Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

October 3, 2016

Audit Finds Undocumented Spending by Kaplan Chief from Bank Accounts Unknown to City Officials

The Chief of the Kaplan Police Department was unable to document his use of $19,325 in department funds, may have used $6,965 of this amount for personal purposes, and obtained the money primarily from two department bank accounts the City knew nothing about and the department’s dispatch cash bag, the Legislative Auditor said in a report released today.

Investigative auditors also found that City police officers were allowed to work off-duty details even though the City had no policy permitting the work, which could be a violation of Louisiana’s Code of Governmental Ethics. In addition, the state auditor said, the City did not notify its workers’ compensation insurer of the officers’ off-duty work and the pay generated by that activity. As a result the City likely did not pay as much in workers’ compensation insurance premiums as it should have.

Auditors also found that Kaplan is improperly classified as a city because its population is less than 5,000. Under state law, municipalities with fewer than 5,000 residents are classified as towns. In addition, cities may have between five and nine aldermen, while towns must have five. Although Kaplan has only five aldermen, its classification is still inaccurate, and state law requires that the Board of Aldermen adopt a resolution asking the governor to change it.

The two bank accounts previously mentioned were the Kaplan Police Reserve Unit account, which was established in 1975 by a former police chief, and the Kaplan Police Recreation account, which was set up in 1990 by a different former chief. Between May 2010 and March 2015, their combined deposits totaled $65,893, while expenditures from the two totaled $66,526. The dispatch cash bag holds revenue collected from a variety of services the department performs, such as copying crash reports, fingerprinting, and sex offender registration. The Chief was not able to provide auditors with copies of receipts or records documenting the expenditure of the $19,325, nor could he explain what the money was spent for.

In the case of the off-duty police work, the officers who worked the details may be in violation of the Code of Governmental Ethics because of its prohibition against public servants receiving anything of economic value related to their job. The ethics code does provide an exception for law enforcement officers but only if a municipality has adopted a formal policy that allows the off-duty work and that provides for reimbursement for the use of public vehicles.

For more information contact:

Legislative Auditor
225.339.3800



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