Orleans News

Report: New Orleans metropolis authorities has points with vendor funds


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A current audit discovered that the town of New Orleans can’t precisely decide how lengthy it takes to pay its distributors.

Legislative Auditor Mike Waguespack’s workplace present in its report that the town’s buying software program, the Finances, Requisition, and Accounting Providers System, usually pays invoices inside 30 days however doesn’t file the complete invoicing course of.

Auditors additionally famous that because the system can’t observe the complete cost course of, metropolis officers don’t have any manner of figuring out delays.

In keeping with the report, auditors found that the town’s Accounts Payable division can delete unprocessed invoices in BRASS, which is unable to supply an audit log that tracks deleted invoices.

One vendor, based on the report, had 16.3% of its invoices deleted on this method, with one other having 14.1% of their deleted. The report additionally stated a number of distributors advised auditors that they needed to resubmit invoices and the town would delete the earlier model.

Auditors additionally discovered that procurement delays forestall distributors from submitting their invoices into the system, which ends up in delays in cost. Additionally they uncovered that the town doesn’t observe the timeliness of its procurement processes.

In keeping with knowledge from the accounting software program, 23.7% of invoices (38,937 of 164,338) had buy order dates after the bill date. The report says this may point out there was a delay executing the contract or in executing a purchase order order. Auditors found at the least six distributors with contracts executed greater than 200 days after the efficient contract date.

The accounting system the town makes use of processes greater than 32,868 invoices per 12 months price a median of $1.62 billion per 12 months, based on knowledge complied between July 1, 2019 and April 18.

In keeping with the report, the town paid 84.7% of its invoices (138,022 of 163,036) throughout the 30-day requirement between July 1, 2019, and April 18. Invoices that have been paid after the 30-day requirement had feedback that included buy order errors, budgetary points.

The audit revealed that the New Orleans Aviation Board had probably the most invoices paid greater than 30 days late at 3,784, adopted by Capital-Streets with 2,633, the Tools Upkeep Division with 1,450 and the Know-how Applications workplace with 1,201.

The 30-day requirement for bill funds was codified into an ordinance in April by the Metropolis Council. State legislation additionally requires that governments pay invoices promptly. If a governmental physique doesn’t pay an bill inside 45 days, taxpayers are answerable for cheap lawyer charges and curiosity amassed every day at a price of 0.5%, to not exceed 15%.

The auditor’s workplace recommends the town enhance communications with distributors to “guarantee readability about its invoicing course of, kinds and documentation required by metropolis departments, and the way to contact the town with associated points.”

In Could 2024, the accounting system had 592 messages, with some relationship again to 2021, asking about cost standing or different invoice-related questions. Auditors stated BRASS was not configured to inform metropolis officers of those messages or permit them to reply. The workplace recommends a centralized channel to permit the town to be higher talk with distributors.

The town stated in a response letter to what it termed a “thorough and strong audit” that it agrees with the suggestions and can implement them by 2025.

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