I wanna be Governor Tom is sure running the city quite well, yes with fiscal responsibility....
Quote:
http://www.in.gov/sboa/WebReports/B42998.pdf page 43
INTERNAL CONTROLS OVER FINANCIAL TRANSACTIONS AND REPORTING
We noted deficiencies in the internal control system of the City related to financial transactions and
reporting. Effective internal control over financial reporting involves the identification and analysis of the risks
of material misstatement to the City's audited financial statement and then determining how those identified
risks should be managed. The City has not identified risks to the preparation of a reliable financial statement
and as a result has failed to design effective controls over the preparation of the financial statement to prevent
or detect material misstatements.
The City has not established effective controls to allow for the proper reporting of the City's financial
transactions and cash and investment balances. Reconciled trust and bank account balances were not verified by management which allowed material misstatements in the original financial statement. The financial
statement was compiled from information entered by the City into the Annual Financial Report. The financial
statement presented for audit included the following errors and omissions which we believe constitute
material weaknesses:
1. The financial statement omitted three funds that were accounted for in the City's ledgers.
These funds included receipts of $39,029,641, disbursements of $38,881,449, and an ending
cash and investments balance of $148,192.
2. The financial statement omitted eight trust funds related to public improvement projects.These funds were also not in the City's records and included receipts of $42,337,030, disbursements of $31,467,555, and an ending cash and investments balance of$10,869,475.
3. The receipts and disbursements of several Hammond Sanitary District funds were under-
stated by $32,116,943 and $35,030,385, in total, respectively. These errors also resulted in
the ending cash and investments balance of these funds to be overstated by a total of
$2,913,443. The misstatements were due to reporting the funds on the accrual basis of ac-
counting rather than the prescribed regulatory basis.
The City approved and made the necessary adjustments to correct these issues which results in a
financial statement that is fairly presented.
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