Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

August 10, 2015

Prairieville Fire Department Hadn’t Filed Payroll Taxes Since October 2013, Audit Shows

The Prairieville Volunteer Fire Department had not filed state payroll tax returns since October 2013, according to an independent CPA report released by the Legislative Auditor’s office Monday.

This failure has also resulted in the department not paying $14,900 in state income tax withholdings during this same period, according to the audit performed for the state auditor by Faulk & Winkler, LLC of Baton Rouge. Additionally, deferred compensation withholdings were not sent to the compensation plan’s custodian within seven business days of the withholding for 20 of 24 pay periods during fiscal year 2014.

Auditors recommended that the department file its required tax returns within the guidelines of state, federal and local regulations. State law says an employer that fails to pay its payroll taxes could be liable for the tax, as well as any interest, penalties and attorney fees as a result of this failure to pay.

The report also said the department should work to remit deferred compensation withholdings to the plan’s custodian immediately after collection. Agency management said it would provide training and other resources to employees to correct these issues.

Another finding in the department’s 2014 audit noted that financial statement adjustments for more than $94,000 had to be made by auditors. The department relies upon its auditors to prepare its financial statements and related disclosures. Management does monitor its finances on a monthly basis, but the two reports it reviews (cash balance, cash disbursement) does not provide adequate disclosure of the department’s financial position.

The five reported adjustments ranged from as small as a $3,183 negative change for “immaterial adjustments” to as large as a $41,627 positive change “to adjust payroll liabilities to actual.”

Management said it intends to resolve its financial statement matters during fiscal year 2015. However, the department will continue to use external auditors to prepare the financial statements.

For more information contact:

Legislative Auditor
225.339.3800



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