Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

November 16, 2015

West Feliciana Parish Gas Utility District Payroll Process Failed to Detect 26 Weeks of Falsified Overtime Pay Records

A financial audit released Monday found that a lack of internal controls inside West Feliciana Parish Gas Utility District No. 1 allowed a former business manager to falsify overtime payroll records undetected for 26 weeks during 2014 and 2015.

The independent financial audit for the fiscal year ended April 30, 2015 was conducted by the certified public accounting firm Postlethwaite and Netterville for the Legislative Auditor’s office.

This gas utility district provides natural gas to 370 customers, including the Louisiana State Penitentiary at Angola and the East Louisiana State Hospital in Jackson.

The report notes that the District’s former business manager appears to have falsified $1,872 in overtime pay that should not have been paid over the last two fiscal years. The District had conducted its own investigation, terminated the former business manager and notified the 20th Judicial District Attorney and the West Feliciana Parish Sheriff’s Office. However, the District had not notified the Legislative Auditor as required by state statute.

Law enforcement previously closed the case without filing formal charges against the business manager, and so far restitution of the misappropriation has not occurred nor has the District filed an insurance claim over the missing money. The state auditor’s office will turn this audit report over to the 20th Judicial District Attorney.

The audit found several other problems with segregation of duties and internal controls inside the District’s administrative office. These include allowing the Accounting Manager to both process debit cards and reconcile the District’s bank accounts; not reconciling cash balances or customer deposits to the District’s general ledger; not providing monthly financial statements to the District’s Superintendent or Board members; and not conducting regular physical inventory checks of the District’s property, plant and equipment.

According to the report, the District agreed to implement many of the audit’s recommendations. The District also responded in the report that, in May 2015, it instituted payroll control policies that now require the Superintendent to review timesheets and payroll reports for each pay period.

For more information contact:

Legislative Auditor
225.339.3800



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