[StBernard] St. Bernard DA's office put $1.9 million in banks without insurance or proper collateral, report says

[Westley Annis]

St. Bernard DA's office put $1.9 million in banks without insurance or
proper collateral, report says
Print Benjamin Alexander-Bloch, NOLA.com | The Times-Picayune By Benjamin
Alexander-Bloch, NOLA.com | The Times-Picayune 
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on July 28, 2014 at 11:45 AM, updated July 28, 2014 at 1:49 PM

The St. Bernard Parish district attorney's office deposited more than $1.9
million in banks accounts and investments that were not federally insured or
that lacked proper collateral, meaning the cash could be at risk if the
banks fail, an annual financial review found.

The money in so-called "custodial credit risk" represented the majority of
the office's $2.7 million in deposits and investments as of the end of 2013,
according to the financial review by New Orleans accounting firm Bourgeois
Bennett. The document was released Monday by the state's legislative auditor
(July 28).

The report said the district attorney had the money in accounts or bank
instruments that were not insured or that were backed by bonds and other
securities issued in the name of the banks themselves. State law requires
that public money be put in insured accounts, or that securities used as
collateral be issued in the name of the public entity, in this case the
district attorney's office. 

"Custodial credit risk is the risk that in the event of a bank failure, the
office's deposits may not be returned to it," the report said.

St. Bernard Parish District Attorney Jack Rowley did not immediately return
calls for comment on Monday about whether that risk had been addressed.

The accountants noted that the financial "review is substantially less in
scope than an audit" and is not meant to be "the expression of an opinion
regarding the financial statements as a whole."

The report noted that assets held by the district attorney's office exceeded
its liabilities by about $2.7 million by the end of 2013, a nearly 4 percent
increase from the year before. 

The 34th Judicial District Attorney's Office saw revenue increase in 2013 by
about $1,300 more than estimates and expenditures were about $16,500 more
than estimated, according to the review.

Overall, revenues increased by $3,079 in 2013, mainly due to an increase in
commissions on fines, according to the review. Expenses meanwhile increased
by $2,545, which represented about a 4 percent increase from 2012.

The office's general fund had about $2.5 million in unassigned money, an
increase of $102,198 from the year before. The district attorney's general
fund largely consists of fines collected and bonds forfeited within the
judicial district.

The financial review did not cover the portions of the office that are
overseen by parish government.

For example, the parish government pays for the district attorney's office
salaries, insurance, telephone, utilities, and other operating expenditures.
The parish government also provides office space to the office.

A separate audit of the parish government, which would cover the money it
sends to the district attorney's office, is expected to be publicly released
sometime next month.

Below, view and download the full financial report on the district
attorney's office:
http://www.nola.com/politics/index.ssf/2014/07/st_bernard_district_attorneys
.html