Mayor Madden's Failures Highlighted in Financial Audit - Mandeville, LA

 



After withholding financial details for 6 months, an audit reveals 10 pages of violations including Louisiana State Law violations, City Charter violations, and violations of accounting principles.  There are no penalties for violations and it is up to citizens to hold officials accountable through lawsuits. See the below summary of the more serious violations.  There were more.  See the audit link at the end of this article.
  • Deficit - Fiscal Year 2023 Ending Balance: Beginning the fiscal year with $19,087,246.00 and ending with $14,730,783.00, Mayor Madden presided over a deficit of approximately $4,356,463. This marks a continuation of the deficit trend from FY2022, which stood at around $4,200,000.00.
General Fund BalancePhoto byAJE
  • General Fund Mismanagement: The primary operating fund of Mandeville, LA, faced significant challenges under Mayor Madden's leadership. Increased public works expenditures, including salaries, benefits, repairs, maintenance, and increased capital outlay associated with the purchase of land contributed to the decline in the General Fund balance.
  • Financial Oversight Responsibility: While the council approves spending, they are provided with scant and frequently delayed information, often with reassurances by Mayor Madden that everything is under control.
  • Expense Increase: Mayor Madden attributes financial issues to increased expenses, but a 16.7% raise in salaries and benefits caused the issues, a fact confirmed by audit findings.
  • Budgetary Oversight: Mayor Madden's administration fell short in revising the budget as required by Louisiana law when total revenues or expenditures deviated from the budgeted amounts. Additionally, the failure to include estimated beginning and ending fund balances in budget schedules further underscored budgetary mismanagement.
  • Auditing Failures: Mayor Madden's administration failed to ensure timely and accurate documentation for the year-end audit, leading to discrepancies and non-compliance with Louisiana state law. Key elements such as estimated fund balances were omitted from budget schedules, raising concerns about financial transparency and accountability.
  • Misleading Revenue Projections: Despite assurances from Mayor Madden regarding anticipated FEMA funds, the inclusion of these revenues in the FY2024 budget was premature. Contrary to Madden's claims, these grants were not expected to materialize within the current fiscal year, casting doubt on the accuracy of revenue projections.
  • Questionable Expenditure Reporting: Auditor findings revealed a lack of FEMA grant reimbursement requests or agreements for approximately $4 million in expenditures, further highlighting deficiencies in financial management and oversight.
  • Late Audit Submission: The Madden administration's failure to provide timely and accurate information for the audit resulted in missed deadlines and potential suspension of intergovernmental grant funding from the State of Louisiana, jeopardizing crucial financial resources for the city.
  • SEFA Inadequacies: Mandeville lacked sufficient policies and procedures to prepare an accurate Schedule of Expenditures of Federal Awards (SEFA), leading to delays and significant adjustments during the audit process.
  • Disaster Assistance Reimbursements: In the aftermath of Hurricane Ida, Mandeville failed to implement adequate procedures for timely reimbursement requests on grant projects from federal and state agencies, potentially hindering the city's recovery efforts.
  • Transparency and Accountability: The Madden administration's lack of transparency was evident in the absence of budget-to-actual comparisons in council minutes for nearly half of the observed months. Moreover, written updates on the resolution progress of audit findings were not provided to the council as per management's corrective action plan, raising concerns about accountability and follow-through.

In conclusion, Mayor Clay Madden's tenure has been marred by financial mismanagement, audit failures, and a lack of transparency, jeopardizing the fiscal health and integrity of Mandeville, LA. As residents demand greater accountability from their elected officials, the spotlight remains on Madden's administration to address these critical issues and restore trust in city governance.

Mayor Clay Madden of Mandeville, LA was warned of the spending issues by his Finance Director as well as the CPA firm CRI.

Follow me on NEWSBREAK:  https://www.newsbreakapp.com/n/0rlHhomz?pd=0DIbxEQC&lang=en_US&s=i16&send_time=1709950625

To see the full audit:  https://www.cityofmandeville.com/sites/default/files/fileattachments/finance/page/4603/01a_com_2023_fs_issued_reports_combined.pdf

Or here: 

https://drive.google.com/file/d/1n9rFUnYOgWKgjDAEqOBkxs2iqEB07vht/view?usp=sharing

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