The much-delayed audit for the Town of Jonesboro has missed another deadline – this one May 31, 2010. Lincoln Parish News Online (LPNO) spoke late Friday with Managing Partner Margie Williamson of Monroe accountants Allen, Green & Williamson, LLP (AG&W), who said their work wouldn’t be finished until “sometime in June.”
The last report – it wasn’t really an audit – done for Jonesboro was for the fiscal year ended 06/30/08, but the report was not signed until July 31, 2009, over six months past due. And it was a “no opinion” report – or as Generally Accepted Accounting Standards (GAAS) defines it, Disclaimer of Opinion.
A disclaimer of opinion is appropriate in the following circumstances:
*Lack of independence
*Scope limitations (inability to obtain sufficient competent evidential matter)
*When the auditor concludes that there is substantial doubt about the entity’s ability to survive
*Matters involving uncertainties
In the report, Kenneth Folden, CPA, wrote the following:
“The Town did not maintain adequate records of disbursements, properly reconcile bank accounts or accounts receivables or payable, nor were all transactions entered into the accounting records. The Town’s records do not permit the application of adequate auditing procedures.
“Because of the limitations described above we are unable to express, and do not express, an opinion on the Town’s financial statements as listed in the table of contents.”
Translation: There was no audit, because bookkeeping was almost non-existent.
Folden did not attempt to perform an audit for the FY ending 6/30/09.
Louisiana Legislative Auditor’s Involvement, or Lack Thereof
Last October, all five members of the town’s City Council signed a letter to the Louisiana Legislative Auditor (LLA) requesting a compliance audit. A copy of the letter was sent to the 2nd Judicial District Attorney, Jonathan Stewart.
We have no documentation that shows the LLA ever responded to the letter from the council members.
The Legislative Auditor’s Director of Advisory Services Division, Joy Irwin told LPNO late Friday that their office had sent staffers to Jonesboro to help advise AG&W. The town had requested and received an extension to the deadline for the completed audit.
It is of note that the extension request was approved by District 4 State Senator Edwin Murray, who is chairman of the Legislative Audit Advisory Council.
The deadline was May 31, 2010, which puts the town in violation of the law.
RS 33:463 Annual financial statement
The mayor and board of aldermen shall produce an annual financial statement of the municipality in accordance with generally accepted accounting principles. The minutes of the board shall acknowledge that the financial statements have been produced and are available for public inspection. A copy of the annual financial statement shall be transmitted to the legislative auditor within six months of the close of the fiscal year.
We believe that the 6/30/08 report does not fulfill that legal requirement as the report could not be performed in accordance with generally accepted accounting principles.
Therefore, we suggest the Town of Jonesboro is in violation of the law and has been ever since the earlier report was due – 12/31/08.
Public Bid Law Violations
It is also of note that the 6/30/08 report showed there were violations of the Louisiana Public Bid Law, La RS 38:2212.
Louisiana state law requires the Town to advertise and bid all purchases of any materials and supplies exceeding the sum of Twenty Thousand Dollars. The Town did not comply with bid laws for a vehicle purchased in July, 2008.
When that happens, this is supposed to happen
B. When such audit report discloses illegalities or fraud and a copy of said report as provided by law has been sent to the district attorney of proper jurisdiction, the said district attorney shall within thirty days advise the chairman of the council as to action he has taken or proposes to take in connection with the illegality or fraud cited in said audit report. When future action is to be taken by the district attorney, the council shall set a date for receipt of further advice in the matter. When such advice is not forthcoming from the head of the agency audited or from the district attorney, as the case may be, or when it is evident that suitable action has not been taken, the council shall report the matter to the legislature at its next regular session for whatever action the legislature deems advisable under the circumstances.
Could the reason that has not happened is because of this?
District Att’y, J’boro Mayor Politically Connected
The DA Stewart/Mayor Thompson Nexus
We report. You decide
06/07/2010 at 7:45 am |
Packets that included a request for help with the above matter along with a two compact disks with recordings of the Legislative Auditor’s Assistance Team findings and discussion and a copy of the November 2009 Town of Jonesboro Council meeting where Thompson attacked the Council for even asking for assistance were sent to the following:
Hand Delivered to Jim Fannin’s Office
Mailed to Robert Kostelka
Mailed to Govenor Jindal
Of the above, only Govenor Jindal’s office responded.
No response speaks volumes, no activity on the matter proves their allegiance to a political machine that has run astray and seems to stay mired in unethical and illegal activity that has been condoned and covered by those in charge. I have tried to do my job, but to no avail when it comes to the Good Ole Boy politics of Louisiana. This is only for a season, I take hope in that fact.