RRABB Levee District audit shows improper expenditures

A new audit of the Red River, Atchafalaya, and Bayou Boeuf Levee District shows multiple violations involving expenditures, including the former board president using a district credit card to pay for unauthorized meals and lodging.

The district’s board also did not follow proper procedures last year in raising the per diem allowance for board commissioners from $75 to $97, the audit report shows.

In responding to the findings by the Louisiana Legislative Auditor’s Office, RRABB Levee District Executive Director Warren Byrd said action is being taken to tighten procedures to prevent such violations and also to recoup money where possible.

Chris Roy Jr., the district’s current board president, said, “I’m definitely satisfied that there have been corrections made that will make sure nothing like that happens again.”

The RRABB Levee District includes all or a portion of Rapides, Avoyelles and St. Landry parishes, with its primary responsibility being flood protection and related matters.

The Legislative Auditor’s Office’s audit report of the Levee District for the 2015-16 fiscal year, which ended June 30, was released Monday.

“The District does not have adequate controls over travel expenditures to ensure compliance with District policy and state travel regulations,” the audit report notes.

“… Failure to comply with state travel regulations and its own policies and procedures exposes travel transactions at the District to possible noncompliance, errors, and/or fraud and abuse.”

Among specific violations cited were:

— “The District made payments totaling $2,452, including $2,317 for District credit card charges and $135 for an expense reimbursement for meal and hotel costs, without having detailed itemized receipts.”

— “The former board president charged $1,048 on the District credit card for meals and lodging costs that occurred a day after the Association of Levee Boards of Louisiana meeting in New Orleans ended on December 3, 2015.”

— “The former board president charged $222 on the District credit card for meals that were already included in the registration costs of two levee association meetings.”

— “The former board president and a board commissioner charged $501 on the District credit card for five meals that exceeded the individual meal amounts allowed per state travel regulations.”

— “The District did not maintain documentation justifying 10 special meals totaling $2,811 or the names and titles of the persons participating in special meals claimed.”

— “There was no evidence of management’s review or approval of all credit card statements or expense reimbursement forms before payment was made.”

The former board president to whom the audit referred is Carlos Polotzola, who was representing St. Landry Parish on the board, although he was not named in the audit report.

Roy, who represents Rapides Parish on the three-member board, was elected board president in June. Andrew Leon has replaced Polotzola as St. Landry Parish’s representative on the board.

In his written response to Louisiana Legislative Auditor Daryl Purpera, Byrd said, “Upon his departure with the Levee Board, the former board president returned his Commission credit card to the Administrative Office. Since that time, no other Commissioner, including the newly elected board president, possess a RRABB credit card.”

Byrd also said he will be responsible for oversight of credit card purchases and travel expenses.

While the former president had a Levee District credit card, Roy told The Town Talk, “I don’t want a credit card, and neither do the other board members.”

Roy said the district will seek to recoup the money from the questionable credit card expenditures cited in the audit as having been made by Polotzola.

Concerning the per diem being increased improperly, the audit report said the per diem rate was increased from $75 to $97 in August 2015 and paid to two commissioners for attending monthly meetings and levee site visits.

“As a result, unauthorized payments totaling $1,188 were made to the commissioners. R.S. 38:308 requires a two-week notice to the public of the board’s intent to increase the per diem rate and a vote of two-thirds of the total membership of the board. Management was not aware of this provision of state law, and no such notice was given,” the audit report said.

When Roy became president in June, he directed the board to revert back to the $75 rate until the issue could be further discussed, Byrd said in response to the audit finding. The rate remains at $75.

The Levee District has recouped the $1,188 in overpayments made to commissioners, Byrd said in a response letter.

Another audit finding was that the Levee District paid $7,932 for pest-control services without following requirements of its contract, which says the district’s acceptance of services must be in writing prior to work being performed.

Byrd said that since the services were rendered and paid for, “a retroactive corrective action plan cannot be considered,” but he will take measures to “avoid any future discrepancies such as this.”

Roy said that since becoming board president, he has worked with Byrd “to make sure we were going to have procedures in place” to prevent such problems as were cited in the audit.

Roy said he is pleased with how Byrd is handling administrative duties.

“Our new executive director, Warren Byrd, has been a godsend for us. He is taking care of policies and procedures that I think should have been in place for years,” Roy said.

Other information included in the audit report included:
— The audit’s review of the district’s handling of payroll, budget, tax revenues, permit fees and cash found no irregularities.

— “Cash and certificate of deposit balances totaled $2,068,909 and $1,150,000, respectively, at May 31, 2016.”

— Property tax revenues provided about 87 percent of the Levee District’s fiscal 2015-16 revenue of about $2.9 million through May 31.

— About 74 percent of the district’s expenditures of about $2.67 million for the fiscal year through May 31 went for payroll costs.