2010 State Board of Accounts Report $33,429,192 overdrawn!

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

2010 Hammond State Board of Accounts Audit for fiscal year 2010

http://www.in.gov/sboa/WebReports/B39219.pdf

Have not had a chance to review the entire report, but lets begin with:

Page 48 $33,429,192 overdrawn accounts as of the end of of 2010.

Page 47 Year end closing as published was $6,246,674 greater than the City's ledger balance

Page 49 $ 46,811,588 of disbursements not Council approved

Parks & Recreation Dept are $2,159,874 in the red, deficit, in da hole. How much of this is Festival of the Lakes? Last audit period, the Festival cost a cool $975,000, which including the Mayor's political boat float.

Now a bit more on the Parks Dept., it certaily is not going to central Hammond parks. Harrison Park has an abundance of freshly planted condums, Triangle Park, well you can easily count the fresh crack bags. Where is this money spent?

The other big ticket item is the ReDevelopment Commission is $205,111 in the red. Now didn't they buy a building for over $500,000 in DT Hammond because they believed BP was coming to Town? Yea, BP moved into a building with the same name in DT Chicago! If I remember correctly 70% of their budget went to salaries. I guess it pays to be a yes man to Tommie.

Lost Marsh $244,270 deficit, in the da hole. Another success. What Tom spin that on the previous admin. Tom, because of crime, a major event left Hammond and went to Crown Point. Hiring of 10 cops this year is eight years too late.

Neighborhood Stabilization Program is running a $21,557 deficit. I guess some of Tom's contractor pals have made out ok.

Now is $2,216 in the hole is not bad for the self insurance fund. Either someone has gotten healthier or that photographer has gotten better. It must be that they be staying away from a certain doughnut shop.

I heard rumor that Tommie and da boys want in on the TIF Marina Expansion money $11,414,206. Now that is big bucks, but it is too hot of a fund to take money from.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

WOW GAMING REVENUE $19,482,919.

Now Tom is it not now time to publish how that money was spent?

College Bound $2,505,394 No audit on this program is their? Naw, we don't need no stinkin audit.

Nice to see that $518,939 was spent on demolition projects.

And the festival of the lakes line item reads $89,379. Now I am very confused, wasn't their expenditures $975,000 for 2009? Must be fancy book keeping

Nice to kown other receipts credited to the Festival of the Lakes amounted to a grand total of $31.00

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Redevelopment Commission

$320,154 in Personal Services
$66,618 in supplies

out of a budget of $476,362

Ouch! That buys less than $100,000 in re development projects.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

$3,142,294 in Penalities

What stinkin penalities? Tom's administration had to pay for penalities? Was that late fees on Tom's city credit card?

Remember the SBA ruled any late fees on credit card payments were the responsibility of the individual holder.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Now the Woodmar Tiff came in with $0 cash balance, generated $1,989,798 in Taxes :shock:

Disbursements were $1,326,532. Now is this the construction cost for :

Hmmm remember the last State Board of Accounts asked for an accounting of how Woodmar Tiff funds were spent. Tom and his administration chose not to reply.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Nice to know the River Boat Loan was recorded @ $7,500,000.

paid was $1,700,000 and a balance due of $5,800,000.

Regionite · **Joined:** Tue Sep 14, 2010 4:06 am **Posts:** 698

$320,154 in Personal Service

Is that the hookers in Vegas?

And the festival of the lakes line item reads $89,379. Now I am very confused, wasn't their expenditures $975,000 for 2009? Must be fancy book keeping

Nice to kown other receipts credited to the Festival of the Lakes amounted to a grand total of $31.00

I think it's only fair to ask the mayor on his show to explain that. I'm thinking it's an accounting issue regardless of whether you think his honor uses creative accounting. Something like that would draw a red flag to the state investigators if there's not a legitimate, or at least fairly believable, explanation.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Opps, some mis information ....

Lost Marsh Golf Course started with a negative $244,270 begining balance.....and had not one black cent of income (at least recorded income

!

What happen to all those golfing fees? Rental of Golf Carts? I guess no one golfed @ loss marsh.

Is this another missing festival parking fund type senario?

and Lost Marsh Clubhouse Construction had a beginning balance of $560,668 with disbursements of $560,668.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Regionite wrote:

$320,154 in Personal Service

Is that the hookers in Vegas?

And the festival of the lakes line item reads $89,379. Now I am very confused, wasn't their expenditures $975,000 for 2009? Must be fancy book keeping

Nice to kown other receipts credited to the Festival of the Lakes amounted to a grand total of $31.00

I think it's only fair to ask the mayor on his show to explain that. I'm thinking it's an accounting issue regardless of whether you think his honor uses creative accounting. Something like that would draw a red flag to the state investigators if there's not a legitimate, or at least fairly believable, explanation.

Regionite, remember the SBA is only a reporting agency and has absolutely not police authority. I remember reading an article that for $3,000 or less they, the SBA reported an incidnet in another Lake County Community. Benard Carter I believe was all over that, like white on rice (no pun intended).

Naw, vegas hookers does not come out of that fund! :wink:

I guess Tom intimidates people.

http://www.youtube.com/watch?v=N9M_ezo2nFA

http://www.youtube.com/watch?v=auIgL3jhUyE

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Now the ReDevelopment Autority had $8,764,214 in receipts....what did they sell?

And disbursed $3,272,564, but in an adjacent line item had $2,768,917 in receipts, spending $5,583780 winding up with a negative blance of $2,814,863.

Hmmm.

I wonder if someone got a downtown building on this accounting?

Other redevelopment deficiencies add up to

$1,257,897
842,375
1,866,243
1,196,712

$5,163,000 loss?

Now that is a lot of cash....

Stopped @ page 38; 100 more pages to review.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Quote:

INTERNAL CONTROLS OVER BANK RECONCILEMENTS

Monthly reconcilements shall be prepared to verify the existence/occurrence and completeness of
the City's accounting records.
I guess Lendi was too busy running around Crown Point, notarizing the Andrade's candidacy forms. Documentation of management review of the monthly bank reconcilements
was not provided. Management should review the monthly bank reconcilements to ensure the reconciled
bank balances agree to the ledger balances and that reconciling items are appropriate and supportable.
Reconciling items noted should then be timely posted to the ledgers within the following month to ensure
informed management decisions. Monthly reconcilements should be expected to be completed within the
following month after month end. A similar comment was stated in the prior report.

1. The dates designated on the 2010 monthly bank reconcilements indicated that the
monthly reconcilements were not completed timely. Untimely reconciling of the City's
bank accounts inhibits management's ability to make informed financial decisions. The
following details the month to be reconciled and when the monthly reconcilement was
actually completed:

Reconcilement
Month Date
January May 2010
February Sept 2010
March Sept 2010
April Sept 2010
May Nov 2010
June Nov 2010
July Nov 2010
August Nov 2010
September Dec 2010
October March 2011
November March 2011
December March 2011

2. The City's bank account activity included deposits and/or electronic fund transfers (EFTs)
received by the bank that were not receipted and posted to the City's ledger by month
end. Monthly bank reconcilements, performed on a timely basis, would allow for
outstanding deposits to be receipted and posted to the ledger during the following month.
An analysis of the City's monthly bank reconcilements outstanding deposit amounts
noted that outstanding deposits are not timely receipted and posted to the City's ledger.The following table details the monthly outstanding deposits not receipted and posted by
the following month:

Maybe someone is too busy running an ATM business. I understand from previous post, someone's ATM's were all over the Festival of the Lakes! :smt002

Interesting that this office run by Mr. Lendi, succesfully didn't miss one month of non compliance. Congrats Mr. Lendi.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Quote:

Outstanding Deposits Not
Posted By The
Month Following Month
January $ 131,330
February 477,641
March 453,540
April 563,771
May 416,799
June 416,799
July 420,901
August 1,832,495
September 985,041
October 5,050,241
November 1 1,675
December 1 0,730

Is someone really working in the Controller's Office?

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

http://www.in.gov/sboa/WebReports/B39219.pdf found on page 45

Quote:

4. During our review of the City's annual debt payments, we discovered that a $77,737.85
Section 108 loan repayment to the U.S. Department of Housing and Urban Development
was paid by both, a written check and electronic wire transfer in January 2010. The loan
trustee sent a reimbursement check to the City for the duplicate payment. The reimbursement
check was deposited and receipted back to the fund from which it was paid.
On January 15, 2010, a $77,737.85 disbursement was posted for the check issued for
the loan payment. However, the City voided the original check even though it cleared the
bank and a negative ($77,737.85) disbursement was posted on March 18, 2010, to
reverse the January 15, 2010 entry. Thus, the City's attempt to correct the situation
netted to an overstatement of the fund by $155,475.70. The overstatement was not
identified as a reconciling item on the April to December 2010 bank reconcilement until it
was discovered by the field examiner in March 2011. On March 31, 2011, the City
posted a negative ($155,475.70) receipt to correct the 2010 posting errors.

Hey Ken, this is how your Hero operates city hall. Ouch!

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

http://www.in.gov/sboa/WebReports/B39219.pdf page 45

Quote:

3. The City's general bank account for December 2010 included a $154,694 reconciling
item for two March 2010 electronic wire transfers out for vendor payments that had not
been posted to the City's ledger. However, upon further review of the disbursement
ledger, the electronic transfers out were posted to the City's ledger on March 29 and April
3, 2010. Once the City posted the disbursement to the City's ledger to support the
electronic transfers out, the reconciling item should not have been a reconciling issue on
the City's monthly reconcilement after March 2010. However, a monthly "outstanding
wire xfers" reconciling item was carried on the monthly reconcilements from April to
December 2010.

justcallmetommy · **Joined:** Thu May 01, 2008 8:25 pm **Posts:** 5662

Quote:

Controls are not in place to ensure that all funds are reconciled, that all reconciling items are properly identified, and that all reconciling items noted on monthly bank reconcilements are timely posted
to the City's detail of receipts and disbursements ledgers so that material over or under statements of
receipts or disbursements does not occur.

The record balance at the end of every month shall be reconciled with the bank balance. [IC
5-13-6-1] Thus, any errors may be discovered and adjusted monthly. (Accounting and Uniform Compliance
Guidelines Manual for Cities and Towns, Chapter 1)

All documents and entries to records should be done in a timely manner to ensure that accurate
financial information is available to allow the governmental unit to make informed management decisions
and to help ensure compliance with IC 5-15-1-1 et seq., commonly referred to as the Public Records Law.
(Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)

Receipt and disbursement corrections or other errors should be corrected by memorandum entry
with the issuance of a check and receipt to document the flow of the transactions. (Accounting and Uniform
Compliance Guidelines Manual for Cities and Towns, Chapter 7)

Governmental units should have internal controls in effect which provide reasonable assurance
regarding the reliability of financial information and records, effectiveness and efficiency of operations,
proper execution of management's objectives, and compliance with laws and regulations. Among other
things, segregation of duties, safeguarding controls over cash and all other assets and all forms of information
processing are necessary for proper internal control.

Northwest Indiana Discussion

2010 State Board of Accounts Report $33,429,192 overdrawn!

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