And a common byline in most all of Hammond's State Board of Account Audits:
Quote:
-22-
SANITARY DISTRICT
CITY OF HAMMOND
EXAMINATION RESULTS AND COMMENTS
BANK ACCOUNT RECONCILIATIONS
The Hammond Sanitary District (District) payroll bank reconcilement at December 31, 2012, included many adjustments that were not adequately documented.
The reconciling items totaled $10,859.02. Some of the reconciling items dated back to 2011; others were not
properly dated and did not note the fund for which the adjustment was required. The District has not made adjustments to the records in a timely manner.
The majority of the adjustments included with the December 31, 2012 reconcilement are also included with the
reconcilement at July 31, 2013.
Indiana Code 5-13-6-1(e) states: "All local investment officers shall reconcile at least monthly the balance of public funds, as disclosed by the records of the local officers, with the balance statements provided
by the respective depositories."
OVERDRAWN CASH BALANCES
Overdrawn cash balances at December 31, 2012, were as follows:
For financial statement reporting, the Sanitary District's Bond and Interest Fund, a restricted fund,
was reduced by the amount of the overdrafts. The overdrafts are reported as "Due From Sanitary District
Unrestricted Funds" on the Statement of Net Position.
The cash balance of any fund may not be reduced below zero. Routinely overdrawn funds could be
an indicator of serious financial problems which should be investigated by the governmental unit. (Accounting
and Uniform Compliance Guidelines Manual for Special Districts, Chapter 10)
Amount
Fund
Overdrawn
Sanitary District Operating $1,313,692
Sanitation Utility Operating $378,065
Recycling Utility Operating $667,185
State Board of Accounts says a zero balance should be investigated by a governmental unit. Hmmmm.