Crit Luallen, Kentucky State Auditor, announced today the completion of her office's examination into utility account discrepancies within the City of Providence in Webster County. In an updated letter sent to current Providence Mayor Eddie Gooch, the Auditor informed the city that the "discrepancy between customer payments and bank deposits for the period January 1, 2001, through March 16, 2004, totaled $900,721."
"This is a significant examination that identified over $900,000 that should have been deposited into the accounts of the City of Providence. This is a serious situation that impacts the City's financial condition. Law enforcement and prosecutors continue to investigate." Ms. Luallen said.
A previous review, which began the investigation, was released on April 6. That report found a discrepancy of $334,736 between utility payments credited to utility customer accounts and deposits made to the City's utility bank accounts for the period of January 1, 2003, through March 16, 2004. The updated review, also conducted by the Auditor's Division of
Examination, expanded the scope of the work to include the preceding two years for which documentation was available.
The discrepancies detailed in the updated letter totaled $283,003 in 2001 and $282,982 in 2002. Adding the previous amount reported, the total utility receipts not deposited in Providence accounts were $900,721.
In addition to reviewing 2001 and 2002, the Auditor's office reviewed the six months since the last report. During that time, March 16, 2004 through September 30, 2004, no discrepancies were identified.