Report: TEDA over-spent more than $23,000

The Terrebonne Economic Development Authority incurred more than $23,000 in questionable expenses between Jan. 1, 2012, and Dec. 31, 2013, according to a report released Monday by Louisiana Legislative Auditor Daryl Purpera.

The expenses include meals, a limousine service, a cellphone purchase, gifts and flowers.

Terrebonne Parish officials asked for a review of expenses, and Houma accounting firm Martin and Pellegrin APC found that $23,338 may have been improperly spent or were not properly documented by TEDA, the report said.

“There’s certainly a lack of documentation, but that does not mean that there was anything intentionally wrong done or any real wrongdoings,” Terrebonne Parish President Michel Claudet said.

The report questions 254 transactions for meals that cost $16,538. Of those, 35 for $2,521 did not have receipts, 106 for $5,795 lacked itemized receipts, 108 for $7,790 lacked information on who attended the meals and the purpose of the means and four for $250 for authority employees but did not detail the purpose of the meals. Another $182 was spent on a Christmas luncheon for TEDA’s employees, and the use of public funds for such an expenditure is not allowed by state statue, according to the report.

There were eight instances of questionable travel expenses totaling $2,986, and 41 transactions for supplies amounting to $3,864 lacked receipts of the business purpose of the expense or were for disallowed items. These purchases included $650 for a limousine service, $352 for a cellphone purchase, a $150 charitable donation, $67 for flowers for a TEDA employee who had a baby and a $150 floral arrangement for a TEDA board member’s funeral.

TEDA policy requires credit card statements to be stamped when received with a verification that the expenditures are within TEDA guidelines and then signed. The report, however, said the documents were stamped, but there were no instances where the stamp was signed and dated by a supervisor, indicating approval of the purchases. The report also said that 10 of the 11 reimbursement forms tests were not signed or dated by a supervisor.

In response to the report, TEDA officials said they immediately will be tightening controls and policies requiring greater documentation of meals, travel and other expenses.

“There’s not even a question concerning that,” Claudet said. “We’re certainly tightening it up really well. The TEDA organization was brought into the parish itself, and my staff and the parish will not even come close to letting any documentation that was similar to what TEDA had go through when they process a payment. It’s got to be there or else they will not go ahead and allow it to happen.”