Parish council gets good marks on 2014 audit

In a recent audit, the St. Mary Parish Council had nine funds that weren’t amended to show an increase in actual expenditures or decrease in revenues compared to the budgeted amount, and, additionally, three funds in the budget showed deficits. Still, auditors gave a favorable review of the parish’s financial statements.
Pitts & Matte CPA firm performed the audit on the St. Mary Parish Council’s primary government financial statements for the year ended Dec. 31, 2014. The Louisiana Legislative Auditor released the report this morning on its website.
Auditors issued an unmodified opinion, or the most positive opinion possible, on the Parish Council’s primary government basic financial statements, the audit report said.
Auditors discovered a noncompliance finding in the audit showing several of the parish’s individual funds didn’t go through the necessary budget amendment process required when at least a 5 percent difference exists between actual and budgeted amounts, the report stated.
Although the parish made adjustments for payables and receivables at the end of the year, adjustments were not made in the interim period, the report stated.
Auditors recommended the council “should fine tune its ongoing budget monitoring program to periodically consider accruals for major revenues and expenditures.”
The Parish Council didn’t amend six funds in the budget though actual revenues were less than budgeted revenues by at least 5 percent, the audit report said.
The General Fund had a 7.7 percent budget variance comparing the $6,977,905 actual revenues to the $7,564,055 budgeted revenues. The Job Readiness Fund showed a 7.8 percent variance of the $60,018 actual revenues to the $65,100 budgeted revenues. The Jessie B. Hayes Memorial Boat Landing Fund had a 20.4 percent budget variance of the $1,990 actual revenues compared to the $2,500 budgeted revenues.
The DWI Court fund had a 9.3 percent variance of the $108,867 in actual revenues to the $120,000 in budgeted revenues. OJP Enhancement Grant revenues showed a 56.5 percent variance with actual revenues coming in at $38,639 compared to the $88,900 budgeted amount. Claire House in Bayou Vista had an 11.1 percent budget variance with actual revenues of $612,519 being lower than the $688,937 budgeted.
Also, three funds in the budget were not amended though actual expenditures exceeded budgeted expenditures by 5 percent or more, the report stated.
The Juror Compensation Fund had a 102.1 percent variance comparing the $84,871 of actual expenditures to the $42,000 in budgeted expenditures. The Job Readiness Fund showed a 17.6 percent variance comparing the $104,382 in actual expenditures to the $88,790 in proposed expenditures. Local Law Enforcement Block Grant Fund No. 2 had a 10.1 percent variance comparing the $21,000 of actual expenditures to the $19,065 in budgeted expenditures.
Parish officials stated that they will continually monitor budgeted and actual amounts throughout the year and strive to project amounts as close as possible to anticipated year end results during the budget amendment process.
“With the lead time required for ordinance introduction and layover, as prescribed in our Parish Charter, it is sometimes difficult to anticipate revenues and expenditures through year end,” parish management stated.
Parish officials will continue to monitor budget variances on a monthly basis “and budget adjustments will be recommended to the council when variances exceed the percentages as specified in the budget ordinance,” management said in the report.
The auditor also found that three special revenue funds had deficit fund balances, which violates a state statute, the report stated.
Those special revenue fund deficits included DWI Court, $8,858; Local Law Enforcement Block Grant Fund No. 2, $1,233; and OJP Enhancement Grant Fund, $1,549.
Auditors recommended a detailed study should be made to develop additional or alternative funding sources or to consider reallocating existing funding.
Parish management said the fund deficit in the DWI Court Fund will be funded either by future revenues or a transfer from the DWI Patient Fee Fund. The fund deficits in the Local Law Enforcement Block Grant Fund No. 2 and the OJP Enhancement Grant Fund will be funded by future revenues, management stated.
The audit found one material weakness in internal control, which was that Fairview Treatment Center in Bayou Vista did not pursue collection on unpaid patient receivables, the report stated.
In the report, auditors said the center accumulates charges associated with patient treatment to individual patient accounts and posts the related payments to the accounts as received from the patient or a third-part payer, such as Medicaid or insurance companies.
However, the center did not attempt collection for any amounts that remained unpaid, the report stated. The center also charges a $60 intake fee to all non-Medicaid patients but has not implemented a process to monitor any unpaid balances, the report stated.
As a result, the center’s allowance for uncollectible balances is 90 percent of the amounts due from patients.
Parish management responded saying that Fairview Treatment Center has developed a new policy regarding the recording, processing and collection of patient receivables.
“We are working closely with management of the center to ensure collection attempts on unpaid balances are pursued on a timely basis,” parish officials said in the report.