One audit (2015) down, 2 to go for Jeanerette

Published 6:00 am Sunday, August 5, 2018

JEANERETTE — The town of Jeanerette has completed its 2015 government audit, one of three audits it must complete to get back in good standing with the Louisiana Legislative Auditor’s Office. 

The 2015 is the first of three required audits that Jeanerette failed to complete. The 2016 and 2017 audits are yet to be completed.

 The failure to produce an audit is what led the state’s Fiscal Review Committee to start the process of hiring fiscal administrator David Greer for Jeanerette in order to take control of town finances. 

The 2015 audit was incomplete because the auditing firm Garrety & Associates was unable to find a complete log of financial records from the town. 

To solve the problem, the auditing firm issued a disclaimer on the audit stating that a complete picture of Jeanerette finances for that year couldn’t be used. The Jeanerette Board of Aldermen and Mayor Aprill Foulcard planned to have a disclaimed audit for more than a year and after several meetings with the Louisiana Legislative Auditor’s Office. 

The disclaimer in the audit notes supporting documentation of the town was not in existence or found in an appropriate manner that was able to satisfy the auditors or general practices. 

“As a result of this matter, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded cash, receivables, payables and the elements making up the respective changes in financial position.”

There were, however, some deficiencies that the audit pointed out in Jeanerette government. Those included several occasions in which unrecorded items clearing the bank statements not being recorded in the town’s financial books and records and a failure to reconcile accounts from interfund activity and bank reconciliations that were not properly prepared on a timely basis or not in agreement with the general ledger balance. 

Auditors also found misstatements in financial records and a failure to account for a budget variance in excess of 5 percent incurred in the general fund, which is required by state law. Jeanerette government did not report its audit in a timely basis and funds restricted for improving drainage and drainage ways to control the mosquito population were transferred to the Utility Fund and used to satisfy general operating expenditures. 

The town also may have over collected ad valorem taxes necessary to repay its general obligation debt, according to the audit. Jeanerette government failed to publish official proceeding in its journal in the appropriate amount of time as well. 

The audit also mentioned a May 17, 2017, investigative audit issued by the Louisiana Legislative Auditor that focused did not manage the utility system properly, which contributed to the financial information being incomplete, inaccurate and unreliable. 

Jeanerette’s budget that was voted for adoption in 2014 also was not balanced, according to the audit. The budget adopted for the General Fund had expenditures that exceeded total funds available. d

Greer, who is overseeing Jeanerette finances, said at last month’s Board of Aldermen meeting the 2019 budget likely will be passed at next week’s meeting, and the next two audits are pending the finalization of the first audit.