The Jackson Parish Police Jury (JPPJ) received an “adverse opinion” audit this morning, because several “component units” of the agency did not have their financials reported with the jury financials.
The financial statements do not include financial data of the Police Jury’s legally separate component units. Accounting principles generally accepted in the United States of America (GAAP) require the financial data for those component units to be reported with the financial data of the Police Jury’s primary government unless the Police Jury also issues financial statements for the financial reporting entity that include the financial data for its component units. The Police Jury has not issued such reporting entity financial statements. The amount by which this departure would affect the assets, liabilities, net position, revenues and expenses of the aggregate discretely presented component units has not been determined.
Data from the component units is necessary in order for the jury to conform with GAAP, as exclusion of the data could cause the reporting entity’s financial statements to be misleading or incomplete. Among those component units are the hospital district, the recreation district, several fire districts, and the ambulance district.
See here the complete audit.
Among the findings, a library employee’s leave balance was negative 74.75 hours. A maximum of 40 hours from the leave bank could be applied to offset the negative; however it was noted that no hours were applied. That matter will be presented to the jury with a recommendation that the employee be required to repay the 74.75 hours and that an internal investigation be performed to determine how an employee could be paid for work with a negative leave balance, management wrote.
Edited 7/29/14 – 1:00 PM
Jackson Parish Library Director Crystal Gates sent in this correction today:
I want to be sure that you have the correct information regarding the draft audit of the Jury and Library. The auditor has been made aware of this information, and I expect the final audit will reflect the correct information.
The library did not receive a finding. Our leave error was addressed only in a management letter and has since been rectified.
The management response included in the draft copy was not from the Library. I submitted our response after the exit conference.
For the record, our policy reads: “Employees terminating employment, either voluntarily or involuntarily, may donate accrued leave up to a maximum of forty (40) hours.”
After the exit conference, I found where the error occurred (used leave was carried forward rather than being subtracted). The error was corrected via donated leave and a reduction in the employee’s current leave balance. An updated spreadsheet is now in use.
If you have any further questions regarding this matter, please do not hesitate to contact me.