Earlier this week, a Louisiana Legislative Auditor’s report noted governmental procedures in Oberlin have not been followed in budget matters, handling and use of ARPA (American Rescue Plan Act) funds, employee pay and improper handling of LACE tickets.
This legislative audit investigation was initiated by Mayor Larry Alexander when he took office in January 2023. He wanted investigators to determine whether the town had appropriately or inappropriately handle matters in the past. At the time, rumors were suggesting the USDA plan to upgrade the town’s water system had been inappropriately handled, misuse of the town’s backhoe, theft of gas and if leaders had handled employee matters correctly, to name a few issues. Alexander said the investigation has been ongoing, and this report issued approximately one year later, outlines that many procedural matters were incorrectly handled in the Town of Oberlin.
In the report’s background information, it explains the audit was initiated to determine the validity of complaints the state auditor’s office had received regarding the town’s use of public funds. In the report, Legislative Auditor Michael J. “Mike” Waguespack, CPA, wrote, “We are providing this report for your information and use. This investigative audit was performed in accordance with Louisiana Revised Statutes 24:513, to determine the validity of complaints we received.” Waguespack states the report will be delivered to the district attorney, as required by law.
The district attorney could conduct his own investigation and can decide to bring charges of malfeasance if wrongdoing is suspected. The mayor explained the auditors were in Oberlin two to three days a week for approximately six months reviewing records, etc. No opinion was attached to the report, just a summary of what auditors discovered.
Alexander said the report has shown the present administration that it will have to bring order to the record keeping system of the town.
“When you know better, you can do better,” Alexander said. He has already made several procedural changes to bring the town into compliance. He also said he never wanted to point fingers, he just wanted to see what had occurred in the past and make changes to move the town forward. He didn’t want to rely on the rumors in town; he wanted facts and numbers. He wanted to know what he could do to move forward and make sure the town is handling its business correctly. “My goal is to be transparent and have an accountable system.”
Here are some of the things highlighted, and all items may have violated state law:
•The report discovered the town did not comply with the local government budget act between June 30, 2021 and June 30, 2024. Records were not maintained correctly to demonstrate whether a budget was adopted for each fiscal year. The audit indicated there were procedural steps not taken by the documentation on hand in regards to budgets like no budget message, not publishing all actions necessary to complete the budget, adopt the budget and retain certified copies.
•The town did not keep an ordinance book listing and maintaining new ordinances and those amended.
•The town received $640,365 in ARPA funds, deposited them into a separate bank account and then transferred those funds into the general fund. The town failed to budget those funds by ordinance, which is required by state law.
•The town paid $35,076 in ARPA funds to elected and appointed officials, which may have violated state law.
•Four town employees and the town attorney received payments from ARPA funds for work during the pandemic. The audit suggests the town had no records showing when the work was performed or what was done.
•The town’s former finance clerk, Angelina Conner, used 43 hours of sick leave that she did not earn according to the audit. In addition, her timecards indicated she used 123 hours of sick leave, 76 of those hours between March 18, 2022, to December 4, 2022.
•The former city clerk, Charlotte Artis was paid $10,896 for 404 hours of overtime from March 30, 2022, to December 19, 2022, which the audit states was not approved by the mayor. The report states the council passed a motion to eliminate overtime in all departments on March 16, 2022. It appears she was not entitled to overtime.
•The town operated its own LACE program through its mayor’s court without an agreement with the district attorney. Citations issued by the town’s police officers indicate state law may have been violated instead of the town ordinance.
•From October 2021, to February 2023, Police Chief Grady Haynes improperly reduced and modified 25 LACE tickets from moving to non-moving violations. The report stated the chief nor his designee signed those tickets as required by state law.
•The town used $192,579 of restricted sales tax revenue for general payroll expenses between April 2022 and March 2023, which may have violated the tax proposition passed by the voters.
During the investigation, auditors were told the town did record council meetings, but the town could not provide any audio recordings from 2021 to 2022. Auditors also learned several ARPA expenditure proposals were provided, but none were signed, dated or attached to council meetings, to illustrate which plan the town approved. Only two deposits were made into the ARPA account before the funds were moved to the general fund. The accounting records did not indicate which expenditures were paid with ARPA funds.
In regards to pay, the state law requires payment to the town council, mayor, clerk and police chief should be done by ordinance and an additional pay would require approval by the council through an ordinance. The town did not have records of a separate ordinance to set the pay for elected officials, clerk, etc. This also indicated they were likely not eligible to receive the ARPA premium pay. This also was true of the April 8, 2019, meeting when the town increased the police chief’s salary from $17.66 to $22.66 per hour, which was unanimously approved but not passed by an ordinance. And ARPA money used to pay the town attorney appears to not have been documented correctly. David Vidrine, who was the town attorney at that time, said he had a contract with the prior administration and the current council, but he never received a signed copy and the town could not provide that contract.
In regards to the LACE findings, Police Chief Grady Haynes told auditors the program was established in Oberlin before he became chief. Records indicate the town approved an ordinance to increase speeding fines on May 12, 2014, but never mentioned the state’s laws affiliated with those statutes. The town also based its program through its mayor’s court, which may have been improver since the attorney general’s opinion 87-244 provided the programs should be conducted through the district attorney’s office.
When Haynes adjusted the citation for 25 tickets from moving to non-moving violations, this reduced the citations by $4,397. Haynes responded to auditors stating he could adjust tickets before they were entered into the system. And the 25 tickets in question were all approved by the city attorney. He also provided examples of several citations and noted this was the way the town had operated its mayor’s court and LACE for several years.
Artis responded to the auditors her job duties were to complete all tasks at any hour of the day. She did clock in and out. She said several discussions occurred about overtime and believed there was an error because she did not believe the ordinance was approved. She also noted her time card was signed by the mayor, finance clerk or town clerk, and the mayor was always informed by the finance clerk what hours employees had worked.
Now present leaders must use this report to make changes that will reflect state laws.