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In response to a latest audit, the Louisiana Workplace of Public Well being did not correctly deal with the funds of its clear consuming water fund in 2023.

An audit by the Louisiana Legislative Auditor’s Workplace examined the final fiscal ending in June 2023 and located weaknesses in money administration, monetary reporting and payroll for the Consuming Water Revolving Mortgage Fund Program.

This fund was established in 1997 to supply low-interest loans and technical help for public water techniques to make sure secure consuming water. This system is funded by means of U.S. Environmental Safety Company grants and a few state funds.

In response to the report, the Workplace of Public Well being did not adequately evaluate the fund’s monetary report inflicting the monetary statements and different associated disclosures to have quite a few errors requiring changes.

One error on the assertion concerned $2.7 million of statutory devoted funds being erroneously reported as working income. In response to auditors, this cash ought to have been recorded as non-operating revenues.

Some unearned income to the tune of $855,606 was additionally not correctly reported as such on the assertion of internet place, and as a substitute was marked below accounts payable.

Three parts required by the EPA weren’t disclosed on the workplace’s mortgage receivable observe.

The division didn’t handle the grant money sufficiently, and it resulted in overdrawn federal awards throughout the consuming water program.

Throughout fiscal 2023, the workplace of public well being drew $855,606 in extra of the allowed price range for the relevant award yr. As famous above, they improperly marked this cash and was unable to disburse it into program functions earlier than the tip of the yr.

This surplus was an issue for the federal company as a result of their obligation is to make sure monies are disbursed solely as wanted, and spent rapidly and effectively.

Lastly, the workplace didn’t at all times approve payroll expenditures for this system, as required by state coverage. In a pattern of 40 payroll transactions pulled from a complete 267 transactions equaling $833,436, two, or 5%, of the time stamps weren’t accredited by the staff’ supervisors.

The auditors mentioned, apart from these cases, the workplace complied with the necessities set forth for the fund’s monetary statements.