The Village of Clayton’s net position increased in 2018 to $3.2 million, according to an audit released Monday by the Louisiana Legislative Auditor.
Silas Simmons LLP of Natchez prepared the report for the town.
The town has yet to file its 2019 report, which is past due.
The audit for 2018 noted that the village was incorporated in 1962 and has a population of 884. Clayton employed two full-time and two part-time employees in 2018 and had approximately 810 utility customers.
For the year ended June 30, 2018, “taxes of 3.60 mills were levied on property with assessed valuations totaling $1,404,370, after abatements and exemptions.”
In March 2017, the town obtained $250,000 in financing through the State Bond Commission and Concordia Bank & Trust for general operating expenses with one principal and interest payment of $255,625 on March of 2018.
There were eight findings, including:
-- Lack of separation of duties of employees.
-- Failure to prepare a capital improvements budget.
-- Failure to reconcile police fines from the receivable subsidiary ledger to the general ledger.
-- Transfers between funds were not reconciled appropriately.
-- Failure to remit certain "fees collected for traffic tickets on behalf of different state agencies for several months.”
-- Failure in record keeping for “the numerical sequence of-traffic tickets/citations in a key internal control. Without accounting for the numerical sequence of tickets, there is no way ‘to determine whether citations were issued or tickets were lost or voided’ … There was no ticket book log or record available for review and testing.”
-- The village’s audited financial statements were not completed and submitted to the Louisiana Legislative auditor’s office by the statutory date of December 31, 2018.
The report also noted that based “upon the operations of 2018 and 2017, the Village's net position increased in 2018, which resulted in ending net position of $3,222,830, and decreased in 2017, which resulted in ending net position of $2,797,051 at June 30,2017.
“The ending cash balance was $265,107 at June 30, 2017, and $106,611 at June 30, 2018.
“The governmental activities' net position decreased by $244,982.” In 2018, “the governmental program revenues performed better mainly due to increased police fine income. There were expenditures of $505,891 in 2018 and $510,987 in 2017.
“The enterprise fund's operating loss decreased by approximately $18,045 from 2017 to an operating deficit of $160,301 in the current year mainly due to increased operating revenue. Operating revenue increased by $10,184 to $220,127, which was primarily due to increased gas sales.”
Clayton also had $770,281 “invested in net capital assets in the general fund and $2,695,880 in the proprietary fund. This year (2018), there were $37,186 in additions in the public works fund and $860,434 in the enterprise fund.”
According to the Statement of Revenues, Expenses and Changes in Net Position, the village had operating revenue of $220,127 during the fiscal year ending 2018, including $86,667, water sales; $79,050, gas sales; $46,054, sewer charges; and $8,356, other operating revenue.
Expenditures totaled $380,428, including $96,928, personal services; $18,224, purchase of utilities provided; $21,169, materials and supplies; $9,624, repairs and maintenance; $158,623, depreciation; $38,693, utilities and telephone; $16,782, insurance; and $20,385, other operating expenses.
The result was an operating loss of $380,428.
The ending net position on December 31, 2018 was $2,676,930.
During that period, the village paid its mayor and five aldermen $39,925, including: Mayor Josephine Washington, $25,200 and aldermen Shannon Madison, $3,545; Floyd L Barber, $3,270; Willie Evans, $1,420; Houston Holmes, $2,945; and Irene Jefferson, $3,545.