Stephanie Brinkerhoff-Riley statement - Tri-State News, Weather & Sports

Stephanie Brinkerhoff-Riley statement

Brinkerhoff-Riley statement Brinkerhoff-Riley statement

Today I am releasing a full, unedited copy of the recording of the March 12, 2014 City of Evansville 2012 audit exit conference conducted by the Indiana State Board of Accounts. The people of Evansville deserve to know this information. The audio recording will be posted on my web page,, immediately.

The state auditors gave the city finances an overall "Qualified Opinion" with "Adverse Opinions" on select portions. A "Qualified Opinion" is issued when accounting practices do not comply with generally accepted accounting principles. The Winnecke Administration's inability to do basic bookkeeping means that the City of Evansville's financial records are not acceptable under Indiana law or general accounting principles.

Further, the balances reported on the books are not accurate. A key point raised by the auditors is that Mayor Lloyd Winnecke has not been able to balance the city's payroll account since he took office. This means the payroll account has not been properly reconciled since December 31, 2010, nearly four years ago.

This failure to reconcile the books is in spite of spending nearly $2 million dollars on software support, an extra full-time employee, and consulting fees to outside accounting firms.

The failure of the Winnecke Administration to resolve the problems with the city's financial records may subject the taxpayers to higher interest rates when we borrow for upcoming projects such as the new hotel and medical school campus. Even more, it shows a striking inability to perform one of the most basic functions of government: keeping track of the money.

I call on the administration to immediately outline a plan for resolving all issues raised by the auditors prior to beginning the 2013 audit and to present this plan to city council for review and approval.

Evansville 2012 Audit Exit Interview Key Points:

The city did not properly record payroll funds in 2012; Balances may be incorrect and don't permit auditing.

City fund balances, including water and waste funds, were not properly reconciled to bank balances in 2012.

2012 funds submitted for audit were overstated due to checks discovered on the outstanding list that had already cleared the bank and incorrect postings to the ledger. Auditors found fund transactions withdrawn from incorrect accounts and random adjustments that were added then later deleted when submitted for audit.

City has failed to design effective controls over preparation of bank reconciliations to prevent or detect material weaknesses, and the City has failed to design effective controls over the postings of payroll funds to prevent or detect mistakes.

The City cannot reconcile its payroll account.

City does not do monthly bank reconcilements.

Bank shows funds are approximately $500k more than the city balances.

Payroll and pension check samplings showed payments in incorrect amounts with overpayments to employees and underpayments to pensioners. 

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