City of Grambling’s Financial Survival Questioned

A just released audit says that the financial situation of the City of Grambling is such that there is “doubt about its ability to continue as a going concern.”

From the audit:

The City has suffered recurring loses from operations and has a fund balance deficiency in the general fund that raises substantial doubt about its ability to continue as a going concern. The general fund has a defict fund balance at the end of the fiscal year of $827,662.

See here the complete audit.

Mayor Edward R. Jones wrote in response to the finding that the city’s leaders were working toward a solution.

In an effort to continue in the alleviation of this deficit on Friday, June 20,2014 the Grambling City Council voted to reduce the workday for all employees from eight to seven hours. This council action will be at a cost savings of approximately $169,000 a year to the City. Other cost saving measures, such as, energy and fuel costs, supplies, and gradual reduction of the workforce through attrition will be implemented.

In addition, It is anticipated that by the end of 2014, the construction of a hotel and retail development will begin near Interstate 20 on a nine acre tract that is owned by the City. At the closing of the USDA Loan and at the signing of the lease agreement by the Economic Development Corporation, the City will be reimbursed for the market value of the property and any associated legal costs incurred relating to the project. In addition, the city has also signed a lease agreement to sell an AT&T tower lease.

Both the Mayor and the Council consider the deficit in our General Fund as a very serious matter, and we are
committed to decreasing and eventually dissolving it.

The audit also noted that the general fund’s chart of accounts is not designed in a manner that allow expenditures to be readily identified.

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3 Responses to “City of Grambling’s Financial Survival Questioned”

  1. James Schmidt Says:

    Thanks,I was wrong. Did you get the Highlander and did you sell yours or trade it?

    Sent from my iPad

    >

  2. Skipper T. Says:

    Remember that a CPA is only as honest as the Mayor that hires him. Look at Monroe’s shell game. These Grambling people will own a hotel to solve it’s problems…The G college already did this…Next they will use credit card debt to finance the city.

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