[StBernard] St. Bernard Parish didn't properly track public spending, audit says

[Westley Annis]

St. Bernard Parish didn't properly track public spending, audit says
Print Manuel Torres, NOLA.com | The Times-Picayune. By Manuel Torres,
NOLA.com | The Times-Picayune. 
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on September 15, 2014 at 12:44 PM, updated September 15, 2014 at 12:46 PM

The "improper tracking" of housing money in 2013 violated federal rules and
could lead to sanctions against the parish, the auditors' report said. The
parish, in a response to auditors, said it has hired an accounting firm to
correct the problems and put the parish's Housing Authority in compliance.

(Read the audit below.) 

The audit said officials also failed to update the parish budget when some
expenses exceeded forecasts, and several government accounts were not
reconciled during the year, providing an inaccurate picture of the parish's
financial health.

Responding to those findings, Parish President Dave Peralta's administration
said its policies complied with state law in monitoring the parish budget.
But the parish also told auditors it is drafting plans to solve some of the
reporting problems, and in some cases seeking money to hire more finance
department employees.

The audit was completed by accounting firm Postlethwaite and Netterville and
released by the state legislative auditor.

The audit also made reference to recent problems in the parish transit and
in the civic center. A separate audit in July said more than $98,000 in bus
fares was collected but not deposited in parish's bank accounts from January
2011 to March 2014. Three employees who according to the audit had access to
the money retired or resigned this year. Those employees told auditors that
drivers' daily route sheets were unreliable, resulting in inflated ridership
figures. The audit has been forwarded to state and federal prosecutors. No
one has been charged with a crime.

The legislative auditor's office is also examining irregularities the
administration reported in the finances of the parish's Frederick J. Sigur
Civic Center. The center's executive director, Stephanie Bachemin, was
suspended in February and fired in March after parish officials suspected
her of stealing funds. That audit has not been completed.

In other findings auditors said:

The parish is still trying to sell $5.3 million worth of land parcels that
the Road Home program bought from flooded St. Bernard homeowners after
Hurricane Katrina. The audit doesn't say how many parcels that represents,
but says the parish didn't sell a single property in 2013.

St. Bernard used more than $609,000 in federal grants to subsidize the St.
Bernard Parish Hospital in 2013.

The parish didn't have a formal process to block electronic access for
former employees and give access to new hires. The parish told auditors it
would create such a process.

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r.html