I always get a charge from local press coverage of GAGAS / SIngle Audit presentations because what are seemingly simple concepts are actually mind numbingly arcane. Luckily for the reader, my mind has previously been numbed with this bit of arcanity so along those lines I got a chuckle at Mary Perez’s rendition of the D’Iberville City Council meeting where their FYE September 30, 2012 SIngle Audit report was presented.
First things first folks as the audit submission is late (it was due on June 30, 2013) and that gives a clue as to the state of the finance department at the City. Good, clean records are easy to audit and those entities with good, clean records typically are not late with audit submissions. In fact, my experience has been that auditees with good, clean records typically have their audits wrapped up 3 to 4 months after the fiscal year end. In the private sector 3 months after Fiscal year end is typically considered timely for audit completion by way of comparison.
The second thing is Mary’s report quotes the CPA firm representative as saying the firm’s opinion was unqualified which in turn is a “clean, good opinion”. My question is which opinion because there are something like 4 or 5 auditor opinion letters contained in a single audit and from the sound of things the City of D’Iberville’s operations are anything but “clean” and “good” as there is double dealing galore there beginning with DMR but not ending there as internal controls over grants and contracts appear nonexistent along with gaping holes in the cash disbursement processes. That much was clear from Mary’s report and there is nothing good or clean about that.
And then of course there is that pesky FBI investigation into the Utility Authority, SH Anthony Construction Company along with Maxwell Walker Consulting and their curious contract with the City. And while my experience has been that FBI agents are meticulous in their grooming, there is nothing good and clean about having the FBI about investigating government corruption. Continue reading ““A clean, good opinion”!? Which one???”