The Village of Waterproof’s net position for the fiscal year ending June 30, 2019, stood at $1,529,451, a decrease of $57,579 from the year before, according to a financial report released Monday by the Louisiana Legislative Auditor.

The report was prepared by the certified public accounting firm of Silas Simmons LLP of Natchez.

There were six findings.

According to the report:

“Net position decreased by $126,314 during the year ended June 30, 2018, and resulted in net position of $1,587,030.

“The cash balance for the Village was $76,172 on June 30, 2019. The balance was $30,646 on June 30, 2018.

“The governmental activities had $309,058 in revenues in 2019 and $298,557 in 2018. These revenues primarily consisted of fines, sales taxes, ad valorem taxes, operating grants, and occupational licenses.

“Governmental activities had $385,117 in expenditures in 2019 and $396,624 in 2018.

“The Village's business activities had $518,507 in revenues in 2019 and $664,358 in 2018.

“Revenues consisted primarily of gas and water sales. Business activities had $563,036 in expenditures, in 2019 and $692,605 in 2018.”

The following findings were reported:

2019-1 Reconcilement of Utility Accounts Receivable to Subsidiary Ledger Condition: “As reported in previous years, the utility fund accounts receivable subsidiary ledger (Customer Balance Report) is not being reconciled to the accounts receivable account in the general ledger … The general ledger and subsidiary ledger are both in need of attention and correcting. The balance of the amounts owed to the Village by the customers totals $151,617, according to the customer balance report.

“The cash collections in the subsequent month were $17,885. At the same time, the general ledger indicated the accounts receivable were $380,235 before an adjustment recommended by the auditor was made … No corrective action has been taken as of June 30, 2019.”

2019-2 Reconcilement of Utility Deposit Condition: “As reported in previous years, the meter deposit subsidiary is not being reconciled to the meter deposit account in the general ledger … The Village does not provide the external bookkeeper with the appropriate report to reconcile the customer deposits monthly … The general ledger balance of customer meter deposits is not being reconciled to the subsidiary ledger (Deposit Report) … We recommend that the Village provide, and work with, the external bookkeeper on a monthly basis to be sure that the account is being reconciled appropriately … No corrective action has been taken as of June 30, 2019.”

2019-3 Segregation of Duties Condition: ”Because of this small size of the Village and the small number of employees, many of the important elements of good internal controls cannot always be achieved to ensure adequate protection of the Village's assets … We recommend that the Mayor and Board continue to provide the necessary oversight in its current internal control procedures, specifically in the areas of cash receipts, collection receipt activities, recordation of those receipts, depositing of funds collected, and review of checks written.”

The town responded: “Management will provide the necessary oversight in its current internal control procedures, specifically in the areas of cash receipts, collection receipt activities, recordation of those receipts, depositing of funds collected, and review of checks written.”

2019-4 Late Filing of Audit Report Condition: “The Village's audited financial statements were not submitted to the Louisiana Legislative Auditor by the statutory due date of December 31, 2019 … The financial statements were due on December 31, 2019, but the books and records were not available until May of 2020. This did not allow enough time to complete the audit … We recommend that the Village has its books and records available in a more timely manner … No corrective action has been taken as of June 30, 2019.”

2019-5 Compliance with Bond Covenants Condition: “The Village did not make monthly deposits of $129 and $130 into the depreciation and reserve funds, respectively … The Water Revenue Bonds in the Proprietary (Utility) Fund contain covenants requiring a deposit of $130 a month into a reserve fund until a balance of $31,180 has been accumulated, and a deposit of $129 a month into a contingency fund. … The Village is not in compliance with the Water Revenue Bond … We recommend that monthly deposits begin as soon as possible and the Village makes deposits to replace those not made in previous months … No corrective action has been taken as of June 30, 2019.”

2019-6 Customer Deposit Cash Account (Internal Control Condition: ”The customer deposit liability exceeds the amount of cash in the customer deposit bank account. Customer deposits per the general ledger are $12,988. The related bank account restricted for these deposits had a balance of $118 at year end, which left an underfunded amount of $12,870.

“There should be sufficient cash to cover customer deposits … Customer deposits asset and liability accounts are not being reviewed and reconciled appropriately … We recommend that all customer deposit-related accounts be reviewed and any discrepancies be resolved in a timely manner.”

Management responded that it would “work on this for fiscal year 2020.”

2019-7 Recordkeeping (Internal Control): “During our audit, we noted several issues related to the Village's recordkeeping process as they were not properly maintaining and securing certain documents. In some instances, records were not available, severely hindering our process … Without proper records-management processes, public records may be exposed to risk of loss and damage … The Village does not have appropriate procedures for recordkeeping … We recommend that the Village establishes a records-management program to ensure that records are properly safeguarded and maintained.”

Management responded that it would work on the matter.

Additionally, the audit report notes:

“The Village was incorporated under the provisions of the Lawrason Act as a village in 1862.

“The purpose of the municipality is to provide utility services, public safety (police and fire), streets, sanitation, and general administrative services.

“The Board of Aldermen consists of three elected members that are each paid $500 per month.

“The Village is located in the southern portion of Tensas Parish, Louisiana. Tensas Parish is located in northeast Louisiana.

“The population of the municipality is approximately 688 people.

“The Village has approximately 10 full-time employees” and “has approximately 366 utility customers.”

Aldermen Henry Jenkins and Robert Clarke were each paid $6,000 in salary in the fiscal year ending June 30, 2019, while aldermen Veronica Stacker and Archie Turner Jr. were each paid $3,000.

Mayor Jarrod Bottley was paid $6,000 from January 1, 2019 through June 30, 2019. He succeeded Mayor Caldwell Flood.

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