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Panel approves audit extensions for some agencies, 250 others delinquent

04:20 PM CDT on Monday, July 30, 2007

Melinda Deslatte / Associated Press

BATON ROUGE, La.-- The city of New Orleans and several dozen local government agencies won a reprieve Monday from the interruption of their state funding when a legislative panel gave extensions for their required financial reports.

But another 250 or more government and nongovermental agencies that receive money from the state -- like the city of Shreveport, the DeSoto Parish Police Jury and the West Feliciana Parish Police Jury -- remain delinquent in their compliance with state financial reporting laws.

Those considered delinquent face a stalling of all state dollars until they come into compliance, including dollars for road repairs, education programs and state supplements to police and law enforcement salaries.

"If you're on the list and you don't have an extension, you will not be receiving your money. I have no discretion under the statute," said Treasurer John Kennedy, whose office cuts the state's checks.

A new provision lawmakers added to the state's budget says agencies set to receive state money shouldn't be able to get those dollars until they either provide their required financial audits or financial statements or get an extension of those requirements.

The Legislative Audit Advisory Council granted extensions Monday for four dozen entities, including the city of New Orleans, the Cameron Parish Police Jury, St. Bernard Parish Government and many other entities in hurricane-damaged parishes.

New Orleans turned in its 2005 audit last week and received an extension of its 2006 audit until the end of October, a month later than the city's mayor estimated it would take to turn in the audit.

But the advisory council didn't grant extensions to Shreveport, the Iberville Parish School Board, the St. James Parish School Board and other entities that sought one because Legislative Auditor Steve Theriot said they didn't meet the criteria for extensions, which are allowable in disaster emergencies only.

Other agencies who haven't turned in their financial statements didn't ask for extensions.

The audit compliance requirement was slipped into two sweeping state budget bills with few lawmakers noticing the provision. But members of the audit advisory council said they support the intention. They said the financial reporting is required of agencies so taxpayers can see how their money is spent and whether it's spent properly.

"Hopefully, we've lit a fire for them to file their audits and timely comply," said Rep. Taylor Townsend, D-Natchitoches, a member of the audit advisory council.

Representatives of several agencies showed up Monday to plead their cases to the council and ask for extensions.

For example, Washington Parish President M.E. "Toye" Taylor said his parish has been trying to cobble together financial records since the hurricanes with a small staff burdened with a slew of new recovery needs.

"We're doing all we can humanly, possibly do," Taylor said.

The council granted his extension requests.

Under the new law, those deemed delinquent in their reporting face an interruption in all sorts of state payments, in federal hurricane recovery dollars that flow through the state and in millions of dollars the state spends on local construction projects.

Nonprofit, non-governmental agencies who haven't reported won't get money lawmakers earmarked for their programs if they aren't deemed in compliance.

State officials are working out the details of the provisions to determine how the process will work in general to delay state payments.

"We're all kind of feeling away along on this one," Kennedy said, but he added, "If you're on the list, it's effective immediately."

(Copyright 2007 by The Associated Press. All Rights Reserved.)