Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

March 1, 2016

Town of St. Joseph Audit Finds Problems with Contractor Payments, Mayor's Expense Reimbursements

The mayor of the Town of St. Joseph may have violated state law related to contracts and expense reimbursements, the Legislative Auditor said in a report released today.

The investigative audit, which was conducted in response to complaints received by the state auditor, found that the mayor approved payments to his cousin totaling $127,058 between January 2009 and September 2014 for construction and mechanical work the cousin performed for the town. However, invoices could not be found to document 34 (58%) of the 59 payments made for the work.

The mayor's cousin was paid $41,950 in Louisiana Office of Community Development grant funds between January 2013 and May 2014 for work on water and road improvement projects. State law requires written contracts to be used for all public works projects that cost more than $5,000 (except in cases of an emergency). Contractors on public works projects in excess of $25,000 also must provide a surety bond. A review of Town records failed to find a written contract or evidence of a surety bond.

Auditors also found that between January 2011 and December 2014, the mayor apparently received $19,491.25 in funds he was not entitled to. The mayor prepared his own expense reports, requests for travel advances, and checks payable to himself, and recorded all financial transactions, during which time he received:


In his response, the mayor disputed many of the audit's findings, but said he would meet with the Town's Board of Aldermen and work to develop written policy and procedures for handling travel expenses. In addition, the mayor said officials will ensure that all contractors comply with state law in the future.
For more information contact:

Legislative Auditor
225.339.3800



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