Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

May 2, 2016

School Fails to Document Scholarship Students Properly, Receives Too Much Money

A New Orleans-based voucher school received more than $61,000 in student scholarship payments to which it was not entitled while apparently failing to follow Louisiana Department of Education (LDOE) procedures regarding documentation for scholarship students, the Legislative Auditor said in a report released today.

The investigative audit into the Upperroom Bible Church Preschool and Academy, Inc. was conducted following the completion of an independent CPA audit of the school. In February 2015, LDOE received an audit report from the CPA firm questioning costs associated with 16 students enrolled at the school during the first and second quarters of the 2014-2015 school year.

In response to the report, LDOE informed the LLA that it withheld $61,698 from the school’s scholarship payments for the third and fourth quarters of the 2014-2015 school year. LDOE also sent the CPA audit report to the LLA for review and investigation as required by state law. The investigative audit was initiated as a result of that report, the state auditor said.

In the investigative audit report, LLA auditors said it appears officials with the Upperroom Bible Church Preschool and Academy, Inc. knew that 16 scholarship students were neither properly enrolled nor attending the school during the 2014-2015 year. Therefore, the school apparently incorrectly reported student enrollment/attendance information to LDOE and may have received $61,698 in scholarship payments it was not entitled to in possible violation of state law.

In her response, the school’s attorney said the LLA did not have the statutory authority to conduct the audit. In addition, the attorney said, the LLA report erroneously cited some provisions and failed to include others related to student enrollment and tracking, and contradicted previous LLA reports that found LDOE had inadequate internal processes in place to keep track of students.

For more information contact:

Legislative Auditor
225.339.3800



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