Louisiana Municipal Police Employees' Retirement System, Baton Rouge, is not in compliance with its investment policy, which does not permit investments in undeveloped land, according to a letter to the board of trustees from independent auditor Duplantier Hrappmann Hogan & Maher. At issue is the $1.2 billion retirement system's $16 million investment in a golf course project in Texas, in addition to a credit line of up to $30 million for the project, said Randy P. Zinna, an attorney representing the system.
The auditor recommended that the board review the investment policy and amend it where necessary. It also advised the board to review its development contract with Olde Oaks Golf Course to determine if it "is cost effective and a good business arrangement." The retirement system, which has $10.8 million invested in Olde Oaks and $4.2 million invested in the Golf Club at Stonebridge, lost more than $500,000 total on the investments for the year ended June 30, according to financial statements.
Kris Wartelle, spokeswoman at the office of Louisiana Attorney General Charles C. Foti Jr., said the office also did an independent audit of the retirement system that it has not yet released. She said the results were "along the same lines" as the other audit.