Mangham’s net position increased by $55,227 while its debt decreased by approximately $8,030 during the fiscal year ending June 30, 2019, according to an audit released by the Louisiana Legislative Auditor’s office.
David M. Hart, CPA of West Monroe performed the audit and gave Mangham an unmodified opinion but listed three findings.
The findings concerned segregation of cash duties, not being able to provide accurate deposit listing, and traffic fines. Two of the three findings dealt with Mangham not keeping accurate, up-to-date records.
Total net position was listed at some $3.1 million, according to the audit. Total assets were $3.6 million while total liabilities were $516,624.
Of the $3.1 million net position, $1.5 million was unrestricted, according to the audit.
Additionally, Mangham disclosed $569,972 in total revenues, down from the previous year’s total of $600,733, according to the audit.
Mangham’s largest revenue source was from service charges at $319,415, followed by sales taxes at $104,386. Mangham’s sales taxes saw an increase of $13,005 from 2018, according to the audit.
The town also collected $55,452 in property taxes up from 2018’s total of $20,718.
The audit showed Mangham collected $162,004 in fines and forfeitures in 2019.
Mangham spent the most in public safety and protection, $191,861 followed by its water department at $140,758, according to the audit. General government spent $109,243.
Annual expenses totaled $605,056.
Meanwhile, Mangham’s capital assets amounted to some $2 million after accumulated depreciation in 2019, according to the audit.
Capital assets relating to Mangham’s water system totaled approximately $2.2 million with $449,405 in outstanding debt, according to the audit.
Sewer system capital assets came to $967,870 and infrastructure capital assets were at $257,233.
First finding was titled, “Improving Segregation of Cash Duties.”
Mangham’s town clerk handles all aspects of the accounting system. She is responsible for, or has access to, the handling, recording and mailing of cash disbursements and receipts, according to the audit.
A fundamental concept in internal control is segregation of duties, according to the audit.
Mangham’s response was, “The town’s aldermen have the opportunity to review the bank statements and reconciliations at each monthly Council meeting. The monthly invoices are also reviewed at that time. Two signatures are required on all checks written and the Mayor reviews each invoice prior to his signature. The cost of hiring a second employee to provide these safeguards far outweigh the benefits.”
Second finding was titled, “Customer Deposits.”
Mangham’s town clerk was not able to provide a current or accurate listing of customer water deposits, according to the audit.
“The Town has no way of knowing what amounts are owed to business or individual customers, nor does it know if there are enough funds in the customer deposit bank account,” the audit reported.
Auditors recommended Mangham research it’s records to determine what amounts are owed to its customers.
Mangham’s response was, “During the year, the Town converted to a new billing software system and many of the old records were lost. We will, however, work to reconstruct a customer deposit list and will reconcile it monthly to the general ledger.”
Third finding was titled, “Traffic fines.”
While performing the audit, it was noted Mangham had a large number of outstanding fines from tickets being issued going back many years, according to the audit. Auditors said Mangham was unsure how accurate the fines receivable balance was.
Mangham does not have an accurate way to determine “at any given time” what amount of fines are owed them.
Again, auditors recommended Mangham compile an up-to-date list of the amount of fines that are owed.
Mangham’s response was, “The Town purchased ticket software back in April and began using it in May 2019. The Town has a filing system with all unpaid tickets alphabetized that has several years worth of tickets. Previously, there were no organized filing system of the tickets.”