Money issues for Oberlin continue to be at the forefront of all of the town’s business these days from an audit report to the court decision in regards to the town’s USDA water project.
The audit report, ending June 30, 2021, did not bring good news as Casey L. Ardoin, CPA for Kolder, Slaven and Company LLC highlighted financial woes and several deficiencies. And the big message is that Oberlin is broke and struggling financially.
The balance sheet indicated the town’s assets were at $152,249 and its liabilities at $209,434, resulting in a deficit of $121,371. The town’s revenues in the general fund ($372,223), sales tax fund ($239,800) and other governmental items ($3,124) left a balance of $615,147. Expenditures for the fiscal year totaled $921,069. The town had $46,989 at the beginning of the year and ended the fund balance at a negative $57,185. And budget snapshot from Ardoin did not suggest the town had any positive information from this particular fiscal year.
The town was noncompliant in public participation in regards to budget guidelines to introduce the budget, publish it for the public and create a budget message as well as failing to publish the final budget. The town didn’t submit the required quarterly affidavits to the Louisiana Board of Ethics; violated its bond agreement with USDA by not having the proper amount on deposit in its bond reserve account at June 30, 2020, and did not comply with provisions with respect to the Sales Tax Special Revenue Fund. Delinquent filing and payment of payroll taxes was another audit finding, failure to pay invoices on a timely manner to bypass late fees, some ad valorem tax payments not paid in full and on a timely matter and late payments made to the state in regards to the collection of sales taxes were among the audit’s findings along with issues with its cut-off policy in regards to its utility accounts.
City Clerk Charlotte C. Artis pointed out areas where the town had produced the documentation and there were not enough funds in the town’s account, which Ardoin agreed. He pointed out some of the recommendations made to solve some of the issues.
Having to hold funds, etc. were also among the causes of why some of the deficiencies existed. Ardoin said in some of the sample testing they did, they couldn’t determine the answer, so it was listed as a deficiency. In some cases, the town was not at fault because it would not be feasible to hire more personnel to separate duties.
The council approved the budget for the fiscal year 2021. Ardoin’s firm cannot do the next fiscal year, so the town had to look for another CPA firm. The council hired Royce T. Scimemi, CPA, APAC, to do its audit for fiscal year ending June 30, 2022. The town is behind in completing its audit.
Its second headache comes in the form of the USDA water project. Council members have refused to make final payments and close the project, which ended last year, according to records. Council members have argued the project’s work was not completed.
Trek Inc., construction crew for the project, sought payment for the work they alleged was completed. The town hired Steven Spurgeon from Alexandria to represent their interests.
The judgement notes the town:
•Owed Trek $102,537.06 for Application No. 17.
•Owed Trek $97,766.90 for Application No. 18.
•Owed USDA $38,000 so it could pay the first change order.
•Accept the project as completed.
•Owed $143,666.32 for Application No. 19.
•Pay Trek’s attorney fees of $28,220.
•Pay Trek $30,045.47.
•Pay all court costs.
The town actually owes $38,000 to USDA, which is the amount over-budgeted on the project. The rest of the funds listed above are part of the grant monies. At the end of this ruling, the town owes $38,000 to USDA, court costs and attorney fees for Trek. The attorney fees can be paid over six months.
Councilman Chris Davis made the motion to pay $38,000 immediately with gaming funds, which was second by Ryan Daigle. The motion did not pass when Bobby Thomas, Romelzy Willis Jr. and Linda Boulden voted against it.
Mayor Wayne Smith said as mayor he had to go above their heads, because this was a court document mandating Oberlin make the payment. He said he chose to write the check and pay it.
The town attorney said he did ask the attorney general for an opinion on the matter. It was being researched.
The mayor said Superintendent Robert Smith resigned from his maintenance position after 17 years.
