Non-Flood Protection Asset Management Authority Failed to Collect $621,926 in Boat Slip Fees

Investigative auditors examining the Non-Flood Protection Asset Management Authority’s records found that the Authority failed to collect $621,926 in boat slip rental fees as of January 31, 2017, the Legislative Auditor said in a report released today. The uncollected fees could be considered a loan to boat slip renters, which would be a violation of the state Constitution, the state auditor said.

The Authority was created to manage the non-flood assets owned by the Southeast Louisiana Flood Protection Authority-East (SLFPAE), including two marinas: the Orleans Marina and the South Shore Harbor Marina. As part of the management of the marinas, the Authority is responsible for collecting boat slip rental fees.

Until last year, the Authority used a software program that billed tenants in batches. However, the software reportedly became inoperable in March 2016 because of a computer malfunction. Staff then had to manually process tenant payments one at a time, which was a time-consuming and unsustainable collection method, the SLFPAE’s internal auditor reported. After new management was appointed in February 2017 to run the Authority, a greater effort was made to collect the outstanding fees and reconcile customer accounts. As of July 7, $396,549 had been collected, leaving $225,377 still outstanding.

Auditors found that the reduction in uncollected fees was a result of marina employees collecting the outstanding fees and/or negotiating payment plans with past-due tenants. However, the Authority failed to send correspondence documenting the agreements or requiring the tenants to sign a repayment plan. Thirteen past-due tenants were enrolled in payment plans as of July 7, with the goal to have all tenants current as of December 31, 2017.