Commission leaders pledge cooperation

State auditors will revisit Little Cal commission audits

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Bruce Hartman, state examiner for the State Board of Accounts, said Thursday he has agreed to revisit auditing the Little Calumet River Basin Development Commission although past audits through 2007 raised no red flags.

But Hartman qualified past results by saying the type of audit previously conducted was a step below a full-blown audit. In that type of audit, Hartman said his office does not examine every single document in the commission's possession.

"It's a fine line you're walking during an audit," he said. "It's true their reports seem pretty mild. Does that mean there's nothing wrong? We're not saying that at all." On the other hand, Hartman said it plays well for the commission that nothing alerted auditors to look further.

"That being said, there are concerns being raised. We don't know whether they are valid or not," he said. "We have an obligation to check them out. We will be going in there in the very near future."

The State Board of Accounts typically proceeds guided by specific issues raised by those seeking the audit. Hartman said his office is in the process of obtaining some specifics. Until then, Hartman said it's uncertain whether a full-blown audit will be needed.

The audit request, relayed by letter from nine Northwest Indiana lawmakers Tuesday, is the first his office has received related to the Little Calumet River Basin Development Commission, he said. The lawmakers are seeking an audit of the commission's income and expenditures for the past five years. "I don't ever recall any communication on this before," Hartman said.

Learning of the lawmakers' audit request, the commission on Wednesday freely released the results of audits conducted from 2002 through 2007 as well as preliminary documentation of the spending of $14 million in state funding received during the past two years.

"We welcome this," commission Chairman William Biller said Thursday, responding to the potential of a new audit by the State Board of Accounts. "We believe that everything has been done correctly. The board believes the staff has followed all proper procedures by accounting requirements and criteria set by the Northwestern Indiana Regional Planning Commission over the years."

Dan Gardner, the commission's executive director, said the commission's spending is appropriate and documented.

"We will be 100 percent cooperative," he said, adding he believes confidence in the commission must be restored in light of recent events, which include U.S. Rep. Pete Visclosky, D-Ind., seeking Gardner's dismissal.

Also on Thursday, Visclosky issued a statement related to the commission's release of its audits and other documentation.

"It's about time the commission opened up its books to the public," he said in his statement. "Now we finally get to see what they're spending the taxpayers' money on, and how much of it is going to expenditures that do not advance the flood control project. I have not alleged any illegal actions at the commission, but I do believe it is guilty of irresponsibly shepherding public funds."

In his statement, Visclosky charged Gardner with failing in his mission, arguing Gardner has been the constant since the project was launched in 1990.

"The fact that he has not finished the project means that he has failed and should be replaced," Visclosky said.

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