An independent audit of the Arts Council of Greater Baton Rouge released today by the state Legislative Auditor’s Office identifies problems with a lack of documentation over how the organization spent certain grant money.
Specifically, the audit notes that “sufficient evidence of program expenditures was not retained for three payments to recipient organizations,” which is required by grant agreements. The audit goes on to note that “grant files did not contain a payroll register for one payment and performance contracts, invoices or timecards for performers for another payment.”
The findings in the routine annual audit were released one week after Eric Holowacz stepped down as president of the organization, which he had headed since 2013.
Sources familiar with the situation leading up to Holowacz’s resignation say the Arts Council board of directors earlier this month held a vote of no confidence on the former president. Officials with the council say the findings of the audit, which was conducted last fall, are unrelated to Holowacz’s departure and that the timing is coincidental.
In a statement, the council says: “On an annual basis, The Arts Council of Greater Baton Rouge Inc. has an independent audit of its financial statements, which is filed with the Legislative Auditor’s Office in accordance with state laws. The board and management were pleased with the outcome of this year’s audit report, and any findings identified by the independent auditors have been evaluated and addressed.”
In the audit, the council details how it plans to address the concerns. It says that during 2014 the organization had turnover in the grant administrator position, which resulted in inconsistent documentation.
“Management will emphasize the importance of strict adherence to the policies and agreements of obtaining required documentation as specified,” the response says.
Also contained in the audit are financial statements that indicate 2014 was a bad year for the organization financially. Contributions were down 25% to $162,204, grants fell 50% to $174,500 and total assets dropped more than 26% to $1.53 million over the previous year. It is unclear whether the organization’s financial situation is related to Holowacz’s resignation.
—Stephanie Riegel
