(The Center Square) – An independent audit has found widespread issues within the Lafayette Consolidated government’s handling of LUS Fiber operations, including improper internal billing practices, misuse of dedicated tax funds, and failure to adequately safeguard public assets and equipment.
The audit released by the Louisiana Legislative Auditor revealed that internal government departments were charged LUS Fiber rates based on contract terms “that may not have been appropriate for their specific functions,” potentially violating the Fair Competition Act.
Some departments were locked into outdated contracts, with pricing structures ranging from 12 to 72 months and discounts that increased over time. Auditors flagged the absence of a centralized policy to ensure internal departments received the most cost-effective services.
“This inconsistent contracting practice could be considered noncompliance with the Fair Competition Act,” the auditors wrote.
In response, the government acknowledged the issue and has begun standardizing contracts under a new master services agreement signed in December 2024.
A designated project lead is now coordinating the transition across departments, with implementation already underway in parks and recreation and the police departments.
Additionally, the audit found LUS Fiber was providing services to customers that were either billed incorrectly or not billed at all. In some cases, customers received premium service packages without being charged for them — a potential violation of Article VII, Section 14 of the Louisiana Constitution, which prohibits donations of public funds.
“This finding was not resolved and is repeated in the current year,” the report stated. However, a new revenue assurance analyst, hired in December 2024, has begun performing random audits to address the problem. “She has already started the process of performing random audits of accounts and verification of configured services match,” the audit noted. The government said this issue is not expected to reoccur.
The report also raised red flags about financial practices. The government used proceeds from the 1961 and 1985 City sales and use taxes to pay nearly $5.9 million for projects outside the Lafayette city limits and Lafayette Parish, a possible violation of charter rules and enabling legislation. Moreover, the Parishwide Drainage Maintenance Millage was used to support a project that may not align with the millage’s intended purpose.
Auditors further found that the communications division failed to properly safeguard its assets, and the government did not verify that equipment purchased for customer installations was properly billed.
These internal control failures extended to the use of federal pandemic relief funds, where auditors said the government did not confirm that vendors were eligible to receive federal dollars and failed to follow controls for allowable expenses.
Despite these issues, LUS Fiber continues to expand its footprint. Under the GUMBO and NTIA Broadband Infrastructure grant programs, construction has extended high-speed fiber access to 11,500 addresses in Evangeline, Iberia, Acadia, and Vermilion parishes. More than 500 homes were also added within Lafayette city and parish boundaries.
LUS Fiber’s infrastructure remains a major capital asset. As of October 2024, fiber optics assets totaled more than $194 million, with over $121 million already depreciated. The government reported nearly $7.7 million in fiber-related depreciation and amortization expenses that year. In addition, more than $74 million in fiber optic construction projects were ongoing.
The communications director, Michael Soileau, will oversee continued efforts to bring internal service contracts into compliance and address billing deficiencies.
“We are working with departments and the CAO to ensure the appropriate adjustments are made,” the consolidated government said in response. “This project is expected to be completed within the next two months.”
