Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

June 8, 2015

Audit of the Town of Elizabeth Reveals Improper Payments

The town of Elizabeth paid former Mayor Robert Crafton, Town Gas System Supervisor Alvin Earl, and two town vendors more than $117,000 in June 2014 without any apparent legal obligation to do so, according to an audit report issued Monday by Legislative Auditor Daryl Purpera’s office.

In 2007, the town entered into a 20-year Gas Sale Contract with the Public Energy Authority of Kentucky, Inc. (PEAK). In 2012, the contract was terminated early, and as a result the town received a $382,101 payment on June 2, 2014. According to Town records, the audit said, $117,354 (approximately 30% of the amount received from PEAK) was paid to Mayor Crafton, Mr. Earl and two town vendors. Auditors found that minutes of a Board of Aldermen meeting authorizing such payments appear to have been falsified.

The report also noted that from August 7, 2013, to December 12, 2014, Mayor Crafton received excess compensation totaling $4,800, including two additional payroll checks totaling $3,200 and unused leave payouts totaling $1,600. It further stated that Mayor Crafton’s salary was increased without proper authority, and as an elected official, Mayor Crafton may not have been entitled to leave benefits.

Other findings in the audit include noncompliance with Local Government Budget Act, noncompliance with Open Meetings Law, and that the Board of Aldermen improperly fixed salaries of municipal officers.

The audit also showed that the town appears to be improperly classified as a “town.” Because the town has less than 1,000 inhabitants, state law requires the Board to adopt a resolution requesting the governor to change the town’s classification to the appropriate classification for its size, in this case a “village.”

Copies of this report have been delivered to the District Attorney for the 33rd Judicial District of Louisiana, Louisiana State Police, and the Louisiana Board of Ethics.

For more information contact:

Legislative Auditor
225.339.3800



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