Why is the City of New Albany not following Indiana Law?
The major principals of accounting:
* Records shall be kept in full compliance with all legal requirements
* Accounting shall be based on a separation of funds
* Distinction with respect to character of expenditure shall be maintained
* The uniform classification of accounts shall be used in budgeting, accounting and reporting
* The records shall be kept on either a single-entry cash basis or double-entry modified accruel basis
* Budgetary control of receipts and disbursements shall be established
Unexpended balances of appropriations, for other than encumbrances by contract or purchase order, shall lapse at the close of each year
Separation of Funds:
The system provides for separation of accounts by funds in order to comply with statutory requirements and generally accepted accounting principles.
Utility fund accounts showing only receipts, disbursements and balances will be carried on the records of the clerk-treasurer.
Separate records prescribed or approved by the State Board of Accounts will be maintained for water, wastewater, electric, and gas utilities following the Uniform System of Accounts for each utility publishing by the National Association of Regulatory Utility Commissioners.
Bank Accounts:
It has been our policy to recommend only a minimum number of bank accounts in order to avoid unnecessary bookeeping and possible errors in charging warrants to bank accounts. So long as an ordinance does not require the keeping of a separate bank account, funds should be consolidated into as few accounts as possible.
A single bank account should be provided for all city or town funds, if required by ordinance or regulation. Some bond ordinances and federal regulations require separate bank accounts for various funds and must be followed. Funds of other entities held by the city or town=$ fiscal officer must be accounted for in separate bank accounts.
Expenses and receipts shall be recorded only when cash is disbursed or received. The shortcomings of this method are minimized by supporting subsidiary records.
Freedom of Speech would like to ask why after 3 years in office, the Garner Administration still continues to making the same accounting mistakes?
Oh yell, we remember now...it's Regina's fault!
