Youngsville's annual audit included 10 findings, three of which were repeats from the previous year.
If you want to see the entire audit for yourself, scroll down.
One of those repeat findings, regarding "adequate segregation of duties for accounting functions," is a very common findings for smaller municipalities that don't have enough employees to meet the auditor's best practices.
The other two were related to bookkeeping: a lack of policies and procedures to ensure transactions were properly recorded and account balances were recorded in a timely manner and a lack of personnel with qualifications needed to prepare financial statements.
On the policies and procedures, the City said that's an ongoing process, stating that they continue "to implement policies and procedures and improve system controls to ensure that transactions are properly recorded, and account balances are reconciled on a timely basis."
Regarding the lack of qualified personnel, the City responded that they're going to outsource these duties, because it makes more sense cost-wise.
The new findings were related to bookkeeping as well; auditors wrote that the City:
- Lacked adequate controls over bank reconciliations
- Lacked adequate controls to correctly record, adjust, and reconcile financial statements
- Failed to maintain enough funds in its utility deposit liability account to refund customer deposits
- Failed to follow state law in procuring telecommunications or video surveillance equipment
- Failed to comply with the bond requirements of its various debt obligations
- Failed to amend the budgets for two sales tax funds when total expenditures exceeded budgeted expenditures by more than 5% and its budget when budgeted general fund revenues exceeded total general fund revenues by more than 5%
- Failed to file its financial statements with the Legislative Auditor’s office in a timely manner
Here are the City's responses to each of those new findings; most of the issues already have been addressed:
- Lacked adequate controls over bank reconciliations
"Management will review policies and procedures concerning bank reconciliations to ensure bank accounts and any outstanding transactions get properly reconciled to the general ledger."
- Lacked adequate controls to correctly record, adjust, and reconcile financial statements
"Management of the City of Youngsville is currently working to implement policies and procedures to ensure financial transactions are appropriately recorded and reconciled."
- Failed to maintain enough funds in its utility deposit liability account to refund customer deposits
"As of the date of this report, management has transferred the appropriate cash into the separately designated customer utility deposit account."
- Failed to follow state law in procuring telecommunications or video surveillance equipment
"As of the date of this report, the City of Youngsville has obtained the necessary affidavits and has modified contracts with vendors to be in compliance with state statutes."
- Failed to comply with the bond requirements of its various debt obligations
"As of the date of this report, the City has corrected all requirements of the debt covenants and made the necessary deposits and obligations requirements and will continue to monitor the requirements to ensure compliance."
- Failed to amend the budgets for two sales tax funds when total expenditures exceeded budgeted expenditures by more than 5% and its budget when budgeted general fund revenues exceeded total general fund revenues by more than 5%
"The City amended the budget; however, adjustments required during the audit resulted in budget variances greater than 5%. The City will continue to monitor budget compliance and amend the budget when total expenditures and other uses exceed total budgeted amounts."
- Failed to file its financial statements with the Legislative Auditor’s office in a timely manner
"The City will take the appropriate actions to ensure that the financial statement audit is completed and submitted within the prescribed deadline."
Here's the full audit:
