Freedom of Speech was able to obtain this information from the State Board of Accounts through the Freedom of Information Act.
During the period of January 1, 2003 and August 8, 2003 there was a discrepancy in the amount of fees collected for the Building Commissioners Office.
The employee, an Administrative Assistant, was responsible for the collection and reporting of fees collected. In some instances receipts were not issued or recorded.
Receipts shall be issued and recorded at the time of the transaction: for example, when cash or a check is received, a receipt is to be immediately prepared and given to the person making payment. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)
Receipts and fees collected by the Building Commissioner were remitted to the Controller less frequently than once a week.
All collections made by any department or person connected with a city or town shall be turned in to the Clerk-Treasurer (or Controller) at least weekly. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 6)
Fees collected by the Building Commissioner from the period January 1, 2003, to August 8, 2003 in the amount of $2,482.40 were not remitted to the Controller and could not be accounted for.
All applications, permits, and licenses issued by the Building Commissioner are computer generated. A receipt is written for the fee collected and the information is then entered into the computer at the time the permit, application, or license is processed. The computer provided a "detail fee report" for the collection period. Collections are summarized on a report of collections with the detail fee report attached and the collections are then remitted to the Controller's office. The former Administrative Assistant was responsible for preparing the report of collections and remitting the collections to the Controller's office during the period January 1, 2003 to August 8, 2003.
During the period there were several instances in which collections were included on the detail report but were manually crossed out and marked VOID without any explanation. The corresponding receipts, however, were not marked VOID. Upon further review, it was determined that the corresponding permits had been processed and additional evidence showed that the permits were valid.
Detail fee reports were not attached to any of the report of collections prepared during June 2,2003, to August 8, 2003. Instead, a manually prepared report detailing the collections was attached to each of the report of collections. Several of these manually prepared reports included a caption at the top "computer problems". During the review of these reports it was determined that only collections made by check were being included. All receipts written for fees collected in cash were omitted from these reports and from the amounts remitted to the Controller. Cash collections during this time period totaled $1,684.80.
The Administrative Assistant resigned effective August 21, 2003. The August 8, 2003 report of collections was the final report prepared by her. Computerized detail fee reports were attached to all report of collections prepared and remitted to the Controller immediately following her resignation.
Funds misappropriated, diverted or unaccounted for through malfeasance, misfeasance, or nonfeasance in office of any officer or employee may be the personal obligation of the responsible office or employee. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)
Additional audit fees were incurred in the investigation of missing funds. The State of Indiana is requesting reimbursement of audit fees incurred in the amount of $2,118.37.
Audit costs incurred because of theft or shortage may be the personal obligation of the responsible official or employee. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)
The former Administrative Assistant has been requested to reimburse the State of Indiana $2,118.37.
The former Admistrative Assistant reimbursed the City of New Albany General fund $2,482.40 on August 7, 2005, and reimbursed the State of Indiana $2,118.37 on August 10, 2005. For a total of $4,600.77.
The contents of this report were discussed with the Mayor, Controller and Building Commissioner on June 29, 2005 and with the former Administrative Assistant with his/her attorney August 9, 2005.
We here at Freedom of Speech wonder why it took nearly two years before this matter was brought before the Mayor and Controller. We also wonder why this individual was given two years to reimburse the City of New Albany and the State of Indiana. There were no charges filed.
This could be just the tip of the iceberg. Rumors abound about corruption in our City. How many similar cases are there yet to be uncovered?
We will continue our investigation on 2003-2004 reports and keep you posted.
