Special Examination of the City of Providence Reveals Over $334,000 in |
Crit Luallen |
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(Frankfort - April 6, 2004)
Auditor of Public Accounts Crit Luallen today released her Report of a Special Examination of the City of Providence. The examination, which focused on specific transactions and other related financial activity, was initiated after specific information was presented to her office by concerned citizens. The examination found a discrepancy of $334,736 between payments credited to utility customer accounts and the deposit of utility receipts.
An examination of customer payment records from January 2003 through March 16, 2004, revealed 1,818 instances of utility accounts credited as paid that could not be traced to corresponding bank deposits. Because the Auditor's Office cannot account for the $334,736 of receipts from utility bills credited as paid, this matter has been referred to the Attorney General's Office for further investigation. During the course of this Special Examination auditors also identified four City checks payable to the City Clerk that appear to be personal in nature and not valid obligations of the City. The improper checks total $8,720.45 and we recommend that the City seek reimbursement from the City Clerk for the total of the four checks. This issue was also referred to the Attorney General's Office for further investigation. "My purpose as Auditor of Public Accounts is to protect taxpayers and their money from inefficiency and abuse. At best, these discrepancies are examples of gross mismanagement. At worst, they are evidence of possible criminal misconduct," said State Auditor Crit Luallen. "That is why they have both been referred to the Attorney General's Office for further investigation." The examination also cites improper use of City funds for financing the purchase of a personal vehicle for a City police officer, and other inappropriate personal expenses. The City has also failed to enforce reimbursement contracts with former City employees leaving the City who owe over $91,000 to the City. "This examination has brought to light a number of financial discrepancies and managerial weaknesses and contains numerous recommendations aimed at preventing these problems from occurring in the future." "This is a perfect example of why the Commonwealth of Kentucky needs a strong, independent Auditor's office. Waste, fraud, and abuse can occur anywhere and we need to be ready to attack it where it exists. Whether it be a small city or a large state agency, the Auditor of Public Accounts is ready to attack these problems head on." Ms. Luallen added. The City of Providence responded to the audit findings and it is included in the report. |
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