Judge Miller's Accounting
Practices
Part Judge / Part Accountant?
This is the opinion of the author, Please read the
disclaimer below
After reading the article titled “Expenses incurred by Judge
questioned” in the Aug 27th, Jennings Daily News, I expected to find some
underhanded bookkeeping by Judge Miller’s office. The title of the article just got
me fired up!
However, I could not determine if the total expenses from the three
seminars attended was $1,769.00 or $1,969 or $2,613.00. After a rough day I just hate to
have to sit down and do math. As I read the article I recognized the standard hook words
like,…”controversial”, “excessive”, “investigation”,
and “violations”. And there is of course the rebuttal whereby the person the
article is about is “blaming” someone else for the <insert favorite hook word
here> . These hook words catch the attention of the reader. Their job is to write
stories, hook the readers so they will come back for more.
I would like to take a closer look at the “Total” amount that is made into a
controversy and the audit itself. When many people hear the word “Audit”, they
equate that with a federal tax audit. We are conditioned to fear and raise an eyebrow even
at the mention of the word.
In every business or government agency there is a budgeting process
and along side of it is an audit process. An “Audit” is not a dirty word nor
does it immediately indicate a problem. Whether it is in business, or in local government
audits are normal and an integral part of the accounting function.
I manage a budget for the company I work for. The annual budget is
somewhere in the neighborhood of a couple of million. In terms of the size of the overall
business, my budget is extremely small. I
have to review revenue and expenses and report on discrepancies each month. A review is
done on the actual revenue/expenses against the budgeted
revenue/expenses. A written explanation has
to be provided for variances on each line item of the budget. There are about 100 or so
line items in the budget. I have to explain not only negative but positive variances in
the budget.
My expenses and revenue, along with variances are subject to an audit
at any time but as a standard you can be audited for a variety of reasons. There are
routine audits, and there are “event triggered audits”.
Because of the recent allegations against Judge Miller, one
should automatically presume that an audit will follow. This is an audit triggering event.
The scandal of the city may trigger an audit. When dateline does a story on Jeff Davis
Parish….an audit will follow. If it doesn’t occur then and only then should
people raise an eyebrow. An audit is a check and balance on the accounting principals of a
budget. Discrepancies are common, and have to be explained. One line item that is looked
at closely in an audit is the T&E. (Travel and Entertainment expense). This single
line item is the source of major headaches because it is scrutinized so closely. Another area of headaches is major purchases and the
process followed to make that purchase.
An audit serves 2 functions. Find discrepancies and make
recommendations. They review the revenue and expense line items, and the processes in
place that involve the accounting function, such as cash handling, invoice handling etc.
Their essential function if employed by the company or the parish they are auditing is to
find discrepancies, figure out how they occurred and implement procedures that will
prevent re-occurrence. They use general accounting practices and the law as their
benchmarks for the audit. Errors can occur in
coding to wrong line item, double posting, overpayment, and underpayments, not to mention
violations of the law if you are a public body.
Judge Miller, without knowing his structure, should have an A/P
(Accounts payable person) and an Administrative Assistant. I think the AP falls at the
Police Jury Office and is probably or should be a department within itself. Independent
auditors are hired for oversight. If the entity was large enough it would have internal
auditors.
The AA and AP people are the ones who book the rooms, plan the
trips, set up getting the funds or handling the T&E reimbursements. Invoices for Judge
Miller’s departmental expenditures go directly to the Police Jury AP to be paid,
according to the article. This is a big hole in my opinion but was corrected according to
the article. The invoices will now go to Millers department, which is the way it should
be. He will stamp them on date received, retain a copy and process for payment. Payment is
up to the Parish AP department. Double posting or “duplicate payments” are
common. Double posting or duplicate payments is an A/P function. The A/P function is at
the Police Jury office not at Judge Millers office. However he is still responsible for
his budget so he should be getting a G/L every month. A GL is a General Ledger that shows
and itemized list of all expenditures. The AP person and Administrative assistant as well
as Judge Miller should be looking at the G/L. The point here is that this is all bean
counting that involves more than one person, and errors are common. When mistakes are made
that you can’t justify, then you have to cough up the money yourself. That goes with
the territory of being in charge of a budget.
Looking at Judge Millers audit story, I had difficulty in
figuring out just how much was in discrepancy, so I’ll take the highest number in the
article, which was a total and put the whole thing in question. I will go with $2,613.00
for 3 seminars he attended. The expenditure included room, meals, travel, tips and other
unforeseen expenses, and the cost of the seminar itself. For three seminars, that comes to
$871.00 per seminar. I have attended meetings, seminars and the like. For it to be $871.00
for one in his line of work, I would have to say that is probably in line or maybe a
little high. Not excessive.
Adding the numbers up that appeared in the paper did not amount
to a terrible audit. There were some issues…and there are always issues of one kind
or another. I would have to say that Judge Millers Audit was okay with recommended changes
needed. The issue with Viators overpayment of retirement can only be an accounting error.
Unless Judge Miller pulled cash from his petty cash drawer and paid her there is nothing
there. The disbursement involved other people. If Judge Miller, the District Attorney, the
Sheriff or anyone else is accused of cooking the books...somebody is going to have to
really prove it to me with something beyond general accounting errors.
The other part of the untold story is where they are in terms of
their budget month to date. Month to date are they exceeding their revenue? Are they under
or over budget? None of this was mentioned and it is important in the overall picture.
Keep in mind it is not significant to the auditor, but it is important to those who
oversee the budget and to the public..
In tonights paper the district attorneys office also went
through an audit. There was an issue with a 2001 Ford F-150 and the way the bid was
written gave preference to the bidder. I would presume the truck value was probably around
$5000.00. Who had the bigger discrepancy when
measured in dollars and cents? Cassidy himself said “I’m the first to admit that
bookkeeping is not the top three of my priorities list”. “And I don’t mind
the criticism of an auditor”.
Why doesn’t this apply to Judge Miller? Looks like the DA
spoke for both of them on their love for accounting! Do you really think Judge
Miller has bookkeeping in the top three of his priorities list either?” The big story
here for Judge Millers accounting practices is the same as the District
Attorneys…….there is no big story! Let's not anybody get too
excited......afterall....it's accounting!
Joe Semmes
8/28/03
Disclaimer: "I don't know shit from
shinola...this is just my opinion"
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