The main topic of the audit report given at the Oakdale City Council was the part on fraud and misappropriation of funds. This table was provided by the Louisiana Legislative Auditor for any fraud or misappropriations in the excess of $1,000. The amount of funds involved total $358,025.56, although Royce T. Scimemi, CPA, APAC, stated the numbers were not analyzed before the audit period and there’s probably more missing than what is listed. Allegedly Melissa Schaefer is the person whom everyone at the meeting believes to have committed the crime, although no charges have been filed because she is deceased. Appropriate law enforcement agencies have been notified and the investigation is ongoing.
Scimemi stated he used the word “presumed” because he is an auditor and not a judge or a jury. He said a further investigation needs to take place. Attorney Ray Rush suggested getting in contact with the district attorney’s office and activating an investigation. Rush said he had spoken with D.A. Joe Green and he is available to help in any way that is needed.
Allegedly, Shaefer was believed to be in control of the two electronic devices that allow people to initiate and approve ACH transactions. The plan for the future is to ensure that these two devices are held by two different individuals. Mayor Gene Paul will also be reviewing these transactions going forward.
The mayor asked Scimemi if there have been so many red flags over the years, why did it take so long to catch money of this substantial amount missing. Scimemi rebuted the credit card receipts had not been overstated by thousands of dollars in previous years.
It was a topic of discussion to what legal action needed to be taken. Under recovery claims, there is a potential to recover $85,000. Rush also suggested to go through the state. If in fact, the investigation, discovers that she is the source of the misappropriation, then the city should file suit to seize her assets.
It is still a topic for discussion whether the alleged Shaefer was the only one involved in this misappropriations of funds.
An audit was conducted by Scimemi for the fiscal year ending in June 2020 for the City of Oakdale. There had been speculation for some time over the misuse of funds, as well as theft that has affected the city tremendously. This audit report brought light to several questions that councilmen and community members have been asking. Scimeni said the financial statements in the audit report are based on normal day-to-day operations that are going on within the city. With Covid 19, two hurricanes as well as an ice storm, things have been a little less than normal.
On page three of the audit report, the city’s assets exceeded its liabilities by $8,768,038 for the last fiscal year ending in June 2020. This results in the current year having a deficit of $284,938, unlike the previous year that had a surplus of $597,888. This surplus may be because of grants that were received in the prior year. Under the budgetary highlights, the actual expenditures exceeded the final budgeted expenditures by seven percent or $171,848.
Another finding through the audit report was an instance of inappropriate procedure through time and attendance for the police department. There was no arrival or departure time stated to use for payroll records. This has since been solved.
Scimemi brought yet another finding forward in regards to a one time supplemental payments to employees grossing $44,350 that may possibly have been in violation of Article 7, Section 14 of the 1974 Louisiana Constitution which prohibits the donation, loan or pledging of any public funds. This would be a bonus given to employees and must be included in the budget.
The mayor stated it is hard to commit to a bonus of $50,000 when you do not know if the money will be there in December and then employees will not understand. This was done in December 2019 and it is very well possible that this could have been allowed under certain conditions. It was later brought to the press’ attention after the meeting, the mayor decided which bonuses to give to who and the amounts of the bonuses.
In other business, Mayor Gene Paul presented to the council that bars may be open on Sunday, July 4, 2021, from 1 p.m. to 9 p.m. The motion was approved.
Also presented was the recommendation the Four-Winds Tribe enter into a contract with the city for inmate housing in the city jail. This was approved as well.
In addition, the mayor presented three individuals for the Civil Service Board: Scottie Potts for Governor of Authority, Lorrie Johnson for the Police Department, and Andrew Smith for the Fire Department. All were approved.
City Clerk Geri Melder gave the monthly budget report as follows: May overall total budget was $3,949,137.49. The actual spent was $3,249,778.48. The mayor states the city has been hit hard financially the last couple years but this can be a bright side to the picture.
Police Chief Chad Doyle made recommendations for hire, all of which were approved:
•Approved to move Nicholas Young and Marilyn McCullough from part-time to full-time police officer.
•Approved to move Hebert Byrd from full-time to part-time police officer.
•Approved to move Danielle Lachney from part-time dispatcher to part-time police officer.
•Approved to moved Madison McDaniel from part-time to full time dispatcher.
•Approved to grant non-essential employee leave for the July 4, holiday on Friday July 2, 2021, to the following employees: Lorrie Johnson, Sadie Chatman, Tara Bass, Jesica Thompson and Grant Willis.
The police report was read for May of 2021. There were 479 calls for service, 215 citations issued, 10 arrests made and two unlocks. This brings to total citation violation to 706.
The mayor made a recommendation to promote Eric Maricle to Fire Chief and to make Bobby Murray a full-time fireman. Both were approved.
Approved by the council was Eric Maricle’s recommendation to give Andrew Smith non-essential employee leave for the July 4, holiday on Friday, July 2.
Andrew Smith gave the monthly report for the fire station. For the month of April there were one structure, four medical calls, four motor vehicle accidents, five planning zones, one hazmat, two assists, four miscellaneous and three grass fires.
