The financial condition of governmental entities is scrutinized by the Indiana State Board of Accounts (SBOA) annually. The purpose of the review, more commonly known as an "audit," is to identify deficiencies in accounting practices of the units of government which control taxpayer money.

According to the independent accountant's report for the City of Delphi, "the city's management is responsible for the financial information presented herein. Our responsibility is to express an opinion based on our examination."

SBOA discussed the 2007 audit results with clerk-treasurer Janice Roe, mayor Randy Strasser and city council president Carolyn Pearson Oct. 7. The reviewers' notes indicated the officials concurred with the findings presented. Of those three officials noted, two were interviewed for this story. Strasser declined an interview.

The SBOA audit report for the City of Delphi can be found on the Internet on the SBOA Web site at www.in.gov/sboa, click on "audit reports."

SBOA expressed opinion about the apparent inadequate conditions of old outstanding checks, records, expenditures which equaled more than appropriation, payroll deductions, the customer deposit register, deposits, capital asset records, delinquent wastewater accounts, collection of amounts due at the airport, internal controls for hangar rent billing, receipting and recording the financial activities at the airport and airport board meetings minutes as insufficient.

Roe told the Comet Friday she firmly believes it is the right of the residents, taxpayers and the general public to know the condition of the city finances for which she is largely responsible.

"This should matter to the taxpayers," she said. "The public is due the best that we can do in that office."

"I take this job very seriously," she added.

Roe said that up to this time, although her office has been cited for some of the same deficiencies in past years, she has not closely monitored the posting, billing and recording of transactions. Roe explained posting is equal to documentation which is essentially a paper trail for all financial transactions handled by the office. She said she does no posting but that is expected to change.

Roe said after she received the formal review for 2007, she met with her staff to begin the plan for correction of all errors. She said there were things not being done in accordance with SBOA regulations and those procedures are now being instituted.

One issue cited paralleled a similar situation at the county level of past years. City fund balances did not match the bank balances by $41,172.75 on Dec. 31, 2007. Roe said although that amount is on the positive for the city, she is responsible to reconcile the deposits, the fund balances and the bank accounts monthly.

"I'm a lot smarter now than I was in 2004 when I was appointed to this position," she said. "Because this was the audit basically for the condition of the books at the end of 2007, I have to review all account balances for 2008 to avoid the same negative opinion from the SBOA next year. I am looking at each balance, fund by fund, to reconcile the accounts. This is the only way I can do it."

"And it will be done by the time the SBOA returns," she added.

Roe said she has faced some challenges her predecessor did not, such as monitoring investments. She said although her duties have increased, the office is managed, and physically resembles, the office she inherited. She said there is a need for her to be networked via computer with those she is responsible to monitor and a need for her to have some "space" to be able to perform tasks without waiting on customers and answering the telephones. She said she lacks sufficient time to perform all the duties she now understands are crucial to the health of city finances.

Another issue Roe raised was she was not clear who was responsible for financial accounting at the airport. The report indicated that the amount of delinquent hangar rentals totaled $7,922, which a similar comment was made for 2006. "Governmental units have a responsibility to collect amounts owed to the governmental unit pursuant to procedures authorized by statute…Among other things, segregation of duties, safeguarding controls over cash and all other assets and all forms of information processing are necessary for proper internal control." Roe said the former procedure was the airport board was responsible to monitor hangar renter and city property user contracts and leases. She said she has been the receiver of airport monies, but has not filed liens on personal property to ensure payments, which differs from the procedure for other city utility customers. She said she would discuss the issue with the council to determine the appropriate course of action.

Council president Pearson said city leaders have to be united without doing "a lot of finger-pointing." She said the issues needed to be addressed and needed to be corrected. However she said there was hardly anything in the report for the council to address.

Pearson said she would expect the council to support the clerk to find a resolution to the issues. She said one option would be to hire financial advisor to examine and assess the situation to make recommendations to resolve issues and to suggest safeguards.

"We want to make sure these things get corrected," she said. "This all has to be open and we as a council have to give some assurances the issues will be resolved."

"These issues are disturbing and are being addressed," Roe concluded. "Mistakes have been made. Corrections and clarifications are in the works."

Roe invited the public to contact her at (765) 564-2097 or visit her office to discuss the report and ask questions.