DENHART: Citizens group leader questions city finances

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November 19, 2009

By VICKI DENHART The News and Tribune Thu Nov 19, 2009, 12:38 AM EST

In response to Mayor England and Kay Garry’s statements of Oct. 31, 2009:

After reading The Tribune article, “State Audit raises questions about New Albany’s bookkeeping” and going through all 73 pages of the audit, we find it laughable that Mayor Doug England said the administration may ask the council to fund a new computer system for City Controller Garry.

Then he goes on to say, “We have to reconcile the books, make sure there are checks and balances and get all the journal entries right. (The computer) we have is just an old clanker.”

When have you, Mayor England, ever cared about “checks and balances?”

We had to read your statements three times and still can’t believe how you mislead the citizens of New Albany and our newspaper. Mayor England, how can you “sugarcoat” these findings by the State Board of Accounts?

Spending thousands of our tax dollars for software and a new computer system has nothing to do with your actions of spending and overspending! So, are you telling the taxpayers, Mayor England, if your controller had a new computer system, it will correct:

• disbursements and expenditures in excess of Budget appropriations of $3,316,567?

• total bond debt (risk) of $54,247,615?

• transactions not recorded on City records?

• overdrawn cash balances of $5,890,535?

• a list of transactions not recorded?

• TIF-owed and never repaid in the amount of $1,500,000?

• no receipts to show personal expenses, although checks were cut?

• personal use of cell phones and take home cars (no logs kept)?

• no receipts on claims, although checks were cut?

• the practices of the building commission, which charged less than regular fees and waived fees?

• the practices of the sewer billing department, which did not file property liens?

If there is such a computer system and software that can do this: “clean up of your violations and your department heads’ violations” and your overspending, we say you should buy it tomorrow.

Mayor England, it is not like you are a new mayor and that this is Controller Garry’s first audit. On Feb. 2, 2009, Mayor England presented his State of the City address, in which he stated, “Despite the fiscal turbulence of 2008, the City operating budget for 2008, ended the year on the black.”

You are totally misleading everyone, including our local newspaper.

Based on the 2008 State Board of Accounts Audit, our City is $10,7007,102 in the red, including:

• overspending without the Council’s approval of $3,316,567.

• TIF is owed $1,500,000 and was never paid back.

• overdrawn cash balances of $5,890,535 which are to be repaid from future receipts.

According to Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7, the cash balances of any fund may not be reduced below zero. Routinely, overdrawn funds could be an indicator of “serious financial problem” which should be investigated by the governmental (council) unit.

We understand, since this audit has been released, the controller has been shifting and appropriating funds to cover certain accounts. We think it’s called robbing Peter to pay Paul.

Mrs. Garry complains she has not enough room or enough staff, but she still has 14 bank accounts, and every year, the State Board of Accounts tells her she has too many accounts. Then she states as controller, she is the last one to know who has a take home car.

What Mrs. Garry did not say is that she receives the claims. Then, she takes them before the Board of Works’ Matt Denison, Sueellen Wilkerson, and herself. They vote to approve the claims. Maybe, they all need to review and look at them before approving claims with and without receipts. That’s not a software problem — that is your Controller and Board of Works problem.

England repeatedly states that he has not “overspent” or over-budgeted the city’s finances, but rather, he was underfunded. Mayor England has spent $3,316,567 without the Council’s approval, which is malfeasance. He thinks it is more important to invest our tax dollars downtown and at the Industrial Park. You pave streets, but do not fix the drainage and our sewers. How dare you say you have not “overspent” or “misappropriated” tax dollars!

That is not what the 2008 State Board of Accounts Audit says.

It’s time, Mayor England, to be accountable to us, the taxpayers of New Albany, and start running our city and living on a budget, just like the rest of us do.

Denhart is president of Citizens for Accountability in New Albany.

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