Audit finds issues with Louisiana’s Road Home program

By Victor Skinner | The Center Square

Louisiana Road Home Corporation’s lack of internal control over financial reporting for a third year led to numerous errors with cash flows, wages, operating grants, and other issues in 2022.

The Louisiana Legislative Auditor outlined several problems at the Road Home Corporation, also known as the Louisiana Land Trust, in an audit of 2022 finances released last week. The nonprofit Road Home Corporation was created in 2006 to help property owners impacted by Hurricanes Katrina and Rita, later becoming the Louisiana Land Trust.

“For the third consecutive year, LLT did not have adequate controls over financial reporting to ensure its financial statements were accurate and complete,” auditors wrote. “As a result, LLT submitted an inaccurate Annual Fiscal Report to the Division of Administration, Office of Statewide Reporting and Accounting Policy that contained (several) errors requiring adjustment.”

The issues involved an overstated cash balance of $2,622, as well as a capital assets balance overstated by $65,493.

The latter stemmed from a beginning year balance overstated by $87,596 for the Road Home properties that were no longer in inventory or recorded at the incorrect value, $63,581 overstated for 2022 Road Home property additions with incorrect values, and deletions overstated by $85,684 for Road Home properties with incorrect values.

“LLT’s accounts receivables were understated by $67,283 due to an error in the calculation of LLT’s estimated receivables due from the Office of Community Development,” according to the report. “LLT’s accounts payables were overstated by $22,650 due to LLT overstating the beginning accounts payable balance by $3,875 and property portfolio expenses by $18,775.”

Those misstatements resulted in operating grants and contracts understated by $67,283; operating expenses overstated by $30,755; capital grants and contributions overstated by $180; and nonoperating expenses overstated by $22,283.

Other issues involved improper consideration of accrued wages and compensated absences, and errors with note disclosures for cash, disaggregation of receivables and payables, capital assets, compensated absences, property portfolio expenses, and other expenses.

“These errors occurred because management did not have an adequate process to review journal entries recorded in the general ledger to ensure the entries were accurate, based on sufficient support, and, where applicable, based on reasonable estimation methods,” auditors wrote. “In addition, management did not perform an adequate review of the AFR, financial statements, and note disclosures, which were prepared by a contracted CPA.”

Louisiana Land Trust Executive Director Michael Taylor responded to the audit report in a letter on June 20 that concurred with the findings and outlined a corrective action plan.

That plan includes “detailed internal training with all staff on finances and financial reporting,” and monthly “all-hand meetings” to review finances, Taylor wrote.

Local

WEATHER WATCH: Severe thunderstorms expected this afternoon, tonight

Local

Holley Fontenot loves to help students develop as writers, critical thinkers

Local

Fort Johnson a driving economic force for central, SW La.

Local

Sowela offering emergency medical training at Leesville campus

Local

Meet Your Neighbor: Robert Brevelle to head La. Genealogical and Historical Society

Local

Fish consumption advisory issued for Vernon Lake

Local

Donna Barger: Teaching ‘feeds my soul’

Business

Merchants & Farmers Bank promoting financial literacy through comics

Local

Patriot Brigade takes time to forge resilient warriors

Local

Martha ‘Ann’ Wilrye drives students to school, teaches when she gets there

Local

Leesville Volunteers of the Year: ‘We love this community’

Local

Jessica Veulema: Education the only career right for me

Local

Louisiana Lions Camp gets some TLC from Corvias volunteers

Local

Vernon school lunch menus April 15-19

Local

Krystal Smith: Being an educator is her calling

Entertainment

Local Authors Autograph Party to celebrate literary successes

Local

Leesville Fire Department makes city history with Class 3 rating

Local

SW La.’s eclipse forecast cloudy, wet

Business

Fastwyre plans grand opening celebration

Local

House Education Committee advances 10 Commandments bill

Entertainment

Local Authors Autograph Party set for April 13

Local

Army Emergency Relief 2024 campaign kicks off with day of fun

Local

Jeremy Deamon has a ‘passion for educating the youth of tomorrow and seeing them become successful’

Local

Kennedy announces $5.2 million in flood protection aid for Vernon, Calcasieu