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Bogalusa finance committee: audit reconciliation underway; payroll filings, outsourcing discussed
Summary
City staff told the finance committee July 17 that reconciliation of the 2023 financial records is expected by Aug. 1, 2026; officials outlined payroll filing corrections, penalties and a shift to outsourced payroll services estimated at about $30,000 per year.
Rob Nielsen, the city's physical administrator, told the Bogalusa Finance Committee on July 17 that staff are making steady progress reconciling the city's financial records and expect the 2023 reconciliation to be complete by Aug. 1, 2026 so auditors can finish the 2023 audit. "This report provides an update on the city of Bogalusa's financial operation, audit progress, compliance activity, infrastructure projects, and corrective action underway," Nielsen said in his presentation.
Nielsen reported the city's outstanding accounts payable totaled $198,250 and the general fund cash balance was about $730,000. He said a certified public accountant has been hired to serve as director of administration to help complete outstanding reconciliations and strengthen internal controls.
Committee members pressed staff about payroll-related filing problems and penalties. Staff said the city had not submitted certain 1095-C information returns in prior years and faced penalties of about $310 per employee, totaling roughly $93,000. "They have all been submitted," staff said, and the city has requested abatement of penalties while awaiting a response.
The committee also discussed a technical issue with the city's Tyler system that blocked some automated withholding entries; staff said the server problem has been fixed and related journal entries have been posted. Nielsen said staff will submit reconciled records to auditors once complete.
On payroll operations, the committee heard that the city solicited three vendors and chose an outsourced payroll service. Skyler Wade said the city's NetChex contract is roughly $30,000 per year. "I I wanna say it's, like, around $30,000 a year to have net checks," Wade said. Officials said outsourcing will remove the need to replace a former payroll clerk and eliminate the prior time-clock cost of about $15,000 annually.
What happens next: staff will complete reconciliations, follow up on abatement requests for penalties, and finalize budget amendments to reflect outsourcing savings and payroll contract costs.
