SAUK VILLAGE FINANCIAL MESS - Politics over Progress

This is the second in a series of revelations of the 2014-15 Audit Report.  The Village was delinquent in filing their audit with the Illinois Comptroller (due December 26, 2015).  The Audit report (see attached link at the end of this report) reveals the status quo with the Village finances continues with 3 years into David Hanks’ Administration.

SAUK VILLAGE | Instead of discussing ways in which his administration can address the serious issues with the Audit Report, David Hanks cancels yet another Village Board Committee of the Whole meeting scheduled for Tuesday March 1^st.  He and Trustees he supports continue politics over progress, instead of asking questions and seeking solutions to the vast problems within the Audit.   Trustees Rosie Williams, Lynda Washington and Ed Myers continue to support the inaction by Hanks and his administration.

The Village Treasurer James Griegel is under an indictment by the Will County States Attorney and is under a Federal Investigation for alleged misappropriation of funds for the Police Pension Fund remains on the taxpayer’s payroll!  Griegel allegedly took “thousands of dollars” from the Police Pension Fund.  This has happened under the watch of Mayor David Hanks and the complete financial mismanagement which the Trustees he controls (Williams, Washington and Myers) enable him to do. 

The recent audit report has revealed 19 material weaknesses.  A material weakness in a audit is a “deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Village’s financial statements will not be prevented, or detected and corrected on a timely basis.  We (the auditors) consider the following deficiencies in the Village’s internal control to be material weakness”

Excerpt from the 2014-15 Audit: 

2.       Lack of Segregation of Duties (Repeated from Prior Year)

Similar to many other organizations of the Village’s size, substantially all accounting functions of the Village are performed by a single individual.  As a result, some of the aspects of internal accounting control which rely upon adequate segregation of duties are missing in the Village and a general lack of internal controls exists, increasing the risk of fraud or errors may occur and remain undetected.

 

Nothing was done to correct this Material Weakness from the prior year’s audit report, and we see what the lack of oversight of taxpayers’ dollars can do with the Village Treasurer scandal.
 
An expert on Illinois Municipal Finance, intimately familiar with Sauk Village’s financial history reviewed the Village’s audit and management letter and stated the following:   “I don't believe any of these are just normal issues.  In a well run environment, none of these issues should occur.  There should always be a system of "double-check" in order to eliminate any possibility of wrongdoing.  We have many of these safeguards in place to prevent fraud and provide transparency with taxpayer’s money.   What I don't get is the lack of attention being paid to account receivables.  What exactly does everyone working at Village Hall do?  Why is it that the Finance Director has no backup from existing staff?

***CLICK HERE*** FOR A FULL COPY OF THE AUDIT REPORT

SAUK VILLAGE FINANCIAL MESS - Your Tax Dollars

This is the first in a series of revelations of the 2014-15 Audit Report.  The Village was delinquent in filing their audit with the Illinois Comptroller (due December 26, 2015).  The Audit report (see attached link at the end of this report) reveals the status quo with the Village finances continues with 3 years into David Hanks’ Administration.

SAUK VILLAGE | While David Hanks praised Trustees Rosie Williams, Lynda Washington and Ed Myers for voting for unbalanced budgets in a social media post.  “Thankfully, last year the majority of the board (Williams, Washington and Myers) passed a worse-case scenario budget” Hanks stated on his post.  Residents and taxpayers should be steaming mad at how the Village’s finances are handled, these are your tax dollars.  Not necessarily what they’re spending your money on, but the manner in which it is handled by David Hanks and his administration.  Hanks proposes yet another “worse-case scenario budget” and plans on presenting a budget which he states “may reqire(sic) more cuts than last year”.

Trustee Derrick Burgess voted against the budget and appropriation ordinances presented by Hanks calling it once again “irresponsible and unbalanced”.  Trustees Cecial Tates and Kelvin Jones also voted against the Budget and Hanks voted to break the tie.  With that said, over $1 million dollars has been “borrowed” during the last year to keep the village’s accounts flush and to make the village's payroll.  All that despite Hanks claiming that the budget was balanced.  The Village’s water fund and several other funds have been tapped to pay the bills and not repair the infrastructure or other intended purposes resulting in interfund borrowing.

The recent audit report has revealed 19 material weaknesses.  A material weakness in a audit is a “deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Village’s financial statements will not be prevented, or detected and corrected on a timely basis.  We (the auditors) consider the following deficiencies in the Village’s internal control to be material weakness”

1-      Audit Adjustments (Repeated from Prior Year)

Numerous adjusting entries were identified, proposed to, and accepted by management, and recorded in the Village’s financial statements, as of and for the year ended April 30, 2015.  Several of the adjustments were material to the financial statements, individually and in the aggregate.  The adjustments affected various asset, liability, deferred inflow, net position/fund balance, revenue, expense/expenditure, and other financing sources and uses accounts.  We recommend that the finance department (Mohan Rao) reconcile all account balances to the supporting schedules, document and other sources of information in a timely manner, in order to ensure that accurate financial reporting, during the year and at year end is achieved.  Those procedures should include but not be limited to the following:

·         Review of accounts receivable detail ledgers to determine the adequacy of the allowances for doubtful accounts.

      ·         Reconciliation of prepaid items to supporting details

·         Allocation of property tax receipts to individual funds based on the appropriate tax levy extension for each distribution.

·         Reconciliation of unbilled utility revenue balances to detail ledgers

·         Grants recorded in an appropriate manner based on the terms of the grant agreement.

·         Reconciliation of other tax receipts to state and other taxing authority reports

·         Review of construction, equipment, and other invoices to determine propriety of capitalization, depreciation and accrual of retainage of a liability.

·         Reclassification of held checks as a current liability.

·         Reconciliation of accounts payable and accrued compensated absences balances to supporting details.

·         Reconciliation of recorded debt principal and interest payments to maturity schedules.

·         Proper recording of debt issuance.

·         Reconciliation of interfund transfers in and transfers out, to ensure that all interfund transfers are properly recorded in the transfer accounts in the general ledger.

An expert on Illinois Municipal Finance, intimately familiar with Sauk Village’s financial history reviewed the Village’s audit and management letter and stated the following:   “I don't believe any of these are just normal issues.  In a well run environment, none of these issues should occur.  There should always be a system of "double-check" in order to eliminate any possibility of wrongdoing.  We have many of these safeguards in place to prevent fraud and provide transparency with taxpayer’s money.   What I don't get is the lack of attention being paid to account receivables.  What exactly does everyone working at Village Hall do?  Why is it that the Finance Director has no backup from existing staff? What does this so called Village Administrator or the Mayor do? (by the way the Finance Director  seems to have a lot of authority according to this report)?  This report is pathetic!”

 

 

***CLICK HERE*** VILLAGE AUDIT REPORT LINK

FINANCES GET LITTLE ATTENTION BUT PUBLIC COMMENT TAKES CENTER STAGE

SAUK VILLAGE |  The Village Board met last night and were presented with the Village's Audit Report.  The audit showed few surprises and virtually no change in financial position of the Village according to the Susan Jones of Miller, Cooper & Co LTD of Deerfield, Illinois.

Trustee Derrick Burgess asked about the issuance of immediate checks and then having them approved after the fact by the Village Board.  Susan Jones said that is not common and that there should be few exceptions to for immediate checks, payments should go through the normal payment process.  Burgess also asked about borrowing funds from the water fund or other funds, the auditors said that there appears to be adequate documentation and general ledger information, however, the Village Board should vote to borrow money according to Illinois Statute and in some cases that has not happened.

Trustee Cecial Tates said he only had a matter of minutes to review the audit report and asked if they would be returning so that he could review the report and prepare his questions.  Mayor David Hanks said that any questions could be directed to Village staff at a future date. 

While the audit review was underway, Trustees Lynda Washington, Rosie Williams and Ed Myers sat mute for the twenty minute time it took for the auditors to present the audit.  Each of them did, however, chime in when it came to Public Comment and each had their own opinions and comments.  Rosie Williams suggested that the Ordinance for the public comment period be no longer than 60 minutes, but the discussion of the matter took 1 hour 13 minutes.

Burgess merely wanted the Village Board to get rid of its current restriction that says the public can only comment on "agenda items only".  "Why should we restrict what the public has to say.  We do have a First Amendment and the Illinois Attorney General has issued binding opinions that state public bodies cannot restrict the content for public comment" Burgess said following last nights meeting.  Burgess does not want residents intimidated when they come up for Public Comment by threats of arrest or removal from the meeting

Myers and Williams, who comprise the Ordinance Committee will once again take up the matter at a Special Meeting on Friday.  Williams, who was not present at the Village Meeting Tuesday night was on the telephone during the entire time will apparently be required to attend in person Friday, as someone attending a meeting by conference call cannot constitute a quorum according to state law.

"Why is it that public comment take more time and it seems every one of the trustees who remained silent during the auditor's presentation all spoke up on public comment" Tates said after the meeting.  "It's interesting to see where their priorities are".

During the Public Comment period of the meeting Bernice Brewer asked why Hanks has not removed the Village Treasurer James Griegel who admitted to purchasing heroin for sex and allegedly admitted to embezzlement from the Police Pension Fund.  Hanks' response "we're not talking about the Village Treasurer".

VILLAGE BOARD VOTES DOWN RESTRICTING PUBLIC COMMENT

SAUK VILLAGE |  After months of back and forth and delays by Mayor David Hanks, the Public Comment Ordinance finally had a vote, after over 30 minutes of debate, and the vote failed 4 to 2.  Trustees claim that the recommendations by the Ordinance Committee were just too restrictive and did not go far enough to permit the public to comment.  Trustees also said that it essentially this was the same ordinance already on the books. 

Originally Trustee Cecial Tates introduced the idea of expanding public comment during Village Board Meetings to any topic on the agenda.  Currently the rules only permit Public Comment on "agenda items only" during the Village Board meetings held on the 2nd and 4th Tuesday with Hanks routinely telling residents "that is not on the agenda" and that they he would not permit the question or comment to be stated.  There are currently two pending complaints filed with the Illinois Attorney General regarding Sauk Village's Public Comment period which are still under review.  Another recent incident of the public getting shot down was School District 168 Board President Philip Bazile who was told he could not address the Village Board concerning matters involving the School Board.

Trustee Derrick Burgess introduced the original Ordinance to the Trustees about six months ago.  The ordinance which Burgess introduced at that time merely did away with the restriction which only allowed public comment on agenda items only.   "Look the Attorney General and the Open Meetings Act laws are clear, they state that the public has a right to comment during our Village Board meetings.  We do not have a legal right to restrict public comment" Burgess said following the meeting. 

Trustees Burgess, Tates and Kelvin Jones were joined by Lynda House in voting against the measure while Trustees Ed Myers and Rosie Williams (who voted by phone) supported the move which virtually kept the same ordinance in place.  The ordinance which failed did add new provisions imposing  penalties to the public who violated the ordinance.  "I do not believe people want to be arrested for coming to a Village Board meeting, speaking their mind because it violates David Hanks' petty, capricious and arbitrary rules" Tates said after the meeting.

Burgess offered an alternative Ordinance, which took the Village's original ordinance and merely did away with the language "on agenda items only".  Burgess said that it was the exact same ordinance which was drafted by the village's current Attorney when it was originally passed.  Tates suggested that since the issue is on the agenda the Village Board should vote on the Ordinance offered by Burgess.  Village Attorney Matthew Burns of Odelson and Sterk said that the vote on Burgess' proposed Ordinance would not be proper because it was not on the agenda.  Tates disagreed and said that it's the same ordinance and same action.  "If one Ordinance does not pass and the other does then there is no violation of the law" Tates said.  Burgess wants the matter on the Village Board's Committee-of-the-Whole meeting for next week with a vote to follow the week after.

Hanks believes that the Ordinance needs to go back to the Ordinance Committee.  Burgess said it does not that the Board does not accept their recommendation.  "The Board voted 4 to 2 and does not accept the recommendation of the Ordinance Committee, why send it back to them other than to delay another vote and delay the public's questions.  What is he (Hanks) afraid of"? Burgess said following the meeting.  Myers agreed that the Ordinance Committee already looked at the matter gave their recommendation.

"Many public bodies do not need to adopt the recommendations of committees, this Village Board is no different.  We need to allow the public the opportunity to speak to their elected officials.  They have delayed this, and put more road blocks to deny the public their right to speak" Tates said following the meeting.

THERE'S A RUMBLING IN SAUK VILLAGE...

OPINION EDITORIAL - There's a rumbling in Sauk Village!  Indeed a rumbling!  Many voters are fed up with Sauk Village's Mayor David Hanks, Village Clerk Debbie Williams and the treacherous-trio of Bobble Headed Trustees Rosie Williams, Lynda Washington and Ed Myers!  This was easily seen in the 2015 election as not a single person endorsed and supported by David Hanks or Debbie Williams won election to the Village Board!  Nor did a single candidate supported by Hanks and Williams garner even 40% of the vote in 2015!  The voter apathy was a telltale sign of the exasperation of the residents of Sauk Village over the abject failure of the Hanks/Williams administration.   Somehow this group have gotten the idea that the Village is their own personal fiefdom.  

Many residents, including long-time residents, are fed up with the abuse of their authority, the political theatrics and circus atmosphere and are sick and tired of paying the Mayor and Village Clerk a salary when meetings are routinely cancelled and the business of the Village is not getting done in an open and transparent process.   Keep in mind, these individuals were elected to hold OPEN and PUBLIC MEETINGS, identify issues facing Sauk Village, share solutions to those issues and vote IN PUBLIC for the solutions they have, reach out and compromise and working together!  Yet the residents and taxpayers do not see this happening from this administration and his allies!  These individuals are not lobbyists supporting one group or another, they were. elected to represent all community members.  Clearly they have failed in their duty and their oath!    If the residents want to attend a show or a sporting event they could very well go to the movies or a sporting event.  Seeing the childlike theatrics of Hanks with his condescending attitude and contempt for Village Trustees he does not agree with is outrageous!  Hanks' predecessor never conducted himself in such a childlike manner,  and I never agreed with how he handled village business or issues facing Sauk Village. 

Supporters of David Hanks, Debbie Williams and the treacherous-trio of bobble heads believe that cutting Village Meetings to only two per month; a 40% reduction, is a "cost savings initiative"!  While I agree it will reduce the Village Trustees stipend, it would only be fair that the Mayor and Village Clerk should "give back" the identical percentage of their salaries.  Traditionally, Trustees are paid for 5 meetings per month (2 board committee, 2 board meetings and 1 trustee chaired committee) at $125 per meeting that they "actually attend" (emphasis added on "attend") for a total annual savings of $18,000.  So, if the Mayor and Village Clerk volunteered to "give back" 40% of their salaries, Hanks reduction in pay would save taxpayers some $7,600 per year and Williams reduction in pay would save the taxpayers another $6,800 per year saving the Village a total of $32,400!  All of which could be given to Parks and Recreation for programs! BUT!  Now we would see if these two really cared about "cost savings".  

Village Board meetings are business meetings and should not be used as a bully pulpit for Hanks and Williams to pontificate nor an acting stage for Lynda Washington's play!  REALLY A PLAY?  Hanks and Williams supporters believe that the 3 Un-Trustees that don't support Hanks should not be paid because they offer no viable solutions for the Village's problems. My question to them is:  What "viable solutions" have David Hanks, Debbie Williams, Rosie Williams, Ed Myers or Lynda Washington proposed?  Nada, None, Zilch!  The Village's General Funds Deficit continues to grow, the Village's finances are an absolute mess, David Hanks' treasurer is indicted and he's still on the payroll, Village Employees continue to file grievances and lawsuits that are instigated by David Hanks himself!  

Hanks has had total control of the Village Board and the Village since 2012...What improvements have been realized in the Village since then?  Where are the solutions to these problems that he and his supporters constantly squawk about?   For some strange reason, they blame the 3 Un-Trustees.   So who is to blame for Sauk Village's steady decline?  David Hanks, Debbie Williams and the treacherous-trio of bobble heads!    

You better believe there is a rumbling in Sauk Village and the taxpayers are definitely restless!  The residents' of Sauk Village signed and filed a petition of NO CONFIDENCE in this administration, the very first ever filed against a Mayor by the People of Sauk Village!  The lack of confidence contributed to the tidal wave that swept two bobble heads out of office in 2015.  As this administration's antics continue into 2016, they can expect a tsunami in 2017 that is aimed to sweep this garbage out of office and give the residents of Sauk Village a CLEAN START and a chance at a new beginning!    

 

EDITORIAL NOTE:  I would like to thank the supporters of David Hanks and Debbie Williams for inspiring this editorial.  A loyal reader sent me a diatribe posted on social media.

MORE SHENANIGANS FROM HANKS & WILLIAMS

DEBBIE WILLIAMS

OPINION EDITORIAL
Well it seems the drama at Village Hall continues as the business of the Village is put on hold until the administration figures out which lie they want to tell to the people.  As many residents have begun to say "2017 cannot come soon enough".  We agree!

Tuesday night's Village Board Committee of the Whole meeting was canceled by order of Mayor David Hanks because they are "looking into" an allegation that the agenda for the meeting was not posted 48 hours before hand as required by law.

If David Hanks and Debbie Williams knew for certain that they were in compliance with State law, why cancel the meeting? 

Here's the answer!  They are afraid of answering the people’s questions!  

Why is it that Debbie Williams cannot post an agenda during normal hours of business?  Why is it that after being in office for now 7 years, Debbie Williams cannot post the agenda on the Village's website all by herself and the taxpayers have to pay someone else to post it?  Why is it that Debbie Williams "posts" the agenda for public meetings on Sunday evenings in a locked vestibule where the public has no access and not during normal business hours?  If Debbie Williams cannot get the job done, then perhaps the $100,000 per year "consultants" that David Hanks hired can get the job done in a timely manner during business hours?  Why is the Village Clerk paid a salary if she’s not getting the job done? 

Why is it that the Village Board agendas are not posted and ready for the Trustees and the public to view by Friday at noon?  There was nothing on this last agenda that should have been last minute, in fact there were only three items on the agenda which were routine items dealing with abating bonds and nothing else.

These two are so busy playing politics and not getting their jobs done that they would rather hold up the business of the people and the progress of the Village!  Stop blaming others because you cannot or refuse to do your job because you're too busy playing politics.  Stop playing politics!  The people of Sauk Village deserve better!

Here’s a “cost savings initiative”  for every meeting not scheduled or not attended on a Tuesday or one that is cancelled have David Hanks write a check to the Village for $365.48 (1 week's pay) and the Debbie Williams $326.92 (1 week's pay)!  That would save the taxpayers $692.40 in addition to the Village Trustees stipend of $750.00 (Trustees are paid $125 per week for meetings that they "actually attend") that would bring this cost savings initiative to $1442.40 for each meeting David Hanks and Debbie Williams decide to cancel!  After all fair is fair!  David Hanks and Debbie Williams depend on your tax dollars to pay their bills for their households so don’t hold your breath Sauk Village!