Annual audit shows financial gains, notes procurement and payroll issues

West Baton Rouge Parish ended 2024 with $124 million in net assets, an increase of $10 million from the previous year, according to annual audit reports covering the fiscal year ending December 31, 2024, presented to the Parish Council Thursday night.

Independent auditors reported total parish revenue increased from $46 million to $51 million in 2024. Of the parish's $124 million in net position, $45 million remains unrestricted.

The parish's total assets reached $163 million, an increase of $28 million from 2023. Cash and investments totaled $63 million, up $16 million from the previous year. Capital assets totaled $81 million.

Auditors Note Two Compliance Issues

Auditors reported two compliance findings during their presentations to council members.

The parish purchased equipment exceeding $30,000 through an out-of-state cooperative contract that should have followed Louisiana public bid law procedures. "The Office of State Procurement has adopted five Sourcewell contracts, but the contract in question was not one of those contracts adopted, and so it should have followed the bid law," the auditor stated.

The fire district audit found an employee approving their own timesheet, in violation of department policy requiring supervisor approval. "The policy specifically states that no supervisor should be reviewing their time sheets that not their own," the auditor reported.

Officials Respond to Findings

Parish officials self-reported the procurement finding when discovered and committed to more extensive contract reviews. Fire department management committed to enforcing timesheet approval policies.

Fire District Assets Increase

The fire district reported net position of $7 million, an increase of $2.5 million from the prior year. Fire district revenue increased to $6.6 million, up $2 million from 2023. Operating expenses totaled $4 million, a $200,000 increase from the previous year.

Utilities Department Reports Mixed Results

The utilities department reported net position increased by $1.34 million, approximately 3% above the prior year. The department experienced operating losses due to decreased gas and water sales.

"Back in 2023, we had the drought. People were watering their lawns, and everybody remembers the gas prices back in 2023 as well," the utilities auditor stated.

The utilities department's positive net income came from $1.73 million in capital contributions from the Parish Council for water improvement projects and equipment purchases. Without those contributions, the department would have experienced a net loss.

The utilities audit noted a recurring issue involving inactive customer deposits from closed accounts awaiting transfer to the state. "Management is working on it. Just a couple of weeks ago, they gave me another call trying to figure out how can we move this over, what can we do to notify customers," the utilities auditor reported.

Restricted Funds Clarification

Finance Director Chance Stephens clarified that $18 million of the parish's cash reserves are restricted for the LA-415 connector project and sewer system projects.

Editor's note: This section was updated to correctly reflect that the restricted funds are for sewer projects, not bonds, based on clarification from Finance Director Stephens.

Clean Audit Opinions Issued

Despite the compliance findings, all three entities received "unmodified" or "clean" audit opinions from independent auditors. The parish has received clean opinions in recent years.

The council accepted all three audit reports during Thursday's meeting.

The West Baton Rouge Parish Council meets on the second and fourth Thursday of each month at 5:30 p.m. at the WBR Governmental Building, 880 N. Alexander Avenue, Port Allen.

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