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

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

Nearly $4.5 MILLION dollars in poor recording practices.

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

Quote:

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

The City prepared a Schedule of Federal Grant Receipts and Disbursements for 2010 that was
materially inaccurate . The City's grant schedule did not include the proper Catalog of Federal Domestic
Assistance (CFDA) titles and numbers for the following grants:

CFDA# Federal
Program Title Per City CFDA#
CDBG - Entitlement Grants Custer - Neighborhood Stabilization Program 14.859 14.218
ARRA Community Development Block Grant ARRA Entitlement Grants (CDBG-R) -- 14.253
Emergency Shelter Grants Program 14.218 14.231
HOME Investment Partnerships Program 14.403 14.239
ARRA Homelessness Prevention and Rapid Re-Housing Program 14.235 14.257
Fair Housing Assistance Program - State and Local 14.403 14.401
Federal Equity Sharing -- 16.xxx
ARRA Federal Transit - Formula Grants -- 20.507
State and Community Highway Safety 20.604 20.600
Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grants 20.604 20.601
Capitalization Grants for Clean Water State Revolving Funds -- 66.458
ARRA Capitalization Grants for Drinking Water State Revolving Funds -- 66.468
ARRA Energy Efficiency and Conservation Block Grant Program (EECBG) -- 81.128

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

http://www.in.gov/sboa/WebReports/B39219.pdf page 48

Quote:

ANNUAL REPORT

The City Controller completed and filed the required Annual Report within 60 days after the year
end. However, a comparison of the Annual Report to the ledgers noted the following:

1. Part 1 - Statement of Receipts, Disbursements, Cash Balances, and Investment Balances
(Governmental Funds) did not agree to the City's cash and investments balance at
year end. The Annual Report cash and investment balance was $8,383,205 less than
the City's ledger balance.

2. The Public Defender, Inspection/Rental, and Riverboat Loan Funds were omitted from
the Annual Report. The total annual receipts, disbursements, and ending cash balance
for all omitted funds were $7,628,065, $1,700,000, and $5,928,065, respectively.

3. The Annual Report omitted $6,120,425 of transfers in and out between funds. The
omission of the transfers caused 14 funds ending reported cash balances to disagree
with the City's ledger balances.

4. The Cabela's Bond Fund (#408) did not include $2,101,385 of receipts posted to the
City's detail of receipts ledger.

5. The Energy Efficiency and Conservation Block Grant Fund (#017) and the State Forfeited
Fund (#220) did not include $336,337 and $113,542, respectively, of disbursements
posted to the City's detail of disbursements ledgers.

The City Controller corrected the discrepancies noted above and filed an amended Annual Report
with the State Examiner. In addition, the City Controller approved the adjustments to the financial statements
presented herein to reflect the total receipt and disbursement activity.

Furthermore, the City advertised Part 1 - Statement of Receipts, Disbursements, Cash Balances,
and Investment Balances (Governmental Funds). The totals advertised did not agree to the City's ledger. The advertised cash and investment balance was $6,246,674 greater than the City's ledger balance.

In addition, even though the City's Annual Report filed with the State Examiner included the activity of the
City's Sanitary District, Water Utility, and Port Authority, the activity advertised did not include the receipt,
disbursements, and ending cash balance of the City's Sanitary District, Water Utility, and Port Authority.
Therefore, the receipts and disbursements of the City's Sanitary District, Water Utility, and Port Authority
were not published as required by law. A similar comment appeared in the prior report.

Now I am not a trained accountant, but this appears to be a way to make the books look favorable for the city. Sort of Bernie Madoff esque http://en.wikipedia.org/wiki/Bernie_madoff.

Now why were not the receipts and disbursments of the City's Sanitary District, Water Utlity and Port Authority not published as required by law, and this is the second year in a row for such to happen. What is there to hide Tom?

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

Quote:

OVERDRAWN CASH BALANCES
The cash balances of the following funds were overdrawn as of December 31, 2010:
Fund Name Amount
General $ 28,203,730
Motor Vehicle Highway 1,069,267
Transit 3 75,309
Parks and Recreation 2,159,874
Task Force 62,767
Redevelopment Commission Operating 2 05,111
Public Safety 14,148
Water Hydrant Rental 1 81,419
Affordable Housing 9,860
Homelessness Prevention and Rapid Re-Housing Program (HPRP) 16,083
Neighborhood Stabilization Program (NSP) 21,557
EECBG (Energy Efficiency & Conservation Block Grant) 70,322
Corporation Bond 4 32,938
Lost Marsh Golf Course 2 44,270
Centrex 15,437
Diesel Fuel Tax 6,341
Self-Insurance 2,216
Unemployment 3 32,998
Payroll Withholding 5,545
Total Overdrawn Funds $ 33,429,192

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

Code:

                                 Approved                Transfers Not            Total
                               Disbursements             Approved         Disbursements
District One                 $ 148,390               $ 3,734,705          $ 3,883,095
District Two                   4 60,091                2,891,759            3,351,850
District Three                 9 22,571                3,821,031             4,743,602
District Four                   6 45,002                4,726,448             5,371,450
District Five                   8 87,043                 2,799,533            3,686,576
District Six                   1,215,472                 3,299,738            4,515,210   
Shared 10%                  6,652,497                 3,302,000            9,954,497
Mayor 30%                   4,197,708                 7,107,600          11,305,308
Total                       $ 15,128,774             $ 31,682,814       $ 46,811,588  

$31,682,814 in unapproved use of city gaming money!

newsflashkid · **Joined:** Tue Jun 29, 2010 12:20 pm **Posts:** 1011

Now JCMT I see you have spent the better part of the day posting this startling report. I have also noticed there hasn't been one reply up to this time. I imagine that those involved
that would have any knowledge of these printed conditions, haven't got their head on staright this early. Let's see what fancy reply they will offer. How can people let this type of city operation, prevail. Thanks for the time you spent to bring this shocking report to the public, and they want to put the former Governor of Illinois (Blago) in jail for life, for a few phone calls.

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
page 56

Quote:

CONTRACTS
In 2010, payments were made to the law firms of Eichhorn & Eichhorn, LLP and Baker & Daniels
in 2010 totaling $476,216 and $18,211, respectively, for litigation and professional services.

These payments were made without written contracts. The hourly rates charged for services for Eichhorn & Eichhorn, LLP and Baker & Daniels varied.

Without written contracts outlining the hourly rates for various services, we could not determine if the attorneys were properly compensated for services rendered.

In addition, payments were made to Bose Public Affairs Group totaling $60,137 for public affairs
services without a written contract. On January 6, 2011, the Board of Public Works & Safety approved a
representation agreement between Bose Public Affairs Group and the City of Hammond effective January
1, 2011 through December 31, 2011, for $60,000 to be paid in quarterly increments of $15,000 per
quarter.

Furthermore, the Park Board approved payments to Lisa Berdine and Dennis Hardesty in 2010
totaling $24,113 and $21,282, respectively, for legal services and boxing club management services
without written contracts. The hourly rates charged for services for Lisa Berdine were $125 per hour and
Dennis Hardesty was paid approximately $1,667 monthly.

Payments made or received for contractual services should be supported by a written contract.
Each governmental unit is responsible for complying with the provisions of its contracts. (Accounting and
Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)

Shouldn't the attornies have known they needed a contract with a governmental entity?

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

Now so far what I have read here, an audit, not by some inconsequential source, but the Indiana State Board of Accounts read's almost as if someone is cooking the books hoping that they won't be caught (of course my opinions :wink:

).

Now this report is out a bit early. I would sorta guess that maybe, just maybe someone made a promise that the report wouldn't be out until after the election. Was someone double crossed?

Now the question, I ask you, after reading the post, which are excerpts of the audit directly , would you accept this type of accounting practices for your own business?

I don't think Corporate America would accept these type of accounting practices, nor the SEC. I wonder what leverage Lendi has over Tom, that someone will not be terminated?

Let's see if either the Times and or Post Tribune will run an article about this.

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

newsflashkid wrote:

Now JCMT I see you have spent the better part of the day posting this startling report. I have also noticed there hasn't been one reply up to this time. I imagine that those involved
that would have any knowledge of these printed conditions, haven't got their head on staright this early. Let's see what fancy reply they will offer. How can people let this type of city operation, prevail. Thanks for the time you spent to bring this shocking report to the public, and they want to put the former Governor of Illinois (Blago) in jail for life, for a few phone calls.

News, I have been looking for this report for months, as a friend in Indy sorta dropped a dime, giving a heads up. They couldn't send the report out early to me, but I got a chirp when it was published.

I still haven't got to the end of the report.

Now, I agree with you regarding Blago. What is funny about this, is most likely Tom's hands will be clean. Someone may look at the Law Department and the Controller. Someone else may be holding the proverbial "bag".

Will there be a head or two to roll? Maybe.

They say accountants know where the morsels are burried. And as for attornies, they give bad legal advise all the time. I believe in Hammond's history only one city Controller went to jail.

Just look at the past history on the Rental Registration Ordinance that someone defendended, bad legal advise. :smt002

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

Quote:

FESTIVAL OF THE LAKES
Board Approved Rates

The Park Department collects fees for the Festival of the Lakes for a boat cruise, sponsorships,
vendor clean up deposits, parking, ice/pop sales, beer sales, and a 5K run event. An approved rate
schedule for the 2010 Festival of the Lakes related fees charged was not provided for audit.
Fees should only be collected as specifically authorized by statute or properly authorized resolutions
or ordinances, as applicable, which are not contrary to statutory or Constitutional provisions. (Accounting
and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)

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

Quote:

DISBURSEMENTS EXCEED APPROPRIATIONS

The City's disbursements exceeded appropriations for the following funds:
For the Redevelopment Commission Operating Fund, the Indiana Department of Local Government
Finance (IDLGF) did not approve a 2010 budget. The Redevelopment Commission had the opportunity
to provide a written response to the IDLGF for any errors noticed. The Redevelopment Commission
did not respond at that time to restore the budget that was denied but opted to obtain additional
appropriations. However, the Redevelopment Commission did not initiate the additional appropriation
process during 2010, resulting in the Redevelopment Commission Operating Fund to not have an appropriation
from which a warrant could have been drawn upon.

Disbursements
in Excess of
Fund Approved Appropriations

General $ 2,711,309

Redevelopment Commission Operating 387,322

Water Hydrant Rental 136,387

Police Pension 534,035

$2,711,309 ?

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

Quote:

DISBURSEMENTS EXCEED APPROPRIATIONS

The City's disbursements exceeded appropriations for the following funds:
For the Redevelopment Commission Operating Fund, the Indiana Department of Local Government
Finance (IDLGF) did not approve a 2010 budget. The Redevelopment Commission had the opportunity
to provide a written response to the IDLGF for any errors noticed. The Redevelopment Commission
did not respond at that time to restore the budget that was denied but opted to obtain additional
appropriations. However, the Redevelopment Commission did not initiate the additional appropriation
process during 2010, resulting in the Redevelopment Commission Operating Fund to not have an appropriation
from which a warrant could have been drawn upon.

Disbursements
in Excess of
Fund Approved Appropriations

General $ 2,711,309

Redevelopment Commission Operating 387,322

Water Hydrant Rental 136,387

Police Pension 534,035

Quote:

[color=#800000] Indiana Code 6-1.1-18-10(a) states:
"If the proper officers of a political subdivision make an appropriation for an item which
exceeds the amount which they are permitted to appropriate under this chapter, they are
guilty of malfeasance in office and are liable to the political subdivision in an amount equal to
the sum of one hundred and twenty-five percent (125%) of the excess so appropriated and
court costs."

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

Quote:

PAYROLL DEFICIENCIES

4. The City Clerk's office and Fire Department did not maintain appropriate payroll records
reflecting the actual number of hours worked each day by an employee. The City Clerk's
office did not provide a time sheet nor did the prescribed employee service record
provided note the actual number of hours worked each day. The Fire Department
provided an attendance record and an overtime report to support the payroll tested.

However, the attendance record provided does not note the actual number of hours
worked each day, did not post the actual numbers of overtime worked, only records the
amount of leave used and not accrued, and the form is not the prescribed or an approved
Employee's Service Record (General Form No. 99A).

The Employee's Service Record (General Form No. 99A) must be kept by each office or
department for each employee in order to properly prepare "Payroll Schedule and
Voucher, General Form No. 99." It records the hours or days worked, sick leave, vacation
and days lost.

It may also be used to comply with the requirements of IC 5-11-9-4
regarding recording hours worked each day by an employee." (Accounting and Uniform
Compliance Guidelines Manual for Cities and Towns, Chapter 4)
Officials and employees are required to use State Board of Accounts prescribed or
approved forms in the manner prescribed. (Accounting and Uniform Compliance Guidelines
Manual for Cities and Towns, Chapter 7)

Now this is about one city servant, my guess this is a close friend of Toms, who very well may have been the subject of some publicity about a year ago.

From what has dribbled my way, a special person has a second job (hey good for you!), but they leave early from the city job (opps bad for you and the administration who allow that to happen!).

It is a shame that this one person reportedly gets special treatment and places taint on a whole department.

Isn't that a bit of fraud?

Now Tom has had to read this audit. I am bother by what I read, Tom... are you out their?

207

xmpt · **Joined:** Tue Nov 21, 2006 7:29 am **Posts:** 989

Everyone knows what dribble's your way. Rumors and innuendo. What surprises me is that you think people believe you are credible. Carry on!

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

xmpt wrote:

Everyone knows what dribble's your way. Rumors and innuendo. What surprises me is that you think people believe you are credible. Carry on!

Sure cap, I made up the entire report. One question pal, why did the sba look at

just one employee?

And by the way cap, those one liners you type are rather hollow, everyone know your just working at covering your ass.

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

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