Monday, December 4, 2017

IG Recommends Ending Zero-Dollar Leases to CU, Costing Parish Almost $3.7 Million over 25 Years

Jefferson Parish Office of Inspector General (IG) found that the Parish is missing out on almost $3.7 million in revenues over 25 years by providing free space to Jefferson Parish Employees Federal Credit Union (Harahan, LA).

The report noted that the $100 million credit union had offices in three Parish government buildings -- the Yenni Building, the General Government Building, and the Odom Building.

The forgone annual revenue to Jefferson Parish from these 3 zero-dollar leases was estimated at $146,920. The audit report also pointed out that the credit union is not paying its pro-rata share of custodial costs, as well as cost for utilities.

In addition, the Inspector General wrote that the credit union does not pay rent to Hospital Service District #2 on space it leases in East Jefferson General Hospital.

Parish President Mike Yenni’s administration agreed in part with the findings, most notably that the parish should get some form of compensation for the leases and leases should have a cost of living clause.

The audit report also stated that three other properties had zero-dollar leases, but the credit union accounted for a bulk of the forgone revenue.

Read the Audit Report.

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