What you need to know about Shreveport city government investigative audit findings
On Oct. 6, 2022, the Louisiana Legislative Auditor (LLA) issued the findings from the investigative audit following numerous complaints regarding Shreveport's city operations.
These findings came nine months after Shreveport City Council member John Nickelson sent a letter to the LLA requesting that the state office investigate a number of accusations made by a former city employee against the city's finance department.
"I thank the Louisiana Legislative Auditor and his staff for their diligent work on the investigative audit conducted at my request, and I expect the administration and the Council to take all steps necessary to ensure the errors reflected in the audit are not repeated," said Nickelson.
The LLA revealed in the audit that Mayor Adrian Perkins' travel expenses totaled $35,845, from Jan.1, 2019 to Dec. 31, 2021. And, the city's purchase of insurance did not comply with the city charter or city policy.
This investigative audit followed five procedures, including:
interviewing employees and officials of the City of Shreveport
interviewing others, as appropriate
examining select documents and records of the City of Shreveport and third parties
reviewing the City of Shreveport’s Charter and Policies
reviewing applicable state laws and regulations
More: Shreveport Councilman John Nickelson asks state auditor to investigate city finance department
City Insurance
“We are committed to strengthening city operations and proactively identifying opportunities to enhance the financial integrity of city government,” said Perkins.
The LLA audit findings stated that the Mayor may have violated the City purchasing policy.
Prior to Perkins' installation in Dec. 2018, the City of Shreveport's risk services department changed the agent of record (AOR) for the city’s excess workers’ compensation insurance policy at the request of a member of the mayor-elect’s transition team.
Following Perkins' installation, the city changed the AOR for its property insurance although the amount was not approved by the city council which is required by the city's purchasing policy.
The Mayor's Office said:
After taking office in 2018, this administration decided to change the City insurance broker for two reasons: to try and get better rates and save money in the market, and to insert minority participation where there was none. The administration acknowledges that at the time the change was made, no RFP process took place. Action was taken in 2019, prior to the issuing of an Internal Audit Report for the City’s insurance procurement. In this report, the Auditor made a factual finding that 2006 was the last time an RFP was issued. The same process that had been in place for over a decade was followed. Before the release of that audit, an RFP was issued to solicit municipal insurance, which is documented in the Internal Audit Report. Additionally, an RFP has been issued every year since that time.
"It is my responsibility as Mayor to advocate on behalf of the city," said Perkins. "We have aggressively put procedures in place to improve internal controls aimed at achieving fiscally responsible practices in all our city departments.”
Read: Shreveport councilman John Nickelson announces he will not seek re-election this year
Travel Expenses
Perkins took 23 trips, totaling $35,845, from Jan. 1, 2019 to Dec. 31, 2021. Sixteen of those trips included expenses, totaling $3,210.
The audit revealed that these expenses may have violated the City of Shreveport travel and procurement and travel card policies and procedures.
When asked during the audit investigation, Perkins told the LLA that the City does not have a lobbyist, so he travels to represent the city.
“Pursuing partnerships with companies, organizations, and agencies that can provide significant investments through job creation, capital investments and infrastructure improvements have remained a top priority," said Perkins. "Seeking those opportunities for Shreveport requires traveling outside of the state to build relationships critical for the growth of our city.”
He also said his assistant handles all of his travel, because he is not good at keeping receipts, and he has never reviewed his City travel card statements.
The Mayor's Office said, "receipts were provided for purchases but were not itemized, which was previously a standard practice. The Mayor will reimburse the City for all expenses that the audit shows may have violated travel and procurement policies and procedures."
Perkins has reimbursed the city $681 for some of the travel procurement policyand procedure violations. But has remaining violations such as ten missing receipts totaling $1,196, six business meals totaling $608, seven lodging charges over per diem rate by $592 and two reimbursements totaling $133.
The Mayor's Office said they will be taking steps to better improve the implementation of purchasing policies.
Improvements
The City of Shreveport has contracted with the Government Finance Officers Association to update purchasing policies to make sure that all city departments are compliant.
Training sessions will be required to ensure that the persons responsible for filling out and submitting travel forms in every city department are knowledgeable of City policy and the Code of Government Ethics.
A streamlined system that tracks and verifies when travel/purchasing documents are submitted will becreated.
"Transparency and compliance with the rules governing the conduct of elected officials benefit us all," said Nickelson.
Makenzie Boucher is a reporter with the Shreveport Times. Contact her at mboucher@gannett.com.
This article originally appeared on Shreveport Times: What was in the Shreveport investigative audit findings?
