Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

June 20, 2016

Audit Finds Problems with Financial Operations of Jonesville's Utility Systems

The independent auditor could not provide an opinion on the financial operations of the Town’s business-type activities and its proprietary fund because he could not obtain sufficient information, the Legislative Auditor said in a report released today.

The business-type activities of the Town are those that charge a fee to customers for such services as electricity, water, gas, and sewer. Also included are interest payments on long-term debt. The Town maintains one proprietary fund to account for its combined electric, water, gas, and sewer operations. The auditor said that the Town’s internal controls for its business-type activities and proprietary fund were either ineffective or were not operating as designed, and that bank accounts and subsidiary ledgers were not being reconciled to the general ledgers.

Among its 12 findings, the report listed:


In addition, the Town’s audit report, which is for fiscal year 2015, was submitted after the statutorily required six-month deadline. As a result, the Town was placed on the Legislative Auditor’s noncompliance list, the state auditor said. The Town’s 2015 fiscal year ended on June 30, 2015, and the audit report was due by December 31, 2015.

The audit report also noted the findings of an investigative report released by the Legislative Auditor in January 2016. In the investigative report, auditors said they found utility payments totaling $93,841 were received and/or recorded but not deposited into the Town’s bank accounts between December 2014 and September 2015. The Town also did not have adequate financial management procedures in place for its utility systems.
For more information contact:

Legislative Auditor
225.339.3800



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Office of the Louisiana Legislative Auditor | www.LLA.La.gov