Audit: Berwick didn't collect some taxes

The town of Berwick didn’t collect all the property taxes people owed for the 2013 tax year, and also couldn’t document the way sales tax proceeds are being used, according to the town’s most recent audit report. The audit was released Monday on the Louisiana Legislative Auditor’s website.
Kolder, Champagne, Slaven & Company LLC performed the audit for the year ended Sept. 30, 2014.
In its management letter, Kolder, Champagne, Slaven & Company noted the town did not collect all ad valorem taxes for the tax year 2013 and did not attempt to seize and advertise for sale the property associated with the unpaid taxes.
Town officials said they will review the town’s policies and procedures relative to unpaid ad valorem tax seizures and sales and consult with legal counsel regarding necessary procedural changes for the town to appropriately fulfill its fiduciary responsibility, the report stated.
Additionally, the town couldn’t provide support for the purpose of the use of sales tax proceeds, according to the audit.
Management said the town will separately account for the proceeds of the 0.3 percent and 0.5 percent sales taxes, and on a monthly basis, document and authorize the necessary transfer from each tax source based upon the previous month’s activity.
The auditor also found that the accounting and financial functions were not adequately segregated, according to the report.
Failure to adequately segregate accounting and financial functions increases the risk that errors and/or irregularities including fraud and/or defalcations may occur and not be prevented or detected.
Due to the size of the operation and the cost-benefit of additional personnel, it may not be feasible to achieve complete segregation of duties, the auditor stated. No management response was deemed necessary.
The auditor issued unmodified opinions on the financial statements of the town’s governmental activities, business-type activities, each major fund and the aggregate remaining fund information, according to the audit.
Additionally, the opinion on the aggregate discretely presented component unit was adverse because the town issues primary government only financial statements, the auditor stated.
The town had a budget variance in excess of 5 percent was incurred in the Sales Tax Liquid and Solid Waste Fund, according to the audit. Town officials responded by stating that the town will more closely monitor budget to actual comparisons and adopt the necessary amendments to insure compliance with state statute.
During the town’s audit of the financial statements of the town of Berwick as of Sept. 30, 2014, and for the year then ended, town management noted certain areas in which the efficiency and effectiveness of the operations and/or compliance with certain laws and regulations could be improved. Management said its comments were not intended to reflect upon the ability or integrity of the town’s personnel.
The town may not prevent or detect compliance violations due to over expenditure of the appropriated budget, and/or errors or irregularities on a timely basis.
Auditors recommended that the town periodically compare actual activity to budgeted amounts and adopt budgetary amendments as necessary to cause compliance with state law.