Sunday, November 23, 2003

By Marcus K. Garner
Staff writer

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Blue Island has been breaking the law since 2001 by not publishing its last three treasurer's reports on time and by missing deadlines to send its annual audit to the state, state and county officials said.

Only a glitch in Cook County's computer system has stopped the county from withholding property tax money, a county official said.

City officials blame the situation on technical difficulties, citing everything from Y2K compliance upgrades to a citywide computer overhaul.

"With the accounting system we had, there were lot of problems," city hall chief of staff Mike Anastasia said. "We had to replace it.

"Our audits had been late dating back to 2000. The audits were late, so the treasurer's reports were late."

Illinois municipal code requires cities to publish a formal treasurer's report — outlining the city's use of public funds — in a newspaper within six months after the close of the fiscal year, which ends April 30 for Blue Island.

The 2001 and 2002 treasurer's reports were published in Thursday's Daily Southtown, and the 2003 treasurer's report should have been published by Oct. 30, but has not.

According to the state's Public Funds Statement of Publications Act, a municipality with between 500 and 500,000 residents must publish an annual treasurer's report in an area newspaper no later than six months after the fiscal year ends. The report shows, among other things, the amount and general source of all money received, the name of all vendors paid more than $2,500, the amount of the city payroll and the names and salaries of all individuals on the city payroll.

Failure to publish the treasurer's reports within the prescribed time carries two penalties. A circuit judge can fine the city clerk or city treasurer between $25 and $100 and the county treasurer can withhold property tax payments. If that action is taken, the city's payroll and operating expenses can be jeopardized.

Property tax payments would be released only after the city complies with the code, county officials said.

Bob Benjamin, spokesman for the Cook County treasurer's office, said his office has sent "repeated letters" requesting Blue Island's 2001, 2002 and 2003 reports but has been unable to levy any penalties against the city.

"The county mainframe cannot accommodate withholding distribution of revenues," he said. "We've been trying to work that out."

Blue Island violated another state code by not submitting a copy of the city audit to the state comptroller within six months of the close of the fiscal year. Comptroller's office spokesman Allen Henry said the city was given a deadline of Dec. 26, 2002 — nearly eight months after the end of that fiscal year and two months past the due date — to provide a copy of the 2002 audit.

It was finally submitted in June 2003.

Anastasia said former Blue Island financial director Linda Martin, who resigned in May, told state officials about the computer problems that were causing the delay.

But the explanation came only after the state comptroller's office contacted the city, Henry said.

"They didn't send it in until June 9, 2003," he said. "They were sent a delinquency notice March 7, 2003."

Henry said Blue Island's 2003 audit was due Oct. 27, but the state has yet to receive it. The state has not yet sent out a delinquency notice.

There is no penalty for the late filing of city audits with the state, Henry said.

Anastasia said a draft of the 2003 audit is on his desk. It won't be "as late as the others," he said.

Daily SouthTown

-- Anonymous, November 23, 2003