Road program makes a big splash in parish audit

St. Landry Parish Government collected about $6.9 million from a 2 percent sales tax in 2014 that funded the Smooth Ride Home program.
The first-time sales tax collection for the road program was reported in an audit accepted Wednesday by the St. Landry Parish Government.
Steve Moosa, CPA, of Darnall, Sikes, Gardes & Frederick, presented the audit, which gave an overall unmodified opinion for the year ended Dec. 31, 2014.
The audit presented nine findings, which ranged from how unclaimed livestock are handled to miscodings.
But it was the new road revenue that marked a significant change for the parish’s finances.
Total assets at the end of 2014 were about $70 million, up from $8.3 million at the end of 2013.
Moosa said the difference is the road money from the bond issue.
Moosa presented an analysis that shows in 2015, the bond maintenance for the road program is $5.32 million and the sales income is projected at $6.85 million, a difference of about $1.5 million.
Bill Fontenot, parish president, said the surplus will be put back into the road program. When the surplus reaches $6 million to $8 million some road work will be done cash money, beyond the $62.5 million bond issue, he said.
“This has never happened in the history of the parish,” he said. “Now we have a program that can depend on for roads.”
Moosa’s analysis also included:
-- Combined revenues, excluding grants and sales tax revenue, in the general and special revenue funds decreased 2 percent for the year ended Dec. 31, 2014.
-- Solid Waste Commission revenue totaled $140,000 in 2014 and $511,000 in 2013.
--Video poker revenues remained steady at $515,000 during 2014 while slot tax revenues, at $1.6 million, decreased $21,000 or 2 percent compared to 2013.
--Parish Transportation Act funds totaled $765,062, representing at 10 percent decrease during 2014.
--Combined expenditures in the general and special revenue funds, excluding grants, decreased $850,00 for the year. The decreased expenditures include road maintenance, $609,000; air maintenance, $100,000; and elections, $141,000.
Findings, which are areas to be corrected, were:
Budget variances in several funds exceeded a 5 percent threshold requiring budget amendments. The response was that an unexpected turnover in a key position created difficulties in budget preparation and monitoring.
Transactions were miscoded. Management responded that increased monitoring and tightening of controls are being established.
Interfund accounts are not being reconciled. Management said internal controls will be strengthened.
Maintenance of records. Several credit card transactions totaling $1,435 were adequately documented. Management said the finance department will insure documentation. Moosa said the it appears the charges with legitimate travel expenses.
Cash control over animal control receipts were insufficient. Management said deposit slips will be prepared in more detail and reconciliations will be performed regularly.
Unclaimed livestock were not auctioned as required. After the meeting, Fontenot said the finding referred to horses, which were rejected by auctioneers. A method for adoption will be sought, he said.
Intergovernmental agreement was made with Port Barre and District 6 Public Works Commission without council approval. Fontenot said the city and commission were allowed to piggyback on a parish contract. Future agreements will be brought to the council, he said.
Contractual noncompliance in a Federal Aviation Administration grant in which the parish received $5,031 for expenditures not incurred. Management stated it would monitor grant requirements to insure full compliance.
The council approved a letter of engagement for the auditing firm. Moosa is to return to the parish council in July to report on parish government’s progress in correcting audit shortcomings.