(The Center Square) — A recent audit showed the town of Montgomery lacked several supporting documents, including vendor payments, operating losses, and meeting minutes for the Board of Aldermen.
After failing to complete an audit report before the deadline and reconcile financial accounts, the Louisiana Legislative Auditor’s Office released an audit summary on March 26 detailing its findings for Montgomery’s 2023 fiscal year.
The independent auditor did not provide an opinion due to the findings.
“We do not express an opinion on the accompanying financial statements of the governmental activities, business-type activities, and each major fund of the town,” the report said. “Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.”
The auditor could not perform necessary procedures due to the lack of documentation concerning transactions and bank reconciliations. An analysis by management showed that the town overlooked adopting a budget for the audited period.
No meeting minutes for the Board of Aldermen were recorded, for the year ending Dec. 31, 2022, concerning budget. The lack of minutes is reported by the auditor to be an administrative oversight. Failing to adopt a budget violates state law and the Home Rule Charter.
The schedule of findings provided by the independent auditor states no documentation was available to support various vendor payments for the first quarter of 2023.
Findings also showed the utility system reported substantial operating losses, which resulted in a depletion of finances. Rates were not adjusted to offset costs, resulting in a significant decrease in funds. Montgomery officials submitted the audit late in violation of state law.
There were also cases of reconciliation issues and payroll documentation. According to the auditor, the bank accounts operated by the town had not been properly reconciled. As for payroll, employees recorded their timesheets but there is no record of supervisor approval for some.
The different findings were originally reported in 2021, some in 2022, and now again for the 2023 audit.
Montgomery, population 620, is located in north central Louisiana on the west bank of the Red River.
