(The Center Square) – The Florida Parishes Human Services Authority did not maintain adequate controls over payroll information.
The Louisiana Legislative Auditor’s Office conducted an audit of the authority’s financial statements for the period of July 1, 2022, through March 31. It found that in the case of cash on hand, revenue billing and collection, and nonpayroll expenditures the authority had proper reporting and procedures.
However, the auditors found inadequacies in payroll processes. This resulted in untimely or a lack of approval of time statements by both the employees and supervisors of the authority.
The authority is a local governance entity that manages taxpayer funds designed to help people dealing with addiction, developmental disabilities and mental health services. It serves residents in Livingston, St. Helena, St. Tammany, Tangipahoa and Washington parishes.
Of 7,483 time statements for the period under review, 431, or 6%, were certified by employees between one and 434 days after the payroll posting date. Additionally, 219, or 3%, were not certified at all by an employee.
For supervisors, 1,470 statements, or 20%, were not approved until an average of 23 days after the payroll posting date. A total 210, or 3%, were not approved by supervisors at any point.
Auditors said failure to ensure that employees and supervisors are timely certifying and approving time statements increases the risk that errors and/or fraud could occur and not be detected in a timely manner.
There was also a review of a prior-report finding in the authority’s procedural report dated Aug. 15, 2022. Auditors determined that the Florida Parish management resolved the issue related to failure to follow public bid law requirements.
Executive Director Richard Kramer responded to the report in a letter from management.
He wrote, “Although I would like to make clear there are other checks and balances built into the payroll processes that ensure that employees are being compensated correctly, we do concur with the finding and agree that timely certification by employees and supervisors should be expected.”
He also said that effective July 1, the authority revised internal procedures to require employee time stamps be certified by the Wednesday following payroll closing on Sunday and that supervisors approve these records prior to the closing of the following payroll period.
