Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

January 11, 2016

Auditors Find Theft, Disorganized Records and an Inadequate Segregation of Duties in Simsboro

A theft of utility collections, as well as disorganized and missing records, were two key findings in an investigative audit of the Lincoln Parish village of Simsboro released Monday by Legislative Auditor Daryl Purpera.

Additionally, the village lacks an adequate segregation of duties over the receipt, deposit, and recording of revenues. This is caused by the fact that the village has just one full-time employee, the village clerk. “Without adequate segregation of duties, errors or fraud could occur and not be detected, increasing the risk of loss or theft of additional Village assets,” the report said, which is exactly what happened with a former village clerk.

Former village clerk Kathy Davis admitted to taking $5,096 in village utility payments for her own personal use. Records show that between July 1, 2013 and April 14, 2014 Davis backdated numerous cash payments, which allowed customers to receive credit for making a payment (so they were not notified for having a delinquent balance), and reduced the amount of cash collected in the entries so the thefts couldn’t be detected.

Auditors also reported that the village’s records were disorganized, and some could not even be located. Specifically:

Recommendations made to the village by the state auditor included seeking recovery of the missing funds, better controls over financial transactions and implementing a centralized recordkeeping system. Village officials verbally agreed with the findings and recommendations but chose not to respond to the report.
For more information contact:

Legislative Auditor
225.339.3800



###

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