Citizens for Fiscal Reform (CFR), a grass-roots Carpentersville-based citizens action group, has recently acquired new information in regard to the ongoing fiscal quagmire in the Village of Carpenters
May 19, 2004 (Press Release) --
PART I
Carpentersville, Illinois - Citizens for Fiscal Reform (CFR), a bipartisan grass-roots Carpentersville-based citizens action group, has recently acquired new information in regard to the ongoing fiscal quagmire in the Village of Carpentersville. CFR believes that this pitiful financial mess is caused by a number of factors, including unqualified, incompetent Village staff as well as gross oversight and failure to perform mandated elected duties by the majority of Carpentersville trustees.
Information provided by internal Village sources strengthens our belief that the rampant incompetence that permeates all levels of our Village government may, in fact, be bordering on criminal misconduct.
The information presented here was obtained from sources in Carpentersville Village government. CFR was provided detailed information regarding numerous cases of financial mismanagement, failure to provide investment protection protocols, failure to account for state Motor Fuel Taxes, failure to properly account for millions of state loan dollars for Village sewage treatment plant work, and a host of other serious failures.
An except from the independent auditor's report for the fiscal year ending April 30, 2000, issued by Friedman Eisenstein Raemer and Schwartz of Chicago, provides insight into the nature of this fiscal crisis.
"As more fully described in Note 2 to the general purpose financial statements, adequate accounting records were not maintained for the following: Agency fund liabilities totaling approximately $2,000,000, prior year payables totaling approximately $1,000,000 and General Fund accounts receivable totaling approximately $200,000, In addition, due to inadequate internal controls over cash receipts, we were unable to satisfy ourselves about amounts reported for revenues for the year ended April 30, 2000. Finally, in January 2000, the Village's computer system failed and began generating erroneous data. The impact of this failure on the Village's financial position and results of operations cannot be determined."
The audit for fiscal year ending April 30, 2001, conducted by Selden Fox of Oakbrook, Illinois, is amplified by our internal sources. Selden Fox noted the following in reference to investment policy: "The Finance Director has sole discretion, with no approval or oversight process, to purchase and sell investments and make wire transfers. Investments can be moved from one financial institution to another by the finance department without the knowledge of the Village Manager or Board of trustees, as no formal reporting process is in place."
CFR's internal Village source provided additional information on this topic. It seems that the individual who is responsible for this questionable investment process is a completely untrained amateur. This individual reportedly receives some $4,000 to $5,000 annually, in addition to salary, for these questionable efforts.
CONTINUE TO PART II
Carpentersville, Illinois - Citizens for Fiscal Reform (CFR), a bipartisan grass-roots Carpentersville-based citizens action group, has recently acquired new information in regard to the ongoing fiscal quagmire in the Village of Carpentersville. CFR believes that this pitiful financial mess is caused by a number of factors, including unqualified, incompetent Village staff as well as gross oversight and failure to perform mandated elected duties by the majority of Carpentersville trustees.
Information provided by internal Village sources strengthens our belief that the rampant incompetence that permeates all levels of our Village government may, in fact, be bordering on criminal misconduct.
The information presented here was obtained from sources in Carpentersville Village government. CFR was provided detailed information regarding numerous cases of financial mismanagement, failure to provide investment protection protocols, failure to account for state Motor Fuel Taxes, failure to properly account for millions of state loan dollars for Village sewage treatment plant work, and a host of other serious failures.
An except from the independent auditor's report for the fiscal year ending April 30, 2000, issued by Friedman Eisenstein Raemer and Schwartz of Chicago, provides insight into the nature of this fiscal crisis.
"As more fully described in Note 2 to the general purpose financial statements, adequate accounting records were not maintained for the following: Agency fund liabilities totaling approximately $2,000,000, prior year payables totaling approximately $1,000,000 and General Fund accounts receivable totaling approximately $200,000, In addition, due to inadequate internal controls over cash receipts, we were unable to satisfy ourselves about amounts reported for revenues for the year ended April 30, 2000. Finally, in January 2000, the Village's computer system failed and began generating erroneous data. The impact of this failure on the Village's financial position and results of operations cannot be determined."
The audit for fiscal year ending April 30, 2001, conducted by Selden Fox of Oakbrook, Illinois, is amplified by our internal sources. Selden Fox noted the following in reference to investment policy: "The Finance Director has sole discretion, with no approval or oversight process, to purchase and sell investments and make wire transfers. Investments can be moved from one financial institution to another by the finance department without the knowledge of the Village Manager or Board of trustees, as no formal reporting process is in place."
CFR's internal Village source provided additional information on this topic. It seems that the individual who is responsible for this questionable investment process is a completely untrained amateur. This individual reportedly receives some $4,000 to $5,000 annually, in addition to salary, for these questionable efforts.
CONTINUE TO PART II
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