Positive audit presented to Vermilion Parish Police Jury finance committee

The independent audit of Vermilion Parish Police Jury finances for the year ending Dec. 31, 2021, was largely positive, Rob Carter of accounting firm Kolder, Slaven & Co. told the police jury’s finance committee Wednesday evening.
“All three reports in your case were very good reports this year,” Carter said.
The independent auditor’s report was unmodified, or unqualified, he said.
“Unmodified is the best opinion you can get on your audited financial statements, so the readers of your financial statements will be comfortable that the data that they’re looking at is comparable to other parish governments, municipalities, etc., and they can get good, sound financial data by reading these financial statements," Carter said. “So that is a good independent auditors report.”
The report on internal controls and compliance also was positive, with the findings dwindling down to one item, Carter said.
The auditors looked at the general fund and the consolidated funds, with the general fund revenues exceeding expenses for the first time in recent years.
“Most of that is grant related, but it is a positive trend because for many years you guys saw a lot of negatives for that general fund,” Carter said. “So last year you were able to get it to a positive, a difference of about $195,000 surplus this year. The increase from ’20 to ’21 is pretty much grant related. You have your FEMA moneys that were in here, you have RESTORE Act, you have some Shoreline stuff that was going on. So everything was easily explained, but again, it’s a positive this year, so that’s a plus in your general fund for this year.”
Public works spending was a little higher percentage of the general fund spending than usual because of grant money that came in, he said.
“Your public works is about 27 percent, up from 18 percent the prior year, so the expenses pretty much mirror what we would expect based on how the revenues came in, so nothing out of the ordinary there,” Carter said.
One thing the auditors would like to see is for the general fund to have 90 to 120 days of operating expenses available.
“In your case you have cash available about 81 days and fund balance about 79 days, so you’re close, but you’re not there,” Carter said. “You would like it to be 90 days or 120 days.”
Lafourche Parish ran into issues this year after having to reassess and operate without ad valorem taxes collected for a full year.
“That’s why that reserve, especially on the coast, you might want to look at that a bit closer,” Carter said. “But again, not a lot of negatives this year. The numbers look a lot better than they have historically.”
The committee praised the parish staff for its good work and voted to accept the findings.