Audit Pinpoints Financial Problems at Lubbock City Hall - KCBD NewsChannel 11 Lubbock

7/15/04

Audit Pinpoints Financial Problems at Lubbock City Hall

For two years, the City of Lubbock has been the center of its own financial questions. Why were there misappropriation of funds and missing money? Just recently, an audit by a top notch Dallas auditing firm, KPMG, revealed more questions for the council. Why was previous city management reporting misleading financial reports, with wrong numbers and inaccurate amounts?

Councilman Gary Boren says they may never get those answers, "Now our goal is to fix things," he said.

For instance, the audit uncovered that the city had been reporting $173 million in liquid assets. That is money the city says it has available to spend. But the audit says the city really had $34 million available. Councilman Boren says previous staff or management was making a $139 million mistake.

Boren doesn't know why this was reported. Lubbock Power & Light was also in the middle of the audit. Questions came up about why transfers were being made by the City of Lubbock when LP&L did not have any money to transfer. Boren says that money was coming straight out of the city's general fund, money generated from taxes and the fees that you pay.

Also, the audit showed the city that management had also been improperly recording day-to-day cash balances using wrong numbers.

Auditing Committee Chairman Jim Brunjes says these findings are the reason why an independent auditing firm was needed in order to protect your tax money. "I think its important to know city staff understand the rules by which we want to operate with in as we go forward," said Brunjes.

So who is being held accountable? "There are 28 employees that are no longer with the City of Lubbock, some retired, died, moveed on and we brought in new people. Brought in a new city manager and new management team."

If that wasn't enough, on Thursday, the council rejected city management's financial report for 2002-2003. Boren argues the report was inaccurate based on KPMG's investigation. Now city management has to re-do the report.

  • Local News on KCBD.comNewsMore>>

  • Asian markets mostly lower after Wall Street gains

    Asian markets mostly lower after Wall Street gains

    Monday, May 21 2018 10:12 AM EDT2018-05-21 14:12:11 GMT
    Monday, May 21 2018 10:32 PM EDT2018-05-22 02:32:54 GMT
    (AP Photo/Mark Lennihan, File). FILE- In this May 10, 2018, file photo, the opening bell hangs above the trading floor at the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Monday, May 21.(AP Photo/Mark Lennihan, File). FILE- In this May 10, 2018, file photo, the opening bell hangs above the trading floor at the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Monday, May 21.
    Stocks are climbing on Wall Street and overseas after the U.S. and China said they made progress in trade talks.
    Stocks are climbing on Wall Street and overseas after the U.S. and China said they made progress in trade talks.
  • US demands wholesale changes in Iran policies post-nuke deal

    US demands wholesale changes in Iran policies post-nuke deal

    Monday, May 21 2018 8:52 AM EDT2018-05-21 12:52:00 GMT
    Monday, May 21 2018 10:32 PM EDT2018-05-22 02:32:30 GMT
    fasfdafasfda

    Secretary of State Mike Pompeo is laying out the Trump administration's strategy for constraining Iran's nuclear program and opposing its other behavior in the region following President Donald Trump's withdrawal...

    Secretary of State Mike Pompeo is laying out the Trump administration's strategy for constraining Iran's nuclear program and opposing its other behavior in the region following President Donald Trump's withdrawal from the 2015 nuclear deal.

  • Divided Supreme Court sides with businesses over workers

    Divided Supreme Court sides with businesses over workers

    Monday, May 21 2018 10:21 AM EDT2018-05-21 14:21:59 GMT
    Monday, May 21 2018 10:32 PM EDT2018-05-22 02:32:22 GMT
    The justices ruled 5-4 Monday, with the court's conservative members in the majority, that businesses can force employees to individually use arbitration to resolve disputes. (Source: Supremecourt.gov)The justices ruled 5-4 Monday, with the court's conservative members in the majority, that businesses can force employees to individually use arbitration to resolve disputes. (Source: Supremecourt.gov)

    A new Supreme Court will allow employers to prohibit workers from banding together to complain about pay and conditions in the workplace.

    A new Supreme Court will allow employers to prohibit workers from banding together to complain about pay and conditions in the workplace.

Powered by Frankly