St. Tammany Recreation District Audit Finds Improper Credit Card Use, Missing Documentation

An investigation into the financial operations of St. Tammany Parish Recreation District No. 4 found instances of improper credit card use, a failure to document and deposit cash, a lack of documentation for travel advances and mileage reimbursements, and numerous issues with the District’s business practices and internal controls, the Legislative Auditor said in a report released today.

Auditors found that between September 2014 and April 2016 staff members made $59,449 in purchases using the District’s credit card. The public purpose nature of $27,136 of that amount could not be verified because the documentation was missing, the state auditor said. In addition, between November 2014 and November 2015, the District’s director used the District credit card to make $1,463 in personal purchases.

The audit also showed that between September 2014 and December 2015 staff converted $2,800 in District funds to cash, which was to be used as start-up cash for events where an admission fee was charged. However, auditors could not find any records to show that the start-up cash and gate revenues were deposited into the District’s bank account.

In addition, auditors were unable to find documentation to support travel expense payments totaling $4,417 to District employees. The amount, which was paid out between August 2014 and March 2016, included $2,302 in advances and $2,115 in mileage reimbursements. Auditors also could not find any evidence that the unused portion of the travel advances had been returned to the District.

Between August 2014 and April 2016, auditors found, the District paid its director for at least six days off for which he did not request leave. In addition, the director did not fill out time sheets to account for the time he worked nor did the District maintain records to show that the director had accrued and used leave.

Auditors also examined the District’s overall internal controls and found several areas needed improvement. Those areas included overall Board governance and management; ethics; financial management; credit cards; contracting for services; payroll; capital assets; and records.