The annual audit of the town of Baldwin found some problems.
If you'd like to read it for yourself, scroll down.
Here's the summary from the Louisiana Legislative Auditor:
The independent auditor’s report had 10 findings. The auditor found the Town lacked adequate segregation of duties over its accounting functions, failed to detect or correct misstatements in its financial statements, and failed to publish minutes of its meetings in the official journal in a timely manner. In addition, the Town failed to amend its General Fund, Sales Tax Collections Fund, and Sales Tax Fund when actual expenditures exceeded budgeted expenditures by more than 5%, failed to follow the provisions of the Local Government Budget Act in preparing its budget, and approved budgets for its American Rescue Plan Act fund in which total budgeted expenditures exceeded available funds. The Town also failed to comply with the Public Bid Law when it purchased a vehicle, failed to enroll an eligible employee in the Municipal Police Employees’ Retirement System, failed to remit all fines, fees, and court costs due to other agencies, and failed to remit sales and payroll taxes to the state and the IRS in a timely manner. In a management letter to the Town, the auditor recommended officials continue efforts to bring the Town’s ordinance book up to date.
Here are some details about these findings, as well as the town's response to each:
Segregation of Duties
The segregation of duties finding is extremely common for smaller municipalities; usually the extra cost involved prevents a town from addressing this finding.
Here's what the town had to say:
"We have evaluated the cost-benefit of hiring additional personnel to achieve complete segregation of duties and determined that, due to the size of the organization, it would not be cost effective. Duties will continue to be segregated to the extent possible and compensating controls utilized in absence of segregation of duties."
Financial statement mistakes
The auditor found that mistakes in financial statements weren't prevented or even detected or corrected, meaning that the audit had to make adjustments.
Here's what the town had to say:
"The Town will design and implement policies and procedures which provide assurance to the fair presentation of the financial statements," the management letter states.
Written Minutes
The auditor found that the Town failed to timely publish in its official journal minutes of its public meetings held during the year. Further, the Town adopted the official journal at the first meeting of July.
The town said they had "adopted the official journal in July and will adopt at the first meeting of June going forward."
Budget variances
The auditor said that the town failed to pass budget amendments when its general fund or sales tax funds expenditures varied from the adopted budget by more than 5 percent.
Management wrote that "the Town will continue to monitor activity to ensure compliance with the Local Government Budget Act."
Budget preparation failures
The auditor noted that the town failed to include a signed budget message in its proposed budget; failed to make the proposed budget available for the public to see; failed to ensure public participation during budget hearings; and failed to make public notice when the budget hearings had been completed - all in violation of state law.
Management's response was that "the Town will implement policies and procedures to ensure compliance with the Local Government Budget Act."
American Rescue Plan Act mistakes and Public Bid law violations
Auditors found that the proposed expenditures exceeded the money granted to the town by the ARPA and that
the town bought a $59,000 vehicle without advertising for bids or getting quotes.
The town's response for both of these problems was the same; a pledge that "the town will impelement policies and procedures to ensure compliance" with the two state laws these failures violated.
Failure to enroll employee in retirement
The auditor found that the town failed to enroll an eligible employee in the state's Municipal Police Employees' Retirement System.
Again, the town's response was that they would "implement policies and procedures to ensure all eligible employees are enrolled in the appropriate retirement system as required by state statutes."
Failure to Remit Costs Collected on Behalf of Other Entities
Auditors found that the town failed to remit all fees, fines, and court costs collected on behalf of other entities.
The town's response was the familiar pledge to "implement policies and procedures" but they also added that they are "in the process of remitting amounts owed."
Late filing of sales and payroll taxes to the state and the IRS
Auditors found that the Town did not file and or submit sales and payroll taxes to the state and Internal Revenue Service on or before the required filing dates.
Again, the town pledged to implement policies and procedures to meet deadlines, but also added that they "are currently processing the late filings."
Ordinance book
The auditor found that the town's ordinance book is neither complete nor up to date, and noted that state law requires the town to keep every ordinance passed in a book. The auditor recommended that the town continue efforts to recreate the ordinance books, and to file newly adopted ordinances as they are passed.
Here's what management said:
"It has come to our attention that an Ordinance book from a previous administration is missing and cannot be located. The town has begun revamping the Ordinance books and is currently recreating (without signatures) the missing Ordinances," the management letter states.
Here's the audit:
