Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

November 10, 2014

Recreation and Park Commission for East Baton Rouge Parish (BREC)

A former employee of the Recreation and Parks Commission of East Baton Rouge Parish allegedly misappropriated items stored in a commission warehouse and turned them over to an ally for resale, according to an audit of the commission released Monday by Legislative Auditor Daryl Purpera’s office.

The audit covered the fiscal year that ended December 31, 2013 and was prepared by the accounting firm of Postlethwaite and Netterville, APAC of Baton Rouge. Between $3,000 and $6,000 of inventory was taken during the theft, according to the report. “Prosecution is still in progress,” the report said.

Auditors said that the former employee “provided supplies stored in the commission warehouse to an unauthorized individual outside the organization for the purpose of re-selling the supplies.”

The state auditor’s report recommended that the commission strengthen its internal controls over inventory to ensure that “regular accurate counts are performed and records maintained of the inventory on hand. Additionally, personnel duties should be segregated and oversight provided that will prevent employees’ access to misappropriate inventory in the future.”

Before being fired, the commission employee had the authority to make purchases and receive, distribute and track the inventory to the various recreation agency departments.

Recreation commission staff said in a response that they have received “full restitution” for the stolen items and are developing “significant improvements in our policies and procedures to ensure proper safeguarding and an accurate account of inventory on hand.”

The commission also will implement more periodic inventories throughout the year as well as conduct random supply counts to ensure that accurate records of inventory are maintained. Commission officials said they intend to hold employees “more accountable for the agency’s assets.”

In a separate management letter addressed to the commission, auditors said that during their audit work they discovered that a commission employee allegedly misused an agency credit card “to purchase personal items for a total of approximately $1,000.” The letter said the worker has been terminated and has repaid the agency “for the inappropriate charges.”

Commission officials said that additional procedures have been put in place to strengthen internal controls over credit card use.

The audit report also noted that the commission failed to file its state audit by the end of June, the mandatory six-month deadline after the close of its fiscal year, a violation of state audit law.

BREC-LGS 2014 release.pdf

For more information contact:

Legislative Auditor
225.339.3800



###

Office of the Louisiana Legislative Auditor | www.LLA.La.gov