(The Center Square) — According to a recent audit, the nonprofit Southern Center for Children and Families, Inc. had an employee taking money from them for years.
This is according to an audit report performed by the David M. Hartt accounting corporation on behalf of the Louisiana Legislative Auditor’s Office. The report looked at the center’s financial statements for the year ended June 30, 2024.
The Monroe-based nonprofit, which serves 4,000 families with advocacy, counseling, education and prevention programs in both Louisiana and Mississippi, received $2.68 million in taxpayer funds in 2024 and $3.26 million in 2023.
During this fiscal year, it was discovered that the accountant of the center, Tori Bayles, engaged in deliberate actions to misappropriate organization funds.
This includes activities such as unauthorized uses of the bank debit card. Also, analysis of transaction records such as payroll checks and accounts payable checks showed multiple instances of unauthorized fund transfers to her personal account.
Supporting documents, including transfer confirmations, were linked to the employee as evidence of this misconduct. The total amount of the theft was approximately $170,000 and it is believed she committed the acts over a period of five to six years.
Although the employee theft was discovered by the accountant, the center immediately contacted the fiscal auditor to verify the misappropriations.
Once verified, the suspected employee was placed on administration leave while the internal investigation was complete. Once auditors confirmed what happened and also determined that the employee acted alone, the accountant was terminated.
Auditors suggested the center review and strengthen internal controls. This could mean implementing proper employee monitoring like checks and balances for approval or authorizations of funds.
Strengthening internal controls could also be done by conducting training for employees on ethics and reporting suspicious activities. The process to initiate recovery procedures for the misappropriated funds should also occur.
Despite the accountants theft of $170,000, the auditors mostly praised the center for proper procedures and financial records.
There were no instances of material weaknesses or significant deficiencies relating to the center’s financial statements or internal controls over compliance with major federal award programs.