Philly had $924M in accounting errors, according to audit

Office of the City Controller is investigating city's finances

Paul Kurtz
June 12, 2018 - 3:07 pm
City Controller Rebecca Rhynhart

Paul Kurtz | KYW Newsradio

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PHILADELPHIA (KYW Newsradio) — The Office of the City Controller released a report from the 2017 fiscal year that's highly critical of the city's accounting practices — namely, the $33 million in funds that are still unaccounted for. 

Imagine owning a business, making daily deposits, but never checking to see if the money went through. City Controller Rebecca Rhynhart said that was essentially what happened with the consolidated cash account for three years, beginning in 2015. 

"When the account was finally reconciled in June of 2017, the book balance showed $33 million more than the bank balance," she said. "And this is taxpayer money that neither the Finance Department nor the treasurer can account for."

RELATED: City officials lost track of $33 million

Her office also picked up another $924 million in accounting errors. 

The missing millions highlight a multitude of problems that gives Philadelphia an unwanted top ranking.

"Compared to the other top ten largest cities," said Rhynhart in a statement, "Philadelphia has by far the largest number of reportable internal control findings."

Rhynhart is calling on the Kenney administration to come up with a comprehensive plan and timeline to address the reports findings. 

Paul Kurtz | KYW Newsradio

"At the same time, my office's investigation unit is opening a fraud investigation into the missing money," she added.

"We hired an outside consultant," continued Finance Director Rob Dubow, "we hired additional staff, so we have a plan to correct the issue and to make sure that it never happens again."

Mayor Jim Kenney is also in the process of forming a Reconciliation Task Force. 

"That is money that was just booked in the wrong place," Rhynhart added. "Booked into the wrong fund. It's not missing. It's just extremely sloppy."