Report Details Areas of Concern in EBR Clerk of Court's Financial Operations
An assessment of the East Baton Rouge Clerk of Court’s internal financial controls related to credit cards, contracts, payroll, collections, and equipment identified areas of concern that need to be addressed by the Clerk, the Legislative Auditor said in a report released today.
Auditors found that the Clerk’s office did not have a comprehensive policies and procedures manual in place to provide guidance for the office’s operations. In addition, auditors recommended that the office strengthen its procedures for credit card usage, including providing adequate documentation and splitting the responsibility for oversight among different staff members.
The Clerk’s office also did not always have adequate controls in place to ensure that its contracts for services were based on demonstrated need, that it was paying competitive prices for these services, and that contract provisions were clearly stated and monitored to ensure services were provided.
Auditors found, too, that the Clerk’s office did not adequately segregate duties related to its payroll operations. They noted issues with the tracking of payroll changes made in the payroll system, the approval of overtime, and the completion of performance appraisals. In addition, auditors found that the Clerk was accruing leave, although he did not fill out timesheets.Auditors also observed that cash collections were left unsecured during the work day and were told that staff sometimes shared the cash drawers used for payment collections.
The report describes other findings as well:
· The Clerk’s office did not properly tag, track, or inventory office equipment and other movable assets.
· The Clerk’s office did not meet some requirements of the Local Government Budget Act.
· The Clerk’s office paid $125 per month and $400 a year to an auction house for procurement services, but did not use or receive any services in fiscal year 2016.
· The Clerk’s office did not prepare monthly financial budgeted-to-actual spending comparisons.
· The Clerk’s office received $3,100 in fees from marriage licenses issued by Baker City Court employees but paid approximately $5,600 for these services between July 2015 and March 2016.
· The Clerk did not forward outstanding checks to the State Treasury as unclaimed property as required by state law.
· The Clerk’s office purchased drink “koozies” with the Clerk’s name and seal on them that were given to employees and visitors, which could violate state law.
· The Clerk’s office did not post a required notice on its premises concerning the reporting of misappropriation, fraud, waste, or abuse of public funds.
In his response, the Clerk said he agreed with the findings and would make the changes recommended by the state auditor’s office.
For more information contact:
Legislative Auditor
225.339.3800