Comptroller: Problems exist with city's books

But says Terre Haute is still "very solvent"

By Peter Ciancone/Tribune-Star

January 24, 2004

Terre Haute is "very solvent," said its new comptroller, Bill Long, but major problems still exist with the city's books.

"It has been a tradition in Terre Haute not to have any outstanding debt, and we don't," Long said Friday. Some long-term obligations exist within the Sanitary District but the city's accounts have enough money in them to continue operations while the problems are worked out, he said.

One big problem stems from late distributions of property tax revenue from the state. The reassessment delayed sending out bills, so local government entities have received neither the mid-2003 distribution or the second installment at the end of the year.

When it will arrive, nobody knows.

"If anybody knew, it would be in the paper, in the media," Long said.

The Terre Haute City Council approved a borrow-as-needed system through local banks for the city last year for up to $15.6 million. Thus far, the city has borrowed $6.8 million through the arrangement, Long said.

Many of the city's problems stem from the accounting software bought in 2001, Long said.

"If I had to come up with a detailed financial record right now, I couldn't do it," Long said. Even something as simple as processing wage and earning statements for employees has proven harder than anticipated.

A contract for a consultant to help the city solve the problems with the system will be in front of the Board of Public Works Monday.

The contract would bring BKD Technologies to Terre Haute to study the system. The first 40 hours of the contract would be billed at $185 an hour. Additional fees are to be determined.

The Works Board meets Monday to discuss the contract. Board President Bill Lower said he wasn't familiar with the company, which is located in Indianapolis.

"I would assume we would have some explanation Monday why this firm was contacted," Lower said.

Other problems stem from the complexity of the city's accounts and from situations left over from last year. The city maintains 17 bank accounts, Long said, and operates with strict rules about co-mingling funds.

Long added that he also will look at outside accounting help to reconcile bank statements, last done by H.L. Umbaugh more than a year ago.

"It will be a busy year," Long said.

Terre Haute bought new software in 2001 after almost two years of study and struggle with software that suffered from problems stemming from Y2K issues.

The new package, bought from Manatron, was supposed to be running in July 2002. Problems persisted throughout that year and into 2003, leading to the city Data Processing Board's involvement that summer. Members of that board suggested hiring an outside consultant to study the system and to provide a way to solve the problems.

Manatron no longer services the software, having been sold out to another supplier in 2003.

Tribune Star

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