As a reply to the above $21.5 million lapse in memory, the state auditors wrote:
http://www.in.gov/sboa/WebReports/B41655.pdf page 43
Additionally, the
City has not established effective information and communication controls to allow for
complete and accurate financial statement reporting. Such information and communication controls should
include a system for establishing any new bank or trust accounts, so that the proper funds and accounts are
established in the City's financial records.
Indiana Code 5-11-1-4 states:
"The state examiner shall require from every municipality and every state or local governmental
unit, entity, or instrumentality financial reports covering the full period of each fiscal year. These
reports shall be prepared, verified, and filed with the state examiner not later than sixty (60) days
after the close of each fiscal year. The reports must be filed electronically, in a manner
prescribed by the state examiner that is compatible with the technology employed by the political
subdivision."
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 pro-
cessing are necessary for proper internal control. Controls over the receipting, disbursing, recording, and accounting for the financial activities are
necessary to avoid substantial risk of invalid transactions, inaccurate records and financial statements and
incorrect decision making. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns,
Chapter 7)
Dear God, would share holders of GM or Ford, or Enron allow....did the Enron folks go to jail?