Jeanerette Audit: Utility Payments not Deposited, Payroll Taxes and Witness Fees not Paid

An investigative audit into the City of Jeanerette’s financial operations found utility payments that were not deposited, state and federal payroll taxes that were not paid, and witness fees for off-duty law enforcement officers that were not paid.

Investigative auditors conducted their audit after receiving complaints that city assets had been misappropriated. The City’s financial operations are being overseen by a fiscal administrator who was appointed in January after city officials failed to complete state-required audits for three years in a row.

Auditors found $33,772 in customer utility payments received by the City between June 2017 and January 2018 that were not deposited into the City’s bank account. City video footage from January 19, 2018, showed three bundles of utility payments prepared for deposit and two employees leaving for the bank with the deposits. Although the bank is two-tenths of a mile from City Hall, bank video showed the two employees did not arrive until 56 minutes later.

The bank video also showed tellers receiving and processing only two bundles, and only two bundles were credited to the City’s bank account. The employees first told the auditors that they went straight to the bank from City Hall, but later admitted they did not go straight to the bank. They said they deposited all three bundles.

Auditors found as well that City officials failed to pay federal and state government taxes totaling $182,308 or to file required reports from October 2015 to March 2018. After a previous audit finding in 2015 about payroll tax reports, the mayor indicated the City would report its payroll taxes in a timely manner from that point forward. However, the problem was not corrected.

In addition, $7,300 in witness fees due to city police officers and deputy marshals was not paid, as required by law. Records showed the City received at least $19,200 in witness fees from December 2016 to April 2018, but $7,300 was not disbursed.