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USS Kidd financial woes remain evident in audit

4 years 3 months 1 week ago Monday, August 11 2014 Aug 11, 2014 August 11, 2014 4:30 PM August 11, 2014 in The Investigative Unit
Source: WBRZ
By: Ryan Naquin

BATON ROUGE - USS Kidd leaders are working to correct financial troubles, mismanagement and lack of oversight made by its previous administration.

Last September, News 2's Investigative Unit first uncovered the problems and questionable spending surrounding the ship. The Legislative Auditor's office released the ship's 2013 audit Monday, giving a negative opinion because key accounting records and supporting documents were not available for the 2013 fiscal year.

The report revealed the Kidd's former executive director Maury Drummond continued to ignore auditors concerns even after being told to change his management practices. Out of 145 expenses sampled in the 2013 audit, 74 lacked supporting documentation, and one was a personal expense item for an employee, according to auditors. The state also revealed a gift card was purchased by the Kidd with no apparent business purpose.

The report showed the Kidd's assets have not been inventoried and tagged properly as state law requires. Auditors also revealed how an employee was repeatedly paid for work time in lieu of a vacation.

The 2013 audit shows Drummond failed to note how the USS Kidd owed more than $281,000 in insurance premiums to the Office of Risk Management. The Kidd is now $330,000 in debt to the ORM and paying $5000 a month.

Office of Inspector General is investigating financial activities of the last three years and into Drummond's questionable spending. The report is expected to be done within the year.

Alex Juan took over at the end of 2013 after Drummond resigned after nearly 30 years as the executive director. Juan turned over a comprehensive action plan to the state showing how she is correcting the mistakes made by the previous administration.

Past audits revealed Drummond's lack record keeping led to questionable spending and poor management practices. Drummond was solely responsible for reimbursements and check signing. Audits from 2011 and 2012 showed Drummond would reimburse himself without receipts or proof of expenses for company purposes.

Last month, News 2 reported on the 2013 audit after the ship's current executive director Alex Juan released the report to the Louisiana Naval War commissioners during a monthly meeting.


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