Audit pinpoints trouble spots in parish budget

A 2023 audit shows a number of money woes plague the St Mary Parish Council, and some have been doing so for years.
Auditor Tim Matte, of the accounting firm Pitts & Matte CPAs in Morgan City, said the Parish Council has some work to do in order to get more breathing room in their current budget, in the wake of a 2023 audit his firm recently completed, on
In a follow-up interview after his audit presentation Sept. 24 during the Parish Council meeting, Matte said that in 2023, while the council had a small surplus, it did not have enough money to operate properly, paying bills on time, for instance. “This needs to be watched,” he said, during the meeting.
One issue was a $1.2 million deficit in the operations of Fairview Treatment Center and Claire House, the parish substance abuse inpatient facility for alcohol abuse, drug rehab, and other treatments in Bayou Vista, and the long-term residential program for women and their dependent children in Bayou Vista, located next to Fairview.
He told the council that in 2022, the parish closed the facilities because they didn’t collect enough revenue to cover costs. They have since contracted with Odyssey House of New Orleans to operate both facilities.
Another big issue was just over $600,000 in receivables owed the parish from its water and sewer districts, which were tardy on their payments. He explained that in the unincorporated areas of the parish, the parish relies on its water and sewer districts to bill consumers and collect for their share of water and garbage.
Another issue arises from the federal grants the parish receives, which have dwindled from $4.956 million in 2021 to $1.688 million in 2023. He pointed to the money that came from the Coronavirus Aid, Relief, and Economic Security Act.
Still another issue is the amount of money the parish receives from royalty road funds, its share of oil and gas production on parish property.
In 2022, that amount was $3.370 million, but in 2023, $1.894 million. He said that drilling was obviously down in 2023. But in 2021, the total revenue had been $2.142 million.
By phone Monday, Matte said the parish royalty share of road funds has been $5 million in the past, and in some years more.
Also, he said, there are a number of operational programs in the parish that are not paying their way, pointing to the parish animal shelter as one example. It collected $98,913 in 2023, but spent $498,000. As a result, the council transferred $329,000 to help cover the difference.
During the council meeting, Parish Councilman Patrick Hebert of Berwick asked, “How did we get to this point?”
Matte explained that in years prior, fees covered 60% of the operational costs at the shelter, but in 2023, that share was only 30%.
“It’s pretty simple. You either raise fees or lower costs,” Matte said to Hebert.
Another operation, the Atchafalaya Golf Course, also had a loss in 2023. However, For a number of years now, he said, the parish has transferred $250,000 to cover costs at the facility.
St. Mary Parish taxpayers paid $4.5 million in 2007 to build the Atchafalaya at Idlewild course.
He said another deficit was at the parish jail, which operated at a deficit in 2023 of $176,000. After adjustments, the jail was $151,000 in the red.
Matte said the parish needs to take a look at raising its solid waste fees once more, as they’re still not covering operational costs, nor are they leaving room for equipment failures and new purchases.
He said the 2023 audit was completed late due to COVID and a change in parish administration from President David Hanagriff to President Sam Jones.