Town of Glenmora

The certified public accounting firm of Rozier, Harrington and McKay could not render an opinion on the town of Glenmora’s financial statements for the fiscal year ended June 30, 2012, because of the town’s inadequate financial records.

The audit report, which was made public Monday by Legislative Auditor Daryl Purpera, stated that the CPA firm was unable to obtain satisfactory audit evidence about certain amounts reported in Glenmora’s financial statements and as a result could not express an opinion on them.

In 2006, the 9^th Judicial District Court in Alexandria appointed a fiscal administrator to oversee the town’s financial and budgetary affairs. The order was in place from June 30, 2006, through December 31, 2007.

The 2012 report included findings on Glenmora’s record keeping and its inability to produce periodic financial statements needed to manage the town’s financial activities. The report also stated that the town’s payroll account had never been reconciled.

Most credit card purchases lacked supporting documentation, and the credit card bills are not being paid on time, causing the town to incur late charges and interest fees.

The audit also said that an analysis of travel and expense reimbursements showed that proper documentation was sometimes lacking to support payments to town employees.

Records related to grant proceeds used to make loans to businesses from the town’s economic development fund could not be found, according to the audit. As a result, town officials cannot evaluate compliance with the terms of the original grant agreement.

Fees collected from water, gas, and sewage disposal provided by the town are not sufficient to finance operations and the debt service on bonds that helped finance the utility system, according to auditors. They suggested Glenmora officials change the utility rates to generate additional revenues.

The audit said that Glenmora officials are looking at cost-saving measures to better finance the bonds’ debt service, and a utility rate increase will be considered if the cost savings are not enough.

Town officials said they are working to improve their accounting systems and have designated the town clerk to be personally responsible for bookkeeping activities, as well as ensuring that supporting documents are retained for credit card purchases. Employees are also required to submit complete documentation before being reimbursed for travel and other expenses, officials told auditors.