(The Center Square) — Instances of theft, untimely account statements and excessive spending highlighted an audit of the Recreation and Park Commission for the Parish of East Baton Rouge.
The contract audit by Baton Rouge-based accounting firm EisnerAmper LLP analyzed the commission’s financial statements for the fiscal year ending in December 2021. In their findings, they described three instances of misappropriation of funds.
In the first case, an employee used his commission purchase card to make $66,705 in personal purchases over a span of five and a half years that ended in 2023. The employee has paid $20,716 in restitution, according to the report.
In the second case, an employee took $3,269 in cash receipts over two years. For the third, an employee received $3,706 in mileage reimbursements that were invalid.
The Louisiana Legislative Auditor’s Office suggested that management segregate duties and keep better track of receipts to prevent this further. Management in its response promised to do their due diligence and will require a more vigorous ethical training for employees.
In addition the instances of embezzlement, the commission’s revenues fell short of the amount budgeted by approximately 6%.
According to the auditors, a revised budget was not adopted to account for a decrease in revenues, which is required by law when revenues and expenditures reach a 5% unfavorable variance. The audit blamed the lack of funds on the COVID-19 pandemic. The absence of a proper financial plan could be a result of some other findings in the audit, which auditors say showed a lack of attention to detail. Auditors said the parks and recreation commission failed to reconcile its bank account statements, payroll benefit liabilities and inventory records in a timely manner. A software conversion and turnover of key staff were the cause of the weaknesses in reporting. The commission also failed to file its audit report with the auditor’s office in a timely manner.The commission said in its response that it blamed a lack of punctuality and would hire new, more qualified employees.