TALLULAH, La. (AP) - The city overspent by more than $78,500 in 2013, but officials maneuvered money from various accounts to avoid a deficit and increase its overall fund balance at year’s end.
The News-Star reported (https://tnsne.ws/PxBohs) reports an independent audit by the Metairie firm Pailet, Meunier and LeBlanc cited several deficiencies in Tallulah’s financial matters.
At the close of the 2013 fiscal year, the city had $2.54 million in revenue while expenditures totaled $2.61 million, resulting in the $78,594 deficit in the city’s general fund, its main operating account.
However, after transfers into the general fund, the city ended the fiscal year with a $68,273 fund balance.
Joy Irwin, a certified public accountant with the legislative auditor’s office, said cities often will transfer funds from various accounts to shore up finances.
“It’s OK to transfer money between funds in order to have a positive position,” Irwin said.
The city started the 2013 fiscal year with an overall fund balance of $326,601. It ended the fiscal year with a $432,523 fund balance.
Auditors found five deficiencies related to cash management, Section 8 housing disbursements, inadequate funding in the water and sewer fund, untimely published minutes of council meetings and concerns about an antiquated traffic ticket system that could cause the city to lose money.
Because of cash flow issues auditors found the city had not paid vendors in a timely manner, resulting in late fees for some payments.
Examples of poor cash management included three instances when checks were deposited three days to 14 days after they were received.
Auditors also found some Section 8 disbursements did not have proper documentation, which could result in lost revenue. A new administrator has been added to the program, and city officials expect better results as a result of recent improvements.
The audit also found the city did not have appropriate funds reserved for its water and sewer fund accounts because those accounts were only funded periodically. In response, the city has raised sewer rates reduced expenses to ensure funds are reserved for the accounts.
Auditors said the city needs better internal controls over collection of police tickets to ensure that tickets issued to defendants are maintained, properly recorded and received in a timely manner.
The city is switching from a manual ticket-tracking system to an electronic system and training staff with revised ticket collection procedures.
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Information from: The News-Star, https://www.thenewsstar.com
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