary report.
The audit lists several areas of concern: penalties, interest and other charges accrued by the town; utility collections not deposited, several deficiencies in record keeping, lack of internal control systems, an annual report that did not reflect the activity of the funds ledger, no Indiana Utility Receipts Tax Return on file, payroll deficiencies, checks issued to replenish petty cash substituted for cash collected for utility payments; purchases in excess of $100 from the petty cash account; issuance of improper receipts; lack of public records retention, errors on claims, no collection of overpayments, supporting documentation of payments (like receipts, cancelled checks, invoices, contracts and the like), a schedule of expenditures for federal awards and the clerk’s bond coverage.
“I want to go through, line-by-line, and get an understanding of how each is being,” Starkey said.
“Basically what it was is that we weren’t getting information on a timely basis,” Gould said. “Trying to look through that circular 30, trying to figure out federal expenses and grants is like watching paint dry. The record keeping is getting better.
“We have to take into account this is from 2011 and 2012. So some of this doesn’t reflect on us.”
“If you take time to look at it, it’s different,” Starkey said. “It’s much more in depth, much more specific. I want to go through it Bob. If you would please be ready to answer,line-by-line, how we’re addressing these things in this report, in 30 days, at the second meeting in October.”
The audit is available for public view and is numbered B42650. It available on the State Board of Accounts Web site at www.in.gov/sboa
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The biannual audit covered the records from January 1, 2011, to December 31, 2012, during the last year of Mitch Winger’s term and the first year Bob Gould held the office.
A preliminary report indicates council members are ultimately responsible for discrepancies, too, and the report advises that they should know as much about financial procedures as the clerk. Between receipt of the preliminary report and now, councilmen Tony Starkey, Bill Boggs and Steve Smith have asked that procedures be established to prevent future discrepancies.
At its meeting Tuesday council received an appropriations report for August 2012, with negative balances because transfers into various accounts were not shown.
Gould blamed the state-approved and recently updated Gateway software, saying there’s a glitch in the system and the programming simply won’t take what he inputs. He indicated that the report was accurate within “500 bucks” but that some of his checks are still getting lost.
Starkey asked why the park board’s account showed negative balances and Gould said he hadn’t added the additional appropriation yet in the amount of $12,144 and change.
The park board’s additional appropriation of $14,211 was approved by the council several months ago.
Starkey also pointed out other negative funds in the wastewater principal and interest accounts and Gould said he would transfer some of the money from wastewater operations into that account.
“We’re paying debt reduction from operations?” Starkey said, “and we didn’t appropriate for it in the wastewater budget? That’s why it started at zero?
“I can put it in there,” Gould said.
Town manager Dave Wilkinson said it’s traditional to set aside an assumed amount at the first of the year. “That way it shouldn’t show negative numbers. I’m not sure how the computer differs on the appropriations side.”
Steve Smith said, “When I see this report and I see a negative in a column it’s a red flag to me. Just take two minutes to transfer the money before you write the check.”.
“It’s hard for us to read,” Starkey said and “we have to start understanding it.”
Starkey asked Gould if he had read the final audit report received September 20, dated September 19, from the State Board of Accounts and Gould said it was the same as the preliminary report.
The audit lists several areas of concern: penalties, interest and other charges accrued by the town; utility collections not deposited, several deficiencies in record keeping, lack of internal control systems, an annual report that did not reflect the activity of the funds ledger, no Indiana Utility Receipts Tax Return on file, payroll deficiencies, checks issued to replenish petty cash substituted for cash collected for utility payments; purchases in excess of $100 from the petty cash account; issuance of improper receipts; lack of public records retention, errors on claims, no collection of overpayments, supporting documentation of payments (like receipts, cancelled checks, invoices, contracts and the like), a schedule of expenditures for federal awards and the clerk’s bond coverage.
“I want to go through, line-by-line, and get an understanding of how each is being,” Starkey said.
“Basically what it was is that we weren’t getting information on a timely basis,” Gould said. “Trying to look through that circular 30, trying to figure out federal expenses and grants is like watching paint dry. The record keeping is getting better.
“We have to take into account this is from 2011 and 2012. So some of this doesn’t reflect on us.”
“If you take time to look at it, it’s different,” Starkey said. “It’s much more in depth, much more specific. I want to go through it Bob. If you would please be ready to answer,line-by-line, how we’re addressing these things in this report, in 30 days, at the second meeting in October.”
The audit is available for public view and is numbered B42650. It available on the State Board of Accounts Web site at www.in.gov/sboa
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